Provision for work in progress. Accounting and tax accounting of reserves for depreciation of material assets

Accounting for the reserve for the decrease in the value of tangible assets

Vladimir Suzansky, auditor

We believe you will agree that the result of the work of the accounting department - financial statements compiled in the prescribed manner - can hardly be considered satisfactory if all assets are reliably accounted for in physical terms, but their value does not correspond to market realities as of the date of reporting. Such reporting contains distorted information, therefore, in international practice, mechanisms are provided to bring the value at which assets are reflected in the reporting closer to the market value. One of them will be considered in this article - this is a reserve for the decline in the value of material assets (hereinafter referred to as the reserve), the need to create and restore which is provided for by the Instruction on the accounting of reserves, approved by the Decree of the Ministry of Finance of the Republic of Belarus dated November 12, 2010 No. 133 (hereinafter - Instruction No. 133).

Inventories are an important item in the financial statements. In this case, the correctness of the assessment, according to which the reserves are taken into account, and subsequently reflected in the financial statements, is of paramount importance. In connection with the approximation of national principles and methods of accounting and reporting to international ones, previously unused approaches to determining the value of assets appear in Belarusian legislation. One of the expressions of such approaches is the need to create and restore a reserve for the depreciation of material assets.

Assets for which a provision is made

When assessing the need to create a reserve, you need to answer the question: the value of which assets should be analyzed in order to make a decision on creating a reserve? The answer is given in paragraph 19 of Instruction No. 133: a reserve is created in relation to stocks. And the reserves according to paragraph 3 of Instruction No. 133 include:

Raw materials, basic and auxiliary materials, semi-finished products and components, fuels and lubricants, spare parts, containers;

Inventory, household supplies, tools, equipment and accessories, removable equipment, special (protective), uniform and branded clothing and footwear, temporary (non-title) structures and devices (hereinafter referred to as individual items as part of funds in circulation);

Animals for cultivation and fattening;

Unfinished production;

Finished products;

Goods.

At the same time, it should be borne in mind that Instruction No. 133 and the accounting rules provided for in it do not apply to the following assets:

Unfinished construction facilities and other investments in non-current assets;

Building structures and parts, parts and assemblies of machines, equipment and rolling stock intended for construction, reconstruction and modernization;

Equipment requiring installation, as well as installed, but not put into operation;

financial instruments;

Natural objects: land plots, subsoil, non-cultivated (natural) biological resources, water resources underground;

Inventory, household supplies, tools, equipment and fixtures, which, in accordance with the accounting policy of the organization, are classified as fixed assets.

Thus, if we generalize somewhat, then the reserve is created in relation to:

Inventory assets recorded on account 10 "Materials";

Goods recorded on account 41 "Goods";

Finished products recorded on account 43 "Finished products".

When is a reserve created?

If the organization records either materials, or goods, or finished products, then this in itself does not mean that a reserve should be created. The reserve is not created in all cases, but only in the presence of circumstances (factors) that indicate the need to create a reserve.

Inventories that are obsolete, damaged or whose selling price has decreased are reflected in the balance sheet at the end of the reporting period, less a reserve for the decrease in the value of material assets. Such a norm is established in paragraph 19 of Instruction No. 133. Therefore, the factors indicating the need to create a reserve are:

1) inventory obsolescence;

2) stock damage;

3) a decrease in the sale price of reserves (regardless of the reason for this: excess supply on the market; financial and economic crisis, as a result of which aggregate demand and prices for resources decrease; transition to more progressive materials, which depreciates previously used ones, and etc.).

As can be seen, the result of the occurrence of factors 1 and 2 is also a decrease in market prices for those reserves for which these factors occurred.

The reserve should not be created for all stocks, but only for those groups or positions for which any one (or several) of the above factors takes place.

Thus, a reserve should be created for specific units of inventories in cases where for some of the inventories held by the organization there was a decrease in market prices in relation to those at which such inventories are listed in the accounting records of the organization (regardless of the reasons for such impairment).

Recall that the procedure for recording stocks in accounting is also established by Instruction No. 133 (clause 6): stocks are accepted for accounting at actual cost. The actual cost of inventory purchased for a fee is determined in the amount of the organization's actual costs for the acquisition.

The actual costs of acquiring inventory include:

Inventory value at purchase prices;

Customs fees and duties;

Fees paid to the intermediary organization through which the inventory is acquired;

Costs for the procurement and delivery of stocks to the place of their use, including insurance costs;

The cost of bringing stocks to a state in which they are suitable for use for the purposes envisaged by the organization;

Transportation and procurement and other costs directly related to the acquisition of stocks.

Trade and other similar discounts are not included in the actual cost of purchased inventory.

Over time, while the stocks are not used by the organization and are listed on the relevant accounting accounts, their actual market value may change. And if the market value has decreased, then the actual cost at which they are reflected in the accounting remains unchanged. As a result, the accounting and reporting of the organization will provide information on the cost of reserves that does not correspond to market reality. Thus, the figures in the reporting of the organization will reflect the cost of acquiring inventory, and not their real value at a particular date. To solve this problem, a reserve is created. Moreover, it is from the point of view of depreciation, and not appreciation, since from the standpoint of general international reporting principles, as a matter of priority, the organization must take into account all existing negative factors in the reporting - losses, expenses. By creating a reserve, the following is achieved: in the organization's financial statements, the valuation of reserves approaches the market. In the reporting, the cost of inventories (which remains on the corresponding accounts - 10, 41, 43 in the assessment at the actual cost of acquisition) is reflected minus the created reserve (clause 25 of the Instruction on the procedure for compiling financial statements, approved by the Decree of the Ministry of Finance of the Republic of Belarus dated October 31, 2011 No. 111) .

