In 2016, the Ministry of Finance of Russia, within the framework of the Program for the Development of Federal Accounting Standards for Public Sector Organizations, approved (hereinafter referred to as the Program), prepared draft orders for the approval of five federal standards (hereinafter referred to as the Standards), which are planned to come into force on January 1, 2018 ( see Table 1). The approval period for the Standard is no later than 6 months before the expected date of its entry into force.
With regard to six draft Standards, the development of which, according to the Draft Order on Amendments to the Program (prepared by the Ministry of Finance of Russia on September 30, 2016) is planned to be completed in 2016, is currently undergoing a public discussion procedure provided for by Federal Law of December 6, 2011 No. 402-FZ " " (hereinafter referred to as Law No. 402-FZ).
Along with the development of the Standards themselves, within the framework of the Program implementation, specialists from the financial department are actively working to prepare draft amendments:
The need to amend the listed regulations is due to the introduction of federal standards. Upon completion of all stages provided for by the Program, the methodological foundations of accounting for public sector organizations will be regulated precisely by federal standards, that is, “excluded from the framework”, which will ultimately be established by the Chart of Accounts used by public sector organizations.
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The period for public discussion of a draft federal standard cannot be less than three months from the date the said draft is posted on the official website of the developer on the Internet. Notification of the development of a federal standard, as well as Notification of the completion of public discussion of the draft federal standard in accordance with approved by Order of the Ministry of Finance of Russia dated September 28, 2016 No. 397, are subject to posting on the official website of the Ministry of Finance of Russia in the section Budget / Accounting and accounting (financial) reporting public sector.
The application of federal accounting standards will require chief accountants of public sector organizations to possess the skills of financial analysis and the formation of professional judgment. At the same time, the presence in the Standards of clear criteria and rules will provide the accounting entity with the opportunity to independently make decisions regarding accounting procedures, in particular, the recognition and derecognition of an accounting object and the application of its valuation method.
Table 1. Federal standards, the expected date of application of which is January 1, 2018
Name of the federal standard | Subject of regulation | Implementation stage/ |
Conceptual Framework of Accounting and Reporting for Public Sector Organizations | – the purposes of compiling and presenting accounting reports, as well as public disclosure of accounting indicators; | Statement |
Presentation of accounting (financial) statements | – methodological basis for the formation and procedure for submitting general purpose accounting reports by reporting entities; | Statement |
Fixed assets | the procedure for reflecting assets classified as fixed assets in the accounting and reporting of accounting entities | Statement |
the procedure for recording lease transactions | Statement |
|
Impairment of assets | – the procedure for calculating the amount of loss from impairment of an asset; | Statement |
Accounting policies, estimates and errors | requirements for the formation, approval and change of accounting policies, as well as rules for reflecting in the accounting (financial) statements the consequences of changes in accounting policies, estimated values and corrections of errors | Public discussion |
Events after the reporting date | – classification of economic facts that arose between the reporting date and the date of signing the accounting statements for the reporting period and which had or may have a significant impact on the financial position, financial result and (or) cash flow of the accounting entity; | Public discussion |
Non-produced assets | Public discussion |
|
Cash flow statement | the procedure for reflecting assets classified as non-produced assets in the accounting and reporting of accounting entities | Public discussion |
the procedure for reflecting assets classified as inventories, work in progress and non-financial assets of treasury property in the accounting and reporting of accounting entities | Public discussion |
|
Biological assets | the procedure for recording assets classified as biological assets in the accounting records of accounting entities during the period of growth and reproduction, as well as the procedure for the initial assessment of biological products at the time of their collection. | Public discussion |
Standard "Conceptual Fundamentals of Accounting..."
The standard “Conceptual Fundamentals of Accounting...” is basic, that is, it captures the basic concepts and principles of accrual accounting. It is in the “Conceptual Framework...” that contains definitions of such concepts as “Asset”, “Liability”, “Net Asset”, “Revenue” and “Expenses”, which until now have simply not been established for public sector organizations...
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Does a certain receivable qualify as an asset or can it be written off the balance sheet? When is property no longer classified as an asset and can be transferred from balance sheet accounting to off-balance sheet account 02 while it is being written off? Currently, accountants must resolve such issues solely on the basis of their professional judgment. Once the Conceptual Framework standard comes into force, the situation will change. This means there will be fewer disagreements with inspectors.
This standard will also regulate the implementation of basic accounting procedures. For example, the main criteria for recognizing accounting objects will be clearly defined.
In addition, the standard "Conceptual Fundamentals of Accounting..." contains not only requirements for the information contained in accounting (financial) statements (hereinafter referred to as accounting records), but also definitions of the concepts of each of the qualitative characteristics of such information, in particular, its reliability, comparability, materiality.
Standard "Presentation of accounting (financial) statements"
The “Presentation of Accounting Reports” standard summarizes the requirements for the accounting (budget) reporting of public sector organizations, which are contained in the regulations governing the methodology of accounting and reporting at the present time (in, ), and also reveals in detail the key concepts contained in these requirements .
On general requirements for the preparation of budget reporting and financial statements of budgetary and autonomous institutions in "Encyclopedia of solutions. Budgetary sphere" Internet version of the GARANT system.
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The standard establishes the structure of presentation of balance sheet indicators used by reporting entities when publicly disclosing information, mandatory disclosure items in the Financial Results Report, as well as requirements for the composition and structure of the Explanatory Note.
In addition, the Standard discloses the concepts of short-term and long-term liabilities, establishing the procedure for their reflection in financial statements, including the procedure for disclosing information about them taking into account events after the reporting date at each stage of the reporting process. At the same time, the stages themselves will be clearly demarcated by the Standard “Accounting Policies, Estimates and Errors”, which contains definitions of the concepts “date of signing”, “date of presentation”, “date of acceptance” and “date of approval” of accounting statements, which indicates the need to apply the Standards in conjunction .
Standard "Fixed Assets"
Along with the familiar concepts of “initial cost”, “residual value”, “depreciation”, a lot of new terms will appear: “investment property”, “revalued value”, “fair value”, etc.
Institutions will be able to use several methods of calculating depreciation:
- linear;
- reducing balance;
- proportional to the volume of production.
The choice of depreciation calculation method will need to take into account the specific use of a particular property. For example, it will be possible to take into account the intensity of use of equipment when producing finished products.
