Topic 10. Accounting financial investments

Concept and types of financial investments.

Evaluation of financial investments in accounting.

Accounting for equity investments.

Accounting for debt financial investments.

Accounting for loans granted.

Concept and types of financial investments.

Accounting for financial investments is regulated by the Accounting Regulations “Accounting for Financial Investments” (PBU 19/02) dated December 10, 2002, No. 126n. Financial investments can be made by the organization:

1) in securities (shares, government bonds, corporate bonds, deposits, financial and commercial bills, checks and other derivative securities);

2) in the form of contributions to authorized capital;

3) in the form of long-term and short-term loans provided.

Financial investments of the second and third groups can be made in monetary and material forms.

Financial investments are accepted for accounting subject to the simultaneous fulfillment of the following conditions:

availability of properly executed documents confirming the ownership of the organization;

transition to organizing financial risks (risk of insolvency, risk of price changes, etc.);

the ability to bring economic benefits to the organization.

Financial investments do not include:

own shares purchased from shareholders for subsequent sale or cancellation;

bills issued by the organization-issuer of the bill to the organization-seller when paying for goods sold, products, work performed, services rendered;

investments in movable and real estate, having a tangible form, provided by an organization for a fee for temporary use;

precious metals, jewelry, works of art and other similar valuables acquired for purposes other than normal activities.

Accounting for financial investments is carried out on active account 58 “Financial investments”, to which the following sub-accounts can be opened:

58-1 “Units and shares”;

58-2 “Debt securities”;

58-3 “Loans provided”;

58-4 “Deposits under a simple partnership agreement”, etc.

Evaluation of financial investments in accounting.

Financial investments are accepted for accounting at their historical cost, which means the amount of actual acquisition costs. The initial cost of financial investments includes:

the cost of acquiring financial investments according to the agreement;

cost of information and consulting services;

the cost of intermediary commissions;

other costs associated with the acquisition of financial investments.

For financial investments that are subject to accounting valuation at current market value, additional valuation or discounting may be carried out during the reporting period:

Debit 58, credit 91.1 – revaluation due to an increase in the current market value of the financial investment;

Debit, 91.2, credit 58 – markdown due to a decrease in the current market value of a financial investment.

If there are signs of impairment of financial investments for which the current market price, the organization must check whether there are conditions for a sustainable decline in the value of these financial investments. If an impairment test confirms a sustained significant decline in the value of financial investments, the organization creates a reserve for impairment of financial investments due to the formation of other expenses. The reserve is accounted for in account 59 “Provisions for impairment of financial investments.” The creation of the reserve is reflected by the posting: debit 91-2, credit 59.

In the financial statements, the value of such financial investments is shown minus the amount of the formed reserve for impairment. If the results of checking for impairment of financial investments reveal an increase in their estimated value, then the amount of the previously created reserve for impairment of financial investments is adjusted towards its decrease and increase in the financial result (as part of other income): debit 59, credit 91-1.

The assessment of retiring financial investments is carried out in one of the following ways:

1) at the initial cost of each unit of financial investment;

2) at the average initial cost;

3) at the original cost of the first financial investments acquired (FIFO method).

The use of one of the methods is provided for by the accounting policy of the organization for a certain group or type of financial investments.

If financial investments have a current market value reflected in accounting, then they are disposed of based on the latest valuation.

Accounting for equity investments.

Equity financial investments mean investments of third-party organizations in shares for the purpose of participating in the management of an organization or receiving speculative income, as well as the acquisition of a share in the authorized capital of third-party organizations for the purpose of participating in the management of an organization.

Example 1.

The Vega organization acquired 10 shares for 12,000 rubles. The nominal value of one share is 1000 rubles. The cost of consulting services provided by a third party was 118 rubles, incl. VAT 18 rub.

The cost of the acquired shares is reflected:

Debit 58-1 “Units and shares”, credit 51 “Current accounts” -12,000 rubles.

Included in the initial price of shares are the costs of consulting services:

Debit 58-1 “Units and shares”, credit 51 “Current accounts” -100 rubles.

VAT on consulting services is reflected:

Debit 19 “VAT on purchased valuables”, credit 51 “Current accounts” - 18 rubles.

Thus, initial cost shares will be:

(12,000 rubles + 100 rubles): 10 shares = 1,210 rubles.

Accounting for debt financial investments.

