Information on contingent assets is provided. From contingent facts to estimated liabilities. Contingent assets in ifrs

Order of the Ministry of Finance of the Russian Federation of December 13, 2010 N 167н
"On Approval of the Regulations on Accounting Obligations and contingent assets"(PBU 8/2010)"

In order to improve legal regulation in the field accounting and accounting statements and in accordance with the Regulation on the Ministry of Finance Russian Federation, approved by the Resolution of the Government of the Russian Federation of June 30, 2004 N 329 (Collected Legislation of the Russian Federation, 2004, N 31, Art. 3258; N 49, Art. 4908; 2005, N 23, Art. 2270; N 52, Art. 5755; 2006, N 32, Art. 3569; N 47, Art. 4900; 2007, N 23, Art. 2801; N 45, Art. 5491; 2008, N 5, Art. 411; N 46, Art. 5337; 2009, No. 3, Art. 378; No. 6, Art. 738; No. 8, Art. 973; No. 11, Art. 1312; No. 26, Art. 3212; No. 31, Art. 3954; 2010, No. 5, Art. . 531; N 9, Art. 967; N 11, Art. 1224; N 26, Art. 3350; N 38, Art. 4844), I order:

1. To approve the attached Accounting Regulations "Estimated Liabilities, Contingent Liabilities and Contingent Assets" (PBU 8/2010).

2. To declare invalid:

order of the Ministry of Finance of the Russian Federation of November 28, 2001 N 96n "On the approval of the Accounting Regulations" Conditional facts of economic activity "PBU 8/01" (the order was registered with the Ministry of Justice of the Russian Federation on December 28, 2001, registration N 3138; " Russian newspaper", No. 6, January 12, 2002);

clause 5 of the Appendix to the Order of the Ministry of Finance of the Russian Federation of September 18, 2006 N 116n "On Amendments to Regulatory Legal Acts on Accounting" (the order was registered with the Ministry of Justice of the Russian Federation on October 24, 2006, registration N 8397; "Rossiyskaya Gazeta ", No. 242, October 27, 2006);

order of the Ministry of Finance of the Russian Federation of December 20, 2007 N 144n "On Amendments to the Accounting Regulations" Conditional Facts of Economic Activity "PBU 8/01" (the order was registered with the Ministry of Justice of the Russian Federation on January 21, 2008, registration N 10940 ; "Rossiyskaya Gazeta", N 18, January 30, 2008).

3. To establish that this order comes into force from the 2011 financial statements.

Accounting Regulations
"Provisions, Contingent Liabilities and Contingent Assets"
(PBU 8/2010)
(approved by order of the Ministry of Finance of the Russian Federation of December 13, 2010 N 167n)

With changes and additions from:

I. General provisions

1. This Regulation establishes the procedure for reflecting estimated liabilities, contingent liabilities and contingent assets in the accounting and reporting of organizations (except credit institutions, state (municipal) institutions), which are legal entities under the laws of the Russian Federation (hereinafter - organizations).

2. This Regulation does not apply to:

a) contracts under which, as of reporting date at least one party to the contract has not fully fulfilled its obligations, with the exception of labor contracts, as well as contracts, the inevitable expenses for the execution of which exceed the proceeds expected from their execution (hereinafter - deliberately unprofitable contracts). The contract is not knowingly unprofitable, the execution of which can be terminated by the organization unilaterally without significant sanctions;

b) reserve capital, reserves formed from the retained earnings of the organization;

c) estimated reserves;

d) accounted for in accordance with the Accounting Regulations "Accounting for Calculations on Profit Tax of Organizations" PBU 18/02, approved by order of the Ministry of Finance of the Russian Federation of November 19, 2002 N 114n (registered with the Ministry of Justice of the Russian Federation on December 31, 2002 No. , registration N 4090) as amended by orders of the Ministry of Finance of the Russian Federation of February 11, 2008 N 23n "On amendments to the order of the Ministry of Finance of the Russian Federation of November 19, 2002 N 114n" (registered with the Ministry of Justice of the Russian Federation on March 3 2008, registration N 11274), dated October 25, 2010 N 132n "On amendments to regulatory legal acts on accounting" (registered with the Ministry of Justice of the Russian Federation on November 25, 2010, registration N 19048) (hereinafter - the Regulation on accounting "Accounting for calculations of income tax of organizations" PBU 18/02), amounts that affect the amount of tax hectares on the profit of organizations payable in the next reporting period or in subsequent reporting periods.

3. This Regulation may not be applied by organizations that have the right to apply simplified methods of accounting, including simplified accounting (financial) statements.

II. Recognition of a provision, recording information about a contingent liability and a contingent asset

4. The obligation of the organization with an uncertain amount and (or) due date (hereinafter - the estimated liability) may arise:

a) from the norms of legislative and other normative legal acts, court decisions, contracts;

b) as a result of actions of the organization that, due to established past practice or statements by the organization, indicate to others that the organization is assuming certain responsibilities, and as a result, such persons have a reasonable expectation that the organization will fulfill those responsibilities.

5. The estimated liability is recognized in accounting if the following conditions are met:

a) the organization has a duty resulting from past events in its economic life, the fulfillment of which the organization cannot avoid. When an entity has doubts about the existence of such an obligation, the entity recognizes a provision if, as a result of an analysis of all the circumstances and conditions, including expert opinion, it is more likely than not that the obligation exists;

b) the decrease in the economic benefits of the organization necessary to fulfill the estimated obligation is likely;

c) the amount of the estimated liability can be reasonably estimated.

6. The conditions for recognizing an estimated liability in relation to a past event in the economic life of an organization that have not been met at one reporting date may be met as at subsequent reporting dates, if due to changes in legislative and other regulatory legal acts and (or) actions of the organization and (or) other persons, the organization has no way to avoid the calculations associated with such an event.

7. The decrease in the economic benefits of the organization, which is necessary to fulfill the obligation, is recognized as probable if it is more likely than not that such a decrease will occur. The likelihood of a decrease in economic benefits is assessed for each liability individually, unless at the reporting date there are several liabilities of a similar nature and the resulting uncertainties that the entity collectively estimates. At the same time, despite the fact that a decrease in the economic benefits of an organization for each individual obligation may be unlikely, a decrease in economic benefits as a result of the fulfillment of the entire set of obligations may be quite probable.

Examples of the analysis of the circumstances with the aim of recognizing the estimated liability in accounting are given in Appendix No. 1 to these Regulations.

8. Estimated liabilities are reflected in the account of reserves forthcoming expenses... When a provision is recognized, depending on its nature, the amount of the provision is charged to ordinary activities or other expenses, or is included in the cost of the asset.

9. A contingent liability arises for an entity as a result of past events in its economic life, when the entity's existence of a liability at the reporting date depends on the occurrence (non-occurrence) of one or more future uncertain events beyond the entity's control.

Contingent liabilities also include an estimated liability existing at the reporting date that was not recognized in accounting due to non-fulfillment of the conditions stipulated in subparagraphs "b" and (or) "c" of paragraph 5 of these Regulations.

10. If the organization has a joint and several liability with other persons, the estimated liability is recognized to the extent that there is a probability of a decrease in the economic benefits of the organization, subject to the conditions provided for in paragraph 5 of this Regulation. The part of the joint liability with other persons in respect of which it is not probable that the economic benefits of the organization will decrease is related to contingent liabilities.