When switching to the application of the standard, institutions will have to recognize fixed assets that were not previously recognized, and were also reflected off the balance sheet, at their original cost. Under certain conditions, it will be possible to take into account even leased assets as part of fixed assets (if the term of the lease agreement is comparable to the remaining useful life, the amount of all lease payments is comparable to the fair value of the asset, etc.). Real estate properties will need to be revalued to their cadastral value and the depreciation accrued on them written off. The property will then be depreciated based on the revised cost and useful life.
The rule will be clearly stated: cost recognition in the cost of an item ceases when the item is in a usable condition. For example, when purchasing a car, you can take into account the cost of mats and covers in the initial cost. If such items are purchased after the car is included in fixed assets, their cost can be taken into account as part of the current year’s expenses.
Standard "Inventories"
The standard will regulate the procedure for valuation of inventories upon their recognition, features of subsequent valuation and valuation upon their disposal, as well as requirements for disclosure of information in accounting statements.
The standard will provide for the following grouping of non-financial assets recognized as inventories (Table 2):
Table 2. Groups and types of stocks
Groups of assets related to inventories | Types of assets related to inventories | Subjects of inventory accounting |
Material reserves | – materials; | Public sector organizations: |
Unfinished production | costs actually incurred in the manufacture of products, performance of work, provision of services until they are recognized as part of the finished product or the fact of provision of a service or performance of work |
|
Non-financial assets of treasury property | – real estate; | Government bodies (state bodies) and local government bodies authorized in the field of management and disposal of treasury property |
Standard "Non-produced assets"
The “Non-produced assets” standard establishes:
- the procedure for valuing non-produced assets upon their recognition;
- subsequent assessment procedure;
- impairment features;
- derecognition of non-produced assets;
- requirements for information disclosure in accounting reports.
Features of accounting for non-produced assets (Table 3):
Table 3. Types and features of accounting for non-produced assets
Groups of non-produced assets | Inventory object | Subjects of accounting |
Water resources | A water body provided for use for a fee under a water use agreement | authorized government bodies performing the functions of managing state property in the field of water resources in accordance with the legislation of the Russian Federation |
Land (land plots) | A plot of land or part thereof that has characteristics that make it possible to define it as an individually defined thing | – public sector institutions to which the specified land plots are assigned the right of permanent (indefinite) use; |
Uncultivated biological resources | ||
– aquatic uncultivated biological resources | certain types of aquatic biological resources for which the total allowable catch is established | authorized government bodies performing the functions of managing state property in the field of uncultivated biological resources in accordance with the legislation of the Russian Federation |
– uncultivated biological resources related to the animal world | objects of the animal world (organisms of animal origin, i.e. wild animals), for which standards for permissible seizure are established |
|
– flora objects | forest areas located within the boundaries of forest fund lands |
|
Subsoil resources | A subsoil plot, the boundaries of which are determined in accordance with the issued license for the use of subsoil | authorized government bodies performing the functions of managing state property in the field of subsoil use, in accordance with the legislation of the Russian Federation |
Other non-produced assets | authorized government bodies performing the functions of managing state property in the field of other non-produced assets in accordance with the legislation of the Russian Federation |
Standard "Events after the reporting date"
According to the Standard, based on the date of occurrence of a fact of economic life, the conditions of which are confirmed (changed) by events after the reporting date, in relation directly to the reporting date itself, events are divided into two types (Table 4):
Table 4. Classification of events after the reporting date
Events confirming the conditions of economic activity that existed at the reporting date | Events indicating business conditions that arose after the reporting date |
including: |
|
– declaring the debtor bankrupt if the bankruptcy procedure was started before the reporting date; | – changes in cadastral assessments after the reporting date; |
– adoption of a judicial act confirming the existence of an asset and (or) liability; | – making a decision on reorganization or liquidation that was not known before the reporting date; |
– completion of the process of registering significant changes to the transaction, which began in the reporting period; | – significant inflow or outflow of assets; |
Obtaining documentary evidence of the amount of insurance compensation if the insured event occurred during the reporting period; | – fire, accident, natural disaster or other emergency situation, as a result of which assets are destroyed or significantly damaged; |
– receipt of information indicating that assets are impaired or the need to adjust an impairment loss recognized in the reporting period; | – public announcements about changes in the policies, plans, intentions of the founding body that may affect the powers and functions of the accounting entity; |
– detection after the reporting date of an error in the accounting data for the reporting period; | – change in the value of assets and (or) liabilities as a result of changes in foreign currency exchange rates after the reporting date; |
– other events confirming conditions that already existed at the reporting date and (or) indicating circumstances. | – changes in legislation, conclusion and termination of contracts (agreements), adoption of other decisions affecting the amount of assets, liabilities, income and expenses; |
– the commencement of legal proceedings related to events after the reporting date; |
|
– other events indicating conditions or confirming circumstances that arose after the reporting date. |
|
The order of reflection in accounting: |
|
Making entries in accounting accounts at the end of the reporting period | Making entries on accounting accounts in the period following the reporting period |
The order of reflection in accounting reports: |
|
The data in the reporting is reflected taking into account updated accounting data | Information about the event is disclosed in the Notes to the financial statements for the reporting period. The description of the event and the assessment of the consequences of its occurrence in monetary terms are subject to disclosure. If it is impossible to estimate in monetary terms, the Explanations disclose the fact and the reasons for this |
Standard "Rent"
The Lease standard establishes criteria for qualifying lease relationships with the participation of public sector entities for accounting and reporting purposes, as well as a detailed procedure for reflecting lease agreements in the accounting and reporting of the tenant and the lessor, including the features of reflecting gratuitous use and rental of property on preferential terms.
Within the framework of a financial lease relationship, the leased asset is not subject to accounting by the lessor as a non-financial asset, but by the lessee it is accounted for as part of fixed assets. In this case, a financial lease relationship is considered to be an agreement under which the lessor, on a reimbursable basis, provides the lessee with an installment plan to pay the cost of the leased asset.
An agreement in which the lease payments reflect only the payment for the use of the property is considered an operating lease. The right to use an asset within the framework of an operating lease relationship is reflected by the lessee as part of non-financial assets as an independent accounting object. For the lessor, an asset transferred for use under an operating lease is reflected as part of property, plant and equipment, and depreciation is charged on normal terms.
According to the Standard, the gratuitous transfer of property between entities without termination of the right of operational management, as well as the gratuitous transfer of property constituting the treasury of a public legal entity (except for cases where the property is assigned to the user with the right of operational management to perform the functions assigned to it) are qualified as lease relationships.
Transactions involving the transfer of property for lease on preferential terms and gratuitous transfer of property are recorded at fair value determined using the market price method (as if the lease agreement (use agreement) had been concluded on commercial terms). Income from granting the right to use an asset leased on preferential terms (at commercially insignificant prices) or free of charge is recognized in accounting and reporting at fair value.