Debt financial investments mean financial investments in debt securities (government bonds, corporate bonds, checks, deposits, financial bills and commodity bills of exchange). Typically, bonds are sold at a discount, which upon maturity is paid to the holder in excess of the amount paid. In addition, bonds may also provide for annual interest payments.

Example 2.

An organization purchases a package of bonds with a circulation period of 4 years. The nominal value of the bond package is 18,000 rubles. Actual acquisition costs amounted to 12,000 rubles. The bonds have been accepted for accounting. At the end of the reporting year, bond income was accrued in the amount of 2,000 rubles.

The actual cost of the purchased bonds is reflected:

Debit 58.2, credit 76 - 12,000 rubles.

2. Income accrued on bonds:

Debit 76, credit 91.1 - 2000 rubles.

3. Bond income received:

Debit 51, credit 76 - 2000 rubles.

4. The difference between the nominal and actual value of the purchased bonds is written off as income is accrued in proportion to the circulation period of the bonds:

Debit 58-2, credit 91-1 “Other income” - 1500 rubles.

((RUB 18,000 - RUB 12,000): 4 years).

Accounting entries 2-4 are made over the next 3 years, which allows, by the end of the fourth year, by debiting account 58-2, to form their nominal value, at which they will be repaid by the issuer to the holder. When redeemed, a register is made:

Debit 51, credit 58-2 – 18,000 rubles.

5. Accounting for loans provided.

Granted loans are debt obligations to provide Money(other property) from one legal entity or individual to another legal entity (individual) without the participation of the bank. According to clause 7 of PBU 9/99 “Income of the organization”, the amount of interest on the loan provided in the investor’s accounting is subject to inclusion in other income.

Example 3.

The organization provided a cash loan to a legal entity for a period of 6 months in the amount of 100,000 rubles. at 30% per annum. According to the agreement, interest is accrued and paid monthly. After the specified period, funds are received to repay the loan.

Short-term loan provided:

Debit 58-3, credit 51 - 100,000 rubles.

2. Monthly interest accrued on the loan provided:

Debit 76, credit 91.1 - 2500 rub.

(RUB 100,000 * 30%: 12 months)

3. Interest received under the loan agreement:

Debit 51, credit 76 - 2500 rub.

4. Short-term loan returned:

Debit 51, credit 58-3 - 100,000 rubles.

Impairment of financial investments a sustained significant decrease in the value of financial investments for which their current market value is not determined is recognized, below the amount of economic benefits that the organization expects to receive from these financial investments under normal conditions of its activities.

The organization determines by calculation the value of financial investments equal to the difference between the cost at which they are reflected in accounting (accounting value) and the amount of such reduction.

A steady decline in the value of financial investments is characterized by the simultaneous presence of the following conditions:

On reporting date and at the previous reporting date the accounting value is significantly higher than the estimated value;

During the reporting year, the estimated value of financial investments changed significantly only in the direction of decrease;

As of the reporting date, there is no evidence that a significant increase in the estimated value of these financial investments is possible in the future.

Examples of situations in which impairment of financial investments may occur are:

The issuing organization of securities that are owned by the organization or its debtor under the loan agreement shows signs of bankruptcy or is declared bankrupt;

Conducting a significant number of transactions in the securities market with similar securities at a price significantly lower than their book value;

Absence or significant decrease in income from financial investments in the form of interest or dividends with a high probability of a decrease in these income in the future.

If a situation arises in which depreciation of financial investments may occur, the organization must check the existence of conditions for a sustainable decrease in the value of financial investments. If the audit confirms such a decrease, the organization creates a reserve for the impairment of financial investments in the amount of the difference between the book value and the estimated value of these financial investments. A commercial organization creates the specified reserve at the expense of its financial results (as part of other expenses). In the financial statements, such financial investments are reflected at their book value less the amount of the reserve created for the depreciation of these investments.

The impairment test of financial investments is carried out at least once a year as of December 31 of the reporting year if there are signs of impairment. administrative document on accounting policy organization, an audit may be scheduled for the dates of interim financial statements.

If, as a result of checking for impairment of financial investments, a further decrease in their estimated value is revealed, then the amount of the previously created reserve for the impairment of financial investments is adjusted upward with a simultaneous increase in other expenses.

