Impairment provision. Provision for impairment of investments

Upon confirmation of a significant decrease in the cost of financial investments, the company creates a provision for impairment financial investments (p. 38 PBU 19/02). What transactions are used for such an operation? How is the amount of the reserve reflected in the balance sheet? Everything in order.

What is a provision for impairment of financial investments

The conditions for classifying various assets of an enterprise as financial investments are indicated in clause 2 of PBU 19/02. In accordance with legal regulations, these are securities (municipal and state); third party securities, including debt; loans issued; contributions to authorized capital, except for its own; deposits; receivables acquired through assignment, etc. (clause 3 of PBU).

The depreciation of financial investments occurs when there is a steady and significant decrease in their initial value. In other words, if the current market price is not determined for financial investments, and the estimated economic benefit from using the asset under normal conditions falls, they say that the object is impaired. At the same time, the following conditions must be met:

• The value of the book value at the current and last reporting dates is higher than the market value.
• During the reporting period, there is a significant decrease in the estimated cost.
• On reporting date there is no indication that the target price is likely to rise significantly.

Impairment of objects is possible, for example, upon the announcement of the issuer valuable papers bankrupt. When appropriate signs appear, the company is obliged to check for a decrease in the cost of financial investments. The action is taken in respect of those investments for which there are signs of impairment. If the results of the audit turn out to be positive, that is, a steady decline in the value of assets is confirmed, a reserve should be created for the difference between the accounting and estimated value of the object.

Provisions for impairment of investments in securities - accounting

In the accounting of the enterprise, the formation of the reserve is displayed by account. 59 with the same name. This account is passive: with an increase - for a loan, a decrease - for a debit. Analytics is carried out by types of reserves and terms - short and long term. Correspondence account 59 is performed with account. 91:

• A provision has been created for the depreciation of financial investments - entry D 91.2 to 59.
• Written off in the accounting reserve for investment impairment - D 59 K 91.1.

Provisions for impairment of financial investments in the balance sheet are reflected not directly, but through a decrease in the book value of objects on page 1170. If the company creates reserves, then it is necessary to conduct an annual review for signs of impairment. The check date is December 31 or as of the formation of interim accounting. The results of the event must be documented.

In the event that the audit confirmed a subsequent decrease in the market price, the amount of the already formed reserve is adjusted by increasing. If the price has risen, the reserve decreases. The financial results of the enterprise are changed in an appropriate way (clause 39 of PBU). When an asset is disposed of in the course of its disposal, the amount of the provision is referred to other income (paragraph 40).

To account for the formation of the organization's reserves for the depreciation of investments in securities, account 59 "Provisions for the depreciation of investments in securities" is used.

Professional participants in the securities market create provisions for the depreciation of investments in securities for any non-revaluable securities of other organizations, acquired both for their own needs and for resale, the quotes of which are regularly published. This is done on the date of compilation not only annual, but also quarterly accounting statements if the market value of the securities falls below their book value. If, on the date of drawing up the financial statements, transactions were made through two or more trade organizers for the same security, then professional participants have the right to independently choose the rate of the security to reflect the value of their own investments (clause 5.1. funds in the accounting of individual operations with securities, approved by the decree of the Federal Commission for the Securities Market of Russia dated November 27, 1997 No. 40).

Provisions are created from financial results from commercial organization or an increase in expenses for a non-profit organization by the amount of the difference between the cost at which securities are accepted for accounting:

Debit 91 Credit 59 - reserves created;

Debit 59 Credit 91 - the previously created allowance for impairment losses was reduced (written off).

Moreover, in balance sheet securities are recorded at market value... In the liabilities of the balance sheet, the amount of the formed reserve is not separately reflected.

Analytical accounting for account 59 "Provisions for impairment of investments in securities" is maintained for each reserve.

Professional securities market participants engaged in dealer activities are entitled to deduct deductions to provisions for depreciation of securities as expenses for tax purposes, if such taxpayers determine income and expenses on an accrual basis. In this case, the amounts of recovered provisions for impairment of securities, the deductions for creation (adjustment) of which were previously taken into account when determining tax baseare recognized as income specified by the taxpayer.

In tax accounting, the creation of a reserve for the depreciation of financial investments for profit tax purposes is not taken into account (clause 10 of article 270 of the Tax Code of the Russian Federation).

Impairment testing is performed at least annually as of 31 December if there is any indication of impairment.

If the audit reveals a further decrease in the estimated value, then the amount of the previously created impairment allowance increases and decreases financial results.

If, according to the results of the audit, an increase in their estimated value is revealed, then the amount of the reserve decreases, and the financial result increases.

If a financial investment no longer meets the criteria for sustainable decline in value, then the amount of the created reserve is referred to financial results (as part of other income).