For the lessor, the difference between the total minimum lease payments under the lease agreement and the total minimum lease payments at market value is recorded as lost profits. For the lessee, the difference between the total amount of minimum lease payments under the lease agreement and the total amount of minimum lease payments at market value (fair value of lease payments) is taken into account as deferred income from receiving property for free use.
Standard "Accounting Policies, Estimates and Errors"
The standard regulates the following issues:
- the procedure for the formation and approval of accounting policies;
- a list of estimated values and the procedure for reflecting their changes in the accounting (financial) statements;
- the procedure for reflecting the correction of errors in the accounting (financial) statements.
The most significant innovations introduced by this standard are: prospective and retrospective application of amended accounting policies, prospective recognition of the results of changes in estimated values, retrospective restatement of financial statements.
The version of this standard proposed by specialists from the financial department establishes the need to assess the consequences of changes in accounting policies that have had or are capable of having a significant impact on the financial position, financial performance and (or) cash flow of the accounting entity, in monetary terms. Retrospective application of the changed accounting policy consists in adjusting the indicators on the accounting accounts in the current reporting period, as well as in “recalculating” the opening balances under the article “Financial result of the activity of an economic entity,” as well as the values of related accounting items for the earliest reporting year for which comparative indicators are disclosed in the financial statements. In this case, information, including the rationale and content of changes in accounting policies, as well as the amount of adjustments, is disclosed in the Explanations to the accounting (financial) statements.
An estimated value is a calculated or approximately determined value of an indicator. Estimated values include indicators determined or calculated on the basis of the professional judgment of authorized persons in accordance with the requirements of the applicable legislation of the Russian Federation, for example, the useful life of fixed assets and intangible assets, the amount of depreciation charges. A change in an accounting estimate is not a change in accounting policy, nor is it a correction of an error. The order in which the estimated values are reflected will be established by the relevant standards. At the same time, in the Explanations to the accounting (financial) statements, the reporting entity will need to describe changes in the estimated value that affected the reporting for the reporting period, as well as those that could affect the reporting for future reporting periods. This standard does not provide for a retrospective recalculation of financial statements.
An error is an omission and (or) distortion resulting from the failure to use information about the facts of economic life. Depending on the date of detection (identification) of the error, they are divided into errors of the reporting period and errors of the previous reporting period.
An error in the reporting period is an error made in the reporting period and identified before the date of approval of the report on the execution of the budget of a public legal entity for the reporting period. An error discovered later than the date of approval of the report on the execution of the budget of a public legal entity for the reporting period is an error of the previous reporting period.
The procedure for correcting errors in accounting and accounting (financial) reporting, depending on the period of detection (Fig. 1):
Rice. 1. Features of error correction depending on the period of their detection
Impairment of Assets Standard
Impairment is a decrease in the value of an asset that exceeds the planned (normal) decrease in value associated with a decrease in the value of the asset for the accounting entity. The causes and factors of asset impairment are presented in Figure 2. 
Rice. 2. Causes and factors of asset impairment
If any of the signs are identified that were not previously grounds for impairment, the inventory commission, taking into account the significance of the impact, decides on the need to determine the fair value of the asset. According to the Conceptual Framework of Accounting Standard, fair value is the price at which ownership of an asset or liability could be transferred between knowledgeable, willing parties in an arm's length transaction.
An impairment loss is determined as the difference between the residual value of an asset and its fair price (less disposal costs) and is expensed at a time. In this case, the amount of accrued depreciation is not adjusted.
The impairment loss on an asset cannot exceed the amount of its residual value. If the estimated loss exceeds the residual value, the residual value of the asset is reduced to zero (with the corresponding amount recognized as an expense).
The concept of the Asset Impairment Standard has already been partially implemented in practice - according to the property in respect of which a decision has been made to write off (cessation of operation), until it is dismantled (disposed of, destroyed), it is written off from the balance sheet and is subject to accounting on off-balance sheet account 02 "Tangible Assets" accepted (accepted) for storage".
Anna Shershneva, expert in the "Budget Sphere" direction of the GARANT Legal Consulting Service, 2nd class advisor to the State Civil Service of the Russian Federation.
Photo by Timur Gromov, Kublog
The regulatory framework for accounting of state (municipal) institutions is constantly updated, and the task of an accountant is to get acquainted with innovations in a timely manner and be ready to apply them in practice. Moreover, you shouldn’t leave everything until the last day, but it’s better to start broadening your horizons in advance, especially if we are talking about serious methodological documents introducing new accounting rules for non-profit organizations. These are precisely the federal standards for the public sector. Let's get to know them together and get to know them.
Why do public sector employees need accounting standards?
It would seem that accountants of state and municipal institutions manage well without accounting standards, using instructions approved by the financial department.systems that combine methodological requirements and the organization of accounting in non-profit organizations, including the chart of accounts. However, everything suits everyone only for the time being. All regulations must comply with the legal field in which they are applied. This can be said with a stretch about budget instructions, since they were put into effect on the basis of the budget code norms governing budgetary legal relations, and not accounting rules.
Meanwhile, the legislation of the Russian Federation on accounting consists of a law with the same name, other federal laws and regulations adopted in accordance with them. Moreover, the Law on Accounting applies to commercial and non-profit organizations, state bodies, local governments, management bodies of state extra-budgetary funds and territorial state extra-budgetary funds.
Moreover, the aforementioned Law on Accounting is applied when maintaining budgetary accounting of assets and liabilities of the Russian Federation, constituent entities of the Russian Federation and municipalities, operations that change these assets and liabilities, as well as when preparing budget reporting. It turns out that the law applies to everyone, including “public sector employees” who follow, as before, the instructions of the Ministry of Finance.
To documents in the field of regulation accounting include (Article 21 of the Accounting Law):
- federal and industry standards;
- recommendations in the field of accounting;
- standards of an economic entity.
But here it should be clarified that the reference norm is given in relation to reporting, while accounting must still be regulated by the regulations listed above. All this suggests that federal accounting standards are needed by state (municipal) institutions. In the meantime (until their approval), the previously established rules for maintaining accounting records and preparing accounting (financial) statements, including those described in the “budget” instructions, continue to apply. Moreover, they must be used in such a way as not to violate the norms of the current Accounting Law.
What draft “budget” standards has the Ministry of Finance developed?