If, as a result of checking for impairment of financial investments, an increase in their estimated value is revealed, then the amount of the previously created reserve for the impairment of financial investments is adjusted towards its decrease and increase in other income. Based on available information that the financial position no longer meets the criteria for a sustainable decline in value, as well as upon disposal of financial investments, the estimated value of which was included in the calculation of the reserve for impairment of financial investments, the amount of the previously created reserve for these financial investments is included in other income commercial organization. To summarize information on reserves for depreciation of financial investments, account 59 “Reserves for depreciation of financial investments” is used, to which it is advisable to open sub-accounts by type of reserves. Synthetic and analytical accounting on account 59 “Reserves for impairment of financial investments” is maintained in the statement in the context of formed reserves.

Impairment of financial investments according to paragraph 37 of PBU 19/02, a sustained significant decrease in the value of financial investments for which their current market value is not determined is recognized, below the amount of economic benefits that the organization expects to receive from these financial investments under normal conditions of its activities.

In this case, based on the organization’s calculations, the estimated value of financial investments is determined, equal to the difference between their value at which they are reflected in accounting (accounting value) and the amount of such reduction.

In order to recognize that investments are depreciating, the following conditions must be simultaneously present:

1) at the reporting date and at the previous reporting date, the accounting value is significantly higher than their estimated value;

2) during the reporting year, the estimated value of financial investments changed significantly only in the direction of its decrease;

3) at the reporting date there is no evidence that a significant increase in the estimated value of these financial investments is possible in the future.

In accordance with paragraph 38 of PBU 19/02, in the event of a situation in which depreciation of financial investments may occur, the organization must check the existence of conditions for a sustainable decrease in the value of financial investments.

If the audit confirms a sustained significant decrease in the value of financial investments, then the organization creates a reserve for the impairment of financial investments. The specified reserve is formed at the expense of the financial results of the organization (as part of other expenses).

Chart of accounts accounting To summarize information on the availability and movement of reserves for the depreciation of financial investments, account 59 “Reserves for the depreciation of financial investments” is provided.

An entry is made for the amount of reserves created in the debit of account 91 “Other income and expenses” and the credit of account 59 “Reserves for depreciation of financial investments.” A similar entry is made when the amount of these reserves increases.

The organization forms the specified reserve at the expense of financial results (as part of other expenses).

In the financial statements, the value of such financial investments is shown at book value minus the amount of the formed reserve for their depreciation.

Financial investments are checked for impairment at least once a year as of December 31 of the reporting year if there are signs of impairment. The organization has the right to carry out this check on the reporting dates of the interim financial statements.

In the financial statements, the value of long-term financial investments as of the reporting date, as of December 31 of the previous year and as of December 31 of the year preceding the previous one, is indicated on line 1150 “Financial investments” of the balance sheet (form according to OKUD 0710001). The form of the balance sheet was approved by Order of the Ministry of Finance of Russia dated July 2, 2010 N 66n “On the forms of financial statements of organizations” (hereinafter referred to as Order N 66n).

The cost of short-term financial investments should be reflected in line 1240 “Financial investments (except for cash equivalents)” of the balance sheet.

Let me remind you that short-term are those assets whose circulation or repayment period does not exceed 12 months, and long-term are financial investments with a maturity of more than one year.

In addition, information on financial investments is subject to reflection in the Explanations to the balance sheet and profit and loss statement (Appendix No. 3 to Order No. 66n).

In Appendix No. 3 there is a section. 3 “Financial investments”, in which information about financial investments is reflected in the tables:

3.1 "Availability and movement of financial investments";

3.2 "Other use of financial investments."

Table 3.1 shows information on long-term and short-term investments (by groups, types) for the reporting and previous years, as well as the following data:

Initial cost of financial investments, accumulated adjustment - at the beginning of the year and the end of the reporting period;

Investments received during the period;

Investments retired (repaid) during the period at their original cost;

Cumulative adjustment for retired (redeemed) investments;

Calculation of interest for the period (including bringing the initial cost to par);

Change in current market value (impairment losses).

The cumulative adjustment should be determined in the following order:

For financial investments for which the current market value can be determined - as the difference between the original and current market value;

For debt securities for which the current market value is not determined - as the difference between the original value and the nominal value accrued during the circulation period;

For financial investments for which the current market value is not determined - as the amount of the reserve for depreciation of financial investments created as of the previous reporting date.

Table 3.2 provides information on financial investments (by groups, types) pledged, transferred to third parties (except for sale), and used in other ways.

The specified information is shown as of the reporting date of the reporting period, as of December 31 of the previous year and as of December 31 of the year preceding the previous one.