11. Estimated liabilities are recognized in connection with the upcoming implementation of an action program planned and controlled by the organization's management, which significantly changes the direction of the organization's activities, the volume of business operations or the methods of their implementation (hereinafter - the forthcoming restructuring of the organization's activities) if all the conditions established by paragraph 5 of this Regulation are met , taking into account the specifics established by this paragraph. Obligations for the upcoming restructuring of the organization's activities are existing at the reporting date, subject to the following conditions:

a) the organization has a detailed, duly approved plan for the upcoming restructuring of its activities, which determines, at a minimum:

the activity (or part of the activity) of the organization and the place of its implementation affected by the forthcoming restructuring;

structural divisions, functions and the approximate number of employees of the organization to whom compensation will be paid in connection with the termination of labor relations with them;

the start time of the execution of the plan for the forthcoming restructuring of the organization's activities;

b) the organization, through its actions and (or) statements, has created reasonable expectations among persons whose rights are affected by the forthcoming restructuring of the organization's activities that the restructuring plan will be implemented in the near future.

12. Estimated liabilities in relation to expected losses from the activities of the organization as a whole, or from certain types or regions of its activities, divisions, types of products (works, services) and from other factors are not recognized in accounting.

Estimated liabilities in respect of forthcoming expenses are recognized only if all the conditions established by paragraph 5 of this Regulation are met.

13. A contingent asset arises for an organization as a result of past events in its economic life, when the existence of an asset at the reporting date depends on the occurrence (non-occurrence) of one or more future uncertain events beyond the control of the organization.

14. Contingent liabilities and contingent assets are not recognized in accounting. Information on contingent liabilities and contingent assets is disclosed in the financial statements in accordance with this Regulation.

III. Determination of the amount of the estimated liability

15. The estimated liability is recognized in the accounting of the organization in the amount that reflects the most reliable monetary estimate of the costs required to settle this liability. The most reliable estimate of expenses is the amount required directly to fulfill (extinguish) the obligation as at the reporting date or to transfer the liability to another person as at the reporting date.

16. The amount of the estimated liability is determined by the organization on the basis of the available facts of the economic life of the organization, experience with respect to the performance of similar obligations, as well as, if necessary, the opinions of experts. The organization provides documentary evidence of the reasonableness of such an assessment.

17. When determining the amount of the estimated liability, the organization proceeds from the following:

a) if the amount of the estimated liability is determined by choosing from a set of values, then the weighted average is taken as such a value, which is calculated as the average of the products of each value by its probability;

b) if the value of the estimated liability is determined by choosing from an interval of values, and the probability of each value in the interval is equal, then the arithmetic mean of the largest and smallest values \u200b\u200bof the interval is taken as such a value.

Examples of determining the amount of the estimated liability are given in Appendix No. 2 to these Regulations.

18. When determining the amount of the estimated liability, the following are taken into account:

a) the consequences of events after the reporting date in accordance with the Accounting Regulations "Events after the reporting date" (PBU 7/98), approved by order of the Ministry of Finance of the Russian Federation of November 25, 1998 N 56n (registered with the Ministry of Justice of the Russian Federation on December 31 1998, registration N 1674) as amended by order of the Ministry of Finance of the Russian Federation of December 20, 2007 N 143n (registered with the Ministry of Justice of the Russian Federation on January 21, 2008, registration N 10934);

b) the risks and uncertainties inherent in this provision;

c) future events that may affect the amount of the estimated liability (if there is a sufficient probability that these events will occur).

19. When determining the amount of the estimated liability, the following are not taken into account:

a) the amount of a decrease or increase in corporate income tax, which are reflected in accounting and reporting in accordance with the Accounting Regulations "Accounting for calculations of corporate income tax" PBU 18/02;

b) expected proceeds from the sale of fixed assets, intangible assets, products, goods and other assets associated with the recognized estimated liability. Such receipts are reflected in the accounting of the organization in accordance with the Regulation on accounting "Income of the organization" PBU 9/99, approved by order of the Ministry of Finance of the Russian Federation dated May 6, 1999 N 32n (registered with the Ministry of Justice of the Russian Federation on May 31, 1999, registration N 1791) as amended by orders of the Ministry of Finance of the Russian Federation of March 30, 2001 N 27n "On Amendments and Additions to Regulatory Legal Acts on Accounting" (registered with the Ministry of Justice of the Russian Federation on May 4, 2001, registration N 2693), dated September 18, 2006 N 116n "On Amendments to Regulatory Legal Acts on Accounting" (registered with the Ministry of Justice of the Russian Federation on October 24, 2006, registration N 8397), dated November 27, 2006 N 156n " On Amendments to Regulatory Legal Acts on Accounting "(registered with the Ministry of Justice of the Russian Federation tion December 28, 2006, registration N 8698), dated October 25, 2010 N 132n "On amendments to regulatory legal acts on accounting" (registered with the Ministry of Justice of the Russian Federation on November 25, 2010, registration N 19048); dated November 8, 2010 N 144n "On Amendments to Regulatory Legal Acts on Accounting (registered with the Ministry of Justice of the Russian Federation on December 1, 2010, registration N 19088);

c) the expected amounts of counterclaims or the amount of claims against others in reimbursement of expenses that the organization is expected to incur in fulfilling this provision.

If the organization has confidence in the receipt of economic benefits from counter claims or claims to other persons when the organization fulfills the corresponding estimated liability accepted for accounting, such claims are recognized in accounting as an independent asset. The amount of such an asset should not exceed the amount of the corresponding provision. In the balance sheet of the organization, the amount of the recognized provision is not reduced by the amount of such an asset.

The report on financial results the organization's expenses reflected upon recognition of estimated liabilities are presented net of income recognized upon acceptance for accounting as an asset of expected receipts from counter claims and claims to other persons.

20. If the estimated period of fulfillment of the estimated liability exceeds 12 months after the reporting date or a shorter period established by the organization in the accounting policy, such an estimated liability is assessed at a value determined by discounting its value calculated in accordance with paragraphs 16-19 of this Regulation ( further - present value).

The discount rate applied by the organization:

a) should reflect the conditions prevailing in the financial market, as well as the risks specific to the obligation underlying the recognized provision;

b) should not reflect the amount of a decrease or increase in corporate income tax, which are reflected in accounting and reporting in accordance with the Accounting Regulations "Accounting for calculations of corporate income tax" PBU 18/02, as well as the risks and uncertainties that were taken into account when calculating future cash payments caused by the estimated liability, in accordance with paragraphs 16 - 19 of this Regulation.

An increase in the amount of the estimated liability due to an increase in its present value at subsequent reporting dates as the deadline approaches (interest) is recognized as other expense of the organization.

An example of determining the present value of an estimated liability is given in Appendix No. 2 to these Regulations.

IV. Write-off, change in the amount of the estimated liability

21. During the reporting year, in actual calculations for recognized estimated liabilities, the organization's accounting records the amount of the organization's costs associated with the organization's fulfillment of these obligations, or the corresponding accounts payable in correspondence with the account of the reserve for future expenses.

A recognized provision may be derecognised against cost recognition or recognition accounts payable to fulfill only the obligation for which it was created, unless otherwise provided by this Regulation.

