The contingent liability is to be reflected in the balance sheet. Contingent liabilities and contingent assets. I. General provisions

Until 2011, the concept of “reserves for future expenses” existed in accounting. It still exists, but only in the Chart of Accounts. But it disappeared from PVBU No. 34n. Now we understand provisions as provisions. What do such changes bring about?

Firstly, the saddest thing is that now in accounting we cannot accrue reserves for future expenses according to the same rules as in tax accounting. In tax accounting, there are classic reserves for future expenses, which are formed in order to be recognized in current period expenses that will actually be incurred. The formation of these reserves allows you to evenly "spread" the costs in time and not to pay unnecessary advance payments for the reporting periods. The amount of these reserves can be reliably determined, and there is also no uncertainty as to the fact that the expenses for which the reserves are formed will actually be in the organization in the current year.

Secondly, in the term "provision" the main word is evaluative... This means that the organization by yourself assesses the existence of an obligation to some person (s) at the end of the year for which the financial statements are prepared. This commitment must be essential, in order to form a reserve for it in accounting. In addition, the most important indicator of the estimated liability is uncertainty either its size, or the term of performance, or both. Hence the methods of calculating the value of the estimated liability: weighted average or arithmetic mean. So, it is these two features ( liability assessment and uncertainty) indicate that estimated liabilities and reserves for future expenses are two completely different things.

Below is a diagram of PBU 8/2010, which reflects the essence of the estimated and contingent liabilities.

PBU scheme 8/2010(order of the Ministry of Finance of the Russian Federation of 13.12.2010 No. 167n)

An event occurred in the reporting year

As a result of this event, an obligation has arisen (legal 1 or implicit 2)

↓↓

↓↓↓

↓↓

Notes.

1) A legal obligation arises from the norms of legislative and other normative legal acts, court decisions, contracts (subparagraph "a" of paragraph 4 of PBU 8/2010).

2) A constituent (traditional) obligation arises from the actions of an organization that, due to established past practice or organization statements indicate to other persons that the organization assumes certain responsibilities, and, as a result, such persons have reasonable expectations that the organization will fulfill such responsibilities (subparagraph "b" of clause 4 of PBU 8/2010).

3) If an entity has doubts about the existence of such a liability, an accounting estimate is recognized provided that it is more than 50% likely to exist. The likelihood is determined by analyzing all the circumstances and conditions, including expert opinions.

4) The probability of a decrease in economic benefits is assessed for each liability separately. or in aggregate, if at the reporting date there are several similar liabilities.

5) If the amount of the estimated liability is determined by choosing from a set of values, then it is calculated as the average of the products of each value by its probability. For example, the amount of the estimated liability (OO) is estimated as A with a 50% probability, as B with a 30% probability and as B with a 20% probability:

OO \u003d A x 0.5 + B x 0.3 + B x 0.2

6) If the value of the estimated liability is determined by choosing from an interval of values \u200b\u200band 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. For example, the amount of the liability is measured in the range from A to B:

OO \u003d (A + B) / 2

7) The list of events after the reporting date and their possible consequences are described in PBU 7/98 (order of the Ministry of Finance of the Russian Federation of November 25, 1998 No. 56n).

8) The essence of discounting is to bring future costs to the present period by recalculating an amount equivalent to that which should be paid in the future using a discount factor that depends on the rate bank interest and the discount period. For example, after 2 years the organization will have to pay 100 thousand rubles under the obligation. If the organization placed today's money on a bank deposit for 2 years, then it would receive 8% per annum. This means that over 2 years the amount deposited with the bank will increase by 1.1664 (1.08 x 1.08) times. Thus, 100,000 rubles, which will have to be paid in 2 years, cost 85,734 rubles today. (100,000: 1.1664), in a year they will cost 92,593 rubles. (85,734 x 1.08), after 2 years by the time of repayment of the obligation - 100,000 rubles. (92,593 x 1.08).

The amounts obtained as a result of discounting are called present value.