Please note: in Explanation 3 “Financial Investments”, drawn up in tabular form, for submission to state statistics bodies and other executive authorities, indicator codes are indicated in accordance with Appendix No. 4 to Order No. 66n (clause 5 of Order No. 66n).

Information about the organization’s income received from participation in the authorized (share) capitals of other organizations and which is other for it is reflected in line 2310 “Income from participation in other organizations” of the profit and loss statement (form according to OKUD 0710002).

In accordance with clause 7 of the Accounting Regulations “Income of the Organization” PBU 9/99, approved by Order of the Ministry of Finance of Russia dated May 6, 1999 N 32n, income from participation in other organizations includes:

The amount of part of the profit (dividends) distributed in favor of the organization;

The value of property received upon leaving the company or upon liquidation of the organization.

The value of line 2310 “Income from participation in other organizations” of the profit and loss statement is determined based on data on the total reporting period credit turnover according to account 91 “Other income and expenses”, subaccount 91-1 “Other income”, analytical account for accounting for income from participation in the authorized capitals of other organizations.

IN balance sheet(OKUD form 0710001) and in the profit and loss statement (OKUD form 0710002) there is a column “Explanations”, which indicates the number of the corresponding explanation.

1) in the balance sheet according to the line:

- “Financial investments” in section. I "Non-current assets" - if the circulation (repayment) period of financial investments exceeds 12 months after the reporting date;

- “Financial investments” in section. II "Current assets" - if the circulation (repayment) period of financial investments does not exceed 12 months;

2) in the income statement according to the line:

- “Income from participation in other organizations”;

- "Interest receivable";

- "Other income";

- "Other expenses".

Example: How to reflect in the accounting of an organization (participant in a company with additional liability) the payment of a share in the authorized capital in cash and the subsequent depreciation of this share? The amount of deposited funds is 100,000 rubles, which is equal to the nominal value of the share. The organization's share of participation in the society is 10%. The liability of a participant to the creditors of the company is established at twice the nominal value of his share.

The value of the company's net assets decreased as of the reporting date (07/31/2012) to RUB 820,000, and as of the previous reporting date (06/30/2012) - to RUB 890,000.

The organization checks for impairment of financial investments on a monthly basis.

Civil relations

In accordance with paragraph 1 of Art. 95 of the Civil Code of the Russian Federation, a company with additional liability is recognized as a company whose authorized capital is divided into shares; Participants of such a company jointly and severally bear subsidiary liability for its obligations with their property in the same multiple of the value of their shares, determined by the charter of the company.

The rules on a limited liability company apply to an additional liability company insofar as this does not contradict the basic provisions on an additional liability company established by Art. 95 of the Civil Code of the Russian Federation (clause 3 of Article 95 of the Civil Code of the Russian Federation). Thus, payment for shares in the authorized capital of a limited liability company can be made in money (Clause 1, Article 15 Federal Law dated 02/08/1998 N 14-FZ “On Limited Liability Companies”).

As follows from paragraph 1 of Art. 95 of the Civil Code of the Russian Federation, participants in a limited liability company jointly and severally bear subsidiary liability for the debts of the company. In practice, this means that the creditor is obliged to first turn to the company with a demand to fulfill the obligation, and only after receiving a refusal from the company or without receiving a response from it within a reasonable time, can he turn to any of the company’s participants or to all participants at the same time (clause 1 of Art. 399, paragraph 1 of Article 323 of the Civil Code of the Russian Federation).

Accounting

According to para. 3 clause 3 of the Accounting Regulations “Expenses of the Organization” PBU 10/99, approved by Order of the Ministry of Finance of Russia dated 05/06/1999 N 33n, the transfer of funds to pay for a share in the authorized capital of a company with additional liability is not recognized as an expense of the organization.

An organization's share in the authorized capital of a company with additional liability is recognized as a financial investment of the organization on the date of state registration of the company in accordance with paragraphs 2, 3 of the Accounting Regulations "Accounting for Financial Investments" PBU 19/02, approved by Order of the Ministry of Finance of Russia dated December 10, 2002 N 126n. It is accepted for accounting into account 58 “Financial investments”, subaccount 58-1 “Shares and shares”, at the original cost, equal in this case to the amount of funds transferred to pay for the share (clauses 8, 9 PBU 19/02, Instructions for the application of the Chart of Accounts for accounting financial and economic activities of organizations, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n).

