Decoding the lines of the balance sheet. What does a completed company balance sheet look like? What sections does the balance sheet consist of?

31.01.202327.05.2017

Definition 1

Basic form of financial statements– this is a balance sheet, according to which you can assess the state of the organization as of a certain date: the property and financial position of the company.

There are separate positions in the balance sheet that show what and in what quantity is on the balance sheet of the enterprise at a certain moment. For convenience, all these indicators were combined and assigned to one or another section.

Note 1

The balance sheet is usually divided into two parts: assets and liabilities. It is important to note that the sum of the assets of the enterprise’s balance sheet is always equal to the sum of its liabilities, i.e. balance is maintained.

The asset balance sheet consists of two sections:

section I – “Current assets”;
Section II – “Non-current assets”.

The passive includes three sections respectively:

section III – “Capital and reserves”;
section IV – “Long-term liabilities”;
Section V – “Short-term liabilities”.

Any section of the balance sheet consists of groups of items (subsections), each of which reflects the types of assets and other liabilities of the company.

Definition 2

Articles- these are separate lines with which you can figure out the balance.

Section IV of PBU 4/99, which is called “Accounting statements of an organization,” is devoted to the structure of the Balance Sheet. A breakdown of the balance sheet items is also presented there.

It would seem that everything is simple, but how to figure out which of the articles to assign certain operations to, what is needed to decipher them correctly. To do this, you need to understand the meaning of all balance sheet items. Whether it is necessary to decipher such a concept as a balance sheet asset directly depends on how much of an accountant you are by nature.

What is included in the Balance Sheet Asset?

Definition 3

Balance sheet asset- these are things, means or money from which our financial income grows and increases. By the usual definition, this is precisely the left side of the balance sheet. The accountant includes material assets and intangible assets, company property, and also, do not forget about the composition and placement of existing assets.

When filling out this part of the balance sheet, you need to present and take into account the residual value of fixed assets, intangible assets, and profitable investments in tangible assets, because this is what is taken into account.

The next nuance: the amount of reserve for reducing the value of material assets. It must be deducted from the cost of remaining goods and other inventories, naturally, when an inventory has been carried out, the results of which require the creation of this reserve.

Next, accounts receivable, in other words, money that is owed to us. Let's say a company has taken an inventory of payments and debts of customers and buyers to us, its management creates a reserve for doubtful debts. Then we add the amount without this reserve to the balance sheet (subtract it).

Note 2

And one more thing, financial investments are shown in the asset balance sheet without a reserve created for their depreciation, i.e., minus it.

The first asset section of the Balance Sheet

The first asset section of the Balance Sheet is called “Non-current assets”. It contains:

various non-current assets,
Deferred tax assets,
financial investments,
profitable investments in material assets,
fixed assets,
intangible assets.

When creating a company, the founders pursue certain goals, one of which is to generate income from their activities. To make a profit over a long period of time, any enterprise uses certain assets of the organization. We'll look at which ones below.

Line 110 “Intangible assets” takes into account the amount that is obtained from the interaction of two accounts: 04 “Intangible assets” (debit balance) – 05 “Amortization of intangible assets” (credit balance). The resulting residual value of intangible assets is indicated in this line. When a company, based on accounting policy considerations, accrues depreciation for all intangible assets without account 05, then the balance sheet line will reflect the debit balance of account 04.

It is also necessary to understand that in situations where the useful life of an asset cannot be determined, then it (the asset) is called intangible with an indefinite useful life and is not depreciated. Previously, in such situations, the organization independently determined the useful life of either longer than the life of its activities or longer than twenty years. Now, for the reliability of calculating the economic benefits that will be received in the future, a depreciation method is selected that is based on them. Simply put, the old practice gives way to the new practice for natural reasons because the unreliable calculation of future economic benefits takes away the firm's discretion and it must amortize intangible assets on a straight-line basis.

Accounting and assessment of intangible assets is carried out based on the Accounting Regulations “Accounting for Intangible Assets” (PBU 14/2007), which the Russian Ministry of Finance approved on December 27, 2007 No. 153n (hereinafter referred to as PBU 14/2007).

Line 120 “Fixed assets” contains information about the company’s fixed assets (fixed assets), which are accounted for in account 01 “Fixed Assets”.

Definition 4

OS objects– material assets that are used as means of labor during the manufacture of products, in the process of performing work, providing services and managing an organization. These include:

buildings and constructions,
cars and equipment,
Computer Engineering,
vehicles,
productive and breeding livestock,
perennial plantings,
on-farm roads,
other relevant objects.

Also taken into account:

capital investments for radical improvement of land (drainage, irrigation and other reclamation works);
capital investments in leased fixed assets;
land plots, environmental management facilities (water, subsoil and other natural resources);
specialist. tools, special devices, special equipment, special clothing (if provided for by the organization’s accounting policy).

They are accepted for accounting on account 01 and are part of the operating system.

Here we also indicate the leased property on the balance sheet of the lessee, which is taken into account by agreement of the parties, the fixed assets of the leased enterprise (if the company is leased as a property complex).

The organization takes into account all of these assets as fixed assets if they simultaneously meet the following conditions:

the object is suitable for use in creating a product, is necessary for performing work or providing services, as well as for the needs of the organization related to management;
the object can be used for a long time, in other words, for a period of more than 12 months, or the normal operating cycle, if it is more than 12 months;
the organization does not plan to resell this object in future activities;
the object will bring economic benefit (income) to the company in the future.

There are objects that are not written off from account 01. If an object is transferred for rent or free use, it is transferred for conservation, it is designated for completion or additional equipment, and also, the object is in the process of restoration, then it is not written off from account 01.

Fixed assets are entered into accounting based on their residual value. Based on accounting purposes, an enterprise has the right to independently choose the useful life of the property, and depreciation will be calculated in the chosen method, which it cannot change during the service life of the property. Only if the fixed asset is changed in any way, for example, modernized or reconstructed, its life useful can be changed.

In accordance with ext. 15 Accounting Regulations “Accounting for Fixed Assets” PBU 6/01 of the company at the beginning of the reporting year is allowed to revalue fixed assets at current (replacement) cost.