If the amount of the recognized estimated liability is insufficient, the costs of the organization to settle the obligation are reflected in the accounting of the organization in a general manner.

22. In case of excess of the amount of the recognized estimated liability or in case of termination of the fulfillment of the conditions for recognition of the estimated liability established by paragraph 5 of this Regulation, the unused amount of the estimated liability is written off with attribution to other income of the organization, unless otherwise provided by this paragraph.

Upon extinguishing homogeneous provisions arising from recurring business operations of the entity's ordinary activities, previously recognized excess amounts are credited to subsequent provisions of the same type immediately upon recognition (without writing off previously recognized excess amounts to other income of the organization).

23. The reasonableness of recognition and the amount of the estimated liability are subject to verification by the organization at the end of the reporting year, as well as upon the occurrence of new events related to this liability.

Based on the results of such a check, the amount of the estimated liability may be:

a) increased in accordance with the procedure established for the recognition of the estimated liability in paragraph 8 of this Regulation (excluding the inclusion in the cost of the asset), upon receipt of additional information that allows to clarify the amount of the estimated liability;

b) reduced in accordance with the procedure established for writing off the estimated liability by paragraph 22 of these Regulations, upon receipt of additional information that allows to clarify the amount of the estimated liability;

c) remain unchanged;

d) written off in full in accordance with the procedure established by clause 22 of this Regulation, upon receipt of additional information that allows to conclude that the conditions for recognition of the estimated liability established by clause 5 of this Regulation have ceased.

V. Disclosure of information in financial statements

24. For each estimated liability recognized in accounting, the organization discloses, in case of materiality, at least the following information in the financial statements:

a) the amount at which the estimated liability is reflected in the balance sheet of the organization at the beginning and end of the reporting period;

b) the amount of the estimated liability recognized in the reporting period;

c) the amount of the estimated liability written off to reflect the costs or recognition of payables in the reporting period;

d) the amount of the estimated liability written off in the reporting period due to its excess or the termination of the fulfillment of the conditions for recognizing the estimated liability;

e) an increase in the amount of the estimated liability due to an increase in its present value for the reporting period (interest);

f) the nature of the obligation and the expected date of its performance;

g) uncertainties that exist in relation to the timing and / or the amount of the estimated liability;

h) the expected amount of counter claims or the amount of claims against third parties in reimbursement of expenses that the organization will incur in fulfilling the obligation, as well as assets recognized for such claims in accordance with paragraph 19 of this Regulation.

25. For each contingent liability, the financial statements disclose at least the following information:

a) the nature of the contingent liability;

b) the estimated value or the range of the estimated values \u200b\u200bof the contingent liability, if they are determinable;

c) uncertainties that exist in relation to the timing and (or) the amount of the obligation;

d) the possibility of receipts as a result of counterclaims or claims against third parties in reimbursement of expenses that the organization will incur in fulfilling the obligation.

If at the reporting date it is unlikely that the economic benefits of the entity will decrease due to the contingent liability, the entity may not disclose this information.

26. Provisions and contingent liabilities may be disclosed by peer group (for example, provisions in connection with guarantees issued by the entity, litigation).

If a provision and a contingent liability arise from the same business facts, the relationship between the related provision and the contingent liability should be disclosed.

27. When it is probable that economic benefits will flow to a contingent asset, an entity shall disclose, at the end of the reporting period, the nature of the contingent asset and its estimated value or range of estimates, if determinable.

28. In exceptional cases, when the disclosure of information about provisions, contingent liabilities and contingent assets to the extent specified in this Regulation causes or may cause damage to the organization in the course of resolving the consequences of the underlying obligations and facts, the organization may not disclose such information. In this case, the organization should indicate general character the related provision, contingent liability or contingent asset and the reasons why more details are not disclosed.

Appendix N 1
to the Regulation on accounting
"Estimated liabilities, contingent
approved by order

Examples of the analysis of circumstances for the purpose of recognizing a provision in accounting

With changes and additions from:

Example 1. The organization has an approved program for the repair of fixed assets, which provides, in particular, the frequency of repairs and planned costs for them. The legislation does not provide for the compulsory nature of such repairs. Information about this program of the organization is published and available to a wide range of people.

There is no obligation to repair property, plant and equipment because the entity does not have an obligation arising from past events in its activities that it cannot avoid. An estimated liability for future expenses for the repair of the organization's fixed assets is not recognized.

Example 2. The legislation provides for the mandatory repair of fixed assets in the industry in which the organization operates. For the operation of fixed assets without carrying out repairs, the legislation provides for fines. The organization has an approved program for the repair of fixed assets, which provides, in particular, the frequency of repairs and planned costs for them. Information about this program of the organization is published and available to a wide range of people.

There is no obligation to repair property, plant and equipment because the entity does not have an obligation arising from past events in its activities that it cannot avoid. The estimated obligation for the forthcoming expenses for the repair of the organization's fixed assets is not accepted for accounting. However, an entity recognizes a provision for future penalties for non-repairs if all the conditions for recognizing a provision for such penalties are met.

Example 3. During the reporting period, the legislation on taxes and fees has undergone significant changes. The organization's management considers it necessary to retrain the personnel responsible for calculating taxes. The organization has an approved retraining program that includes, in particular, the planned costs for it.

There is no obligation to retrain staff because the organization does not have an obligation arising from past events in its activities that it cannot avoid. The estimated liability for the forthcoming personnel retraining is not recognized in the accounting records.

Example 4. In accordance with the financial plan in the coming reporting year the organization is expected to have a loss in one of the activities. The organization's management believes that this loss is likely to occur.

An expected loss obligation does not arise because the entity does not have an obligation that has arisen as a result of past events in its activities that it cannot avoid. An estimated loss estimate is not recognized.

Example 5. The organization entered into an agreement for the supply of its products. In accordance with the terms of the contract, the expected revenue is 1,000 thousand rubles. (without VAT). The organization estimates that due to the increase in raw material prices, the production costs of the products provided for by the contract will amount to RUB 1,200 thousand. (without VAT). The contract has not yet begun execution. There are no sanctions for its termination.

The contract is not deliberately unprofitable, since the organization can terminate it without paying penalties. A corresponding provisioning liability is not recognized under the contract.

Example 6. The organization entered into an agreement for the supply of its products. In accordance with the terms of the agreement, the expected revenue is RUB 1,500 thousand. (without VAT). The organization estimates that due to the increase in raw material prices, the production costs of the products stipulated by the contract will amount to RUB 2,000. (without VAT). The contract has not yet begun execution. The penalty for non-performance of the contract will be 600 thousand rubles.

The agreement is deliberately unprofitable, since the inevitable expenses for its implementation (2,000 thousand rubles) exceed the expected receipts under it (1,500 thousand rubles), and to withdraw from the agreement the organization will have to pay a significant amount (600 thousand rubles). The estimated liability is recognized in the accounting of the organization in the amount of a possible net loss upon performance of the contract of RUB 500 thousand. (2000 thousand rubles - 1500 thousand rubles), which is less than the amount of the penalty for non-performance of the contract (600 thousand rubles).

Example 7. The organization's management approved a detailed plan for the upcoming restructuring of the organization's activities, which provides, in particular:

structural divisions, functions and the approximate number of employees who will be paid compensation in connection with the severance of labor relations with them;

expenses required for the forthcoming restructuring of the organization's activities;

The organization's management did not announce the existing plan to employees.