Instruction No. 133 does not contain a provision that the reserve is created at the discretion of the organization. Thus, in the presence of relevant factors, a reserve should be created. However, it does not specify how much impairment of inventories must occur in order to cause the need to create a provision. The organization establishes materiality in this matter independently in the accounting policy. It is possible to suggest the size of such materiality (depreciation amount) in the range of 5-20%.

What IFRS says

In international practice, the International Financial Reporting Standard (IAS) 2 "Inventories" (hereinafter referred to as Standard-2) is devoted to accounting for stocks. Paragraph 9 of Standard-2 states that inventories must be measured at the lower of cost or net realizable value.

The cost of inventory should include all acquisition costs, processing costs and other costs incurred to maintain the current location and condition of the inventory.

Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs to be incurred to sell.

There is also such a thing as fair value - the amount for which an asset can be exchanged or a liability can be settled in a transaction between knowledgeable, willing to make such an operation independent parties.

Net realizable value refers to the net amount that an entity expects to realize from the sale of inventories in the ordinary course of business. Fair value reflects the amount for which the same inventory could be exchanged in the market in a transaction between knowledgeable buyers and willing sellers. The former is enterprise-specific cost, the latter is not. The net realizable value of inventories may differ from fair value.

Despite the fact that net realizable value, which takes into account the specific characteristics of the activities of a particular entity, and fair value, which reflects the value of this type of inventory in the free market as a whole, may differ, both are an expression of the market price for this type of inventory. stocks.

As you can see, IFRS assumes that initially reserves are subject to accounting at cost, which is determined in a manner that is generally similar to that adopted in Belarusian legislation. However, if the market value (net selling price) of the inventory decreases, then the inventory should no longer be accounted for at cost, but at this very market value (net selling price), which should ensure the reliability of the organization's financial statements.

The Belarusian legislation achieves the same effect by creating a reserve.

Accounting for the creation of a reserve

Let us return to the Belarusian legislation, which establishes that the reserve is formed at the expense of the financial results of the organization by the amount of the difference between the net realizable value and the actual cost of inventories, if the latter is higher than the net realizable value (clause 20 of Instruction No. 133).

Net realizable value is determined for each item of inventory or group of inventories by subtracting from the expected realizable price the expected cost of completion and/or disposal. Net realizable value is estimated based on possible realizable prices, excluding VAT, as it relates to costs associated with the sale of inventories.

In determining net realizable value, changes in the price or cost of inventories that are directly attributable to events occurring after the end of the reporting period are taken into account if those events confirm conditions that existed at the end of that period.

Materials intended for use in the production of products are not discounted to a level below their cost if the finished product, in which they will be included, is supposed to be sold at a price corresponding to the cost or higher than the cost.

To reflect the reserve, account 14 "Reserves for the depreciation of inventories" is intended (see the standard chart of accounts of accounting approved by the Decree of the Ministry of Finance of the Republic of Belarus dated June 29, 2011 No. 50).

On account 90 "Income and expenses on current activities" in the composition of other income and expenses reflect incl. the amounts of reserves created for the depreciation of inventories and the recoverable amounts of these reserves (clause 13 of the Instruction on Accounting for Income and Expenses, approved by Resolution of the Ministry of Finance of the Republic of Belarus dated September 30, 2011 No. 102).

An entry is made in the debit of the financial results accounts and the credit of account 14 for the amount of the writedown of the actual cost of inventories to the net realizable value (clause 21 of Instruction No. 133).

Thus, in accounting, the creation of a reserve should be reflected in the entry:

Dt 90 - Kt 14.

Reserve recovery accounting

After the creation of the reserve, it is necessary to review the net realizable value of reserves in each subsequent period (clause 22 of Instruction No. 133).

If the net realizable value of inventories that were previously written down and held in inventory at the end of the reporting period subsequently increases, the amount previously written off must be reversed (up to the original markdown) so that the new actual cost of materials corresponds to the lower of the actual cost or revised possible net realizable value.

The period after which an entity will review the net realizable value of inventories is set in the entity's accounting policy. It is mandatory to conduct an inventory of the reserve when compiling annual accounts(as of December 31 of the reporting year). An entity may review the net realizable value of inventories on a monthly or quarterly basis, for example.

At the end of the reporting period, when writing off materials for which a reserve for the decrease in the value of material assets has been formed, the reserved amount must be restored. In accounting, the following entry is made:

Dt 14 - Kt 90.

A similar entry is made in other cases of disposal of stocks for which a reserve has been created, regardless of the reason for the disposal (sale, shortage, etc.).

Examples of creating and restoring a reserve

Consider the procedure for creating and restoring a reserve using conditional examples.

Example 1

In October 2011, a trade organization purchased goods (100 units). The actual cost of the acquisition was RUB 100,000. for a unit. Accounting policy the organization found that the assessment of the provision is made on the last reporting date of each quarter (hereinafter referred to as the date of assessment), while significant is the impairment in excess of 10%.

In the accounting of the organization, the receipt of goods is reflected in the entry:

Dt 41 - Kt 60 - 10,000 thousand rubles. (100 thousand rubles × 100).

When the next valuation date (December 31, 2011) after the goods arrived, the goods were not sold, and the analysis found that the existing market price for the sale of goods at which the organization can sell them is 75 thousand rubles. (excluding VAT). This is confirmed by the results of ongoing tenders, in which the organization took part, trying to sell its product at the desired price, as well as information on the price environment for this product, obtained from the press, the Internet, etc.

Thus, it was found that at the valuation date there is a factor in the creation of a provision - evidence of depreciation of the goods.