It is necessary to revaluate fixed assets by recalculating their value: initial or current (replacement). You will also have to recalculate the depreciation amounts that were accrued for the entire period of use of the objects. In accounting, the results of the revaluation of fixed assets carried out as of the first day of the reporting year are reflected separately from each other. The results of such revaluation are not included in the financial statements of the previous reporting year; they are accepted when generating the Balance Sheet data at the beginning of the reporting year.

Line 130 “Unfinished construction”.

The amount of the organization's investments in unfinished construction (except for fixed assets that were put into operation before state registration) of the Balance Sheet is entered on line 130.

The actual costs of the company for the construction of facilities incurred before the completion of these same works, as well as before the implementation of these facilities in operation, must be entered into account 08 “Investments in non-current assets” subaccount 08-3 “Construction of fixed assets”, they must be taken into account as part of unfinished construction.

Equipment for installation is also accepted for accounting at its actual cost at the time of receipt, taking into account delivery costs.

It must be reflected in the debit of account 07 “Equipment for installation”, and you need to understand that equipment that requires installation includes objects that can only be used after all its parts have been assembled, as well as those attached to anything: supports, the foundation of a building , to the floor, floors between floors, in a word, to any load-bearing structures of buildings and structures. It also includes sets of spare parts for similar equipment.

Line 135 “Profitable investments in material assets” includes property purchased for temporary use for the purpose of generating income (for leasing). Here the accountant will show the debit balance on account 03 minus the depreciation that has accumulated on the credit of account 02 subaccount “Depreciation of property related to income-generating investments.”

Let's figure out what investments can be called profitable.

Definition 5

Profitable investments can be considered property that an organization bought for the purpose of renting out and uses specifically for this purpose. In cases where property was acquired for one’s own personal use, even if it is rented out from time to time, it cannot in any case be classified in this category.

Line 140 “Long-term financial investments”.

In line 140 of the Balance Sheet Asset, it is necessary to enter all types of financial investments that are made by the organization for a period of more than a year. It shows the sum of the balances of account 58 “Financial investments” and account 55 “Special accounts in banks” subaccount, indicating subaccount 3 “Deposit accounts” in terms of amounts that relate to long-term investments. They need to be calculated taking into account the reserve for depreciation of financial investments, that is, reduce the credit balance of account 59 “Provision for depreciation of financial investments” in relation to financial investments for a period of more than a year.

To recognize an asset as a financial investment, it must meet all of these conditions simultaneously:

documents that confirm his right to financial investments, as well as the opportunity to receive funds and other assets derived from this right, must be properly executed.
transition to the organization of financial risks that are associated with financial investments, such as: the risk of price fluctuations, the risk of debtor insolvency, liquidity risk);
the opportunity to bring in the near future economic benefits (income) such as interest, dividends or an increase in their value (as the difference in the sale (redemption) price of a financial investment and its purchase value, as a result of its exchange, use to pay off the organization’s obligations, growth of the current market value and etc.).

Financial investments do not include issued interest-free loans or purchased interest-free bills, because then the investments do not provide economic benefits, income either in interest form or in the form of an increase in their value, and accordingly, they cannot be indicated as financial investments.

Clause 3 of the Accounting Regulations “Accounting for Financial Investments” PBU 19/02, approved by Order of the Ministry of Finance of Russia dated December 10, 2002 No. 126n (hereinafter referred to as PBU 19/02), provides the main accounting objects considered to be financial investments. So, in more detail, these could be:

state or municipal securities;
securities of other organizations, these include debt securities that indicate the date and cost of repayment (bonds, bills);
contributions to the authorized (share) capital of other organizations, including subsidiaries and dependent business companies;
loans issued to other organizations;
deposits in organizations related to loans;
receivables received taking into account the agreement for the assignment of the right of claim;
contributions, taking into account the simple partnership agreement of the enterprise - partner;
other similar assets.

When purchasing securities with an unspecified maturity, you need to consider them as long-term in the case when the company bought them with the aim of generating income on them for more than a year.

Financial investments are taken into account in the amount of the investor's expenses upon their fact.

In accordance with the Chart of Accounts, the financial investments made by the organization are shown by the debit of account 58 “Financial Investments” and the credit of those accounts where the values that are subject to transfer towards these investments are taken into account.

Line 145 “Deferred tax assets”.

On line 145 of the balance sheet we show the debit balance of account 09 “Deferred tax assets”. If our organization is a small enterprise, then it can state in its accounting policy that it will not apply the Accounting Regulations “Accounting for Income Tax Calculations” PBU 18/02, approved by Order of the Ministry of Finance of Russia dated November 19, 2002 No. 114n (hereinafter referred to as PBU 18/02).

Deferred tax assets are reflected precisely by those organizations that apply this accounting standard.

It is interesting that account 09 may show a very small balance. However, this amount is significant. It shows the amount that will reduce income tax in subsequent reporting periods. Judging from this, deferred tax assets in the balance sheet must be reflected as a separate line, since we cannot take this amount into account as part of other non-current assets.

Generating profit in accounting is not the same as generating it in taxation; it is calculated differently. From this it turns out that the conditional tax on accounting profit differs from the amount of profit tax that the company must pay to the budget. This leads to the fact that the (conditional) tax on accounting profit diverges from the amount of profit tax that the organization needs to pay to the budget.

Whatever one may say, in accounting we must show the conditional tax, and along with it all the differences between this conditional tax and the real income tax.

Definition 6

Differences can be temporary or permanent. These result in permanent tax liabilities, deferred tax assets and deferred tax liabilities.

Definition 7

Deferred tax asset can be calculated as the product of the deductible temporary difference and the income tax rate. In accounting, the deferred tax asset is reflected in the following entry:

DEBIT 09 “Deferred tax assets” CREDIT 68 subaccount “Calculations for income tax” – deferred tax asset has been accrued.

