Off-balance sheet accounting: purpose, maintenance rules

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Accounting is an ordered system of collecting, fixing and summarizing information in monetary terms about the state of property, capital and liabilities of the enterprise and their changes. It can be maintained by an accountant accepted into the organization under an employment contract, or by a third-party company.

Appointment of accounting

The key task of accounting is the formation of reliable and complete information about the operation of the enterprise, its property condition. Based on this information:

• negative business results are prevented;
• an on-farm reserve is revealed, at the expense of which the financial stability of the organization is ensured.

Controlled for:

• compliance with the law when the enterprise performs various operations;
• expediency of the work of the organization;
• using labor, material and financial resources;
• compliance with the activities of the firmestablished standards, norms and regulations.

Off-balance sheet

It is necessary to summarize information about the presence and movement of property that does not belong to the enterprise, but is in its temporary disposal or use, as well as to ensure control over certain business transactions. In practice, it is also called "off-balance sheet accounting". However, this concept is used, as a rule, in relation to credit institutions.

As statistics show, many accountants either do not keep records on off-balance accounts, or reflect very little information on them. Of course, the preparation of any reporting is a very laborious process, requiring effort, time, other resources, including money. Keeping records should never be turned into a formality. After all, the main task of an accountant is to ensure control over the availability and movement of property and obligations in order to subsequently transfer information to the head of the enterprise. At the same time, he must comply with the most important rule - the costs of reporting should not exceed the benefits from it. It also applies to off-balance sheet accounts.

Nuances

Before we begin to deal with the purpose and features of accounting for property on off-balance accounts, we note the following points.

Since the end of 2000, nothing has changed for commercial organizations. In accordance with the standard chart of accounts of accounting, off-balance sheet items, as there were 11, so many remained. As for budgetary organizations, they havethe situation is different. Every year, the number of off-balance accounts in budgetary institutions changes upwards. Today they use the 01-42.

I must say that it is in the budgetary accounting of off-balance accounts that one can find a methodology for some areas of activity of commercial companies. This is especially true when the rules are not officially established and the organization of the reporting process is left to the accountant in the formation of financial policy.

Why do we need off-balance sheet reporting?

At first glance, enterprises whose work is not bound by strict off-balance sheet accounting rules do not need it. However, this is not quite true. Let's see why.

Firstly, audited accountants know perfectly well that without proper off-balance sheet accounting, they will not be able to get a positive opinion from specialists. Direct responsibility for his absence has not been established. However, the Code of Administrative Offenses provides for administrative punishment for the lack of information on indicators reflecting at least 10% of data on business transactions.

Secondly, recently the check of off-balance sheet accounting by the tax service has become regular and more thorough. This is understandable: the tax service is constantly checked by the state and requires the results of the work. Inspectors ask accountants a variety of questions. For example, where is the room in which the employees of the enterprise perform their duties reflected in the balance sheet? If it is not reflected in the documents, then peoplestay at home or work outside? If the accounting does not show the premises, how is it possible to take the cost of rent as part of income tax expenses? There is no property on the balance sheet, which means there are no costs. The inspectorate may well take the case to court. And judicial practice does not always work out in favor of the payer.

Thirdly, the preparation of off-balance sheet contributes to the convergence of accounting and management accounting. Managers like to ask financiers different questions. For example, a laptop for 40 thousand rubles. not reflected in accounting, since it was written off to materials, and then to costs. Does this mean that it no longer belongs to the company, and any employee can take it for themselves? Or, for example, a software package was purchased several years ago. After the operation has left the expense item of the upcoming periods, this software is not in the accounting. The manager wants to see the number of programs and the terms of their licenses in the balance.

Where to start?

First of all, it is necessary to determine the list of assets that will be taken into account on the balance sheet. Next, you need to fix the rules for compiling documents in the financial policy of the enterprise. Ideally, it is necessary to draw up corporate principles, including accounting for off-balance sheet property. They are approved by the chief accountant.

For example, the corporate principle "Off-balance sheet accounting of a budget institution" is being consolidated. It contains detailed instructions for displaying information.

The starting point for off-balance sheet accounting of fixed assets andobligations is the inventory of property and execution of necessary documents. The leader issues an order. On its basis, an inventory of liabilities and assets is carried out, which will be reflected in off-balance sheet accounting. A document is formed based on the results of the check - a collation sheet. Information from it is transferred to accounting.

Important points

Please note that balance sheet information is reflected off-system. Receipts are shown as debits, write-offs are shown as credits. With off-balance sheet accounting of fixed assets, there should not be a credit balance. Information on off-balance sheet items does not affect the balance sheet.

When reporting, data on property are reflected in the Explanations. Each transaction on off-balance accounts must be documented. The inventory rules for liabilities and assets also apply to off-balance sheet items.

Rented OS

There is a list of liabilities and assets that are most often taken into account off the balance sheet. Of course, this list should not be considered official. We only cover the most common situations.

Let's start with account 001 "Rented OS". It reflects information about:

1. Premises rented. The act of acceptance and transfer of the object will serve as the basis for reflecting the data. It is signed at the time of the conclusion of the lease agreement. As a rule, information on the cost of the transferred premises is not prescribed in the contract (only the tenant's fee is indicated). This information can be requested fromowner, but he may refuse to provide them. Involving an appraiser in such situations is impractical. To reflect the data, an accountant can use a conditional cost, for example, 1 ruble for each meter. It is important to prescribe the order of imputation in the financial policy of the enterprise or corporate principles.
2. Valuables received along with the rented premises. It also uses the transfer-acceptance act. We are talking, for example, about blinds, air conditioning, wardrobes, etc.
3. Outdoor coolers received for a fee or a bonus to drinking water. For these fixed assets, accounting on the off-balance account 001 is also carried out according to the act of acceptance and transfer of equipment, which is drawn up upon receipt of the cooler. This document usually reflects the collateral value. It is she who is taken out of balance.