Allowances for impairment of securities are created in foreign currency Russian Federation regardless of the currency of the par value of the security. For securities denominated in foreign currency, the purchase price and the market price are translated into Russian rubles at the official exchange rate of the Bank of Russia at the date of creation and adjustment of the reserve.

Let's consider an example of creating a reserve for the enterprises of Solaris LLC. The nominal value of the share of the contribution to the authorized capital is 500,000 rubles. (share size - 51%). Based on the value of the net assets of the LLC according to the balance sheet for 9 months of 2011, the organization created a reserve for the impairment of these financial investments in the amount of 40,000 rubles.

In February 2012, upon receipt by the organization of the annual financial statements of the LLC for 2011, proposed for approval, the organization established that the value of the net assets of the LLC was 800,000 rubles. The financial statements of the organization for 2011 were approved on March 30, 2012.

Decrease in the value of assets ((RUB 500,000 - RUB 40,000) - RUB 800,000 x 51% \u003d RUB 52,000) caused by an event after the reporting date is significant for the organization (RUB 52,000 / (RUB 500,000). - 40,000 rubles) x 100% \u003d 11.3%), which means that the event is reflected in the synthetic and analytical accounting of the organization by the final records of December 2008.

The creation of the provision was formalized with the following accounting entries.

How is the provision for depreciation of securities formed in accounting and tax accounting?

How is the provision for depreciation of securities formed in accounting and tax accounting?

1 Depreciation of financial investments, including securities, is recognized as a sustained significant decrease in the value of financial investments for which their current market value is not determined, below the amount of economic benefits that the organization expects to receive from these financial investments in the normal conditions of its activities (paragraph 37 of PBU 19 / 02). A steady decline in the value of securities is characterized by the simultaneous presence of the following conditions:

At the reporting date and at the previous reporting date, the book value is significantly higher than their estimated value;

During the reporting year, their estimated cost has changed significantly, and only in the direction of its decrease;

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

The organization independently determines the estimated value of the value of securities, equal to the difference between their book value (the value at which they are reflected in accounting) and the amount of such a decrease (impairment).

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

The appearance of the organization (the issuer of the securities owned by the organization), or its debtor under the loan agreement signs of bankruptcy or declaring it bankrupt;

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

The absence or a significant decrease in income from financial investments in the form of interest or dividends with a high probability of a further decrease in these receipts in the future, etc.

In the event of a situation in which an impairment of securities may occur, the entity shall implement verification of the existence of conditions for sustainable reduction of their cost.

If such a check confirms a sustained significant decline in the value of securities, the organization forms allowance for their impairment by the difference between the book value and the estimated value of such securities.

The provision for impairment of investments in securities for which their current market value is not determined is formed from financial results (as part of operating expenses). A debit entry is made for the amount of the created reserves accounts 91"Other income and expenses" and a loan accounts 59 “Provisions for impairment of financial investments”. In the financial statements, the value of such financial investments is shown at the book value less the amount of the formed reserve for their impairment.

Impairment testing is performed at least once a year as of December 31 of the reporting year (if there is any indication of impairment). The organization has the right to carry out the specified check and on the reporting dates of the interim financial statements. It is necessary to provide confirmation of the results of the specified check.

If an impairment test reveals further decline in the estimated costsecurities, then the amount of the previously created reserve adjusted towards its increase and decrease in the financial result (included in operating expenses).

If, as a result of an impairment test of securities, increasing their estimated cost, then the amount of the previously created reserve is adjusted towards its decrease and increase in financial result (as part of operating income).

If, on the basis of the available information, the organization concludes that the financial investment no longer meets the criteria for a sustainable significant decrease in value, as well as upon disposal of securities, the estimated value of which was included in the calculation of the reserve, the amount of the previously created reserve for the specified securities relates to financial results (as part of operating income) at the end of the year or the reporting period when the said financial investments were disposed of.

Example 1

In 2004, 000 "Sever" acquired shares of OJSC "Yug" for 150,000 rubles. (150 shares with a par value of 1000 rubles each), which are not traded on the organized securities market.

As of December 31, 2004, the organization carried out an impairment test of the securities, which confirmed a steady decline in their value and revealed signs of bankruptcy of OJSC Yug. Based on the results of the audit, Sever, 000 calculated that the value of the securities had decreased by 20%, and therefore a reserve was created for their depreciation in the amount of RUB 30,000.

In April 2005, 000 Sever sold 30 shares of OJSC Yug, and in October, the remaining 120 shares. All shares were sold at par.

Reflection of transactions in accounting:

D-t count. 76 Set count. 51 - 150,000 rubles. - the transfer is reflected money in payment for securities

D-tsch. 58-1 K-tsc. 76- 150,000 rubles. - securities are accepted for accounting after receipt of documents on the transfer of ownership

D-t count. 91-2 Set count. 59 - 30,000 rubles. - the creation of a provision for the depreciation of investments in securities is reflected

D-t count. 62 set count. 91-1 - 30,000 rubles. - reflected income from the sale of part of the shares in April 2005.