When expenses are accepted in parts for tax purposes, deductible temporary differences are obtained. In accounting they arise immediately if:

the amount of depreciation accrued in accounting exceeds the amount calculated according to the rules of Chapter. 25 PCs of the Russian Federation;
for tax and accounting purposes, a company writes off commercial and administrative expenses differently;
in accounting, a loss is carried forward to the future, reducing income for taxation in subsequent reporting periods;
the overpayment of income tax is not returned to the organization; instead, it is counted against future payments;
In accounting, the enterprise included still unpaid costs in the cost of materials, although it uses the cash method of accounting for income and expenses in tax accounting.

When the deferred tax asset is determined, it must be entered into the balance sheet, in other words, it must be reflected in accounting - in the analytical accounting of the corresponding account for assets and liabilities, in the valuation of which the deductible temporary difference emerged.

Paragraph 19 of PBU 18/02 gives organizations the right to show in the balance sheet the balanced (collapsed) amount of deferred tax assets and deferred tax liabilities. For this purpose, you need to find out the difference in the balances of accounts 09 “Deferred tax assets” and 77 “Deferred tax liabilities”. If the debit on account 09 is higher than the credit balance on account 77, then we will show their difference in line 145 of the balance sheet. This time, line 515 “Deferred tax liabilities” (balance sheet liability) remains blank. This scheme also works in reverse: if the balance on account 77 is greater than the balance on account 09, then this difference between must be reflected on line 515. Then, in this particular case, line 145 is not included in the balance.

Line 150 “Other non-current assets”.

Where can we include assets that are inexpensive and generally insignificant? All indicators that do not find a place in other lines of the “Non-current assets” section must be included in line 150. Other non-current assets usually include those whose cost and value can be considered insignificant. In other words, indicators that do not provide value to those who use these reports.

Such assets may include research, development and technology (R&D) expenses. They cannot be recognized as objects of intangible assets, but they are entered into account 04 “Intangible assets”.

What does Section II “Current assets” include?

In accounting, current assets include those that are relatively quickly able to transfer their value to costs. Let's include here:

inventories (raw materials, supplies, goods, costs in work in progress, deferred costs, etc.),
VAT on purchased assets,
long-term and short-term accounts receivable,
short-term financial investments,
cash.

Line 210 “Inventories”.

It is logical that the information that we provide in the balance sheet about inventories (MP) is a copy of inventory data taken from inventories and acts; they must be 100% identical. Accordingly, the inventory itself must be carried out before preparing annual reports.

On account 10 “Materials” we enter data on materials that are the property of the enterprise at the end of the period. We do this based on the cost at which they were originally purchased.

In the case when the cost of materials has changed significantly, decreased significantly, the company needs to create a reserve (fund) for reducing the cost of material assets and apply account 14 “Reserves for reducing the cost of material assets.” This requirement is conservative and clearly demonstrates the principle of prudence.

If the valuables have partially lost quality due to: a decrease in price during the reporting year, obsolescence, partial loss of their original quality, they must be shown in the balance sheet at the end of the reporting period at the price of possible sale. This is done when it is lower than at the beginning of the purchase. We will attribute the difference in prices to financial results. The same mechanism of action must be applied to finished products and goods, and not just to materials alone.

Line 210 is the summary of all the others, as follows:

211 “Raw materials, materials and other similar values”;
212 “Animals for growing and fattening”;
213 “Costs in work in progress”;
214 “Finished products and goods for resale”;
215 “Goods shipped”;
216 “Future expenses”;
217 “Other inventories and costs.”

These lines decipher line 210 “Inventories” and do not require significant decoding; their meaning is in the name itself.

Line 210 displays expenses for the purchase of inventories, to which it is possible to include assets if their cost does not exceed 20,000 rubles. The funds spent on the acquisition of such assets are shown in account 10 “Materials”.

There are three ways to evaluate inventories in accounting when they are introduced into production (or otherwise written off):

at the cost of each unit;
at average cost, when assessing the inventory for each type, when the total cost of all stocks of one type is divided by the number of types.
according to the FIFO method (first arrival - first release). Here, inventories are written off at the cost of inventories that were received first. Accordingly, it is believed that those stocks that are received first will be sold first.

Line 213 “Costs in work in progress”.

Line 213 of the Balance Sheet asset shows the costs of work in progress (WIP) and unfinished work (services), which are the cost of products that have not gone through all stages of processing, although the technological process provides for them, for incomplete products that have not yet passed testing and technical acceptance .

In mass and serial production for WIP accounting, the following are reflected:

according to actual or standard (planned) production cost;
by direct cost items;
at the cost of raw materials, materials and semi-finished products.

In the case of production of one unit of product, the PPP is reflected at the costs that are actually incurred.

The company issues an order on accounting policy, according to which the chosen method of assessing work in progress is fixed.

In the balance sheet, work in progress is reflected at the same valuation as in the accounting records. The amount of work in progress is confirmed by the necessary calculations (relevant accounting statements).

When we consider an organization whose activities are not trade, but have discovered that it divides business expenses into sold and unsold products (goods, services), then when filling out line 213, we do not take into account the entire balance of account 44 “Sales expenses”.

Undescribed costs for packaging and transportation, if they are included in account 44 as part of business expenses, are reflected in line 217 “Other inventories and costs” of the balance sheet. Various organizations that have the right to make payments to customers in stages (recorded in the contract), on line 213 can reflect the cost of work that is at least partially accepted by the customer (debit balance of account 46 “Completed stages for work in progress”). These can be construction, scientific, design, geological and other organizations.

The cost of completed stages of work, indicated in forms No. KS-2 and KS-3, which are signed by the customer, is reflected in the debit of account 46 in correspondence with account 90 “Sales”.

Line 214 “Finished products and goods for resale” reflects the actual or standard cost of products that are already ready. For trading companies, here it is possible to provide the purchase price of their goods, which consists of the costs of their acquisition.

On line 214 we reflect the sum of all debit balances on accounts 41 “Goods” and 43 “Finished products”. If the company is engaged in trade and indicated goods at the selling price, then the balance on account 41 must be reduced by the amount of the credit balance on account 42 “Trade margin”.

Firms that produce goods, on line 214, take into account the cost of unsold products that have not passed all the stages intended by the technological process, in the right situations - having passed testing and technical acceptance. The accounting policy determines the actual or standard (planned) cost.