Participation in a company with additional liability leads to the organization having obligations to the creditors of this company with an uncertain amount and deadline, i.e. estimated liabilities (clause 4 of the Accounting Regulations “Estimated liabilities, contingent liabilities and contingent assets” (PBU 8/2010), approved by Order of the Ministry of Finance of Russia dated December 13, 2010 N 167n).

Estimated liabilities are recognized subject to simultaneous compliance with the conditions listed in paragraph 5 of PBU 8/2010. In this case, the obligation to answer to the creditors of a company with additional liability follows from the charter of this company, i.e. the existence of this obligation is beyond doubt (clause “a”, clause 5 of PBU 8/2010).

Therefore, it is necessary to determine the likelihood of a decrease in economic benefits for this estimated liability (clause “b”, clause 5 of PBU 8/2010). To do this, it is necessary to assess the solvency of the company based on the data from the company’s financial statements.

In this case, a decrease in the value of net assets is observed in the reporting of a company with additional liability. However, a decrease in the value of net assets (despite the fact that their value remains positive) does not in itself indicate that the company does not have enough assets to pay off its own liabilities. As long as current assets exceed short-term liabilities, an estimated liability is not recognized in the organization’s accounting (clause 7 of PBU 8/2010). Consequently, a company participant discloses in the financial statements information about the existence of a contingent liability in accordance with the norms of PBU 8/2010 (clause 3 of the Information of the Ministry of Finance of Russia dated June 22, 2011 N PZ-5/2011 “On the disclosure of information about off-balance sheet items in the annual financial statements of an organization ", paragraph 2, clause 9, clause 14 of PBU 8/2010).

In accordance with the Instructions for the Application of the Chart of Accounts, the presence and movement of contingent liabilities arising in connection with the issuance of guarantees for the obligations of third parties are recorded in off-balance sheet accounts. To account for issued guarantees, an off-balance sheet account 009 “Securities for obligations and payments issued” is provided. That is, contingent liabilities arising as a result of assuming additional responsibility for the company’s obligations can also be accounted for in the specified off-balance sheet account, which does not contradict PBU 8/2010.

According to the Instructions for using the Chart of Accounts, if the guarantee does not indicate the amount, the contingent liability is reflected in account 009 based on the terms of the agreement. In this regard, in this case, the contingent liability is reflected in account 009 in the maximum possible amount of the participant’s liability provided for by the company’s charter - 200,000 rubles. (RUB 100,000 x 2).

In the future, the assessment of the solvency of the company for the purposes of recognition estimated liability should be carried out on reporting dates (i.e. monthly) (clause 6 of PBU 8/2010).

In this case, on two consecutive reporting dates, there was a decrease in the value of the company’s net assets, which means that the company suffered losses and is an example of a situation in which depreciation of financial investments may occur (paragraph 9 of clause 37 of PBU 19/02). In this regard, the organization is obliged to check the financial investment in the form of a share in the authorized capital for the presence of conditions for a sustainable significant decrease in the value of this financial investment. In accordance with the accounting policy of the organization, this audit is carried out monthly (clause 37, paragraph 1, 2, 6, clause 38 of PBU 19/02).

A steady decrease in the value of financial investments is characterized by a decrease in the estimated value of financial investments on the reporting date, on previous reporting dates, as well as the absence of grounds to assume that a significant increase in the estimated value of financial investments is possible in the future (paragraph 2 of clause 37 of PBU 19/02). Meanwhile, the term “calculated cost” in para. 1 clause 37 of PBU 19/02 is disclosed through the difference between the book value of financial investments and the amount of the reserve created for their impairment. In essence, such a definition does not give anything, since the reserve in accordance with paragraph. 3 clause 38 of PBU 19/02 is created for the difference between the accounting and estimated values.

At the same time, according to para. 1 clause 37 of PBU 19/02, impairment of financial investments is understood as a decrease in the value of financial investments below the amount of economic benefits that the organization expects to receive from these financial investments under normal conditions of its activities. Taking this into account, the estimated value of a share in the authorized capital of a company with additional liability, in our opinion, should be understood as the actual value of a participant’s share, which, in accordance with clause 2 of Art. 14 of Federal Law No. 14-FZ is equal to the part of the value of the company’s net assets attributable to the participant’s share in the authorized capital, and can be received by him upon leaving the company. Since the calculations made by the organization to determine the actual value of the share confirm a sustainable significant decrease in the value of financial investments, the organization needs to create a reserve for the depreciation of the value of financial investments as of 07/31/2012; the amount of the created reserve is taken into account as part of other expenses (paragraph 2, paragraph 37, paragraph 3, 4, 7, paragraph 38 of PBU 19/02).