- actual accounting cost - 100 thousand rubles;

- net realizable price - 75 thousand rubles;

- the amount of the reserve (markdown) - 25 thousand rubles. (100 - 75) from each unit.

In accounting, the organization reflects the creation of a reserve:

Dt 90 - Kt 14 - 2,500 thousand rubles. (25 thousand rubles × 100).

In the financial statements for 2011, the cost of goods should have been reflected on line 215, minus this amount of the reserve, i.e. based on the cost of 75 thousand rubles. for a unit. In this case, the goods are not sold and are listed in the organization's records.

For 2012, the organization adopted similar provisions in terms of reserve accounting.

When the next assessment date (March 31, 2012) comes, the organization collects a rationale that this product can be sold already for 90 thousand rubles. (excluding VAT).

Dt 90 - Kt 14 - 1,500 thousand rubles. ((90 thousand rubles - 75 thousand rubles) × 100)

- by the method of "red storno".

In the financial statements as of March 31, 2012, the cost of goods will be reflected on line 214, net of this provision, i.e. based on the cost of 90 thousand rubles. for a unit. In this case, the goods are not sold and are listed in the organization's records.

In April 2012, the organization sells 5 units of goods at a price of 90 thousand rubles. (excluding VAT). The accounting reflects the implementation of:

Dt 62 - Kt 90 - 540 thousand rubles. (108 thousand rubles (including VAT) × 5);

Dt 90 - Kt 68 - 90 thousand rubles. (18 thousand rubles (for the amount of VAT from sales) × 5);

Dt 90 - Kt 41 - 500 thousand rubles (100 thousand rubles (for the cost of goods reflected in accounting) × 5).

At the same time, the reserve related to goods sold is restored:

Dt 14 - Kt 90 - 50 thousand rubles. (10 thousand rubles × 5).

At the next valuation date, the entity collects evidence that the net realizable value is already RUB 105,000. Due to the fact that the net realizable value not only equaled, but even exceeded the cost of goods, the organization restores the balance of the reserve. At the same time, on June 30, 2012, an accounting entry was made:

- by the method of "red storno".

After this accounting date, the organization records goods at the actual cost reflected on account 41, and there is no provision due to the absence of impairment factors.

Example 2

When the next evaluation date (December 31, 2011) after the goods arrived, the materials were not used, and the analysis found that the existing market price at which the same materials are purchased by the organization on that date is 75 thousand rubles. (excluding VAT). Accordingly, the sale at a price higher than this price is not possible.

At the same time, the selling price for finished products, for the production of which the materials are intended, is formed with a profit (i.e., higher than the cost price), as evidenced by standard cost estimate and the price list approved by the organization. As a result, no reserve is created.

Example 3

The production organization in October 2011 purchased materials (100 units). The actual cost of the acquisition was RUB 100,000. for a unit. The accounting policy of the organization establishes that the assessment of the provision is made on the last reporting date of each quarter (hereinafter referred to as the assessment date), while an impairment exceeding 10% is significant.

In the accounting of the organization, the receipt of materials is reflected in the entry:

Dt 10 - Kt 60 - 10,000 thousand rubles. (100 thousand rubles × 100).

When the next evaluation date (December 31, 2011) after the goods arrived, the materials were not used, and the analysis found that the existing market price at which the same materials are purchased by the organization on that date is 75 thousand rubles. (excluding VAT). Accordingly, it is impossible to sell these materials above this price.

Therefore, it was found that at the valuation date there was a factor in the creation of a provision - evidence of impairment of materials.

The selling price for finished products, for the production of which materials are intended, due to the emerging market conditions, is formed at a loss (i.e. below cost), as evidenced by the planned cost estimate and the price list approved by the organization.

In this regard, the organization calculates the provision in the following amount: Dt 90 - Kt 14 - 950 thousand rubles. ((100 thousand rubles - 90 thousand rubles) × 95)

- by the method of "red storno".

After the specified date in the organization's accounting, materials are accounted for at the actual cost reflected on account 10, and there is no reserve due to the absence of impairment factors.

All organizations (with the exception of those who have the right to keep simplified accounting) are required to create a reserve for the decrease in the value (depreciation) of material assets.

This is necessary when the possible sale price of the inventory (raw materials, materials, goods) has become less than their book value (clause 25 PBU 5/01 “Accounting for inventories”, approved by order of the Ministry of Finance of Russia dated 09.06.01 No. 44n, p 20 Guidelines for accounting of inventories, approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n, hereinafter referred to as the Guidelines). For example, when MPZs are obsolete or have lost their original properties.

At the same time, all inventories must be checked for impairment, including those reflected in debit 10 “Materials”, 41 “Goods” and 43 “Finished products”.

This must be done at least once a year - before the preparation of annual reports (paragraph 25 of PBU 5/01).

When is a reserve not created?

A reserve for the decrease in the value of material assets is not created in the following cases:

  • for raw materials, materials and other inventories used in the production of finished products, works, provision of services, if on the reporting date the current market value of these finished products, works, services corresponds to or exceeds its actual cost;
  • against the reduction in the cost of goods listed as shipped as of the reporting date, if the sale price is not lower than the book value of the goods (see letters of the Ministry of Finance of Russia dated 01.29.08 No. 07-05-06 / 18, dated 01.29. /01);
  • if the organization has the right to apply simplified accounting methods, including simplified accounting (financial) statements (clause 25 PBU 5/01). In this case, the inventory balances are reflected in the financial statements at the cost determined on the accounting accounts - regardless of the obsolescence of these objects, their loss of their original quality, changes in their current market value, sale price. You can start applying this simplified method with respect to inventories from the financial statements for 2016 or from the statements for any subsequent year.