Example 1

In 2011, the organization held tax audit... The inspection report was received before December 31, 2011 ( the event occurred in the reporting year).

According to the inspection act, the organization revealed tax violations, as a result of which additional income tax arrears and penalties in the amount of 200,000 rubles were charged. ( as a result of the event of the reporting year, the organization has obligations to the budget).

Option 1.

The organization recognized the correctness of the tax inspectorate, it will not submit objections to the inspection report and is ready to pay off the arrears and arrears in fines upon receipt of the decision of the tax authority.

IN in this case the deadline for the fulfillment of the obligation is known, and its amount is determined. Therefore, in the accounting of the organization, these obligations are reflected as of 31.12.2011 by entries: Debit 99 Credit 68 - 200,000 rubles.

Option 2.

The organization does not agree with the facts set out in the inspection report, and is preparing objections to the act. In case of an unfavorable outcome of the stage of consideration of the inspection act, the organization is going to file an appeal to a higher tax authority, and, if necessary, will appeal to an arbitration court. Thus, the emergence of an organization's obligation to the budget depends on the outcome of the proceedings in the case of a tax offense ( the occurrence or non-occurrence in the future of one or more uncertain events beyond the control of the organization). In this regard, in the financial statements of the organization for 2011, the explanatory note should reflect the contingent obligation, namely: indicate the existence of an inspection report; reflect the amount of arrears and penalties under the act (total - 200 thousand rubles); indicate the further actions of the organization to challenge the inspection report.

Option 3.

The organization completely disagrees with the amounts of arrears and penalties in the amount of 140,000 rubles. The organization will reflect this amount in the explanatory note as a contingent liability (as in option 2).

In relation to the amount of 60,000 rubles. the organization is also preparing objections and hopes to "defend" at least part of this amount. However, according to experts, it is more likely than not that the organization will have to pay the specified amount to the budget ( decrease in economic benefits it is probable that the amount of the liability can be estimated). Therefore, in the accounting of the organization, as of December 31, 2011, an estimated liability was charged: Debit 99 Credit 96 - 60,000 rubles.

Example 2

In 2011, the organization paid wages once a month, thereby violating labor laws (Article 136 of the Labor Code of the Russian Federation). If a labor inspection comes to the organization with an inspection, then the organization can be fined under Art. 5.27 of the Administrative Code of the Russian Federation. However, the probability of verification in 2012 is less than 50%, therefore, in the financial statements of the organization for 2011 it can be recognized contingent liability provided that the amount of a possible fine (from 30 thousand to 50 thousand rubles) or losses (administrative suspension of activities for up to 90 days) is essential size for the organization. The organization reports on the existence of a contingent liability in an explanatory note.

Correspondence of invoices

From 2011, companies must apply the new regulation on accounting "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 effective PBU 8/01 "Contingencies of economic activity" (Order of the Ministry of Finance of the Russian Federation of 13.12.10 No. 167n "On approval of the Accounting Regulations" Estimated liabilities, contingent liabilities and contingent assets "(PBU 8 / 2010) ". Registered by the Ministry of Justice of the Russian Federation 03.02.11 № 19691.).

Reflection order conditional facts revised

Companies must apply RAS 8/2010 starting from the 2011 financial statements. And since the main forms of this reporting - the Balance Sheet and the Profit and Loss Statement - are compiled on a monthly basis (clause 48 of PBU 4/99 "Financial Statements of an 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 should be guided by clauses 10, 11 of PBU 1/2008 "Accounting policy of the 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 for an accountant whether the classification of objects has been revised and how much the accounting procedure 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;

- and other reserves formed from retained earnings;

- estimated reserves;

- amounts that subsequently affect the amount of income tax (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 regulatory legal acts, court decisions, contracts, or as a result of the actions of the organization;

Contingent liabilities (contingent assets) arise from past events in the organization's economic life, when the existence of a liability (asset) is due to the occurrence (non-occurrence) of uncertain events beyond the control of the organization. Contingent liabilities also include an estimated liability existing at the reporting date that was not recognized in accounting due to non-compliance with the conditions stipulated by RAS 8/2010.