Corporate income tax

When an organization pays for a share in the authorized capital of a company with additional liability, the organization does not incur expenses, as well as profits or losses taken into account when determining tax base for income tax (clause 3 of article 270, subclause 2 of clause 1 of article 277 Tax Code RF).

According to para. 2 pp. 2 p. 1 art. 277 of the Tax Code of the Russian Federation, the value of the acquired share for tax purposes is recognized in this case as equal to the amount of money transferred in payment for the share.

When determining the tax base for income tax, expenses in the form of amounts of deductions to the reserve for depreciation of investments in securities created by organizations in accordance with the legislation of the Russian Federation (with the exception of amounts of deductions to reserves for depreciation of securities made by professional participants in the securities market) are not taken into account. (Clause 10, Article 270 of the Tax Code of the Russian Federation). In our opinion, expenses in the form of deductions to the reserve for depreciation of investments in the authorized capital of other organizations should also not be taken into account for profit tax purposes.

Application of PBU 18/02

Due to the non-recognition of the created reserve for profit tax purposes, a permanent difference arises in the organization’s accounting. This difference leads to the emergence of a permanent tax liability (clauses 4, 7 of the Accounting Regulations “Accounting for calculations of corporate income tax” PBU 18/02, approved by Order of the Ministry of Finance of Russia dated November 19, 2002 N 114n).

If a situation arises that could result in depreciation of financial investments, the organization must check whether there are conditions for a sustainable decline in the value of financial investments.

The estimated value of financial investments is understood as the difference between the accounting value of financial investments and the amount of reduction in their value.

The audit is carried out for all financial investments of the organization for which their current value is not determined if signs of impairment are observed in their respect.

Sustainable reduction in the cost of financial investments

A steady decline in the value of financial investments is characterized by the simultaneous presence of the following conditions:

As of the reporting date and the previous reporting date, the book value of financial investments is significantly higher than their estimated value;

During the reporting year, the estimated value of financial investments changed significantly only in the direction of its decrease;

As of the reporting date, there is no evidence that a significant increase in the estimated value of financial investments is possible in the future.

Creation of a reserve for depreciation of financial investments

If the impairment test confirms a sustained significant decrease in the value of financial investments, then the organization should create a reserve for impairment of financial investments in the amount of the difference between the book value and the estimated value of such financial investments (clauses 21, 38 of PBU 19/02).

The amount of the reserve is included in other expenses.

An entry is made for the amount of reserves created in the debit of account 91 “Other income and expenses” and the credit of account 59 “Reserves for depreciation of financial investments.”

Analytical accounting of the account is carried out for each reserve and for each group of financial investments.

Amount of reserve for impairment of financial investments

A reserve for impairment of financial investments can be created in the amount of:

1. the entire amount of the accounting value of financial investments - in case of full confidence that it is impossible to sell (repay, return) these financial investments, due to the introduction of bankruptcy proceedings or other reasons;

2. the amount of book value minus the estimated value of financial investments - if there is information about the bankruptcy of the issuing organization, revocation of its license, a decrease in the value of net assets or other information confirming a sustained significant decrease in the value of financial investments.

Use of reserve for impairment of financial investments

If, as a result of checking for impairment of financial investments, a further decrease in their estimated value is revealed, then the amount of the previously created reserve for the impairment of financial investments is adjusted towards its increase.

If, as a result of checking for impairment of financial investments, an increase in their estimated value is revealed, then the amount of the previously created reserve is adjusted towards its decrease and increase in the financial result.

When the amount of created reserves decreases, the following entry is made: Debit Credit 91-1.

Still have questions about accounting and taxes? Ask them on the accounting forum.

Provision for impairment of financial investments: details for an accountant

• Registration and accounting of issued and received securities. Examples

  Their real value decreases. The amount of the reserve for the depreciation of financial investments is equal to the amount by which the... "Loan 59 - a reserve for the depreciation of financial investments has been created (increased). Analytical accounting is carried out by type...; Other income", - the reserve for the depreciation of financial investments has been dissolved (reduced) depreciation of financial investments. The same entry is made if... the day the organization decided to create a reserve for the depreciation of financial investments. This transaction is reflected in the accounting...