An obligation does not arise with respect to the forthcoming restructuring of the entity's activities because the entity does not have an obligation arising from past events in its activities that it cannot avoid. The estimated liability for the forthcoming restructuring of the entity is not recognized.

Example 8. The organization's management approved a detailed plan for the upcoming restructuring of the organization's activities, which provides, in particular:

the activities of the organization affected by the forthcoming restructuring and the place of its implementation;

structural divisions, functions and the approximate number of employees of the organization who will be paid compensation in connection with the severance of labor relations with them;

expenses required for the forthcoming restructuring of the organization's activities;

terms of implementation of the forthcoming restructuring of the organization.

The management of the organization announced the existing plan to the workers and coordinates the plan with the workers' union.

Obligations for the forthcoming business restructuring exist because the organization has obligations arising from past events in its operations that it cannot avoid. A decrease in economic benefits as a result of the forthcoming restructuring of the organization is quite likely. Estimated liabilities for the forthcoming restructuring of the organization's activities are recognized if the amount of the liability can be reasonably estimated.

Appendix N 2
to the Regulation on accounting
"Estimated liabilities, contingent
liabilities and contingent assets "(PBU 8/2010),
approved by order of the Ministry of Finance of the Russian Federation of December 13, 2010 N 167n

Examples of determining the amount of a provision

Example 1. The entity is a party to the litigation at the reporting date. On the basis of an expert opinion, the organization estimates that it is more likely than not that the court decision will be made not in its favor; the amount of losses of the organization in this case will be either 1000 thousand rubles, if the court decides to compensate only the plaintiff's direct losses, or 2000 thousand rubles, if the court decides to compensate, in addition to direct losses, also the loss of the plaintiff's profit. The probabilities of the first and second outcomes of the case are estimated by experts, respectively, as 95 and 5 percent.

Despite the fact that the most likely outcome of the trial is only to recover the plaintiff's direct losses, the organization takes into account another likely outcome of the case - compensation for lost profits.

1000 x 0.95 + 2000 x 0.05 \u003d 1050 (thousand rubles).

The estimated term for the fulfillment of the estimated liability does not exceed 12 months. The estimated liability for litigation is recognized in the accounting records in the amount of RUB 1,050 thousand.

Example 2. The entity is a party to the litigation at the reporting date. On the basis of the expert opinion, the organization estimates that it is quite likely that the court decision will not be made in its favor, and the amount of losses of the organization will be from 1,000 to 4,000 thousand rubles.

The organization calculates the amount of the estimated liability:

(1000 + 4000) / 2 \u003d 2500 (thousand rubles).

The estimated term for the fulfillment of the estimated liability does not exceed 12 months. The estimated liability for litigation is recognized in the accounting records in the amount of RUB 2,500 thousand.

Example 3. The entity sells goods with a warranty obligation for one year from the date of sale. For each individual product sold, the likelihood of a decrease in the economic benefits of the organization due to its return as poor quality and not subject to repair or due to the cost of repairing it is assessed as low. At the same time, estimates based on the organization's past experience show that there is a high probability that approximately 2 percent of goods sold will be returned as defective and beyond repair, and another 10 percent will require additional repair costs. Based on these calculations, the organization assesses the obligation for the issued warranty obligations arising from the sale of goods with the obligation of their warranty service, in relation to the entire set of goods.

The organization expects the additional cost of repairs to be 30 percent of the cost of defective items. Based on this calculation, a monetary estimate of the value of the estimated liability is made in connection with the estimated costs of warranty services for the goods sold, which in this case will be 2 percent + 10 percent x 0.3 \u003d 5 percent of the cost of goods sold.

The entity calculates the estimated liability as at 31 December 20X0. The estimated amount of the liability to be settled is RUB 1,200 thousand. The maturity date of the obligation is 2 years after the reporting date. The discount rate adopted by the organization is 14 percent.

It is calculated as the product of the amount of the liability to be settled by the discount factor.

The discount factor is determined by the formula:

KD \u003d 1 / (1 + SD) ^ N, where:

КД - discount factor;

SD - discount rate;

N is the period of discounting the estimated liability in years.

The discount factor is: KD \u003d 1 / (1 + 0.14) ^ 2 \u003d 0.76947.

The present value of the estimated liability, as well as the cost of increasing it (interest), are by years:

1200.00 ths rub. x 0.76947 \u003d 923.36 thousand rubles.

923.36 thousand rubles x 0.14 \u003d 129.27 thousand rubles.

present value of a provision

923.36 thousand rubles + 129.27 thousand rubles. \u003d 1052.63 thousand rubles.

expenses to increase the estimated liability (interest)

1,052.63 thousand rubles x 0.14 \u003d 147.37 thousand rubles.

present value of a provision

1,052.63 thousand rubles + 147.37 thousand rubles. \u003d 1200.00 thousand rubles.

Based on the calculation made in the accounting records of the organization as at 31 December 20X0, the present value of the estimated liability is recorded in the amount of RUB 923.36 thousand. As of December 31, 20X1, the entity records an increase in the amount of the estimated liability on the debit of the other income and expense account and the credit of the reserve account for future expenses in the amount of RUB 129.27 thousand, and as of December 31, 20X2 - 147.37 thousand rubles.

In the annual financial statements for 20X0, the estimated liability is reflected in the amount of RUB 923 thousand, for 20X1 - RUB 1,053 thousand, for 20X2 - RUB 1,200 thousand.

M.L. Pyatov and I.A. Smirnova (St. Petersburg State University) continue to acquaint readers with the provisions of IAS 37 "Provisions, Contingent Liabilities and Contingent Assets". The proposed article shows that in IAS 37 the concept of conditionality of reporting elements has a twofold meaning.

General idea of \u200b\u200bpresentation in reporting

Speaking about the content of financial statements formed in accordance with IFRS, we have already drawn your attention to the fact that their basic idea is that the financial statements should provide users with the characteristics of a really existing one as fully as possible. financial situation firms. The implementation of this provision makes it necessary to present in the reporting not only assessments of the elements of the picture of the company's financial position, which are a consequence of the already existing economic facts, but also assessments related to the facts of economic life of a probabilistic nature.

In such cases, whether or not a fact of economic life will occur is determined only by the existing probability of its occurrence. But at the same time, information about such a potential event is so important for users of reports that the presentation of probabilistic data in it makes it more reliable.

The greatest degree of uncertainty in the occurrence of a fact occurs when, in accordance with IFRS, we must recognize contingent liabilities and contingent assets in the financial statements.

Contingent liabilities

IAS 37 defines a contingent liability as:
"(a) a possible liability that arises from past events and will only be evidenced by the occurrence or non-occurrence of one or more future events that are uncertain and not entirely under the entity's control; or
(b) a present obligation that arises from past events but is not recognized because:
(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
(ii) the amount of the obligation cannot be measured reliably ".

In other words, contingent liabilities are those that cannot be recognized on the balance sheet because they do not meet either the definition of a liability or the criteria for its recognition.

Paragraph (a) of the definition of a contingent liability refers to a liability whose existence is possible only by virtue of past events. In order for such an obligation to be considered as existing and to be recognized, one or more events must occur (or not occur) in the future, which the company does not control.