Several draft future federal standards intended for organizations in the public sector of the economy are posted on the website of the financial department for review and discussion. And the starting point in the work of officials can be considered the international financial reporting standards of the public sector translated into Russian (by the way, there are more than 30 of them). The Ministry of Finance's results so far are more modest. The list of national federal standards includes draft documents on the following topics:- presentation of accounting (financial) statements;
- fixed assets;
- stocks;
- rent;
- impairment of assets.
What do you need to know about the conceptual framework?
The draft of this document establishes uniform principles for maintaining accounting records, generating information about accounting objects, and preparing accounting (financial) statements by public sector organizations. Its authors distinguish two types of reporting, for the preparation of which conceptual frameworks are used.Firstly, the working chart of accounts is approved by accounting entities based on the charts of accounts approved by the Ministry of Finance:
- budget accounting chart of accounts;
- treasury accounting chart of accounts;
- chart of accounts for accounting of budgetary institutions;
- chart of accounts of autonomous institutions.
Thirdly, the procedure and methods for assessing assets and liabilities for accounting purposes are determined by federal standards governing the accounting procedure for the relevant types of assets and liabilities. In cases established by federal standards, assets and liabilities are measured at fair value.
Fourthly, accounting for assets and liabilities is carried out in the currency of the Russian Federation - rubles. The cost of accounting items expressed in foreign currency is subject to conversion into the currency of the Russian Federation. The procedure for revaluation of assets and liabilities, the value of which is expressed in foreign currency, is established by the relevant federal standards. In the absence of a corresponding federal standard, the accounting entity is guided by the provisions of the current accounting policy.
Fifthly, the information contained in the accounting (financial) statements of reporting entities, including explanations, must meet the following requirements: appropriateness (relevance), materiality, reliable presentation, comparability, ability to check and (or) confirm the reliability of data (verification), timeliness , understandability.
Sixth, the costs of presenting information in accounting (financial) statements should not exceed its usefulness and the benefits of its use. Such costs include the costs of collecting information, recording, validating, disclosing the assumptions and methodologies used to generate the information, and the costs of presenting the information to users.
And in conclusion: the concept has the character of a general document, in comparison with which special acts take precedence. Therefore, if there are federal standards regulating the procedure for recognition, evaluation and disclosure in accounting (financial) statements of information about certain types of accounting objects and the facts of economic life that change them, the corresponding federal standards are applied.
What will be the updated methodology for accounting for fixed assets?
Let us immediately note that the project contains a number of innovations borrowed from international accounting methodology. Moreover, the specifics of the activities of public sector entities have not been forgotten, which is reflected in the criteria for recognizing OS objects - obtaining economic benefits or useful potential. It is the useful potential that characterizes the ability of an asset to be used to fulfill the powers of government authorities, even if economic benefits are not derived.The concept of “useful potential” can be defined as the ability of property to bring benefits in the process of economic activity of the reporting entity. Due to the fact that the concept of benefit or usefulness is subjective, the standard cannot (and does not purport to) provide characteristics or criteria by which objects that provide benefit should be accounted for as balance sheet assets. At the same time, these terms make it possible to adapt the general conditions for recognizing property as part of fixed assets in relation to the activities of non-profit organizations.
The next innovation is the evaluation of OS objects. If fixed assets are acquired in the usual manner, for money or as a result of other exchange transactions, then the value of the object is recognized as the amount of actual costs. The situation changes if the asset is acquired through non-exchange transactions. These include transactions involving the transfer (receipt) of assets free of charge or at insignificant prices in relation to the market price of an exchange transaction with similar assets.
In this case, the fair value of the asset is recognized initially. It should be noted that fair value assessment allows us to understand the real value of assets and correlate it with the income and expenses of the reporting entity in order to get a reliable idea of the effectiveness of management, adequacy of financing, and the results of its fulfillment of its tasks. Fair value is the price at which ownership of a property, plant and equipment could be transferred between knowledgeable, willing parties in an independent transaction. Fair value measurements provide an estimate of the costs that would be incurred to create or acquire a similar asset.
The fixed asset accounting model adopted in the accounting policy may apply to individual groups of fixed assets. For example, part of fixed assets may be recorded at historical cost, part - at fair value in accordance with the decision of the authorized body.
Also, assets intended for disposal not in favor of public sector entities are reflected in accounting at fair value, determined by the market price method. In this case, we are talking about a separate group of fixed assets - investment real estate.
This is a group of fixed assets, including real estate (buildings or parts of buildings) owned or used for the purpose of receiving rental payments, or increasing the value of property, or both, but not intended to perform the functions assigned to the subject. Separate accounting of such fixed assets makes it possible to reliably present the activities of the institution.
Investment property is simply an analytical perspective to represent fixed assets used in a specific manner.
Once the book value of an asset has been finalized, depreciation can be calculated on it. Moreover, even during this period, the book value of an asset may change in several cases, while simultaneously adjusting the procedure and timing of depreciation of the asset, in particular:
- during repairs, reconstruction, modernization, changing the properties of the accounting object, the period or procedure for its use;
- in case of revaluation of fixed assets to fair value;
- during the impairment procedure.
On the one hand, this can lead to a weakening of accounting control over property. On the other hand, this feature is not an innovation and greatly facilitates the accounting of fixed assets in the case of a large number of them (thousands and tens of thousands of objects can be grouped for accounting purposes). Moreover, both homogeneous objects and objects whose useful life is the same, and the cost of which is individually insignificant, are quite suitable for combining, for example, furniture used in the same conditions for the same period of time (tables, chairs, cabinets in a one office, etc.). Another example is the combination of computer equipment into a single object: monitors and system units, which are purchased and disposed of, as a rule, together. Such a group of objects is considered as one inventory item if the criteria for recognizing an asset as a fixed asset are met in relation to the group as a whole (computer equipment during one period).
Objects that are operated by the institution before the standard comes into force and for which each component is assigned its own inventory number, it is logical to take into account in the same order, that is, separately. The reporting entity can account for newly acquired objects as one inventory item.
What might change in inventory accounting?
Just like the previous reviewed project on inventory accounting, the inventory document was developed taking into account the specifics of the public sector. This is confirmed by the definition of reserves, which will include:- inventories, in particular finished products;
- unfinished production;
- non-financial assets of treasury property.
However, let the public authorities (state bodies), local self-government bodies authorized in the field of management and disposal of the treasury property of the relevant public legal entity deal with this. After all, they are the subjects of accounting for non-financial assets of the treasury property.
Public sector entities will be responsible for accounting for inventories used in the ongoing activities of the accounting entity for a period not exceeding 12 months (regardless of their value).