In other cases, a reserve must be created. It is created for each unit of inventory accepted in accounting, or for certain types(groups) of similar or related inventories, except for such enlarged groups (types) of inventories as auxiliary materials, finished products, goods, etc.

In a situation where a contract is concluded for the sale of goods (finished products) at a price lower than the book value of this property, and revenue has not yet been recognized, it is also necessary to create a Reserve for the difference between the book value and the sale price of the property.

At the same time, the fact of shipment of these MPZs to the buyer does not matter (attachment to the letter of the Ministry of Finance of Russia dated January 29, 2014 No. 07-04-18 / 01).

Creation of a reserve

The creation of a reserve for a decrease in the cost of raw materials is recognized as a change in the estimated value (clause 2 of PBU 21/2008 “Changes in estimated values”, approved by order of the Ministry of Finance of Russia dated 06.10.08 No. 106n).

Changes in the estimated value are reflected in accounting prospectively (by inclusion in income or expenses) (clauses 3, 4 of PBU 21/2008).

The reserve is formed by the amount of the difference between the current market value and the actual cost of the inventory (clause 25 PBU 5/01, clause 20 of the Methodological Instructions).

Thus, when creating a reserve for the reduction in the cost of inventories, other expenses are recognized (paragraph 20 of the Methodological Instructions, paragraphs 11, 16 of PBU 10/99 “Expenses of the organization”, approved by order of the Ministry of Finance of Russia dated 06.05.99 No. 33n).

When restoring the reserve for the decrease in the cost of inventories, the amount of the reserve accrued for the decrease in the cost of inventories must be taken into account as other income (clause 20 of the Methodological Instructions).

The creation and restoration of a reserve for the decrease in the cost of inventories is reflected on account 14 “Reserves for the decrease in the value of material assets” (Instructions for the application of the Chart of Accounts for the accounting of financial and economic activities of organizations, approved by order of the Ministry of Finance of Russia dated October 31, 2000 No. 94n).

The formation of a reserve for the reduction in the cost of inventory is reflected by the posting:

Debit 91 subaccount 91-2 Credit 14

A change in the value of the reserve for the reduction in the cost of inventories occurs in the following cases.

Firstly, with an increase in the market value of inventories, for which a reserve was previously created for a decrease in the cost of inventories. In such a situation, the amount of the reserve for the reduction in the cost of inventory is reduced in one of the following ways:

  • by allocating a part of the Reserve for the reduction in the cost of inventories as a reduction in the cost of material expenses recognized in the period following the reporting period (paragraph 8, clause 20 of the Guidelines) or
  • by inclusion in other income of the organization (clauses 2, 4 PBU 21/2008, Instructions for the application of the Chart of Accounts, clauses 7, 16 PBU 9/99 “Income of the organization”, approved by order of the Ministry of Finance of Russia dated 06.05.99 No. 32n). This is reflected in the wiring:

The organization chooses the method of adjusting the reserve for the reduction in the cost of inventories independently and fixes it in its accounting policy (clause 7 PBU 1/2008 "Accounting policy of the organization", approved by order of the Ministry of Finance of Russia dated 06.10.08 No. 106n).

However, it is more logical to include the decrease in the provision in other income, since other expenses were reflected when it was created.

When determining the period for adjusting the reserve for the reduction in the cost of inventories, the organization has the right to be guided by the requirements of timeliness and prudence (paragraphs 3, 4, paragraph 6 of PBU 1/2008).

Secondly, the release of inventories related to the reserve for the reduction in the cost of inventories. In this case, the reserve for the reduction in the cost of inventories is written off in the only way - to increase financial results:

Debit 14 Credit 91 subaccount 91-1

The lines will be as follows.

Creating a reserve:

Debit 91-2 Credit 14

- a reserve was created (additionally accrued) for the reduction in the cost of inventories.

As of the date of the reserve recovery:

­ STORNO Debit 91-2 Credit 14 or Debit 14 - Credit 91-1

- the reserve for previously depreciated inventories was restored or when they are disposed of, or when the market value increases.

Confirmation of the current market value of the inventory

The taxpayer independently evaluates the current market value of the inventory and must provide confirmation of this calculation (clause 3 PBU 21/2008 "Changes in estimated values", approved by order of the Ministry of Finance of Russia dated 06.10.08 No. 106n).

The organization must provide confirmation of the calculation of the current market value of the inventory (clause 20 of the Guidelines).

The procedure for determining the current market value of the inventory is not normatively established.

Therefore, it is determined by the organization and fixed in the accounting policy (clause 7 PBU 1/2008 "Accounting policy of the organization", approved by order of the Ministry of Finance of Russia dated 06.10.08 No. 106n).

The calculation is made on the basis of information available before the date of signing the financial statements. This takes into account:

  • appointment of MPZ;
  • the current market value of finished products, the production of which uses raw materials, materials and other inventories;
  • a change in price or actual cost that is directly attributable to events after the balance sheet date.

Note that the determination of the current market value can be carried out in a manner similar to the procedure provided for in relation to the assessment of the market value of fixed assets (see clause 29 of the Guidelines for the accounting of fixed assets, approved by order of the Ministry of Finance of Russia dated 13.10.03 No. 91n) .

Reserve andcorporate income tax

Chapter 25 of the Tax Code of the Russian Federation does not provide for the possibility of forming a reserve for the decrease in the value of material assets for the purposes of taxation of profits.

Since the tax accounting does not create a reserve for the depreciation of material assets, when creating the specified reserve, as well as its restoration, neither income nor expenses arise in the tax accounting of the organization.