From time to time, companies purchase components (finished products) for their products, and their cost is not taken into account when determining the cost of the goods sold. The customer pays for these components separately. Such products are accounted for as goods in account 41 “Goods”. They need to be entered in line 214 of the Balance Sheet, where we reflect their value.

Trade organizations show on line 214 the cost of remaining balances of purchased goods.

Catering organizations also show here the remains of raw materials in kitchens and pantries, and the remains of goods in cupboards.

Any remaining goods are reflected in the balance sheet precisely at the cost of their purchase, which is formed according to the rules of the accounting policy approved by the company.

The indicator in line 214 of Section I increases (decreases) by the debit (credit) balance of account 15 (in the part related to the cost of purchased goods) if the organization uses account 15 “Procurement and acquisition of material assets” when accounting for purchased goods.

In addition, on line 214 you need to reflect the cost of finished products or goods, which will be reduced by the amount of the created reserve for reducing the cost of material assets.

Line 215 “Goods shipped” shows the debit balance of account 45 “Goods shipped”, which takes into account all information about products that have already been shipped but not sold. Profit from the sale of these products by the seller is not yet recognized in accounting, since the ownership of this product has not transferred to the buyer. Situations when this happens:

if the seller company sells goods (products) using an intermediary - commission agent or uses an agent who has the right to act on his own behalf at a time when the intermediary has not yet sold the product;
according to an exchange (barter) agreement, if the goods have already been shipped, the ownership right to the transaction participant comes precisely at the moment of fulfilling his obligations for the counter-delivery.

As long as ownership of the goods with the completed shipment has not yet transferred to the buyer, the cost of such products is indicated on line 215. This happens when, for example, the contract itself states that the buyer receives ownership rights not at the time of shipment, but at the time of payment for the products .

The main feature is the reflection of the shipment and sale of goods in the accounting of the supplier when a purchase and sale agreement is concluded with a special procedure for the transfer of ownership - this is the reflection of transferred goods that have not yet been paid for by the buyer on account 45 “Goods shipped”.

Line 216 “Deferred expenses” records the debit balance of account 97 “Deferred expenses”.

Definition 8

Future expenses– represent expenses that the company incurred in the reporting period, but they relate to the following reporting periods.

Each enterprise determines the moment of writing off these expenses to cost accounts, in other words, the period for recognizing deferred expenses, based on specific documents. The company can also independently determine this period if the documents cannot specify the period when these expenses will be recognized. Such decisions are issued in an order or directive of the manager. And then, the expenses of future periods are written off as expenses in equal shares at the time approved by the order.

When considering this cost item in accounting, it should be noted that if you receive periodicals through a subscription, they will not be deferred expenses. It is better to consider these amounts as advances issued, and then write them off to accounting accounts according to the periodicity of receipt of these publications. It is convenient to reflect the balance of the cost of a paid subscription for which newspapers, magazines and any other periodicals have not yet been received as an advance paid to the supplier as part of short-term receivables.

When a company has a non-exclusive right to use other people's intellectual property (innovations in computer programming, databases and information), payment for such services occurs as a one-time payment. This fixed amount is paid as a one-time royalty and is also included in deferred expenses.

Again, when the contract itself contains a condition under which the organization undertakes to pay for the use of intellectual property for a certain period, in this case the user company is obliged to reflect these amounts in the expenses of the current period, and account 97 “Deferred expenses” is not touched. You should also do this when the amount of a one-time payment cannot be written off at a time. It is written off as expenses over the period of use of the object fixed in the contract (clause 39 of PBU 14/2007).

Line 220 “VAT on purchased assets.”

Line 220 reflects the debit balance of account 19 “Value added tax on acquired assets.” It characterizes the amounts that are allocated in invoices that are received, but not presented for deduction from the budget or not recorded in the purchase book. This line indicates the amounts of VAT that were not accepted for withholding as of January 1 of the year following the reporting year.

This is the balance of “input” VAT on purchased inventories, intangible assets, capital investments, works and services, not accepted for deduction. You need to know that due to the absence or incorrect execution of documents, amounts of “input” VAT may remain unaccounted for on account 19. This is at the end of the period, but in subsequent periods these nuances should be taken into account.

Amounts of “input” VAT that have already been deducted must be written off from the credit of account 19 to the debit of account 68 of the “VAT Calculations” subaccount. If we understand that it is not possible to recover “input” VAT from the budget, these amounts must be written off from the credit of account 19 to the debit of account 91-2 subaccount “Other expenses”.

Amounts of “input” VAT that have already been deducted must be written off from the credit of account 19 to the debit of account 68 of the “VAT Calculations” subaccount. Understanding that it is not possible to recover “input” VAT from the budget, these amounts are written off from the credit of account 19 to the debit of account 91-2 subaccount “Other expenses”.

In the absence of VAT payer status, a company or when it has been released from its duties as a tax payer under Art. 145 of the Tax Code of the Russian Federation, the amount of “input” tax must be included in the cost of purchased goods (work, services).

We do the same in the case of purchasing products for transactions that are not subject to VAT in accordance with clauses 2 and 4 of Art. 170 Tax Code of the Russian Federation. At this point, we write off VAT from account 19 to the debit of the property accounting accounts that correspond to it or from the cost accounting account (accounts 08, 10, 20, 26, 41, 44, etc.)

“Input” VAT, when it relates to expenses, which in turn are standardized for the purposes of determining income tax (advertising expenses, entertainment expenses), must be deducted in the part that relates to expenses within these standards.

When preparing annual reporting, when the total amount of normalized expenses in tax accounting has already been calculated, the amount of VAT not accepted for deduction, if they relate to excess expenses, must be written off from account 19 to the debit of account 91 “Other income and expenses.”

It should be taken into account that amounts in tax accounting are not included in expenses.

In tax accounting, we do not consider the amount of “input” VAT when it is not included in the cost of acquired property (work, services) and is not accepted, and is written off in accounting to account 91.

Lines 230 and 240 “Accounts receivable”.

This line is for filling and displaying the actions between the buyer and the customer. It takes into account the debts that the company will receive within 12 months (line 230) and the debt of debtors for a period of more than 12 months after the reporting date (line 240). This is the debit balance of accounts 62 “Settlements with buyers and customers” and 76 “Settlements with various debtors and creditors”.