Contingent liabilities and contingent assets are not recognized in accounting. Information about them is disclosed in the financial statements if there is a probability of a decrease (receipt) of economic benefits (paragraphs 25, 27 of 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 fulfillment 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 rules 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. The term “” is used instead of “existing liabilities” and “contingent liabilities” 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 the terms PBU 8/2010 and PBU 8/01

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

Example 1

LLC "Mars" has decided to create a reserve for warranty 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 assumed a significant change in the purchasing power of the currency Russian Federation in future reporting periods (you need to 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 onerous 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 the current market estimates of the time value of money. PBU 8/2010 proceeds precisely from these grounds.

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

The discount rate applied by the company should reflect the existing conditions in the financial market (including inflation), as well as the risks specific to the obligation underlying the recognized provision. 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.

The new PBU does not give a direct answer to the question of whether discounting should be reflected in interim (monthly or quarterly) financial statements. But a gradual increase in other expenses during the year may be preferable to their one-time recognition at the end of the year - for example, if the company pays interim dividends. However, paragraph 20 of PBU 8/2010 states that an increase in the amount of the estimated liability due to an increase in its present value is made on subsequent reporting dates as the deadline for its execution approaches. The reporting date for accounting purposes is the last day of each calendar month.

In the absence of direct prescriptions of the regulatory legal act, the company fixes the decisions made in the accounting policy. In our opinion, based on the requirements of the rationality of the accounting policy, it is permissible to calculate the amount of "interest" calculated for a year in advance evenly throughout the year. But it is possible to calculate the discount coefficient based on the number of months, since PBU 8/2010 allows discounting for periods of less than a year.

Note that in section IV "Long-term liabilities" new form The balance sheet * includes the line "Provisions for contingent liabilities" (code 1430). This wording was adopted during the period of PBU 8/01. Now (in the reporting of 2011) long-term reserves for estimated liabilities are to be reflected in this line, and, moreover, at their present value.

* Approved by order of the Ministry of Finance of Russia dated 02.07.10 No. 66n.

Counter-compensation

The approach to accounting for estimated liabilities has been changed, in connection with which the company expects counter compensation. Please note: in 2010, the counter-refund could fully offset the reserve.

Now in paragraph 19 of PBU 8/2010, the following procedure is prescribed. If an 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. In the balance sheet, the amount of the recognized provision is not reduced by the amount of such an asset.

But in the Profit and Loss Statement, expenses reflected in the recognition of estimated liabilities are shown net of income from counterclaims.

Let us illustrate this with an example.

Example 3

ZAO Saturn has insured for the amount of 1,000,000 rubles. contract with FSUE "Kometa" against the risk of non-performance due to violation of obligations by the subcontractor LLC "Pluton".

In connection with non-fulfillment of the agreement, FSUE brought a claim to ZAO Saturn in the amount of 1,500,000 rubles. In turn, the CJSC filed a claim against Pluton LLC. For ZAO, lawyers assess as very likely an unfavorable outcome of the proceedings with the Federal State Unitary Enterprise and a positive decision in the case with the LLC.

Under such circumstances, earlier (in accordance with clause 18 of PBU 8/01) ZAO Saturn would have formed an existing contingent liability to FSUE Kometa in the amount of RUB 500,000. (1,500,000 rubles - 1,000,000 rubles).

However, according to clause 19 of PBU 8/2010, in balance sheet ZAO Saturn such requirements should be reflected in detail. Therefore, it is necessary to recognize an independent asset in accounting:

DEBIT 91 subaccount "Other expenses" CREDIT 96
- 1,500,000 rubles. - a provision is recognized (to FSUE).

DEBIT 76 subaccount "Insurance settlements" ("Insurance company") CREDIT 91
- 1,000,000 rubles. - reflected the expected receipts for insurance compensation.