Application of PBU 18/02

The difference between accounting and tax profit arising in connection with the creation of a reserve for the impairment of inventories (not recognized as an expense in tax accounting) can be considered as a deductible temporary difference (DVR), leading to the formation of a deferred tax asset (ITA) (clause 3, 8, 11, 14 RAS 18/02 “Accounting for corporate income tax settlements”, approved by order of the Ministry of Finance of Russia dated November 19, 2002 No. 114n).

When the amount of the reserve is restored and the corresponding income (not recognized in tax accounting) is recognized in the accounting records, the specified VVR and SHA are repaid (clause 17 of PBU 18/02).

At the same time, there is a point of view according to which, since such an expense as deductions to the reserve for the reduction in the cost of goods and materials is not taken into account as an independent type of expense for income tax purposes, it can be considered as a constant difference (PR), leading to the formation of a permanent tax obligations.

With this approach, when the reserve is restored and income is recognized in accounting, the occurrence of the PR and the corresponding permanent tax asset is reflected (clauses 4, 7 of PBU 18/02).

Reserve andfinancial statements

In the general case, inventories that have partially lost their original qualities are reflected in the balance sheet at the end of the reporting year at the current market value, taking into account the physical condition of the inventories.

Thus, in the balance sheet, impaired inventories are reflected in line 1210 “Inventories” minus the reserve (clauses 25, 35 of PBU 4/99).

In the statement of financial results, deductions to the reserve are reflected in line 2350 "Other expenses", and the recovered amounts of the reserve - in line 2340 "Other income".

Example 1 The actual cost of raw materials in the accounting of the organization (equal to the price of its acquisition in tax accounting) is 400,000 rubles.

As of the end of the reporting year, a partial loss of its properties by raw materials was revealed and it was established that the market price of products made from such raw materials would be less than the actual cost of these products.

The current market value of raw materials at the end of the reporting year amounted to 200,000 rubles.

IN next year raw materials sold for 236,000 rubles. (including VAT 36,000 rubles).

Before the sale, the amount of the reserve for the decrease in the cost of raw materials was not adjusted.

In tax accounting, the accrual method is used.

In the organization's accounting, the creation of a reserve for a decrease in the cost of raw materials due to the partial loss of its properties, as well as the subsequent sale of these raw materials, should be reflected as follows.

When creating a reserve:

Debit 91-2 Credit 14

- 200,000 rubles. (400,000 - 200,000) - a reserve was created for the reduction in the cost of raw materials

Debit 09 Credit 68 / SHE

- 40,000 rubles. (200,000 x 20%) - SHE is reflected (base: accounting statement-calculation).

When selling raw materials:

Debit 62 Credit 91-1

- 236,000 rubles. - other income from the sale of raw materials was recognized (base: invoice for the release of materials to the party);

Debit 91-2 Credit 10

- 300,000 rubles. - written off the actual cost of raw materials (base: accounting reference-calculation);

Debit 91-2 Credit 68-VAT

- 36,000 rubles. - VAT is charged (base: invoice);

Debit 14 Credit 91-1

- 200,000 rubles. - the reserve for the decrease in the cost of raw materials was restored (base: accounting statement);

Debit 68 / SHE Credit 09

- 40,000 rubles. - SHE is repaid (base: accounting statement).

Example 2 The actual cost of goods in the accounting of the organization is 800,000 rubles. The market value of this product at the end of the reporting year amounted to 600,000 rubles. At the end of the first quarter of the next year, the market price of the goods fell to 500,000 rubles. The accounting policy of the organization establishes that the adjustment of estimated values ​​is made once a quarter.

In the organization's accounting, the creation of a reserve for a decrease in the cost of a purchased product due to a decrease in its current market value, as well as a subsequent adjustment of the amount of this reserve in connection with a further decrease in the market value of the goods, should be reflected as follows.

When creating a reserve:

Debit 91-2 Credit 14

- 200,000 rubles. (800,000 - 600,000) - a reserve was created for the reduction in the cost of goods

(base: accounting reference-calculation);

Debit 09 Credit 68 / SHE

- 40,000 (200,000 x 20%) - IT is reflected (base: accounting statement-calculation).

When increasing the reserve:

Debit 91-2 Credit 14

- 100,000 (600,000 - 500,000) - the amount of the reserve for reducing the cost of goods has been increased

(base: accounting reference-calculation);

Debit 09 Credit 68 / SHE

- 20,000 (100,000 x 20%) - IT is reflected (base: accounting statement-calculation).

Audit Department of RIGHT WAYS LLC

Reserve for depreciation of tangible assets- a reserve created in accounting for inventories that are morally obsolete, have completely or partially lost their original quality, or the current market value, the sale price of which has decreased.

A comment

Organizations are required to create a reserve in accounting for the decrease in the value (depreciation) of material assets. Such a reserve is created if the value of material assets has become less than their book value.

The reserve may not be created by an organization that has the right to apply simplified accounting methods, including simplified accounting (financial) reporting.

The rules for accrual and use of the reserve for depreciation of material assets are defined in:

Clause 25 of the Accounting Regulations "Accounting for inventories" PBU 5/01, approved. Order of the Ministry of Finance of Russia dated 09.06.2001 N 44n

P. 20 Guidelines for accounting of inventories, approved. Order of the Ministry of Finance of Russia dated December 28, 2001 N 119n

Information message of the Ministry of Finance dated 06/24/2016 N IS-accounting-3

In tax accounting, a reserve for the depreciation of material assets is not created (Chapter 25 of the Tax Code of the Russian Federation).