• What reserves in accounting should simplifiers create?

  Indicator Reserve for doubtful debts Reserve for depreciation of financial investments Reserve for reduction in the value of material... debts. Question No. 2. Why do we need a reserve for the depreciation of financial investments? Companies must create this reserve...; LOAN 59 - a reserve has been created (increased) for the depreciation of financial investments. Maintain analytical accounting by type... income” - the reserve for depreciation of financial investments has been disbanded (reduced). Do the same wiring if...

• Requirements for accounting for financial instruments - comparative analysis of IFRS and RAS

  Persons (except for sales); data on the reserve for impairment of financial investments, indicating: the type of financial investments...

• Reserves in accounting and tax accounting. When and how to create them

  Reducing the cost of material assets. 2. Provision for impairment of financial investments. 3. Provision for doubtful debts... profit simply does not show anything. Reserve for impairment of financial investments The reserve for impairment of financial investments is regulated by PBU 19/02, which...

• What points should you pay attention to when submitting financial statements for 2008?

  Valuables”, 59th account “Reserves for depreciation of financial investments”, 63rd account “Reserves... reserve for depreciation of financial investments. Yes, we should. Thus, to summarize information on the availability and movement of reserves for the depreciation of financial investments... account 59 “Reserves for the depreciation of financial investments” is provided. For the amount created... income and expenses”, Loan 59 “Reserves for depreciation of financial investments”. But when creating a reserve, remember...

• Additional financial investments

  If the organization has previously recognized a reserve for the impairment of a financial investment in a company, which is provided with additional... upon the occurrence of certain circumstances, the creation of a reserve for the impairment of financial investments. Such a reserve is formed in the amount of... an additional investment to repay the reserve for impairment of a financial investment; it is advisable to leave it at the discretion of the organization...

• Approximate composition of information disclosed in the notes to the balance sheet and income statement for 2012

  ... /99, paragraph 26 Availability of a reserve for depreciation of financial investments Data on the reserve for depreciation of financial investments: - type of financial investments; - size...

• "Accounting for financial investments PBU 19/02": Comment

  Confirms the decrease in value, the organization creates a reserve for the depreciation of financial investments. The reserve is created for the amount of the difference... 59 Loan 91-1 - the reserve for the depreciation of financial investments due to their disposal... is written off for profit tax purposes. Data on reserves for the depreciation of financial investments, indicating: the type of financial investments... declared bankrupt, a commercial organization creates a reserve for the depreciation of financial investments. In this case, in the accounting...

• Settlements with a bill of exchange denominated in foreign currency

  Declared bankrupt, a commercial organization creates a reserve for the depreciation of financial investments. This reserve is formed through... reporting. To reflect reserves for depreciation of financial investments, account 59 “Reserves for depreciation of financial investments” is intended. In accordance with... the credit of account 91. The amount of the created reserve for the depreciation of financial investments cannot be taken into account for...

We have one more question. The company reflects the financial balance in its balance sheet. investment in the form of a contribution to the authorized capital of another organization. Is it necessary to create a reserve for financial impairment at the end of the year? investments if the net assets in this other organization are lower than the authorized capital.

See article for details.

The rationale for this position is given below in the materials of the Glavbukh System

Article:2.2.2. Impairment of financial investments

Impairment of financial investments is a sustained significant decrease in the value of financial investments for which their current market value is not determined. At the same time, the cost of financial investments falls below the amount of economic benefits that the organization expects to receive from these financial investments under normal conditions of its activities (clause 37 of PBU 19/02).

Estimated cost. The accounting value of financial investments is the value at which they are reflected in accounting, that is, their initial cost.

The estimated value is determined when there is a significant decrease in the value of financial investments. It is calculated as the difference between the book value of financial investments and the amount of such reduction.

The impairment test of financial investments is carried out at least once a year as of December 31 of the reporting year if there are signs of impairment.

The organization has the right to conduct such inspections both quarterly and monthly. The frequency of testing to identify signs of impairment of financial investments is determined in the accounting policy.

Please pay special attention: the audit is carried out on all financial investments of the organization for which there are signs of impairment. In this case, the results of the inspection must be documented.

In order to check their financial investments for depreciation, it is advisable for an organization to create a commission from among the organization’s employees.

Members of the commission are appointed by order (instruction) of the head of the organization.