Inventory in custody

For them, the account is used. 002. As a rule, it reflects data on cooler bottles. On the day the water is received, the supplier, together with the standard invoice, transfers the receipt and expenditure documents (or a combined version of the invoice). The deposit value of the bottles can be taken from these papers or from the contract.

On account 002 may also include floor mats provided by the cleaning company. They are periodically changed according to the acceptance certificate.

From the completeness of the information reflected on the account. 002, the correctness of the calculation of property tax will depend. If it is revealed that the company has acquired fixed assets and, without any reason, reflected them in off-balance sheet accounting,then he will have to pay a fine, as well as an additional tax. In such situations, ownership will be decisive. If the asset was received for rent or gratuitous use and capitalized on account. 01 instead of 001, the consequences will not keep you waiting.

Forms

As a rule, conditional value is used for strict reporting forms, and their number is determined by direct conversion. This information is reflected in 006. The forms of strict accountability include:

1. Checkbooks provided by the bank.
2. Employment books and inserts to them.
3. Subscriptions for issuance to employees.
4. Forms of certificates and diplomas.

In addition, on the count. 006 reflects information about:

1. Writs of execution for employees paying child support.
2. Sick leave.
3. Founding documents.

Based on the data, it is possible to control the persons responsible for storing forms.

Securing obligations and outstanding payments

Information about these operations is reflected in the account. 009.

If the company acts as a guarantor, the information in the amount of the corresponding guarantee is recorded behind the balance sheet. The basis for this is the contract.

Any enterprise can add its items to off-balance sheet accounting. Of course, all innovations must be fixed in the financial policy.

Difficulties in practice

As a rule, when posting large objects, accountants do not experience specialproblems. Difficulties, especially in budgetary institutions, begin when it is necessary to take into account property, the cost of which is less than 3 thousand rubles. Experts recommend compiling a statement of the issuance of values for the needs of the enterprise. All damage is subsequently reflected in the off-balance account 21.

Accounting for assets whose value exceeds 3 thousand rubles is carried out until the moment of their disposal. The write-off is reflected in the credit of the account. There is no need to make additional entries.

Balance value of assets up to 40 thousand rubles. should be zero after putting them into operation. As for objects whose price is 3-40 thousand rubles, then they should be restored to their original cost and depreciation.

The write-off of property from an off-balance account is made by decision of a special commission. The basis is an act signed by the owner of the asset and the head of the enterprise. The formation of an entry in the report is carried out for the value of the initial cost.

Providing valuables for use is issued on account. 21 on the basis of the relevant act. At the same time, the responsible person is changed.

Assets worth less than 3 thousand rubles. on off-balance accounts of a budgetary organization are reflected at full cost. The exceptions are library funds, as well as real estate. The posting of fixed assets is carried out according to the primary documentation confirming their commissioning. Movement within the enterprise is reflected through a change in storage location or responsible person.

Commissionagreement

When transferring goods for sale, the committent does not lose ownership. Therefore, such property is taken into account on the off-balance sheet account. 004 at the cost reflected in the acceptance certificate. When transferring the object, the amount is subject to debiting in full. Problems for the enterprise may arise if such a product is taken into account on the balance sheet. In this case, the tax inspector qualifies the transaction as a sale. If a third party pays for the object instead of the committent, it will be very problematic to prove the legality of such an action even in court.

Violations

As practice shows, off-balance sheet accounting does not cause any particular problems for accountants. The reflection of information is carried out quite simply: the receipt, receipt or provision of guarantees is recorded only in debit, and the repayment of obligations, respectively, on a loan. Meanwhile, even with such a simple scheme, some experts do not pay due attention to maintaining off-balance sheet accounts. As a result, the checking employees of the tax service find errors in the documents and impose fines.

Article 15 of the Code of Administrative Offenses establishes administrative measures for violations of accounting rules. We are talking, in particular, about the distortion of the information of any reporting item by more than 10%. Additionally, article 120 of the Tax Code provides for liability for deliberate underestimation of the value of objects of taxation or indicators of income items.

Conclusion

In the article we examined the main features of off-balance sheet accounting. To summarize.

So specialoff-balance items are used by the enterprise to account for material assets that are in temporary use, that is, not belonging to it. Operations related to posting are always reflected in debit, and write-offs of property - in credit. If necessary, the accountant can keep off-balance sheet accounting in "1C". To do this, you need to add the appropriate accounts to the system. The basic version already contains the necessary expense items and subcounts. Formation of typical operations and reporting is carried out in standard documents.

Amounts that appear on off-balance accounts are not included in the balance. That is why the value of net assets of leasing companies and enterprises that accept a large amount of materials for storage is underestimated.

Off-balance sheet is very important for an organization. Its results directly affect the effectiveness of managerial decisions. In addition, information on off-balance accounts is always of interest to reporting users. This information allows interested parties to form a more complete picture of the financial and economic activities of the organization.

Specialists do not recommend ignoring the need for off-balance sheet accounting. Recently, tax inspectors have been especially careful to check the information reflected off the balance sheet. It should be remembered that the legislation establishes liability for the provision of incomplete data on financial and business transactions. The rules for reflecting information are so simple that even a novice accountant will be able to cope with the task.