The reserve for the decrease in the value of material assets is created when the value decreases:

Materials (account)

Goods (account)

Finished products (account)

In what cases is it considered that the value of material assets has decreased:

If material values ​​are obsolete;

If material values ​​have completely or partially lost their original quality;

If the current market value, the value of the sale of wealth has declined.

When applying the reserve for the decline in the value of material assets, such material assets are reflected in the balance sheet at the end of the reporting year, less the reserve for the decline in the value of material assets.

You need to apply the reserve at least once a year - before preparing annual reports. But if the value of material assets has not decreased, then the reserve is not created.

The reserve for the decline in the value of material assets is formed at the expense of the financial results of the organization by the amount of the difference between the current market value and the actual cost of inventories, if the latter is higher than the current market value.

For the accounting of the reserve for the decrease in the value of material assets, an accounting account is used.

Reflection of the reserve in the financial statements

Inventories are reflected in line 1210 "Inventory" minus the reserve.

In deductions to the reserve are reflected in line 2350 "Other expenses". The restored amounts of the reserve are reflected in line 2340 "Other income".

Example

Prior to compiling the annual financial statement, the entity identified that the market value of goods had declined significantly. Goods are recorded on the balance sheet in the amount of 1,000 thousand rubles, and their market value amounted to 700 thousand rubles.

At the end of the year, the organization creates a reserve for the decrease in the value of material assets for such goods in the amount of 300 thousand rubles. In the balance sheet, these goods are reflected at a cost of 700 thousand rubles (net of the reserve).

The accrual of the reserve is reflected in the accounting posting:

300 thousand - D 91 - K 14

The following year, all goods were sold for a total sale of 800 thousand rubles.

The recovery of the reserve is reflected:

300 thousand - STORNO D 91 - K 14

The sale of goods is reflected (VAT is not taken into account):

800 thousand - D 62 - K 90 - proceeds from the sale of goods

1,000 thousand D 90 - K 41 - the cost of the goods was written off

Dt 91 (other expenses) Kt 10 and Dt 14 Kt 91 (other income) or Dt 14 Kt 10?

At the end of 2016, the enterprise accrued a provision for depreciation of material assets. In the second quarter of 2017, it was decided to write off part of the inventories (account 10), which were taken into account when calculating the Reserve. what transactions reflect this write-off? There were transactions for the accrual of the Reserve: Dt 91.1 (other expenses) Kt 14 How to reflect the write-off of goods and materials from account 10?

The ledger will contain the following entries:

Debit 91-2 Credit 14 - reflected the creation of a reserve for the reduction in the cost of goods and materials;

Debit 91-2 Credit 10 - the cost of materials was written off;

Debit 14 Credit 91-1 - the amount of the reserve for the reduction in the cost of goods and materials was written off.

Rationale

About account 14, which reflects the markdown of goods, materials and products

How do you reflect the markdown of the inventory in accounting

LLC "Master" repairs cars. The warehouse stores spare parts for old models of machines in the amount of 10 pieces. The accountant received these spare parts at the actual cost - 200,000 rubles. (without VAT). And their current market value is 150,000 rubles. In October, the director issued an order to discount each spare part to 15,000 rubles. a piece. The total markdown amounted to 50,000 rubles. (200,000 - 150,000). In the same month, spare parts were sold at a reduced price - 17,700 rubles. per piece (including VAT - 2700 rubles). Reflect these events in the accounting of Master LLC. Let's agree that the enterprise is small and does not apply the provisions of PBU 18/02.

What to do in accounting if the market price has become below cost

Inventories become cheaper for various reasons. Obsolete or worn out while they were in the window. A new, more successful model has appeared on sale. Demand fell due to the crisis. In such situations, the current market value of materials, goods or finished products may fall below their actual cost. If you leave everything as it is, accounting and reporting data will no longer be reliable. It is also impossible to change the cost at which goods and materials are recorded in the account. This is stated in paragraph 12 of PBU 5/01 “Accounting for inventories”. But there is a way out of this situation - you can discount the goods and reflect this operation in accounting.

Goods, materials and finished products are discounted by order of the head of the organization. Before that, an inventory is carried out to determine what exactly to discount. You can draw up the results of the inventory with an inventory-act in form No. 1, approved by the Instruction of May 5, 1986 of the USSR Ministry of Finance No. 75 and the USSR State Committee for Prices No. 10-17 / 1500-25. Or on a form that the company developed independently and approved in the accounting policy.

Important detail

Stock up on documents confirming that goods and materials have fallen in price. For example, the conclusion of the appraiser or a certificate from the statistics.

After the inventory, an act of markdown is drawn up. For example, according to the form No. MX-15 (approved by the Resolution of the State Statistics Committee of Russia dated August 9, 1999 No. 66). It gives the reason for the markdown and signs of a decrease in the quality of goods and materials, new and old prices. The calculation of the current market value of materials must be documented. The organization has the right to use any sources of information. For example, data received from the manufacturer, from the statistics department, from the trade inspectorate, from magazines and newspapers. You can also contact independent appraisers.

How to reflect the markdown in accounting

To reflect the markdown in accounting, they came up with the idea of ​​creating a reserve for the reduction in the cost of goods and materials. In the Chart of Accounts for him there is a special account 14 "Reserves for the depreciation of material assets." The amount by which the value has decreased is reflected in the credit of this account. And at the same time include it in other expenses. That is, they debit account 91 “Other income and expenses” (clause 11 PBU 10/99). In our problem with Master LLC, the markdown amount is 50,000 rubles.

The wiring is like this:

When the goods are discounted, then a reserve is created. You can charge it at least every day, if required. At the end of the year, the cost of discounted materials is included in the balance sheet minus the created reserve. This procedure is provided for in paragraph 25 of PBU 5/01.