In the Profit and Loss Statement, expenses are shown taking into account insurance compensation - in the amount of 500,000 rubles. (1,500,000 rubles - - 1,000,000 rubles), that is, collapsed.

The above example demonstrates that the amount of the previous existing contingent liability does not always coincide with the amount of the estimated liability.

Annual financial statements for 2010 are prepared in accordance with PBU 8/01. At the same time, paragraph 23 of PBU 1/2008 deserves attention, on the basis of which it is necessary to assess the impact of the application of PBU 8/2010 on the 2011 financial statements in the reporting for 2010. From this point of view, it is necessary to analyze the balances as of December 31, 2010 of the indicators formed according to the rules of PBU 8/01, and characterize the new balances that arise as of January 1, 2011, according to the rules of PBU 8/2010.

Therefore, the re-qualification of reserve balances from December 31, 2010 to January 1, 2011 should not be done mechanically. It is necessary to identify the reserves behind which there are two oppositely directed obligations.

Convergence with IFRS

Russian accounting standards do not contain explicit definitions of assets and liabilities. But these concepts are disclosed in International Standards financial statements (IFRS).

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.

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 to be brought under the scope of IAS 38 Intangible Assets, provided that they meet the definition of an asset in 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 repay a bank loan to Nord Stream AG () in accordance with a financial surety 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.

To have a complete understanding of IAS 37, you should talk a little about its history. This standard was originally called “Provisions, Contingent Liabilities and Contingent Assets”. The objective of IAS 37 was to establish recognition criteria and a quantitative basis for the measurement of provisions, contingent liabilities and contingent assets, and to define the disclosure requirements for related information in the financial statements. The reserves were created to ensure the fulfillment of future obligations, characterized by uncertainty. In some cases, reserves were used to ensure the effect of “smoothing” profits, and not to create them: in favorable years, the amounts of reserves are overestimated, which leads to a reduction in profits, and in unfavorable conditions, expenses are covered by the created reserves, thereby artificially inflating profits.

A new version of this standard is currently being developed and approved. The new edition of IAS 37 will be called “Non-Financial Liabilities”. Under the new title, the scope of the standard will be expanded to include all non-financial liabilities that are not within the scope of other IFRSs. However, there is doubt that the new IAS 37 will be able to resolve the issue of currently “restless” non-financial liabilities, such as deferred income. IAS 37 will no longer contain the term “provision”, but companies may continue to use this term to describe certain classes of non-financial liabilities in their financial statements.

The procedure for reporting contingent assets and liabilities is determined by IAS 37 "Provisions, Contingent Liabilities and Contingent Assets" The standard prescribes accounting and disclosure rules for all provisions, contingent liabilities and contingent assets, other than those that are:

Approved by Order of the Ministry of Finance of Russia dated 13.12.2010 No. 167n
Effective from the 2011 financial statements

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 for credit institutions) that are legal entities under the legislation of the Russian Federation (hereinafter - organizations).

2. This Regulation does not apply to:

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

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

in) estimated reserves;

d) accounted for in accordance with the Accounting Regulations “Accounting for calculations of corporate income tax” 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, registration 4090) as amended by the 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 "Accounting for calculations of corporate income tax" PBU 18/02), amounts that affect the amount of tax on the profit of organizations payable in the next reporting period or in subsequent reporting periods.

3. This Regulation may not be applied by small businesses, with the exception of small businesses - issuers of publicly placed securities.

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

4. An organization's obligation with an uncertain amount and (or) maturity (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 the entity's actions that, due to established past practice or statements by the entity, indicate to others that the entity is assuming certain responsibilities, and as a result, such persons have a valid expectation that the entity 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) decrease in the economic benefits of the organization necessary to fulfill the estimated obligation is likely;

in) 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 satisfied as at subsequent reporting dates if due to changes in laws and other regulations and (or) the actions of the organization and (or) other persons the organization has no way to avoid the calculations associated with such an event.