Paragraph (b) deals with a present obligation that is not recognized because: (1) either an outflow of resources if fulfilled is not probable, (2) or the amount of the obligation is not measurable reliably. However, when the consolidated statements of a group of companies are prepared in a business combination, contingent liabilities, if measurable, are recognized in the balance sheet. In addition, if there is a liability for which the company is jointly and severally liable, then it is a contingent liability for pending settlement by other parties. In this case, the company should recognize a provision * in the part of the obligation, which will have to settle by using its own resources if they can be reliably estimated.

Note:
* Read also articles from the heading "International standards financial statements"in numbers 6-8 of the magazine" BUKH.1C "for 2010.

It should be noted that, when deciding on the recognition of a liability, the management of the organization must assess its (obligation) probabilistic characteristics. The Standard specifically emphasizes that the meaning of the term "probable" boils down to the fact that the corresponding future event is more likely to occur than not, which corresponds to the interpretation of this term in US GAAP. This means that the probability of an event occurring exceeds 50%. If "outflow of resources, if executed, is not probable", then the probability of resource outflow is less than 50%. The standard does not characterize the term "possible", however, guided by the interpretation of US GAAP, it can be considered as meaning the probability of an event occurring below 50%.

Here is an example of a contingent liability, which is given in the guidelines of the IASB.

Example 1

Comparing the rules for reflecting information about obligations, they can be presented in the following form:

In the future, the development of events associated with contingent liabilities may not go as expected at the time of the preparation of the statements in which they were recognized. Therefore, when reporting in future periods, the Standard requires an analysis and revision of the characteristics of a contingent liability in order to determine the likelihood of an outflow of resources embodying economic benefits.

If an outflow of future economic benefits becomes probable for an item treated as a contingent liability, a provision should be recognized in the financial statements of the period in which the change in probability was detected (unless in the rare event that the liability cannot be measured reliably).

Disclosure in reporting

IAS 37 contains specific rules regarding disclosure of information on contingent liabilities in financial statements.

Under the Standard, except where the likelihood of disposal economic resources for the purpose of settling the liability is unlikely, the entity (if meeting these requirements does not imply incurring inadequate costs) should, at the end of the reporting period, provide a brief description of the nature of each group of contingent liability, include:

"(a) an estimate of the effect of the contingent liability on financial indicators according to the principles of measurement at the best estimate of the costs required at the end of the reporting period to settle the existing obligation, taking into account the risks and sources of uncertainty, the time value of money factor (using a pre-tax discount rate, and future events that may affect the amount of costs required to settle the obligation);
(b) an indication of indications of uncertainty about the amount and amounts of potential outflows of resources; and
(c) the possibility of obtaining any refund. "

For example, the guidance provided by the IASB provides an example of an entity disclosing information about its contingent liabilities:

"Note 16. Contingencies
The client brought legal action against the organization, claiming that the use of the company's products caused damage to his health. He seeks compensation in the amount of CU2 million. Having consulted with lawyers, the management of the organization came to the conclusion that the claim was not substantiated, therefore it seems obvious that the court will decide in favor of the company, rejecting the claim. But if, contrary to expectations, the court ruled in favor of the client, the compensation would probably not exceed CU300,000. "

The Standard emphasizes that in determining which provisions or contingent liabilities can be categorized, their nature needs to be analyzed. Thus, it may be appropriate to account for the amounts related to guarantees for different goods as one type of obligation, but not to account for the amounts related to guarantees and legal claims within the same group of obligations. In addition, if the estimated and contingent liabilities arise from the same events, the entity shall present the required information in such a way as to disclose the existing relationship between the estimated and contingent liabilities.

Contingent assets

Under IAS 37, a contingent asset is "a possible asset that arises from past events, and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more future events, the occurrence of which is uncertain and which are not fully under the control of the entity".

The occurrence of contingent assets is caused by unplanned or unexpected events that create the possibility of economic benefits for the organization. As an example of a contingent asset, the Standard cites a lawsuit filed by a company, the judgment of which appears to be uncertain.

Based on the principle of conservatism, contingent assets should not be recognized in the financial statements, since the recognition of an asset is accompanied by the recognition of income, which may never be realized. But if the sale of income (repayment of the corresponding accounts receivable) is practically obvious, then this asset is not contingent and should be recognized.

Comparing the rules for reflecting information about assets, they can be presented in the following form:

Disclosure in reporting

A contingent asset should be disclosed when an inflow of economic benefits appears to be reasonably probable. At the same time, a brief description of the nature of contingent assets at the end of the reporting period should be given and, if practicable, an estimate of their financial impact on the reporting indicators determined according to the measurement principles for the best estimate of the corresponding income should be provided. Contingent assets, according to the Standard, should be presented taking into account risks and sources of uncertainty, the time value of money (using a pre-tax discount rate), and future events that may affect the amount of income.

Here are examples that are given in the methodological development of the IASB.

Example 2

Example 3

Example 4

An entity can present information about its contingent assets as follows:

"Note 17. Contingent asset
In 20X9, Company A sued Fuel Company B for damaging its aircraft due to defective aviation fuel produced by Company B. Company A's lawyers believe it probable that CU60,000 will be reimbursed by the court. The asset is not recognized in the statements of company A, because it is a possible asset, the existence of which depends on the court decision. "

Revision of the reported data on contingent assets

In order to reflect in the financial statements of the company changes that have occurred after the initial recognition of contingent assets, the content of the reporting information about them must be constantly revised. If an inflow of economic benefits becomes practically evident, the corresponding items of asset and income should be recognized in the financial statements for the reporting period in which the change occurred. If an inflow of economic benefits becomes probable, the entity discloses a contingent asset in the financial statements. At the same time, reflecting information about contingent assets, it is important not to mislead about the likelihood of earning income.

If any of the information required by the Standard is not presented in the reporting due to the practical impracticability of obtaining the necessary information, then this fact should be disclosed in the financial statements.

The Standard notes that, in extremely rare cases, there is reason to believe that disclosing all or part of the information required by the Standard could harm the organization in resolving disputes with other parties. Then the organization has the right not to disclose the required information, but at the same time it should explain to the users of the statements the essence of the disputed issue, indicating that some of the information was not disclosed, and the reasons why this was not done.

Outcome

Modern economic life makes new demands on the information that accounting provides to participants in economic activity. It is becoming more and more obvious that traditional methods of preparing financial statements have objective boundaries, which in some cases do not allow interested parties to form an opinion that corresponds to reality on the state of affairs of the reporting companies. One of the options for solving this problem, modern accounting theory sees an increasing application in practice of probabilistic assessments of the facts of the economic life of firms. This does not apply exclusively to IFRS. So, for example, in Russia, the procedure for reflecting in accounting and presenting in the reporting of organizations conditional facts of economic life is determined by the Accounting Regulations "Conditional facts of economic activity" PBU 8/01, approved. by order of the Ministry of Finance of Russia dated November 28, 2001 No. 96n. The transition from accurate (up to a penny) estimates in accounting to probabilistic estimates is another step in the development of accounting methodology.

Types of contingent liabilities:

According to IFRS No. 37 "Provisions, Contingent Liabilities and Contingent Assets" contingent liabilities are defined as:

1) a possible obligation arising from past events and the presence of which is confirmed by the occurrence or non-occurrence of a future event;

2) a present obligation arising from past events, which is not recognized, since the amount of the obligation is not measured reliably.