In general, inventories are accounted for at historical cost, which consists of the actual costs of their acquisition. But there are exceptions. Thus, the balance sheet value of inventories acquired through a non-exchange transaction is their fair value at the acquisition date, determined by the market price method. In addition, the cost of inventories acquired in exchange for non-financial assets or a combination of financial and non-financial assets is considered to be their fair value at the acquisition date, unless the exchange transaction is arm's length or neither the fair value of the asset received nor the fair value of the asset given up The asset cannot be measured reliably.
At each reporting date, inventories will be valued at historical cost, which is not subject to change, with the exception of inventories belonging to the Finished Goods group. They will be accepted for accounting according to the standard
but the planned cost (price) for the purposes of disposal (sales), is reflected in accounting at the end of the reporting period at the actual cost. In fact, this technique is taken from commercial accounting of finished products of industrial enterprises. The standard accounting method allows you to control the cost of manufactured products and promptly prevent the irrational use of material, labor and financial resources in the production process.
The draft inventory accounting standard provides for the creation of a reserve for their impairment. Moreover, it will also be necessary to remember that sometimes it is necessary to reflect not the impairment of inventories, but their disposal, if future economic benefits are not expected to flow from the inventories or they do not have useful potential. Here you also need to decide on an assessment. The authors of the draft federal standard offer two options. Upon disposal (release), inventory is assessed at the actual cost of each unit or at the average actual cost. The application of one of the specified methods for establishing the value of inventories upon disposal by group (type) of inventories will be carried out continuously during the reporting period and will not change.
To everything indicated in the article, it must be added that, as stated in the draft standards, they will come into force in 2018 (what will actually happen is still difficult to say). But now we can begin to prepare for the possible application of new regulations, because the transition period of one reporting year (2017) is not such a long period. We do not exclude the possibility that autonomous institutions will need to prepare reports for 2017 in accordance with the requirements of new federal standards for public sector organizations.
During the transition period, it is necessary to take certain steps to ensure (as far as possible) the comparability of financial information on the state and performance of state (municipal) institutions for users of reporting. In addition, accountants themselves need to understand the planned innovations and be ready to put them into practice, which our magazine will help with.
Federal Law of December 6, 2011 No. 402-FZ “On Accounting” (hereinafter referred to as the Law on Accounting).
It is the price at which ownership of an asset or liability can be transferred between knowledgeable, willing parties in an arm's length transaction.
A distinctive feature of accounting in Russia is its strict regulation. The state regulates the national accounting system through a number of mandatory regulations. In turn, organizations, guided by the requirements of the regulator, form a package of local acts to regulate the internal accounting process, based on industry specifics, business conditions, structure, management needs and other factors. All documents that in one way or another regulate accounting and the preparation of financial statements in a single company, depending on the decrease in their legal status, can be conditionally presented in the form of a four-level hierarchical system.
Founding document first level– this is the Federal Law of December 6, 2011 No. 402-FZ On Accounting (hereinafter referred to as Law No. 402-FZ). The law establishes:
circle of persons obliged to maintain accounting records;
composition of accounting objects;
methods of organizing accounting at an enterprise;
requirements for the chief accountant for certain categories of economic entities;
main elements of accounting policies;
the procedure for preparing primary accounting documents and accounting registers;
general requirements for financial reporting and its composition;
the need to conduct inventories and organize internal control;
storage periods for accounting documents.
The law also covers in detail the issues of accounting regulation, including relevant principles, documents, subjects, and functions of regulatory bodies. Separate articles of Law No. 402-FZ are devoted to federal and industry accounting standards.
Regulation of accounting in the Russian Federation at the state level is carried out by the Ministry of Finance of the Russian Federation (Ministry of Finance of the Russian Federation) and the Central Bank of the Russian Federation (CBRF). The Ministry of Finance of the Russian Federation approves the program for the development of federal standards, federal standards and, within its competence, industry standards, organizes the examination of draft accounting standards and carries out other functions provided for by Law No. 402-FZ and other legislative acts. The second regulator, the Central Bank of the Russian Federation, is responsible for the legal and methodological regulation of legal relations in accounting in relation to banks and non-credit financial organizations.
As for the development of the standards themselves, Law No. 402-FZ delegates this right to subjects of non-state regulation of accounting, including professional associations, associations, unions and other non-profit organizations aimed at developing accounting. In turn, the Ministry of Finance of the Russian Federation is assigned the obligation to develop federal standards intended for public sector enterprises, and other federal standards in the event that not a single subject of non-state regulation of accounting has exercised its right to prepare the corresponding project.
In practice, the developer of the federal accounting standard (FSBU) can be any entity mentioned above that has come up with the appropriate initiative. After preparing the project, the developer sends a notification to the Ministry of Finance of the Russian Federation and posts a preliminary version of the standard on its official website on the Internet for public discussion. After completion of the discussion, which lasts for at least three months, the finalized draft standard and the list of comments received in writing from interested parties are published on the developer’s website for public review, after which these documents are sent to the Ministry of Finance of the Russian Federation for examination in the prescribed manner. Upon completion of the examination, the draft standard is accepted by the Ministry of Finance of the Russian Federation for approval or rejected with a reasoned decision attached.
Currently, only one document has undergone a fully described approval procedure - this is FSB 25/2018 Lease Accounting. Public discussion of three projects has been completed - FSBU Fixed Assets, FSBU Inventories and FSBU Unfinished Capital Investments. The developer of the FSBU is the Foundation “National non-state accounting regulator “Accounting Methodological Center” (BMC).
Until the approval of federal standards, rules for accounting and reporting are applied, the sources of which are accounting provisions - documents second level in the system of hierarchy of accounting regulations.
Among the accounting regulations, the central place is occupied by the Regulations on Accounting and Financial Reporting in the Russian Federation, which regulates general issues of accounting and reporting. The Regulations disclose the requirements for organizing and maintaining accounting records, drawing up and submitting reports, documenting business transactions and conducting inventories. In addition, the Regulations contain rules for assessing certain types of assets and liabilities of an economic entity.
It should be noted that the Regulation largely duplicates and develops the norms of the Federal Law of November 21, 1996 “On Accounting” No. 129-FZ, which has lost force, as a result of which a number of its provisions do not comply with the requirements of Law No. 402-FZ. This concerns the use of unified forms of primary documents, deadlines for drawing up interim financial statements, reflecting the facts of economic activity before the state registration of the company, checking the status and assessment of assets and liabilities during inventory, etc. Therefore, the Regulations apply to the extent that they do not contradict Law No. 402-FZ. The same applies to the Accounting Regulations (PBU), which address private issues related to accounting and disclosure of business transactions.