When a company has a claim against a customer, the debt must be recorded as an asset. Despite the fact that the limitation period begins after 3 years and if a statement about it is expressed in a dispute before the court makes a decision (Article 196 of the Civil Code of the Russian Federation), the debtor can fulfill his obligations even after the established period. It is possible to issue an order to write off such debt if there is a claim in court, a written refusal of the debtor and his exclusion from the register.

This operation is done by wiring:

DEBIT 91-2 “Other expenses.”
LOAN 62 “Settlements with buyers and customers” – the amount of debt is reflected.
The debtor's debt written off at a loss is recorded for another five years in off-balance sheet account 007 “Debt of insolvent debtors written off at a loss.”

If there is a high probability of non-repayment of the debt, you need to create a reserve for doubtful debts by writing:

DEBIT 91-2 “Other expenses.”
LOAN 63 “Provisions for doubtful debts” - for the amount of debt, indicating the reason in the explanatory note.

Line 250 “Short-term financial investments.”

Financial investments, the accounting of which is regulated by PBU 19/02, include securities, contributions to the authorized (share) capital of other organizations, loans provided, deposits, receivables acquired under an assignment of claim, contributions under a simple partnership agreement, etc.

Financial investments are considered short-term if their maturity does not exceed 12 months.

It should be taken into account that organizations do not include their own shares purchased from shareholders for subsequent resale or cancellation as part of short-term financial investments. Own repurchased shares are reflected in the liability side of the balance sheet on line 411 of the “Capital and Reserves” section.

Line 260 “Cash”.

The entire amount of funds (in cash, in bank accounts, in transfers) that the organization has is indicated here.

In the standard form there are no separate lines for deciphering line 260, but an enterprise can include the necessary lines in the balance sheet and separately indicate in them data on the availability of funds.

Cash in foreign currency accounts (line 263) is converted into rubles at the Bank of Russia exchange rate on the date of the currency transaction, as well as on the reporting date. This is stated in paragraph 7 of the Accounting Regulations “Accounting for assets and liabilities, the value of which is expressed in foreign currency” (PBU 3/2006), approved by Order of the Ministry of Finance of Russia dated November 27, 2006 No. 154n (hereinafter referred to as PBU 3/2006) .

Line 300 “Balance”.

Line 300 of the balance sheet initially reflects the amount of all assets of the organization - both non-current and current. The indicator of line 300 is formed as the sum of lines 190 “Total for section I” and 290 “Total for section I”.

It should be noted that the total amount of the organization's assets, reflected on line 300 of the balance sheet asset, must be equal to the total amount of the organization's liabilities - the indicator of line 700 of the balance sheet liability.

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The term "balance" is used in many scientific fields. It also plays a major role in the economic sector, where there is such a thing as “accounting balance”. It includes two parts - passive and active. The first displays the capital and liabilities that exist for a particular company. The second displays the property of the institution. The balance sheet of an enterprise is a necessary document. It helps those cooperating with the company to assess its current financial condition.

Similar accounting objects within both parts of the balance sheet can be grouped according to various criteria. The essence of balance is balancing, that is, the quantitative equality of its parts. To prepare a balance sheet, there is a special form approved by the Ministry of Finance of the Russian Federation. However, it is only advisory, so enterprises have the right to establish their own form that is convenient for them or modify the proposed one.

What does the concept include?

The balance sheet in accounting is the totality of funds, as well as their sources, on a specific date. The currency for the balance sheet is the equality between its two parts. The balance sheet is used to analyze the company's business activities. Its presence is necessary to find internal reserves and reduce expenses and losses.

Schematically, a document with a balance sheet can be drawn up in tabular form. In this case, the institution’s resources will be grouped in the active part, and the sources of their occurrence, accordingly, in the liabilities part. The “assets” section will consist of non-current and current assets and display the resources held by the enterprise. “Liabilities” will be divided into 3 types: long-term liabilities, debts and current liabilities. There are different types of balances, they can be grouped depending on certain categories. So, they can be divided depending on:

time;
sources from which the information was obtained;
volume of information;
financial activities of the company;
existing form of ownership;
display object;
cleaning method;
turnover display forms.

There is no need to list all the types that the classification of accounting balances implies. It is enough to mention those that are most often encountered when working with documents.

Some types of balances

In addition to the standard or classic, other types of balance sheets are used:

Opening. This type is formed at the very beginning of the company’s entrepreneurial activity. Its active part displays the resources received by the institution during its founding. The sources of their appearance act as liabilities. As a rule, before drawing up this type of balance sheet, the company undergoes an audit and also evaluates the resources that are already available.
Final. It has the form of a report and reflects the economic activity of the organization for a certain period of time. The basis for such a balance is the accounting records that have already been verified.
Profitable and expendable. It is a special document that can be developed for a certain time period. Its main purpose is to ensure balance and consistency in the movement of both material and monetary resources. It also allows you to develop the enterprise from the social side and satisfy the needs of the team in the most complete form. This type of accounting contains calculations of all expenses and income of the company.
Consolidated. This is a statement of the total activities of enterprises, one of which is the parent. At the same time, the turnover of mutual subsidiaries should be excluded from this type of balance sheet.
Liquidation. The final balance sheet prepared upon the termination of a company's operations. It displays the property status of the enterprise on the day on which it is deprived of its legal entity status. The balance sheet shows the sources of income and their amount. In addition, it indicates the state in which the company’s settlements are at the end of the liquidation period.
Negotiable. It includes data on debit and credit turnover for a specific period. Such a balance sheet is used as an interim document.
Preliminary. This type of balance sheet is prepared in advance before the end of the reporting period and takes into account possible changes that may occur in the composition of the institution’s property.
Dividing. The need for such a balance arises in the event of a division of a legal entity into two or more smaller companies. According to this document, both the rights and obligations of the predecessor are transferred. The separation balance sheet must contain information about legal succession regarding all obligations that the reorganized organization had.
Consolidated. A balance sheet prepared by combining a series of closing balance sheets. Usually the need for their presence concerns various departments and similar authorities.