Crib

Possible sub-accounts to account 14 “Reserves for depreciation of material assets”

14.1 "Reserve for raw materials and materials."

14.2 "Reserve for fuel".

14.3 "Reserve for packaging and packaging materials".

14.4 "Reserve for spare parts".

14.5 "Reserve for other materials".

14.6 "Reserve for inventory and household supplies."

14.7 "Reserve for special equipment and clothing."

14.8 “Reserve for assets not more than 40,000 rubles. or a service life of not more than 12 months.

14.9 "Reserve for finished products".

14.10 "Reserve for goods".

What account is the reserve charged to as it is used up?

For finished products or goods, under the reduction of the cost of which a reserve was created, sooner or later there will be a buyer. And the materials will go into production. Or they will be sold, as in the puzzle. Then the reserve will need to be included in other income. To do this, make an entry in the debit of account 14 "Reserves for the decline in the value of material assets" and the credit of account 91 "Other income and expenses". The same posting is created if the fate of previously depreciated materials has not yet been decided, but their market price has risen again.

In our task with Master LLC, the wiring should be as follows:


DEBIT 91 sub-account "Other expenses" CREDIT 68 sub-account "VAT settlements"

The decrease in the value of tangible assets as a result of their depreciation and the possible losses of the organization associated with this should be reflected in accounting and reporting in the reporting period in which circumstances arose that caused the decrease in the value of tangible assets. The mechanism for "regulating" the cost with the help of such reserves is quite simple. Suppose an organization has revealed that the market value of a material value is lower than its cost price, at which it is accepted for accounting. In this case, the organization creates a reserve for the amount of the difference. The cost of material value is included in the corresponding line of the balance sheet minus the amount of the reserve. The reserve itself does not need to be reflected in the balance sheet. This method of creating a reserve takes into account the requirement (principle) of prudence. Paragraph 7 of PBU 1/98 “Accounting Policy of the Organization” defines it as a greater willingness of the organization to recognize expenses and liabilities in accounting than possible income and assets. According to this principle, the assets of the organization should be reflected in the balance sheet as follows:

  • - if the market value of an asset is higher than its cost, then this asset is reflected in the balance sheet at cost;
  • - if the market value of an asset is below its cost, then the asset is recorded in the balance sheet at its sale value.

Thus, if the market value of material assets turns out to be higher than its cost, the reserve is not created.

From January 1, 2002, in accordance with clause 25 of the Accounting Regulation “Accounting for inventories” (PBU 5/01), inventories that are obsolete, have completely or partially lost their original quality, or whose current market value has decreased , are reflected in the balance sheet at the end of the reporting year, less a reserve for the decrease in the value of tangible assets. This reserve is formed by the amount of the difference between the current market value and the actual cost of inventories, if the latter is higher than the current market value.

Under the current market value, or the cost of the possible sale of materials, understand the amount Money, which the organization can receive in the event of the sale of inventory. In determining it, the most reliable information should be used.

The procedure for creating a reserve is explained in clause 20 of the Methodological Guidelines for Accounting for Inventories, approved by order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n. The guidelines say the following. A reserve for the decrease in the value of material assets is created for each unit of inventories accepted in accounting. It is allowed to create reserves for depreciation of material assets for certain types (groups) of similar or related inventories. It is not allowed to create reserves for the decrease in the value of material assets for such enlarged groups (types) of inventories as basic materials, auxiliary materials, finished products, goods, stocks of a certain operating or geographical segment, etc.

The calculation of the current market value of inventories is made by the organization on the basis of information available before the date of signing the financial statements. The calculation takes into account:

  • - change in price or actual cost directly related to events after the reporting date, confirming the economic conditions that existed at the reporting date in which the organization conducted its activities;
  • - the current market value of finished products, the production of which uses raw materials, materials and other inventories. A reserve for the decline in the value of material assets is not created for raw materials, materials and other inventories used in the production of finished products, works, services, if on the reporting date the current market value of this finished product, work, services corresponds to or exceeds its actual cost .

The organization must provide confirmation of the calculation of the current market value of inventories.

If in the period following the reporting period, the current market value of inventories, for the decrease in the cost of which a reserve was created in the reporting period, increases, then the corresponding part of the reserve is included in the reduction of the cost of material expenses recognized in the period following the reporting period.

In accordance with clause 11 of PBU 10/99, deductions to valuation reserves created in accordance with accounting rules are classified as operating expenses. In the income statement for the reporting year, a loss from the decrease in the value of tangible assets will be recognized.

Chapter 25 of the Tax Code of the Russian Federation does not provide for a reduction in taxable income by the amount of reserves created by taxpayers for the reduction in the value of material assets. Therefore, in accordance with paragraph 4 of PBU 18/02, the amount of the created reserve, which reduces accounting profit and does not participate in the formation of taxable profit, is recognized as a constant difference.

In the reporting period when a permanent difference occurs, the organization recognizes a permanent tax liability, which is understood as the amount of tax that leads to an increase in tax payments for income tax in the reporting period. The permanent tax liability is equal to the amount determined as the product of the constant difference that arose in the reporting period and the income tax rate effective on the reporting date. Permanent tax liabilities are recorded in accounting records (clause 7 PBU 18/02):

Debit account 99 "Profit and loss"

Account credit 68 "Calculations on taxes and fees"

In the reporting period, when there is a release of material assets, for which the creation of a reserve for depreciation was previously reflected in the accounting records, the organization recognizes a permanent difference, leading to the formation of an amount of tax. This permanent difference reduces income tax payments in the reporting period - a permanent tax asset. The value of the permanent tax asset is determined as the product of the permanent difference that occurred in the reporting period and the income tax rate effective on the reporting date. Permanent tax assets are recorded in accounting records as follows:

Debit account 68 "Calculations on taxes and fees"

Credit of account 99 "Profit and loss".