D-t count. 91-2 Set count. 58-1 - 30,000 rubles. - reflected the write-off of the value of shares sold in April

D-t count. 59 Set count. 91-1 - 6000 rubles. - reflected a 20% decrease in the provision for impairment of investments in securities due to the sale of the corresponding number of shares

D-t count. 62 set count. 91-1 - 120,000 rubles. - reflected income from the sale of part of the shares in October 2005.

D-t count. 91-2 Set count. 58-1 - 120,000 rubles. - reflected the write-off of the value of shares sold in October

D-t count. 59 Set count. 91-1 - 24,000 rubles. - the write-off of the provision for the depreciation of investments in securities is reflected.

2 As for securities for which the current market value is determined, the formation of a reserve for their impairment PBU 19/02 not provided.

In tax accounting according to clause 10 of Art. 270 of the Tax Code amount of the created reserve for depreciation of investments in securities refers to expenses not taken into account for tax purposes, with the exception of the amounts of deductions to provisions for impairment of securities made by professional participants in the securities market in accordance with Art. 300 of the Tax Code of the Russian Federation.

Recovered reserves amount for the depreciation of securities (except for reserves, the costs of creating which, in accordance with Art. 300 of the Tax Code of the Russian Federation, previously reduced the tax base) also not taken into account when determining the income tax base (Subclause 25, clause 1 of Art. 251NK RF).

Thus, when creating reserves for the depreciation of securities for expenses (income) that form the financial result in accounting as part of operating expenses (income) and are not taken into account for the purpose of calculating income tax, permanent differences arise

In accordance with Art. 300 Tax Code only professional participants in the securities marketengaged in dealer activities, if they determine income and expenses on an accrual basis, have the right to include as expenses for tax purposes the deductions to reserves for the depreciation of equity securities circulating on the organized market.

Professional participant of the securities market- this entity, which carries out professional activities in the securities market (Article 2 of the Law of April 22, 1996 No. 39-FZ "On the Securities Market"). In the context of this Law, professional activity means:

Brokerage activities;

Dealer activity;

Depository activities;

Securities management activities;

Activities to determine mutual obligations (clearing);

Activities related to maintaining the register of owners of securities;

Activities for the organization of trade in the securities market.

All types of professional activities in the securities market are carried out on the basis of a special permit - licenses (Art. 39 of Law No. 39-FZ). The owners of securities who do not directly carry out professional activities in the market (do not have an appropriate license) are usually called non-professional participants in the securities market.

Professional participants in the securities market engaged in dealer activities, if they determine income and expenses on an accrual basis, create reserves at the end of the reporting (tax) period in the amount of the excess of purchase prices of equity securities, that is, for shares, bonds and options of the issuer, which circulate on the organized securities market, above their market quotation (estimated amount of the reserve). In this case, reserves are created (adjusted) in relation to each issue of securities, regardless of changes in the value of securities of other issues.

The amounts of restored provisions for depreciation of securities, the deductions for the creation (adjustment) of which were previously taken into account when determining the tax base, are recognized as income of professional participants in the securities market.

For investments of an organization that are not traded on the securities market, the legislation provides for the need to control the depreciation and introduce a reserve for the depreciation of financial investments. Let's see how this happens in practice.

Provisions for impairment of investments in securities and other assets

The financial investments of the organization include:

• various securities with deadlines and the repayment value;
• contributions to the capital of other enterprises and organizations;
• issued loans (excluding interest-free) and deposits;
• acquired accounts receivable and etc.

The conditions for the inclusion of these assets in the composition of the concept under consideration are as follows:

• obligatory documentary evidence;
• bearing certain risks (up to losses) associated with such investments;
• the focus of investments on making a profit (for example, receiving dividends, increasing the value of assets, etc.).

Certain assets (for example, short-term assets) tend to depreciate.

In a situation of depreciation of financial investments, the enterprise should analyze the reasons for reducing their value. For this purpose, all depreciating financial investments are checked for which their current market value is not determined.

If the audit shows a sustained significant decrease in the value of such investments, it is required to create a reserve for the depreciation of financial investments for the indicator of the difference in the accounting and calculated value (clauses 21, 38 of PBU 19/02).

A decrease is considered stable if:

• at the time of checking the value and at the previous reporting date, the book value of assets is an order of magnitude higher than the calculated one;
• during the reporting period, the cost only decreased;
• as of the reporting date, there was no information on the positive dynamics of this indicator.

Accounting and tax accounting

TO account 59 "Provisions for impairment of financial investments" creates analytical accounting. The value of investments for which such a reserve has been created corresponds to the balance sheet value minus the corresponding reserves.