An entity does not need to recognize a contingent liability. When disclosing a contingent liability, the nature of the contingent liability must be considered. If an entity has consolidated liability for a liability, then the portion of the liability that is attributable to the other party is recognized as a contingent liability. An entity needs to recognize a provision for the portion of the liability for which an outflow of resources is most probable. The exception is when it is difficult to make a reliable estimate.

Types of contingent liabilities:

1) the obligation existing at the reporting date in relation to the amount or due date, in respect of which there is uncertainty;

2) an obligation, the existence of which at the reporting date is confirmed by the occurrence or non-occurrence of future events.

The contingent liability must be measured in monetary terms. To do this, draw up the necessary calculation and ensure its confirmation (for example, by auditors or experts). An entity should use due diligence in measuring contingent liabilities.

Methods of monetary measurement of contingent liabilities:

1) selection from a certain set of values. IN in this case the weighted average is taken as an estimate. This value is calculated as the average of the products of each value by the probability;

2) selection from the range of values. As an estimate, the company takes the arithmetic mean of the largest and smallest values \u200b\u200bof the interval;

3) selection from a certain set of ranges of values. First, the arithmetic mean values \u200b\u200bare determined from the largest and smallest values \u200b\u200bof each interval, and then the corresponding interval of values \u200b\u200bis estimated. The resulting weighted average is taken as an estimate of the contingent liability.

The financial statements must disclose the amount of the contingent liability. When assessing a contingent liability, it is necessary to take into account the amount of the counterclaim or the amount of claims against third parties. This is done in cases where the right of claim arises as a result of the corresponding conditional fact.

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Approved by PBU "Estimated Liabilities, Contingent Liabilities and Contingent Assets"

From 2011, companies must apply the new accounting regulation "Estimated Liabilities, Contingent Liabilities and Contingent Assets" (PBU 8/2010). It was approved by the order of the Ministry of Finance of Russia and replaced the previously valid PBU 8/01 "Conditional facts of economic activity". (ORDER OF THE MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION No. 167n dated 13.12.10 Registered by the Ministry of Justice of the Russian Federation 03.02.11 No. 19691 ON APPROVAL OF THE ACCOUNTING REGULATIONS "ASSESSMENT OBLIGATIONS, CONTINGENCIES AND CONTINGENCIES 8/2010")

Download ORDER OF THE MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION dated 13.12.10 No. 167n

ORDER OF REFLECTION OF CONDITIONAL FACTS REVISED
Companies must apply RAS 8/2010 starting from the 2011 financial statements. And since the main forms of this reporting - Balance sheet and the Profit and Loss Statement - compiled monthly (clause 48 PBU 4/99 "Accounting reporting of the organization"), the rules of the new regulation must be followed from January 1, 2011.

However, PBU 8/2010 was officially published only on February 16, 2011. Until this date, the companies used PBU 8/01. In such a situation, one must be guided by clauses 10, 11 PBU 1/2008 " Accounting organization". According to them, in the event of a change in the regulatory legal act, adjustments are made to the accounting policy during the year. But first you need to find out what the differences are between the new and the old provisions. After all, it is important whether the classification of objects has been revised and how much the procedure for their accounting will change.

SCOPE OF APPLICATION
First of all, the range of organizations required to apply the new PBU has been expanded. There are now no exceptions for non-profit organizations. Small businesses (except for issuers of publicly placed valuable papers) retained the privilege: they are not required to follow PBU 8/2010.

In addition, a list of accounting objects has been determined in respect of which the document is not applied, namely:

- knowingly unprofitable contracts;

- reserve capital and other reserves formed from retained earnings;

- estimated reserves;

- amounts that subsequently affect the value (accounted for in accordance with PBU 18/02).

TERMINOLOGY
PBU 8/2010 uses new terminology. It does not include the previously used basic concept of “conditional fact of economic activity”.

Now there are a few basic concepts.

Estimated liability - a liability with an uncertain amount and / or maturity. It can arise from the norms of legislative and other normative legal acts, court decisions, contracts or as a result of the actions of the organization;

Contingent liabilities (contingent assets) arise as a result of past events in the business life of the organization, when the existence of a liability (asset) is due to the occurrence (non-occurrence) of uncertain events, not provided by PBU 8/2010 conditions.

Contingent liabilities and contingent assets are not recognized in accounting. Information about them is disclosed if there is a likelihood of a decrease (income) in economic (clauses 25, 27 PBU 8/2010).

Estimated liabilities (as opposed to contingent liabilities and assets) are recognized in accounting. This requires the simultaneous observance of the following conditions:

- the organization has a duty resulting from past events in its economic life, the execution of which cannot be avoided;

- the decrease in the economic benefits of the organization necessary for the fulfillment of the estimated obligation is likely;

- the amount of the estimated liability can be reasonably estimated.

Thus, the provision is characterized by the fact that the entity cannot evade it. In case of doubt about the inevitability of a decrease in economic benefits, the organization recognizes a provision if it comes to the conclusion (experts can be involved) that the obligation rather exists than not.

The Regulation, in addition, contains the norms establishing the procedure for determining and changing the amount of the estimated liability, as well as its write-off.

Estimated liabilities are reflected in the account of reserves for future expenses. When recognized, the amount of such a liability is charged to ordinary expenses or other expenses, or is included in the cost of the asset (depending on the nature of the liability).

Comparison of the concepts used in the new and old PBU (see table) shows that, despite the revised interpretation, there were no fundamental differences in characteristics. Provisions are used instead of existing liabilities, and contingent liabilities are used instead of potential contingent liabilities. In other words, in PBU 8/2010, objects are defined directly, directly, without the use of generalizing concepts.

COMPARISON OF TERMS PBU 8/2010 AND PBU 8/01

PBU 8/2010	PBU 8/01
Estimated obligation: - obligation of the organization with an uncertain amount and (or) maturity; - the organization has a duty resulting from past events in its economic activities, the execution of which it cannot avoid; - the decrease in the economic benefits of the organization necessary to fulfill the estimated obligation is likely (more likely than not)	Existing contingent liability: - the entity's actual obligation at the reporting date, which cannot be waived, and the amount or timing of which there is uncertainty
Contingent liability: - due to past events in the organization's business; - the occurrence of a legal obligation depends on the occurrence (non-occurrence) of future uncertain events beyond the control of the organization	Potential contingent liability: an expected liability that is solely due to the occurrence or non-occurrence of future events beyond the control of the entity
A contingent asset: - depends on the occurrence (non-occurrence) of one or more future uncertain events beyond the control of the organization	A contingent asset: - with a very high or high degree of probability, will result in an increase in the economic benefits of the organization in the future

We will show with specific examples the procedure for qualifying obligations and reflecting (recognizing) them in the accounting.

EXAMPLE 1
LLC "Mars" made a decision to create a reserve for service (warranty period - one year). According to expert estimates (clause 16 of PBU 8/2010), the value of the estimated liability is RUB 1,200,000. (excluding VAT). Actual costs amounted to 1,150,000 rubles. (excluding VAT).