Depending on the purpose of use, PBUs are classified into provisions:
regulating general issues of organizing the accounting process and preparing financial statements;
defining rules for accounting for certain types of property and liabilities;
establishing the features of the formation of financial results;
used in certain sectors of the national economy;
Third level present methodological guidelines and recommendations, instructions, comments, letters from the Ministry of Finance of the Russian Federation and other ministries and departments involved in regulating the accounting process in the Russian Federation. These documents are of a clarifying and recommendatory nature on certain issues of accounting and reporting that have not been sufficiently fully considered or not regulated by higher-level documents.
A special document of this level is the Chart of Accounts, which is a list of synthetic accounts and sub-accounts used by accountants to reflect business transactions in accounting. The instructions attached to the plan give a brief description of their structure, purpose and economic content, discuss the procedure for reflecting the most common facts of economic activity, and provide correspondence accounts.
Included in the documents fourth level includes local acts and internal regulations that form the accounting policy of the organization in methodological, technical and organizational aspects.
In order to reduce the accounting burden and reduce labor costs, domestic legislators have provided some preferences for individual business entities. Thus, in accordance with Law No. 402-FZ, individual entrepreneurs (IP) have the right to completely refuse to maintain accounting records if they record taxable items in the manner established by tax legislation. There are no opportunities for organizations to be exempt from accounting. All legal entities, regardless of their form of ownership, size, industry, business structure and applicable tax regime, are required to maintain accounting records and prepare financial statements. However, some of them have the right to carry out these procedures according to a simplified scheme. Such enterprises include non-profit organizations, participants in the Skolkovo project and most small businesses. These business entities are allowed to apply a simplified accounting procedure, including: using an abbreviated chart of accounts; do not take into account individual requirements of PBUs and do not apply some PBUs as a whole; generate financial statements in a reduced volume, presenting relevant information on groups of items without their detail.
A standard is a specific norm, documented. As for accounting, there are certain requirements for it, declaring the minimum nuances and acceptable methods of accounting. They are called standards.
Let's take a closer look at industry accounting standards, in contrast to federal and internal ones.
Types of accounting standards
Federal Law “On Accounting” No. 402-FZ dated December 6, 2011, part 1 of Art. 21 identifies the following types of accounting standards:
- federal - established by the legislation of the country, relevant for any organizations operating on the territory of the Russian Federation;
- industry - adopted by regulatory documents for the relevant field of activity;
- internal - adopted by local acts of each individual enterprise.
IMPORTANT! Federal and industry standards are mandatory. When developing internal standards, the organization must ensure that they do not contradict industry and federal ones.
Features of industry standards
Industry Standards– these are the rules governing the application of federal accounting standards in different sectors of operation, created taking into account the nuances of individual types of activities (industries) or their areas.
Principles of compilation industry, as well as other accounting standards, are aimed at regulating it:
- bringing requirements into line with the needs of people and organizations preparing and receiving financial statements;
- achieving the current level of development of practice and scientific methods of financial accounting;
- organization of unity of rules for various accounting systems;
- simplification of accounting and reporting (for those categories entitled to apply simplified accounting methods).
Common features between federal and industry standards
- Regulate accounting methods in the organization.
- Unconditionally required for use.
- Install:
- minimum required accounting rules;
- acceptable accounting methods.
Differences between industry standards and federal standards
- Industry standards specify federal ones.
- They have a more basic mechanism of use.
- The type of activity for which they are created is taken into account.
- Can be approved only based on the results of an examination by the Standards Council.
Industry standards can be universal for certain areas of activity, detail special rules for accounting, or reveal the peculiarities of its conduct in specific areas.
NOTE! In light of the gradual transition to international accounting standards (IFRS), the development and use of industry standards is highly appropriate. The Central Bank of the Russian Federation, which regulates the domestic market, is actively developing and implementing standards for all major industries operating today in various economic sectors.
Reasons for developing industry standards
In addition to the need to bring accounting requirements closer to international ones, the Bank of the Russian Federation is guided by the following considerations that dictate the emergence of various industry standards:
- the desire for universality of accounting reporting;
- the desire to increase the information content of the submitted forms;
- the planned transition in the near future to a chart of accounts that is unified for credit and non-credit financial institutions.
Industry standards are constantly updated and introduced into the life of organizations gradually, as they are adopted and approved by the Standards Council.
What is included in industry standards
Industry requirements for accounting methods and methods specify the specifics of the application of federal ones, therefore they contain the same information, but of a specific nature:
- information about accounting objects, their definition and classification;
- rules for their acceptance for accounting and write-off;
- methods by which their value is determined;
- applicable chart of accounts;
- financial reporting requirements, etc.
Examples of industry standards
When releasing a new industry standard, the Bank of the Russian Federation places it on its official website. In addition to those already approved, it contains draft standards that are being prepared for examination. Regarding each of the published Regulations, the Bank of Russia publishes special explanations and instructions. Let us give examples of the latest new industry standards from the Bank of the Russian Federation.
- Industry standards for non-credit financial institutions (NFIs):
- for activities under a property trust management agreement (No. 505-p dated November 18, 2015);
- for transactions with reserves reflecting estimated and contingent liabilities of non-credit organizations (No. 508-p dated December 3, 2015);
- accounting of derivative financial instruments (No. 488-p dated September 4, 2015);
- accounting of income, expenses, other comprehensive income (No. 487 dated September 04, 2015);
- the procedure for drawing up accounting reporting documents (No. 526-p dated December 28, 2015);
- the procedure for preparing financial statements of securities market participants and various investment funds, trade organizers and counterparties, credit rating and credit history agencies, insurance brokers (No. 532-P dated February 3, 2016), etc.
- Industry standards for insurance organizations:
- the procedure for drawing up documents for accounting reports (No. 526-p dated December 28, 2015);
- operations for conducting insurance activities (No. 502-p dated November 5, 2015);
- accounting in Russian insurance organizations and mutual insurance companies (No. 491-P September 04, 2015), etc.
- Industry standards for credit financial institutions (CFO):
- rules for calculating and paying remuneration to KFO staff (No. 465-p dated April 15, 2015);
- features of meeting reserve requirements (No. 554-p dated October 20, 2016);
- accounting for fixed assets, real estate, assets that are temporarily not in use, inventories intended for sale and received as collateral or compensation (No. 448-p dated December 22, 2014);
- requirements for hedging (No. 525-p dated December 28, 2015), etc.
