In case of doubtful debts in the accounting entity is required to form a reserve of the same name.This requirement is contained in para. 70 PBU.This does not matter, there has been a creation of a reserve for doubtful debts for tax purposes or not.This provision is explained in the Letter of the Ministry of Finance.Next, we consider in more detail how the creation of a reserve for doubtful accounts in accounting.Posting on the accounts will also be described in the article.
Definitions
as questionable acts, any debt that emerged in the implementation of goods, works or services, if it is not paid within the period specified in the contract, and are not secured by a bank guarantee, surety, bail.The obligation to recognize the hopelessness of those which passed the statute of limitations, or who discontinued due to the impossibility of performance.
General
Provisions for doubtful accounts in 2015 can be formed on the banks of default interest arising after January 1 of that year.It does not matter whether there is a mortgage, guarantee or surety.For companies that determine costs and revenues according to the method of calculation of coinsurance contracts, insurance, reinsurance to form a reserve, reserve for doubtful debts relating to the payment of premiums (contributions) is not created.
Hopeless obligations
as they, among other things, recognize such debt, inability to pay has been confirmed by the decision of the bailiff of the completion of the enforcement proceedings, when returning to the collector of the appropriate instrument on the basis of:
- impossible to establish the place where the debtor himself orhis property, or to obtain information about values and money belonging to him being on its accounts, or deposited in deposits from banks and other financial companies.
- lack of the necessary property, for which the penalty may be carried out and all measures taken by the police officer did not bring the desired result.
important point
If the company is recognized as a small business entity, then it is also necessary to form a provision for doubtful debts.In Sec. 70 AR does not contain any indication of the release of such enterprises from the procedure.The Ministry of Finance Letter № 07-02-18 / 01 is, however, an order, according to which the provision for doubtful debts can not form if the company at the balance sheet date there is confidence that the overdue receivables will be repaid.
Solvency counterparty
consider how to create a reserve for doubtful debts.To assess the solvency of the company need to collect all available information on the activities of the organization.For example, to obtain information about the probable liquidation, requested Certificate of Incorporation.As one of the sources of information about the solvency of financial statements of the acts.It can be obtained from the statistical bodies.In accordance with the payment data reporting is carried out a number of standard ratios.These values show the financial status of the debtor.On the basis of the information received the decision on the amount of provision or write-off of debt uncollectible.Signs of insolvency may be fixed in the financial records of the enterprise.Provision for doubtful debts serves as the evaluation criterion.Its formation, increase or decrease necessarily reflected as an expense or income.
Provision for doubtful debts in the accounting procedure for forming
now being developed independently.This scheme should be set fixed in the financial records of the company.Provision for doubtful debts in the accounting done so:
- defines the obligations of counterparties outstanding as at certain contract terms and not provide the necessary guarantees.
- for each specific doubtful debt is determined by the amount by which the reserve should be established.This takes into account the financial condition of the counterparty and is carried out assessment of the likelihood of repayment obligations in full or in part.
This procedure is stipulated in Sec. 70 PBU.
Provision for doubtful debts: in the accounts
Allocations under this heading are recorded in other expenses.63 On account specified periodic payments and the creation of a reserve for doubtful debts.Posting in this case will be the following:
Debit Credit 91-2 on the account of the account 63 - Formation of the reserve.
Contractor may repay obligations partially or completely.In this case, the restored part of the reserve, which is reflected as:
Debit cq.51 (50) Credit cq.62 - repaid part of the obligations.
Debit cq.63 Credit by MF.91-1 - Reversal of provision for paid debt.
analysis of accounts obligations cq.62 should be arranged so as to be able to receive all necessary information on the unpaid portion.This requirement is stipulated in the instructions to the chart of accounts.
Deductions
They are recorded in other expenses in the midrange.91. In this regard, the creation of a reserve balance sheet causes a decrease in profit of the reporting period.Expenses that are related to its formation in the current financial cycle, affect the profitability of the coming years.If the tax balance sheet is not a provision, then, respectively, and there is no cost.In this case, a difference between the income (loss).In the upcoming periods assumed repayment of debt or cancellation of it as hopeless.In this regard, the difference arising in accounting, in fact, is temporary.This is explained in the PBU 18/02, p. 8. The temporary difference results in the formation of deferred tax asset.It reduces the amount of deductions on income, which should be paid in the period following the reporting one.This provision is explained in the PBU 18/02 in Sec. 11. deferred asset, which led to the emergence of a reserve for doubtful accounts, the wiring is as follows:
Debit cq.09 Credit cq.68 subsch., Reflecting the settlement of charges on earnings - Set a deferred asset.
Subsequently reserve may recover at maturity debt.The amount is included in other income and is reflected in the midrange.91. The reduction may occur as a result of payment of the counterparty at the end of the period, which follows the one in which there has been a creation of a reserve for doubtful debts.Posting in this case is similar to the above.The amount is also included in other income in the midrange.91. The reserve can be used - at the expense of it is written off Bad debts.
Decrease (repayment) of the deferred asset
When restoring a reserve in the financial balance of the proceeds will, which for tax purposes will not be recognized.When using a stock - will form costs.They have already been accounted for in the period when carried out creation of a reserve for doubtful debts.Posting in this case, the following:
Debit cq.68, sub-account, the fixing calculations deductions for earnings, Credit cq.09 - reduced (dark) deferred asset.
liabilities in foreign currency
the reserve is then determined in accordance with the amount of the debt at the date of its creation.Reporting in the Russian Federation on business transactions and liabilities carried out in rubles.In this regard, the creation and change in provision is also carried out in the domestic currency.In PBU 3/06 p. 7 is not provided revaluation.However, in accordance with the results of the inventory, the Company may adjust the amount of the reserve accounts receivable due to the recalculation of obligations at the official rate.This provision follows from Sec. 3.54 of the Methodical recommendations approved by order of the Ministry of Finance number 49 on June 13, 1995