The accountant reflected the transactions with the following entries (as of the relevant dates):

DEBIT 97 CREDIT 96
- 1,200,000 rubles. - a provision for warranty repairs has been created (a provision has been recognized);

DEBIT 96 CREDIT 60
- 1,150,000 rubles. - the actual cost of the repair (excluding VAT) performed by the contractor is reflected (in accordance with clause 21 of PBU 8/2010);

DEBIT 96 CREDIT 91
- 50,000 rubles. (RUB 1,200,000 - RUB 1,150,000) - the excessively accrued reserve was written off (clause 22 of PBU 8/2010).

Here's another example where you don't have to record a liability.

EXAMPLE 2
LLC “Spectr” in the reporting year expects a loss in one of the directions. The probability of loss is high. However, the entity does not have an obligation arising from past events in its activities that it cannot avoid. Therefore, due to the expected loss, the estimated liability is not recognized (paragraph 12 of PBU 8/2010).

DISCOUNTING
PBU 8/2010 establishes a slightly different approach to discounting, giving it greater importance.

Recall that, according to PBU 8/01, discounting was applied in connection with inflationary expectations, if the organization anticipated a significant change in the purchasing power of the Russian Federation in the future. reporting periods (We must pay tribute to PBU 8/01: it first introduced the discounting procedure into accounting practice).

This approach did not meet international standards. IAS 37 (§45–47) states that the shorter the time period for the estimated liability to settle, the more burdensome it is. From the standpoint of the upcoming disposal money the time factor is called the time value of money. If the impact of such cost is significant, the amount of the estimated liability is discounted. The discount rate should reflect current market assessments of the time value of money. PBU 8/2010 proceeds precisely from these reasons.

The new PBU clearly states that if the estimated period of fulfillment of the estimated liability exceeds 12 months after the reporting date (or a shorter period, by the organization in the accounting policy), then such an estimated liability is measured at a cost determined by discounting its value (paragraph 20).

The discount rate applied by the company should reflect existing market conditions (including inflation) as well as risks specific to the liability underlying the valuation liability recognized. The present value of the estimated liability is called the present value. Thus, discounting is mandatory if the estimated date of fulfillment of the estimated liability exceeds 12 months after the reporting date (paragraph 20 of PBU 8/2010).

This means that long-term reserves formed as of December 31, 2010, from 2011 are subject to mandatory discounting.

At the same time, the discounting algorithm itself, presented in example 3 of Appendix 2 to PBU 8/2010, only formally differs from the procedure described in paragraph 15 of PBU 8/01.

PBU 8/01 was remarkable in that it characterized the recognition of liabilities and assets, respectively, through a decrease or increase in the economic benefits of the organization. But in general, the terminology of PBU 8/01 does not comply with IAS 37 "Provisions, Contingent Liabilities and Contingent Assets", which regulates the reflection and recognition in the financial statements of similar circumstances of companies' activities.

The PBU 8/2010 edition pursued the goal of further convergence of Russian standards with international ones. And I must say that basically compliance with IAS 37 has been achieved. g.

Contingent liabilities or contingent liabilities are liabilities that are not recognized in the reporting, but disclosed in the explanatory note. How do they differ from provisions?

This topic seems boring to many and does not deserve serious attention. Really, this type liabilities does not directly affect the reporting. But don't be disdainful of them. One way or another, the contingent liability can potentially turn into a very real liability that will need to be paid in the future. In addition to the essence of the issue, this article also tells about the history of accounting in relation to contingencies, or, speaking in Russian, conditional facts of economic activity, which is quite entertaining. The first standard that addressed this topic was adopted back in 1978. This was the first edition of IAS 10.

Contingent liabilities in current IAS 37

Let's try to carefully read the definition of a contingent liability, which is in the international standard IAS 37. Based on this definition, we can say that there are two "types" of contingent liabilities. Let's consider them separately in order not to get confused. And it's better to start with the second part:

A contingent liability is

(2) existing obligation, which arises from past events, but is not recognized because:

• (i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
• (ii) the amount of the liability cannot be measured reliably.

To understand contingent liabilities, it is extremely important to study the previous article on this site on provisions. And now it will become clear why.

As follows from the above definitional snippet, a contingent liability is a liability that is a little short of a provision. Let me remind you the criteria for recognizing a provision: it arises as a result of a past event, there is a high probability of an outflow of resources to settle the liability, as well as a reliable estimate. If the last two recognition criteria are not met, that is, either the probability of an outflow of resources is less than 50%, or it is impossible to make a reliable estimate of the amount of the liability, then instead of the estimated one, we will receive a contingent liability.

And this situation is common. When the company's management analyzes the existence of liabilities at the reporting date, it is clear that not all of them will meet the criteria for recognizing a provision. If an event has occurred that indicates the existence of a liability, but the other two criteria are not met, then such a present obligation is only disclosed in the explanatory note. An example is litigation. In some cases, losing in court will be highly probable, but not always. Fortunately, there is also the opposite situation, when the claims of the opposing party are in vain. Below is a brief excerpt from the 2013 IFRS statements of Norilsk Nickel.

It is very interesting to read the history of the legal confrontation between Rosneft and the former shareholders of Yukos, which is set out in the explanatory note to reporting in accordance with international standards. Here I am giving only a brief excerpt from an extensive description of the situation in the notes to the 2013 accounts.

The table below is an appendix to the international standard IAS 37, but, unfortunately, there is no Russian translation of it, but I would like it to be. This table covers three cases:

• 1) a provision is recognized
• 2) a provision is NOT recognized, but a contingent liability is disclosed (if the probability of an outflow of resources is sufficiently tangible)
• 3) it is not even required to mention the contingent liability in the notes (if the probability of outflow of resources is very small)

The second case where the obligation is contingent:

A contingent liability is

(1) possible commitmentthat arises from past events, and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more future events, the occurrence of which is uncertain and which are not fully under the control of the enterprise;

in this case, there is a past event, but whether there will be an outflow of economic benefits depends on whether or not some future event happens. That is, the obligation materializes on the condition that something happens in the future. Such contingent liabilities are disclosed in the explanatory note to the statements, unless the likelihood of an outflow of resources is extremely small (remote). An example of such contingent liabilities is financial guarantee liabilities. Below is an excerpt from Gazprom's 2013 IFRS statements.

In this case, if Nord Stream AG is unable to repay the loan to Societe Generale bank, then Gazprom, which has guaranteed this credit line, will have to do it. There is an obvious dependence of the existence of the obligation on the occurrence of a future event - the default of another company on its credit obligations.

So, we can summarize:

A contingent liability is

1. possible commitmentarising from past events, the presence of which must be confirmed by future events,
2. or an existing obligation,arising from past events, but an outflow of benefits is not probable and the amount of the liability cannot be measured reliably

Contingent liabilities are “continually reviewed to determine whether an outflow of resources embodying economic benefits has become probable”. If it becomes probable that an outflow of future economic benefits will be required for an item previously treated as a contingent liability, a provision is recognized in the financial statements. It is recognized in the period in which there has been a change in the probability (except in extremely rare circumstances when no reliable estimate can be made).

I will not go into details, but I will briefly note one more point. Internally generated (generated internally) contingent liabilities in accordance with IAS 37 are not recognized in the financial statements, but disclosed in the explanatory note. But if the contingent liabilities are acquired when another company is acquired, then, according to IFRS 3, if the fair value is estimated, the contingent liabilities are recognized in the consolidated statements. The IASB believes that the existence of a contingent liability on the acquiree's balance sheet results in a decrease in the price that the acquirer is willing to pay for that company, and if so, then this obligation exists.