Example. As of December 31, 2007, Ladoga LLC had 100 monitors on its balance sheet. .). By the end of the year, the market price for monitors of this brand fell to 1,500 rubles per piece. Therefore, at the end of the year, the accountant creates a reserve for the decrease in the value of material assets. The amount of the reserve is 50,000 rubles [(2,000 rubles - 1,500 rubles) x 100 pcs.].

The following entries are made in the accounting records of Ladoga LLC:

Dt 91 Kt 14 - 50,000 rubles. - a reserve was created for the reduction in the value of material assets,

Dt 99 Kt 68 - 12,000 rubles. - a permanent tax liability is reflected (50,000 rubles x 24%).

In the balance sheet for 2007, the goods will be shown at the current market value - 150,000 rubles. (1500 rubles x 100 pcs.). Loss in the amount of 50,000 rubles. from a decrease in their value should be indicated in the profit and loss statement for 2007 as part of operating expenses.

During 2008, as the goods are sold, the accountant restores the amount of the reserve:

Dt 62 Kt 90 - 150,000 rubles. - recognized revenue from the sale of goods,

Dt 90 Kt 41 - 150,000 rubles. - written off the cost of goods sold,

Dt 14 Kt 91 - 50,000 rubles. - the amount of the created reserve for the decrease in the value of material assets was written off,

Dt 68 Kt 99 - 12,000 rubles. - a permanent tax asset is reflected (50,000 rubles x 24%).

When calculating the provision, it is also necessary to determine the materiality criterion. PBU 5/01 and the Guidelines talk about the difference between the cost and market value of material assets, but at what value of this difference it is necessary to create a reserve - 3.5.7% or any - is not indicated. In this case, one should be guided by clause 1 of the Instructions on the procedure for compiling and presenting financial statements, approved by order of the Ministry of Finance of Russia dated July 22, 2003 No. specific circumstances of occurrence. Therefore, the organization must itself determine the materiality criterion for each type of material assets, according to which it is possible to create a reserve. Calculation methods for each item or group of material assets must be fixed in the accounting policy of the organization.

Example. LLC "Largo" is engaged in the wholesale trade of automotive spare parts. The accounting policy of the organization defines the conditions for creating a reserve for the reduction in the cost of goods of the “body parts” group (for each item number). Namely:

  • - sales of less than 25% of goods during a calendar year;
  • - excess of the book value of goods by 10% over the market price (excluding VAT).

Information about the current market price of goods in this group is provided to the accounting department by the marketing department of the organization.

The Chart of Accounts establishes the procedure for reflecting on the accounts the amounts of reduction in the cost of materials. For this, account 14 “Reserves for the decline in the value of material assets” is intended, this account is used to summarize information on reserves for deviations in the actual cost of raw materials, materials and similar valuables from the current market value, as well as reserves for the decline in the cost of work in progress, finished products, goods, etc. thus, account 14 is used to account for reserves:

  • 1. under the deviation of the cost of raw materials, materials, fuel, etc. from their market value;
  • 2. under the reduction in the cost of other funds in circulation: work in progress, finished products, goods, etc. The creation of these reserves is necessary to clarify the real picture of the financial condition of the organization.

The formation of a reserve for the decrease in the value of material assets is reflected in the accounting on the credit of account 14 "Reserves for the decrease in the value of material assets" and the debit of account 91 "Other income and expenses". In the next reporting period, as the write-off of material assets for which the reserve is formed, the reserved amount is restored: an entry is made in the accounting on the debit of account 14 "Reserves for the decrease in the value of material assets" and the credit of account 91 "Other income and expenses". A similar entry is made when the market value of material assets increases, for which the corresponding reserves were previously created.

Example. In December 2007, Largo LLC purchased three batches of car spoilers at a price of 1200, 1300 and 1400 rubles.

During 2008, less than 15% of the total number of spoilers purchased were sold. Year-end inventory confirmed 100 spoilers, including:

  • - 30 pcs. at a price of 1200 rubles;
  • - 50 pcs. at a price of 1300 rubles;
  • - 20 pcs. at a price of 1400 rubles.

Largo LLC, in accordance with its accounting policy, uses the method of valuation at the average cost.

The average cost of one spoiler is 1290 rubles. [(1200 rubles x 30 pcs + 1300 rubles x 50 pcs + 1400 rubles x 20 pcs) : 100 pcs)].

The current market value of spoilers according to the marketing department at the end of 2008 is 1000 rubles. (excluding VAT).

The current conditions satisfy the criteria for the formation of a reserve, approved in the accounting policy of Largo LLC. Therefore, by order of the head, it was decided to create a reserve for reducing the cost of spoilers.

The amount of the reserve amounted to 29,000 rubles. [(1290 rubles - 1000 rubles) x 100 pieces].

Dt 91 Set 14 RUB 29,000 – formed a reserve for reducing the cost of spoilers.

In the final balance sheet, the value of each type of material assets at the end of the reporting year is shown minus the total amount of accrued reserves for the decrease in the value of material assets. The amount of reserves formed in the balance sheet is not separately indicated, but since it is attributed to other expenses of the organization, the net profit of the reporting year reflected in the final balance sheet will be reduced by the same amount. The total amount of all reserves accrued at the end of the reporting year for all types of material assets is shown in the income statement for the reporting year as part of other operating income.

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