The specified account corresponds to account 91. The creation of a reserve for the depreciation of financial investments is accompanied by the posting Dt 91 Kt 59. The disposal of investments, on the contrary, is accompanied by the posting Dt 59 Kt 91.

In accounting, reserves should be classified into short-term and long-term by creating the corresponding sub-accounts 59.1 and 59.2 and dividing the analytical accounting to them.

A steady decline in the cost of financial investments entails an adjustment of the reserve towards its increase. The financial result, on the contrary, will decrease due to the increase in the value of other costs.

The opposite result, that is, an increase in the cost of financial investments, will affect the adjustment of the reserve towards its decrease and, as a result, an increase in the financial result.

If, according to the audit, it is established that the considered decline in value has ceased, the amount of the provision for the corresponding investment is included in other income at the end of the reporting period.

On sale of the related asset, the allowance for its impairment is recognized in other income, also increasing the financial result of the enterprise in reporting period.

If the organization is not professional participant the securities market, then on the basis of clause 10 of Art. 270, art. 300 of the Tax Code of the Russian Federation, part of its costs for the provision for the depreciation of financial investments reflected in the balance sheet (namely, the amount of provisions for the depreciation of securities) does not participate in the calculation of the tax base for profit.

Many companies, in the course of their activities, one way or another deal with a variety of financial investments - whether it is loans to employees or transactions with other securities. The accounting for such assets is based on current accounting policies. In this article, we will consider account 59 “Creation of reserves for depreciation of securities” and typical transactions on it.

What concerns financial investments

In order for an asset in its own possession to be recognized as a financial investment, the following basic conditions must be met:

1. Documentary evidence of ownership / receipt of assets.
2. The organization's asset-related risks: insolvency, liquidity, price changes.
3. Potential economic benefits (interest accrual, increase in original cost).

Based on the above features of fin. the following instruments are considered investments: securities (including government securities, bonds and bills of exchange of other enterprises), deposits in authorized capital other entities (except for subsidiaries), loans granted to other entities, deposits in credit institutions, receivables in the form of assignment of rights of claims.

Not recognized as financial investments:

1. Own shares redeemed from employees, settlements by promissory notes.
2. Property used for the purpose of earning rental income.
3. Works of art, jewelry not purchased for resale.
4. Intangible assets of entities, fixed assets and material production stocks (MPZ).

Financial investments in accounting policy

The list of assets that can be recognized as financial investments is not limited by the scope of legislation. Each organization independently decides on the possible composition of assets of this kind. All information should be reflected in accounting policies.

Formation of financial assets of the organization

All methods for determining financial investments should be reflected in the accounting policy. This applies to periods of use, units of measure and other conditions.

To evaluate the assets accounted for as financial investments, the actual costs of their acquisition are taken. Costs can be associated with more than just paying suppliers. At the same time, the provisions of PBU 19/02 are excluded from the composition of costs for determining the initial cost, if these costs were not directly related to the acquisition.

Valuation of securities

When purchasing securities, there are the following types of costs: payment of the contractual value to the seller and other costs. If other expenses related to the purchase of securities are recognized as immaterial compared to the contractual value, their amount can be accounted for as part of other expenses of the entity in the reporting period of the acquisition. The level of materiality of the institution can determine independently, prescribing the accepted criteria in accounting policies.

For securities related to market circulation, it is possible to determine the current value. It is calculated based on market trading data. The revaluation periods are determined independently in the financial statements. This can be a month, quarter, etc.

If the revaluation of securities is capable of significantly distorting data on the financial condition of the enterprise, the subjects have the right not to adjust the value of assets. These actions must be reflected in the explanations to the accounting statements.

If it is not possible to determine the current market value of securities, the initial value of financial investments is indicated in the reporting.

Account 59 in accounting "Creation of reserves for depreciation of investments in securities". Postings

Account 59 is used to record changes in the value of securities in organizations. It is intended to summarize information on impairment for each asset position.

Depreciation of securities is recognized as a steady decline in their initial value, which does not allow obtaining further economic benefits. Account 59 reflects the difference between the accounting and initial prices for the available financial investments.

The reserve is formed after analyzing the financial condition of the securities. It is preferable to create in cases where there is a steady decline in value, at the reporting date, the price is significantly lower than the initial one, or there is information about an imminent decrease in the value of the asset in question in the future.

The creation of reserves, as well as an increase in the value of financial assets, is accompanied by the posting:

Debit 91 - Credit 59.

An increase in the value of these assets, as well as their retirement in part or in whole as a result of sale, shall be considered the basis for a decrease in the volume of newly accepted reserves.

If the value of the previously established reserve decreases, or if financial investments are disposed of, the transaction is as follows:

Debit 59 - Credit 91.

Account 59. Example of account transactions