Asset Sections

After the most common types have been listed, you can find out in more detail what a balance sheet in accounting is and what it consists of. The first component of the document is the part with assets that reflect all the values of the company. Values are reflected in monetary terms. Assets are distributed between two sections, which include non-current and current assets. The section of non-current assets includes all assets of a long-term nature, presented as the following groups:

The last section also includes receivables both from employees of the institution itself and from other companies and third parties.

Passive sections

A liability refers to the part that is opposite to an asset. These sections of the balance sheet include the entire set of liabilities that the organization has. Liabilities contain debt and equity capital. The liability is divided into these sections:

long term duties;
debts;
current liabilities.

The first category includes obligations to the company’s employees, the state, and landlords. Debts include long-term bonds and loans. Current liabilities include obligations that must be paid in the coming year. Although there are 3 liability sections of the balance sheet, in principle only 2 types of sources are included in them, namely, borrowed and own. It is believed that the larger the segment occupied by its own sources, the more stable the financial position of the enterprise. An approximately equal ratio of borrowed and equity funds is assumed to be optimal.

There are various classifications of obligations. So, according to one of them, they are divided into imaginary, actually existing and hidden. If everything is more or less clear with actually existing obligations, then the remaining 2 types are worth examining in more detail. Hidden obligations may include credit or other debt of an enterprise to legal entities, individuals, as well as to the budget. In fact, it is absent in the organization, but must be taken into account when accounting for the company's own funds. What may be contained in the category of hidden obligations:

fines provided for in contracts;
the obligation to constantly spend money on charity or social purposes;
the presence of contracts for the supply of services at a cost that exceeds the average market price.

Imaginary liabilities are the company’s borrowed debt to the budget and other authorities, reflected in the balance sheet, but in fact not present in the company.

What can be classified as imaginary obligations:

reserves for future expenses;
loans that were taken from the owners of the legal entity;
debt to a creditor who has gone bankrupt.

An obligation arises either upon the entry into force of a contract or legal norm, or in the course of business transactions. When a liability is paid off, the firm is deprived of a certain part of its assets to satisfy the conditions of the other party. This process is accompanied by the provision of services or the payment of money. In some situations, an obligation is extinguished by replacing it with another. Sometimes it happens that creditors withdraw their own claims from the organization.

Balance sheet asset— part of the enterprise’s balance sheet, reflecting in monetary terms the tangible and intangible assets belonging to the enterprise, their composition and location (Table 1).

Table 1. Balance sheet asset (abbreviated)

Section I of the balance sheet asset “Non-current assets” presents all long-term assets of an economic entity: intangible assets, fixed assets, long-term financial investments, capital investments.

Items in the “Intangible assets” group are valued in the balance sheet at their residual value. The residual value of this group of assets is determined as the difference between the original (replacement) cost and the amount of accrued depreciation.

The articles of the group “Fixed assets” are also evaluated, with the exception of the article “Land”. Depreciation is not accrued for this type of asset. In the balance sheet, all fixed assets and intangible assets are presented in the water section, regardless of the field of operation.

The items in the “Financial Investments” group reflect investments of funds and other property in other economic bodies for a period of more than one year; under the item “Capital investments” - actual costs in unfinished construction.

Section II of the balance sheet asset “Current assets” reflects current assets combined into several groups. In the “Inventories” group, current assets of the production sector are presented as separate items. Raw materials and supplies are valued in the balance sheet at the actual procurement cost. Costs in work in progress can be assessed at standard cost, at the amount of direct costs, or at actual production cost. This section also reflects items of circulation: finished products and goods shipped, deferred expenses, which should be assessed at actual cost.

The second group of current assets consists of short-term financial investments in other organizations. The "Cash" group is represented by the articles "Cash", "Cash Accounts", "Currency Accounts", "Other Cash".

The same section of the asset also reflects receivables from both other organizations and individuals, as well as employees of a given business entity.

Liability sections of the balance sheet

Liability balance— part of the balance sheet, reflecting in monetary terms the own and borrowed sources of the formation of the organization’s property (Table 2).

Table 2. Balance sheet liabilities (abbreviated)

Section number	Section names	Group of articles
	Capital and reserves	Authorized capital Extra capital Reserve capital Profit from previous years Uncovered loss from previous years Retained earnings of the reporting year Uncovered loss of the reporting year
	Total for Section III
	long term duties	Borrowed funds Other liabilities
	Total for Section IV
	Short-term liabilities	Borrowed funds Accounts payable revenue of the future periods Reserves for future expenses
	Total for Section V

In Section III of the balance sheet “Capital and Reserves”, independent items reflect the own sources of property formation: authorized capital, additional capital, reserve capital. The same section shows the retained earnings of the enterprise from previous years and the reporting year. Independent items represent uncovered losses.

The articles of Section IV of the balance sheet “Long-term liabilities” characterize debt to banks for loans and borrowings received from other organizations for a period of more than one year.

Section V of the balance sheet “Short-term liabilities” combines several groups of short-term debt: borrowed funds, accounts payable, reserves for future expenses, deferred income.

Any experienced analyst can easily analyze Form 1 of the balance sheet and, with more than 70% accuracy, determine the presence of significant threats and prospects for the enterprise, as well as classify the organization relative to its field of activity. Let's look at what important details you should pay attention to when analyzing, and how to recognize a “inflated” balance.

Brief information about form 1

A sub-balance sheet is understood as a set of indicators (forming an asset and a liability), reflecting the used own and borrowed funds. In addition, the balance sheet reflects the final use of this capital (in cash).

Do not forget that discrepancies between the currencies of an asset and a liability are unacceptable. There are no situations when you purchased a product but paid less, or vice versa - the cost of the product exceeded the reflected volume of the product.

Composition of the balance sheet

Traditionally, Form 1 of an enterprise’s financial statements is divided into 5
sections:
Assets:

I. Non-current assets

Non-current assets in their structure reflect information about funds,
purchased for the long term. Sales are carried out over a period exceeding 1 calendar year (or 1 production cycle). First
section is formed from:

Intangible assets;
Material prospecting assets;
Fixed assets;
Profitable investments in material assets;
Long-term financial investments (more than 1 year).