Innovations for 2018
The Bank of Russia began to perform new, additional functions: to regulate industry requirements for accounting of certain types of activities. For example, previously control for non-credit financial organizations was carried out by the Financial Service for Financial Markets and the Federal Insurance Supervision Service, and the requirements themselves were developed by the Ministry of Finance of the Russian Federation. For NFOs, from January 1, 2018, industry standards adopted by the Bank of Russia come into force: these organizations must switch to the new PBU.
To create Regulations regarding accounting in NFOs, the Bank of Russia used the framework it had previously developed regarding CFOs. Many points remain the same, but there are also innovations associated with the widespread convergence with IFRS.
REFERENCE! If in the provisions adopted by the Bank of the Russian Federation as the main market regulator, any issues are not resolved in the relevant regulations, it is recommended to use the requirements of IFRS.
Specialized organizations are ready to help enterprise management quickly switch to new methods of accounting by providing assistance in:
- formulation of accounting policies;
- correlation of existing PBUs with industry and federal standards;
- numbering of new personal accounts;
- developing a methodology for assessing assets and liabilities;
- automation of accounting according to new requirements.
Specialists are ready to train and advise accounting workers on any issues related to the transition to a new level of accounting for financial activities.
2018 has brought new changes in accounting and will be active. Chief accountants need to be attentive to all the subtleties of the transition to new standards. You should pay special attention to the correctness of record keeping in the information base and put all matters in order. Otherwise, errors and inaccuracies are fraught with fines and inspections.
In April 2015, the Russian Ministry of Finance approved a program for the development of federal accounting standards for public sector organizations (Order No. 64n dated April 10, 2015).
According to the program, ten standards must be in effect from January 1, 2018. However, the entry into force of three of them was planned to be postponed from 2018 to 2020: the Russian Ministry of Finance prepared a draft order to introduce appropriate changes to the program.
On October 31, 2017, the Russian Ministry of Finance issued Order No. 170n “On approval of the program for the development of federal accounting standards for public sector organizations for 2017-2019.” and on invalidation of orders of the Ministry of Finance of Russia dated April 10, 2015 No. 64n “On approval of the program for the development of federal accounting standards for public sector organizations” and November 25, 2016 No. 218n “On amendments to the order of the Ministry of Finance of Russia dated April 10, 2015 No. 64n “On” approval of the program for the development of federal accounting standards for public sector organizations."
The standards come into force in stages from January 1, 2018. The final transition to use is planned for 2020. At the same time, changes will be made to the current instructions for accounting and reporting, forms of primary accounting documents and registers.
Currently, five standards have been approved and registered with the Russian Ministry of Justice:
- “Conceptual foundations of accounting and reporting of public sector organizations” (Order of the Ministry of Finance of Russia dated December 31, 2016 No. 256n);
- “Fixed assets” (Order of the Ministry of Finance of Russia dated December 31, 2016 No. 257n);
- “Rent” (Order of the Ministry of Finance of Russia dated December 31, 2016 No. 258n);
- “Impairment of assets” (Order of the Ministry of Finance of Russia dated December 31, 2016 No. 259n);
- “Presentation of accounting (financial) statements” (Order of the Ministry of Finance of Russia dated December 31, 2016 No. 260n).
Drafts of other standards are posted on the website of the Ministry of Finance of Russia in the section “Accounting and accounting (financial) reporting of the public sector”, subsection “Financial reporting standards for the public sector”.
As noted, changes in accounting will be introduced gradually, from 2018 to 2020. Total expected 29 new standards. Innovations entail a number of significant changes. Their goal is to increase the efficiency of government agencies.
The name of the standard, “Conceptual Framework for Accounting and Reporting for Public Sector Organizations,” speaks for itself. This is a basic document that defines uniform requirements for accounting and reporting in public sector organizations:
- basic rules (methods) of accounting;
- accounting objects, general rules for their recognition (derecognition), valuation (monetary measurement) and valuation methods;
- general rules for the formation of information disclosed in accounting (financial) statements, their qualitative characteristics;
- basic principles (assumptions) of reporting preparation;
- basic requirements for inventory of assets and liabilities.
Public sector organizations must apply the standard when maintaining accounting (budget) records from January 1, 2018. To prepare reports, the provisions of the standard must be followed starting from the 2018 reporting. Reporting for 2017 is presented according to the old rules.
The provisions of the standard are applied simultaneously with other approved standards, as well as regulatory legal acts that govern accounting (budget) accounting and reporting.
To understand the essence of the upcoming changes, the study of standards must begin with the conceptual foundations. Let's analyze the provisions of the document. What are fundamentally new approaches to data generation?
Global changes
Accounting objects
The main innovations concern accounting objects. The standard defines assets, liabilities, net assets, income, and expenses for the first time.
An asset is property (including cash and non-cash funds) that meets the following conditions:
The definition of an asset uses a number of new terms. Useful potential is the suitability of an asset for use in the activities of the institution, exchange, and repayment of accepted obligations. The use of property does not necessarily have to be accompanied by the receipt of funds. It is sufficient that it serves to enable the institution to perform its functions and achieve its goals. Thus, the asset is characterized by certain consumer properties.
Future economic benefits are recognized as receipts of cash (cash equivalents) resulting from the use of an asset, for example, lease payments.
Control over an asset can be said if an institution has the right to use the asset (including temporarily) to extract useful potential or obtain future economic benefits and can exclude or regulate access to this useful potential or economic benefits. For accounting purposes, it is assumed that the institution controls the property that the owner (founder) has assigned to it.
A liability is a debt, the settlement of which will result in the disposal of assets embodying useful potential or economic benefits. Obligations are accepted for accounting if they arose by virtue of a law, another regulatory legal act, a municipal act or an agreement (contract, agreement).
The difference between assets and liabilities on a certain date shows the value of net assets. Property for which the institution is not responsible for its obligations is not included in the calculation of net assets. Net assets can take both positive and negative values.
Income is an increase in the useful potential of assets and (or) the receipt of economic benefits during the reporting period (except for income associated with contributions of the owner, founder). The contribution of the owner (founder) is the property that he transferred to the institution (except for cash and cash equivalents).
An expense is a decrease in the useful potential of assets and (or) a decrease in economic benefits for the reporting period as a result of the disposal or consumption of assets or the occurrence of liabilities.
The exception is the seizure of property by the owner (founder), with the exception of cash and cash equivalents.
The difference between income and expenses represents the financial result for the reporting period.