7. A decrease in the economic benefits of an entity necessary to fulfill the obligation is recognized as probable if it is more likely than not that such a decrease will occur. The probability of a decrease in economic benefits is assessed for each liability separately, unless at the reporting date there are several liabilities of a similar nature and the resulting uncertainty 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 for future 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 provided for in subparagraphs “b” and (or) “c” of paragraph 5 of these Regulations.

10. If the entity has a joint liability with other persons, a provision is recognized to the extent that it is probable that the economic benefits of the entity will decrease, provided that the conditions are met, under paragraph 5 of this Regulation. The part of the joint liability with other parties in respect of which it is not probable that the economic benefits of the organization will decrease is classified as contingent liability.

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 volumes of business operations or the methods of their implementation (hereinafter referred to as the forthcoming restructuring of the organization's activities) if all the conditions established by paragraph 5 of this Regulation are met, with taking into account the features established by this paragraph. Obligations for the forthcoming 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 time of the beginning of the execution of the plan for the upcoming 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 entity as a result of past events in its economic life, when the entity's 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 entity.

14. Contingent liabilities and contingent assets are not recognized in accounting records. 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. An estimated liability is recognized in the organization's accounting 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 obligation 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 organization's economic life, 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 value 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 \u200b\u200band 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 the 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;

in) future events that could affect the amount of the provision (if it is probable 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 property, plant and equipment, intangible assets, products, goods and other assets associated with the recognized provision. 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 the Order of the Ministry of Finance of the Russian Federation of 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 the Orders of the Ministry of Finance of the Russian Federation of March 30, 2001 N 27n "On amendments and additions to the 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);

in) the expected amounts of counterclaims or claims against others to reimburse the costs that the entity is expected to incur in meeting the 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.

In the statement of profit and loss of the organization, expenses reflected in the 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 parties.

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 cost determined by discounting its value calculated in accordance with paragraphs 16-19 of this Regulation (hereinafter - 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 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 calculation of 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 another 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, with the actual calculations for recognized estimated liabilities in the accounting of the organization, the amount of the organization's costs associated with the organization's fulfillment of these obligations, or the corresponding payables in correspondence with the account of the reserve for future expenses, is reflected.

A recognized provision may be written off against the recognition of costs or recognition of 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 the 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 validity 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 (without including it in the cost of the asset), upon receipt of additional information, allowing 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, which allows to clarify the amount of the estimated liability;

in) 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 us 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;

in) 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 reporting period (percent);

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

g) uncertainties in relation to the timing and (or) the amount of the estimated liability;

h) the expected amount of counterclaims 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 range of the estimated values \u200b\u200bof the contingent liability, if determinable;

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

d) the possibility of receipts as a result of counter claims 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 (eg, provisions due to 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, the 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 disclosure of information about provisions, contingent liabilities and contingent assets to the extent provided for 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 entity shall indicate the general nature of the related provision, contingent liability or contingent asset and the reasons for not disclosing further details.

Appendix N 1

Ministry of Finance

Russian Federation

EXAMPLES OF ANALYSIS OF CIRCUMSTANCES FOR THE PURPOSE OF RECOGNITION IN ACCOUNTING OF A VALUATION OBLIGATION

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 forthcoming 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 contract is deliberately unprofitable, since the inevitable expenses for its implementation (2000 thousand rubles) exceed the expected receipts under it (1500 thousand rubles), and to withdraw from the contract the organization will have to pay a significant amount (600 thousand rubles), exceeding the possible net loss upon performance of the contract.

Example 7.

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 2

to the Regulation on accounting

“Provisions, contingent

liabilities and contingent assets "

(PBU 8/2010), approved by the Order

Ministry of Finance

Russian Federation

EXAMPLES OF DETERMINING THE VALUATION COMMITMENT

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 reimburse only direct losses of the plaintiff, or 2000 thousand rubles, if the court decides to compensate, in addition to direct losses, also the lost profit of the plaintiff. 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 service of 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:

CD \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.

One click call