The above items form the backbone of the first section of the balance sheet.

II. Current assets

The section is used to reflect information about liquid assets
enterprises capable of turnover during 1 production cycle. The period for selling current assets is less than 1 year.

The following main indicators fall under this section:

Stocks;
VAT on purchased assets;
Accounts receivable (short-term and long-term);
Financial investments (except for cash equivalents);
Cash and cash equivalents;
Other current assets.

The exception is accounts receivable, because it reflects obligations to counterparties and from buyers, not tied to the date of occurrence. If a company maintains division by term for itself, it is taken into account when determining the liquidity ratio of the enterprise.

III. Capital and reserves

The third section reflects information about equity capital, through which the assets of the enterprise were created. Its structure looks like this:

Authorized capital;
Own shares purchased from shareholders;
Revaluation of fixed assets;
Extra capital;
Reserve capital;
Retained earnings.

A well-structured policy can be tracked precisely by the indicators in this section. If, at the end of the reporting period, net profit is capitalized rather than cash withdrawn through dividends, this is reflected in the retained earnings indicator.

The higher this indicator, the more responsible and serious the owners’ goals regarding the company’s development.

Also, during capitalization, this sub-item may not increase synchronously with the profit received; in this case, it is important to track changes in the reserve fund - the accounting policy of many enterprises provides for the formation of a reserve fund in a certain% ratio of the positive financial result obtained. This is not a minus, because... In the end, the usual redistribution of the structure occurs within section 3 of the balance sheet.

As a rule, the result of section 3 of the balance sheet is comparable to the net assets indicator.

IV. long term duties

The section reflects the volume of borrowed capital raised (mainly paid). It consolidates obligations with a maturity period of more than 1 year. Section presented:

Borrowed funds;
Deferred tax and valuation liabilities;
Other obligations.

V. Current liabilities

The second section of the company's debt obligations. It is represented by financing for a period of less than 1 year. Similar to an asset, the accounts payable indicator may be excluded, because There is no separate line for long-term obligations, and the contract may provide for a deferred payment for a period of more or less than 1 year. Everything is decided individually and depending on the industry of the enterprise.

Radel is represented by:

Borrowed funds;
Accounts payable;
Income of future periods;
Estimated and other obligations.

During a normal production cycle, there is a uniform fluctuation in the indicators of accounts payable and receivable. The exception is companies providing financial services, namely, leasing companies - in the structure of accounts receivable they can only reflect upcoming payments, while accounts payable includes the full amount of debt under the purchase and sale agreement. In this case this principle does not apply.

If a company brings together an analytical balance, this can significantly complicate the analysis, because A clear example of the analytical balance of an enterprise is the consolidation of items:

If in a regular balance sheet section I contains 9 positions, then in an analytical balance sheet they can
come down to the 4 largest: fixed assets, intangible assets, financial
investments, the remaining items go to “other”;
In Section II, VAT is not separately allocated; it is considered in other assets;
From the 6 indicators of Section III, indicators on own shares and revaluation are excluded;
Long-term liabilities may be reduced to the level of borrowings and other liabilities;
And the only one that does not undergo changes is the short-term liability section - there is simply nothing to cut there.

Ultimately, analysis of the balance sheet liability can give not only an idea of the sources of financing of the enterprise, but also reflect the dynamics of their changes over a given time lag. Unless, of course, this is an enlarged balance sheet.

The need to read the balance

The extent of the enterprise's dependence on external creditors;
Indicators of liquidity and solvency of the enterprise;
Conduct a preliminary assessment of the financial condition of the enterprise;
Assess the effectiveness of resource management;
Weaknesses of the enterprise in the absence of growth in the profitability indicator.

Also, by filling in the balance sheet items, you can determine the type of activity of the enterprise. An example of analyzing the balance sheet of a manufacturing enterprise is the identification of a high share of non-current assets and inventories, when the share of attracted resources predominates in liabilities. Or a trading enterprise - its assets are dominated by inventories, and its liabilities are mainly accounts payable. Based on a significant share of financial investments, a management company or microfinance organization can be identified. For a significant share of fixed assets, or items of profitable investments in material assets - the balance holder (or lessor, including leasing).

This knowledge, as well as logic, helps analysts in solving problems regarding determining the type of activity of the counterparty. And if, for example, the same
a trading enterprise increases the volume of inventories, while there is no growth in retained earnings, indirectly, this may indicate problems with
counterparty. Isn’t it better to talk about the points of analysis that alarm you in advance, before the transaction, so that later failure to pay on time or the impossibility of delivery does not become an unpleasant surprise for you?

Key indicators of balance sheet analysis

Balance sheet analysis methods are quite simple to use. If you know the basic formulas and their purpose by heart, you can quickly assess the prospects of the enterprise and make a decision on further work with the company.

Traditionally, there are 4 main groups on which the analysis of the balance sheet is based. We propose to consider these groups, highlighting the main subgroups:

1. Analysis of structure and dynamics;

This section reflects the picture of the general state of the balance sheet, an analysis of the influence of indicators on the final balance sheet currency and their significance in
the structure of influence, the dynamics of items that form the backbone of the balance sheet, and their influence in obtaining the profitability of the enterprise.

To check: the dynamics of the balance sheet currency should show a positive value, pay attention to this;
Vertical analysis and its dynamics - when conducting analysis, check the comparability of growth/decrease rates. In particular, in a favorable situation at the enterprise, accounts receivable and payable change evenly;
The dynamics of net assets should be positive, just like the indicator itself. With proper work, an enterprise on its own initiative will never make a loss.

2. Analysis of financial stability;

When analyzing the financial stability of an enterprise, you can appeal by calculating capital indicators, as well as the coefficients on which the enterprise’s capital puts pressure. For example, when analyzing financial stability, standards such as net assets, own working capital, net working capital are calculated, financial independence, and the ratio of own and borrowed funds are determined.

The main purpose of this section is to determine the financial independence of the enterprise from external creditors, their share of influence and the possibility of reducing
expenses for attracting paid resources.