Budget income is taken into account by administrators, expenses are taken into account by the main managers (managers) and recipients of budget funds.
Thus, when reporting for 2017, only assets can be listed on the balance sheet. But by 2018, the accounting department of the institution needs to sort out the division of property into an asset and a non-asset (Fig. 2). The same thing should happen with accounts receivable, they need to be written off and removed from the balance sheet.
Recognition of accounting objects
An object is accepted for accounting and (or) reflected in financial statements if three conditions are simultaneously met:
If the value of an object cannot be assessed, it is not recognized in accounting, but information about it is disclosed in the explanatory note to the financial statements.
The object is removed from the balance sheet on the date when at least one of the listed conditions is no longer met.
If income is recognized over several accounting periods, expenses that correspond to these income must be allocated between the same accounting periods.
Assessment of accounting objects
The standard introduces a new concept of “fair value”. It corresponds to the price at which ownership of the asset is transferred between independent parties to the transaction. Accounting items that need to be measured at fair value, and the cases in which it is used, will be established in the standards dedicated to these items.
The fair value of assets and liabilities can be determined by two main methods:
As an example of the cost of restoring (reproducing) an asset, the cost of restoring a building in the event of its destruction is given. The replacement cost of an asset is calculated based on the market purchase price of a similar asset with a comparable remaining useful life. For example, the cost of replacing a destroyed building with another building with a comparable useful life.
Generating data for reporting
The standard for the first time formulates the characteristics that information in reporting must meet:
The standard for the first time enshrines the principle of priority of content over form. It means that information about accounting objects and facts of economic life should be presented in accordance with their economic essence, and not just their legal form.
The legal and economic content of the facts of economic life may differ or even contradict each other. For example, if we talk about property, then from a legal point of view the volume of rights to this property is important: it is in an institution with the right of operational management or leased, received for free use, for storage, or on commission.
From an economic point of view, to recognize property as an asset, what is important is not the rights to it, but its useful potential, ability to bring economic benefits and the ability to control the object.
Property may be used in the activities of the institution to achieve its statutory goals, but not owned by the right of operational management, but leased. The opposite situation is also possible: the property is assigned to the institution with the right of operational management and is listed on the balance sheet, but is unsuitable for use.
Currently, only property that is assigned under the right of operational management is reflected on the institution’s balance sheet. Property received for paid or gratuitous use is shown on off-balance sheet accounts. However, since 2018, the principle of presenting information in accounting and reporting has changed dramatically. It is not the legal, but the economic interpretation of the facts of economic life that becomes decisive. Thus, the accounting methodology comes closer to the approaches adopted in international financial reporting standards.
In relation to operations with property, this means that the right to use leased fixed assets will be reflected by the user (lessee) as part of non-financial assets as an independent accounting object. This is also enshrined in the federal “Rent” standard, which also comes into force on January 1, 2018.
What should employees of public sector institutions prepare for?
First of all, you need to be prepared for the fact that new accounts and subaccounts will be introduced into a single chart of accounts, and the process of filling out documents will change slightly. To do this, you need to download a new OKOF from 2018 and update the edition.
Changes in subaccounts of the unified chart of accounts:
101.х3 "Investment real estate".
101.x7 “Biological resources”.
In depreciation accounts, 104 subaccounts change in the same way!
Intangible assets account 102 will now be divided by type:
102.x1 “Software and Databases.”
102.x2 “Original works.”
102.x3 “Results of research work.”
102.x9 “Other intangible assets.”
Accounts are also added:
111.00 “Rights to use property.”
114.00 “Impairment of assets”.
Account 401.00 (Financial result) is added:
401.11 “Revenues of the current fiscal year.”
401.18 “Income of previous years.”
401.19 “Result of correcting errors in income.”
Account 401.20 (Current fiscal year expenses):
401.21 “Expenditures of the current fiscal year.”
401.27 “Result from the assessment of reserves.”
401.28 “Expenditures of previous years.”
401.29 “Result of correction of errors in expenses.”
120 (Income from property) KOSGU is expanding, it now contains a list of:
121 “Income from operating leases”.
122 “Income from finance leases”.
123 “Natural resource (rent) payments.”
124 “Interest on deposits”.
125 “Interest on borrowings”.
126 “Interest on other financial instruments”.
127 “Dividends from investment objects.”
128 “Share in profit (loss) of investment objects.”
129 “Income from participation in other organizations.”
12T “Income from a simple partnership.”
12K “Income from concession fees.”
When calculating depreciation, specialists need to be careful, since due to changes in accounting in 2018, there will be two more subsections depreciation charges (Fig. 7). 
You should be careful, since they are used only for BGU two new methods(reducing balance method and method proportional to production volume). Additional depreciation charges and write-offs of fixed assets to off-balance sheet accounts are not yet required.
As for inventory objects, the unit of accounting, as is known, is the inventory object. The OS object of the inventory object includes everything that was previously, and one more item is added “ Complex of OS objects". These are heterogeneous objects, the useful life of which is the same, and the cost is not significant. And in the structural part of the OS object, you can independently determine the period of receipt of economic benefits.
Due to changes in accounting in 2018, only one separate inventory card (0504031) will need to be opened for the entire complex for heterogeneous OS objects. For example, an office in a government agency containing chairs, tables, and computers. All fixed assets will be accounted for as one inventory object, for which one inventory card is created.
The accounting of rental income from the lessor goes to account 401.40 (Deferred income), and the account for the rights to use leased property is listed on account 111.00 (Rights to use property) (Fig. 8).
In conclusion, we note once again that the article examines only part of the changes that were introduced by federal standards for public sector organizations.
Federal standards approved by the Ministry of Finance of Russia, in accordance with paragraph 1 of Art. 21 of the Federal Law of December 6, 2011 No. 402-FZ “On Accounting” are one of the main documents regulating accounting.
Following the federal ones, industry standards should be approved, as well as recommendations for their application.
Letter of the Ministry of Finance of Russia dated December 15, 2017 No. 02-07-07/84237 “Methodological recommendations on the application of the federal accounting standard for public sector organizations “Fixed assets””;
Letter of the Ministry of Finance of Russia dated December 13, 2017 No. 02-07-07/83464 “Guidelines for the application of the federal accounting standard for public sector organizations “Rent”.”
Consequently, despite the fact that federal standards will come into force on January 1, 2018, their correct and uniform application cannot be ensured without approved industry standards and relevant recommendations.
In other words, for now, accountants of state and municipal institutions can only monitor the rule-making of the Russian Ministry of Finance and wait.