In June 2014, examiner Dipyfr proposed adjustments to fair value for contingent liabilities in the consolidation issue. Based on the comments on this site, many, knowing IAS 37, have decided that contingent liabilities should not be recognized in the consolidation process. But this is not the case. Business combinations should be guided by IFRS 3.

Contingent assets in IFRS

The definition of a contingent asset is similar to the definition of a contingent liability - there is a past event, but the existence of an asset will only be confirmed by a future event.

A contingent asset is a possible asset that arises from past events, and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more future events, the occurrence of which is uncertain and which are not fully under the control of the entity.

An example would be the presentation of a claim by a company in the case when the result of the process is uncertain: whether the company will receive compensation or not will be clear only in the future.

Contingent assets are not recognized in the financial statements as this could result in the recognition of income that may never be received. If the receipt of income is practically certain, then the corresponding asset is not contingent and should be reflected in the financial statements.

Below is a table that summarizes the provisions of IAS 37 for contingent assets depending on the likelihood of an inflow of economic benefits.

Information about a contingent asset is disclosed when an inflow of economic benefits appears to be probable (paragraph 34, IAS 37). If an inflow of benefits is not likely, then there is no need to disclose information about it in the explanatory note.

As in the case of contingent liabilities, information relating to contingent assets is constantly reviewed for any changes (paragraph 35, IAS 37). If an inflow of economic benefits becomes practically certain, the asset and the related income are recognized in the financial statements in the period in which the change occurred.

Unfortunately, no examples of contingent assets were found in the public statements of Russian companies.

The history of the development of accounting for contingent assets and liabilities

In October 1978, IAS 10 “Contingencies and Events After the Balance Sheet Date” was adopted, the title of which can be translated as “Contingent business facts and events after the reporting date”.

This first IFRS 10 was the first to define the term “contingency” as a condition or situation, the ultimate result of which, profit or loss, will only be evidenced by the occurrence or non-occurrence of one or more uncertain future events. Compare this definition with the definition of the “second” (in the order of presentation in this article) type of contingent liabilities - a future event, the occurrence or non-occurrence of which will confirm that an outflow of resources is necessary.

IFRS IAS 10 proposed two criteria for recognizing a contingent loss in financial statements. A contingent loss was recognized (i.e. recognized, shown in figures) as an expense and a liability if:

• 1) it is probable that future events will confirm that the asset was impaired or a liability incurred at the reporting date (after taking into account any associated probable consideration), and
• 2) you can make a reasonable estimate of the resulting loss

If these conditions were not met, the old IAS 10 required only disclosures in the explanatory note. If the probability of loss was extremely small (remote), then such disclosures were not required.

Contingent gain under the original IAS 10 was not recognized in the financial statements, but was disclosed in the explanatory note if it was probable that it would be realized, which is consistent with the current interpretation of contingent assets under IAS 37.

19 years later, in 1998, a new standard IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” was adopted, which is still in effect. This standard singled out the so-called provisions as a special type of liabilities, introduced clear criteria for their recognition in the financial statements, and contingent liabilities began to be called those that either did not meet these recognition criteria, or those possible liabilities that will be confirmed by future events.

It is best to draw up a table, then it becomes clear what changed in 1999

Proposed amendments to IAS 37 that are not yet effective

As I wrote in a previous article, in 2002 the IASB started a project to revise IAS 37, and on June 30, 2005, the so-called Exposure Draft of the updated standard on provisions was issued. The project is currently on hold pending changes to the Conceptual Framework to clarify the definition of the term “obligation”. I don’t know what will be adopted by the IASB in the end, but I think that most of the proposed amendments to IAS 37 will be included in the revised standard in the near future.

I will try to summarize the essence of what the developers of international standards proposed in the draft version mentioned above.

It was suggested:

• replace “provision” with “non-finacial liability” (replace “provision” with “non-financial liability”).
• abolish the term contingent liability
• items previously described as contingent liabilities are non-financial liabilities
• eliminate the term contingent asset
• items previously described as contingent assets should be brought under the scope of IFRS 38 " Intangible assets»Provided that they meet the definition of an asset according to the Conceptual Framework
• all non-financial liabilities should be recognized when they meet the definition and can be measured reliably
• the non-financial liability should be measured at the amount that the company will spend to settle or transfer the liability to a third party at the end of the reporting period (as in IAS 37)
• in of all In some cases, the expected cash flow approach should be used to estimate the non-financial liability

The bottom line is that all non-financial (current estimated) liabilities are recognized in the financial statements if they can be measured reliably. If, in very rare cases, such an estimate cannot be obtained, the obligation is disclosed in an explanatory note. Difference from the current IAS 37 - the probability of an outflow of resources does not affect the recognition of a liability, this probability is taken into account in its assessment (the probability is multiplied by the corresponding amount required to settle the liability).

Those obligations that were previously classified as contingent, since the outflow of resources should have been confirmed by the occurrence or non-occurrence of a future event, too must admit in reporting. The Council explained this proposed change as follows:

If a company has a liability *, the amount of which depends on the occurrence or non-occurrence of one or more uncertain future events, then the company has an unconditional obligation * and a conditional obligation.

These commitments are often referred to as 'stand ready', which means to be ready. the company has an unconditional obligation to be prepared to fulfill the obligation if an uncertain future event occurs (or does not occur). Uncertainty about whether or not a future event will occur is reflected in the measurement of the liability recognized. For example, Gazprom has an unconditional obligation to be ready to pay off bank loan company "Nord Stream AG" () in accordance with the financial guarantee agreement. Uncertainty as to whether or not it will be required to do so needs to be reflected in the measurement of the liability using the expected cost method.

The draft version under discussion contains an example of a lawsuit. The company involved in the litigation recognizes the obligation arising from the unconditional obligation to be prepared to comply with the court's decision. Uncertainty about the future probable amount of consideration that the court may demand (contingent liability) is reflected in the assessment of this liability.

In other words, the IASB, in the draft version of the updated IAS 37 standard, proposed almost all the obligations that previously fell into the group contingent liabilities and were not reflected in the reporting, recognize and reflect on the balance sheet as non-financial liabilities... A loophole, of course, would remain: it is always possible to refer to the fact that it is impossible to obtain a reliable estimate of the obligation, and then only disclosure in the explanations. Indeed, assessing such liabilities in itself is a non-trivial task, which would add a headache to IFRS reporting staff. And nevertheless, the adoption of the above changes would lead to the need to recognize in the reporting significantly more obligations than is currently being done.

*In English, there are two terms that are translated into Russian as an obligation: liability and obligation... The first refers to an accounting obligation, and the second refers to an obligation to do something. To separate these two concepts in Russian translation, I used the word "Commitment" to translate the term liability and the word "duty" to translate the term obligation.

The future is always uncertain. The best harbinger of the future is the past

The future will show whether these proposals will be accepted. It is possible that the new standard, which will replace IAS 37, will be even more revolutionary. It is always fascinating to see how the perceptions of accounting standards makers change over time. What seemed so right before suddenly collapses under the pressure of new logic. But, unlike developers, we, those who prepare reports on the ground, have to put into practice all their ideas - good or bad.

"It is not the strongest or the smartest that survives, but the one who adapts best to change."Charles Darwin

This also applies to the national currency rate.