3. Analysis of solvency and liquidity;

The section gives an idea of such a phenomenon as “liquidity of an enterprise’s current assets”, as well as the calculation of the organization’s ability to repay its short-term obligations.

4. Cost-benefit analysis.

This section gives a clear picture of the profitability of the organization. The assets of the enterprise are used as a base.

5. Analysis of business activity.

This section helps to calculate the profitability of an enterprise and its development through investments in fixed assets. Factor analysis of fixed assets is responsible for this - using the dynamics of movement, structure, efficiency of use, maintenance costs, it is possible to identify the degree of profitability from these objects and their involvement in the production process.

In the case when you have transcripts of the statements, the analytical capabilities of the balance sheet increase at cosmic speed. If before this you could only identify threats on a whim, then with the advent of decryptions you will be able to identify hidden losses by:

Financial investments (by analyzing the terms of return, or the constant extension of existing terms);
Accounts receivable (an unreasonable increase in the debt of related companies with a disproportionately low level of profitability, an increase in debt from other counterparties in the presence of negative information regarding these persons, a lack of movement of debt in principle);
By inventory, when turnover increases and sales decrease. Or, when a company sells seasonal goods or perishable products.

There are a lot of such examples, so the analysis of the company’s balance sheet will be all the more accurate when you have the maximum possible information.

If the counterparty refuses to provide transcripts or reporting, you can always use open sources that publish data on annual reporting: Rosstat, SPARK, or the official website of the counterparty.

In general, the proper application of balance sheet assessment methods can say a lot about your potential or current counterparty. One of the indicators is competent drafting - direct evidence of structure and strict control over the company by management. If you are unsure about your potential partners, ask them for accountability. It may tell you more than you need to know: in addition to the negative information, you can discover a new, positive side to the company.

The term “Balance” has its roots in Latin and is a two-word phrase “bis lanz”. If translated literally it would mean “two scales.” This means that, by its very nature, the balance sheet should reflect the financial balance of the organization. What is a balance sheet, what does a balance sheet consist of today, how many sections does a balance sheet consist of, as well as the main sections of a balance sheet. All this will be discussed in this article.

What is balance

The balance sheet is one of the primary forms of accounting reporting that reflects the activities of the entire company in monetary terms. Sections of the balance sheet are a table reflecting all information about the company. They show:

Information about the company's property;
Company debts.

All balance sheet information reflects the state of affairs on a specific date. In its most common form, the balance sheet consists of sections that reflect everything that the organization owns (on the left side of the balance sheet) and all the funds with which the company acquired what it owns (on the right side of the balance sheet). The foundation of this equilibrium is to record ownership and liabilities using double entry bookkeeping.

A balance made for a certain number makes it possible to evaluate the current state of affairs of the organization in financial terms. And if you compare several balance sheets for different dates, you can assess the change in the state of affairs in the company. The balance sheet is one of the main documents of the economic analysis of an organization.

Important: The company itself needs a balance sheet in order to see accurate results from its activities over a certain period of time. For example, month, quarter or year.

In addition, the balance may be needed by companies cooperating with this organization or those who are just about to start cooperation. This is necessary to understand exactly who they are dealing with.

What does balance consist of?

So what does the balance consist of? How many sections are there in a balance sheet? The balance sheet consists of several fundamental parts:

Assets;
Passive.

Assets

When preparing a balance sheet, the sections should always be equal. The first section of the balance sheet is the assets or property of the company. This section shows the company's working capital and fixed capital.

The main one is the total number of tools and means of production. This part of the balance sheet is distinguished by the fact that it has a strong influence on all production processes occurring in the company, transferring the cost of production to the final cost of the product or service.

Working capital is the capital that affects one production cycle, the entire cost of production products.

Working capital includes:

Building;
Facilities;
Transport.

Everything else relates to working capital.

Passive

Liabilities are a reflection of all current affairs of the organization from a legal point of view. This section reflects all the company’s obligations to those who provided their funds for the use of this company. Accordingly, we can say that a liability is the dependence of a given company on other persons or organizations.

The liability also reflects the entire capital of the company:

Statutory;
Additional;
Spare.

Capital in the liabilities side of the balance sheet reflects the company's dependence on the persons who provided it with these funds. For example, from the founders.

The balance sheet is a document reflecting the state of affairs of the company, both from a qualitative and quantitative position.

Asset and liability by section

The sections of the balance sheet are further divided into additional categories.

Additional sections of the balance sheet are a clearer and more detailed description of the balance sheet, allowing you to more accurately track the state of affairs in the company. Assets will be divided into two categories, and liabilities into three.

Fixed assets. This is information about the company's property that is used for a long period, more than one year to be precise. This category may include equipment, long-term investments, buildings, and so on;
Current assets. These are the final indicators of this section, expressed in the amount of all the company’s property, spent in a relatively short period of time. Less than one year to be exact. These are cash, materials, short-term accounts receivable, and so on.

Capital and reserves. This section reflects all own accounts that belong to the founders of the company;
Long term duties. This reflects the total of all loans, credits and other debt obligations of the company that will have to be repaid within more than one year;
Short-term liabilities. This is the total of all loans, credits and other debt obligations of the company that will have to be paid within one year.

Analysis of account balances

You can separate the balance sheet by account. This is necessary in order to more accurately understand how this document is filled out correctly. The accounts in the balance sheet (like this document itself) are also divided into active and passive.

The active balance sheet accounts reflect everything that is noted in the assets column, and the passive accounts reflect everything that is in the assets column.

The document is filled out on the basis of data on account balances in financial statements for the period under review.

The account balance and their balances are reflected in the document in accordance with the tasks assigned to a specific document. In most cases, all data is reflected in thousands, less often in millions of rubles. But this usually happens in the largest companies. Below are tables explaining the accounts. Based on these tables, you can understand exactly how account balances should be filled out.

Reflection on the assets side of the balance sheet.

Filling out accounts on the Liabilities side of the balance sheet.

Before you start filling out the document, you need to pay attention to the type of economic activity of the company in a given reporting period. Then on the codes related to the activities of this particular organization. They can be viewed in the code reference book. Then you need to accurately determine the balance units of thousands/millions.