It is advisable to present the results of the audit in the form of reports that reflect:

a complete list of financial investments according to the organization’s accounting data as of December 31 of the reporting year;

• signs of impairment;
• the estimated value of these financial investments;
• amount of provision for impairment.

Based on such reports, the commission analyzes financial investments and makes proposals on the formation of impairment reserves and their amount, which is approved directly by the head of the organization.

2.2.4. Formation of a reserve for depreciation of financial investments

If the impairment test confirms a sustained significant decline in the value of financial investments, the organization creates a reserve for their impairment. The creation of such a reserve is mandatory for every organization.

The amount of the reserve is determined as the difference between the book value and the estimated value of such financial investments.

In accounting, the formation of the reserve is reflected in the debit of account 91-2 “Other expenses” and the credit of account 59 “Provisions for depreciation of financial investments.”

In the balance sheet, the balance of account 59 is not shown separately (clause 38 of PBU 19/02). The cost of financial investments for which an impairment reserve has been formed is shown at their book value minus the amount of the reserve formed.

To create a reserve for impairment of an organization's financial investments, it is necessary to perform the following steps.

2.2.5. Depreciation of contributions to the authorized (share) capitals of other organizations

A reserve for impairment of contributions to the authorized (share) capital of other organizations is formed in the event of the simultaneous presence of the previously listed signs of impairment for three years in a row, including the current year.

To determine the estimated value of contributions to the authorized capitals of other organizations, the value of the net assets of the organizations in whose authorized capitals contributions were made can be used.

Consequently, the rules for forming a reserve for impairment of financial investments of accounting and tax accounting do not match.

When this reserve is formed or increased, a permanent difference arises in accounting, on the basis of which a permanent tax liability is formed. And when this reserve is written off or reduced based on the resulting permanent difference, a permanent tax asset is formed.

Example 6

In 2009, ZAO Svoboda made a contribution to the authorized capital of LLC Prostor in the amount of 300,000 rubles.

The share of Svoboda CJSC in the authorized capital of Prostor LLC is 30 percent.

According to the financial statements of Prostor LLC, the value of its net assets was:

• as of September 30, 2009 – RUB 600,000;
• as of September 30, 2010 – RUB 400,000;
• as of September 30, 2011 – RUB 250,000.

For three years there was no income received as part of the net profit of Prostor LLC. The commission, appointed by order of the head of Svoboda CJSC, carried out an assessment of the impairment of financial investments as of December 31, 2011, based on the results of which a report on financial investments was compiled (see table).

Report on financial investments (contributions to the authorized capitals of other organizations) as of December 31, 2011 (thousand rubles)

Thus, the impairment test showed a sustained (over three years) significant (more than 30%) decrease in the value of financial investments in the form of a contribution to the authorized capital of Prostor LLC.

In addition, as of December 31, 2011, there is no evidence that the estimated value of these financial investments is likely to increase significantly in the future.

The commission made a proposal to create impairment reserves in the amount of 50,000 rubles, which is approved by the head of the organization.

The following entries were made in the accounting records:

Debit 91 subaccount “Other expenses” Credit 59
– 50,000 rub. – the amount of the reserve for impairment of the value of financial investments is reflected;

Debit 99 subaccount “PNO/PNA” Credit 68 subaccount “Calculations for income tax”
– 10,000 rub. (RUB 50,000 ? 20%) – a permanent tax liability has been formed.

In the financial statements as of December 31, 2011, the value of financial investments for which an impairment reserve was formed is shown in the amount of RUB 250,000. (300,000 - 50,000). That is, minus the amount of the formed reserve.

In January of the following year, the organization sold its share in the authorized capital for 300,000 rubles. The following entries were made in the organization's accounting records:

Debit 62 Credit 91 subaccount “Other income”
– 300,000 rub. – revenue from the sale of a share in the authorized capital of Prostor LLC is reflected;

Debit 91 subaccount “Other expenses” Credit 58
– 300,000 rub. – the initial cost of the share in the authorized capital is written off;

Debit 59 Credit 91 subaccount “Other income”
– 50,000 rub. – the reserve for impairment of financial investments is written off;

Debit 68 subaccount “Calculations for income tax” Credit 99 subaccount “PNO/PNA”
– 10,000 rub. (RUB 50,000 ? 20%) – a permanent tax asset has been formed.

Library of the magazine "Glavbukh". Mandatory and simply convenient reserves in accounting and tax accounting