Exchange rate differences. Accounting for exchange rate differences. Exchange differences: postings

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

The legislation that exists today in the Russian Federation, within the framework of Federal Law No. 402 "On Accounting" dated December 06, 2011, provides for the accounting of business transactions, liabilities and property strictly in rubles. Tax accounting, or rather its maintenance, is also carried out in the specified currency. But some receipts are not made in rubles. Foreign currency, in accordance with the law, must be converted. Further in the article we will consider such a concept as "exchange difference". What are these assets? When do they appear and how are they reflected in the documentation?

General information

Within the framework of the law, it is noted that monetary transactions on the organization's accounts are carried out in rubles with conversion at the rate established by the Central Bank of the Russian Federation on the day of the direct passage of the operation. Legally, there are situations when recalculation is allowed on a different date than the moment the calculation was made. In cases of fluctuations (changes) in the exchange rate relative to the revaluation dates, an exchange rate difference arises. When a transaction is recorded, it results in additional income or expense. The exchange rate difference arises when the same asset (claim, obligation) denominated in the currency of a foreign state is valued at different points in time, excluding the situation with a constant exchange rate.

Accounting and tax balance

Accounting for exchange rate differences occurs both in tax and accounting. However, their reflection in the documentation has certain differences. Tax accounting provides for exchange rate and sum differences. Accounting documents reflect only one type. They represent only exchange rate differences. At the same time, the basic essence of the concept is also different for the accounting and tax balances. Accordingly, the calculation for each of the types applies its own. Not the last factor influencing the occurrence of exchange rate differences in tax accounting is the option of accruing the tax base. The taxpayer, in accordance with the current legislation, has the right to apply the cash method or the accrual method.

Accounting

Exchange differences appear as a result of a transaction on accounts payable or receivable in foreign currency. In such cases, a certain condition must be met. Currency exchange rate on the due datediffers from that at the time of accepting the obligation for accounting in the reporting period or from the indicator on the reporting date on which the last recalculation falls.

It also occurs in other cases. For example, for recalculation operations:

• value of monetary units at the cash desk of the organization;
• assets in bank accounts;
• money, payment documents;
• securities.

How are foreign exchange differences reflected?

Asset transactions are carried out in accordance with certain requirements. It should be noted that the reflection in the documentation has its own specifics. Thus, accounting for exchange rate differences in accounting transactions is recorded separately from other types of expenses and income. At the same time, with the exception of cases of settlements on contributions to the authorized capital, the assets in question are subject to mandatory inclusion in the financial and economic result of the company's activities. Then the display in the accounting documents is fixed in the form of income (in the event of an increase in the exchange rate) or expense (in the event of a decrease).

Contributions of the founders to the authorized capital

These receipts can be made not only in rubles. In cases where, in accordance with the statutory documents, the founders' contribution to the authorized capital is made in foreign currency, this is reflected in the accounting documentation on account 80 ("Authorized capital"). How are these exchange differences recorded? Transactions are made in rubles at the rate set by the Central Bank at the time of registrationlegal entity. In the event of situations in which debts are repaid by the owners, or when recalculating the already incurred foreign currency debt as of the reporting date, additional assets appear. They are accounted for on the 83rd account ("Additional capital"). There may also be situations in which the translation at the reporting date reveals a negative exchange rate difference. In this case, debit entries are practiced aimed at reducing the authorized capital. At the same time, the debit balance is not allowed. Therefore, the founders of the organization are recommended to set a fixed rate in the reporting period. It should be recalculated once or twice during the reporting period. However, if exchange differences nevertheless arose in the course of the organization's activities, it is recommended to reflect them in the following debit accounts: 91 ("Other income and expenses") or 84 ("Retained income or uncovered loss"). To prevent such situations, the organization is recommended to introduce the procedure for posting emerging negative exchange rate differences to its authorized capital.

Reporting

Accounting includes exchange rate differences in other income or expenses. When summarizing data by types of business transactions, liabilities and property, the value of which is expressed in units of foreign currency, there should be a separate display of the assets in question. At the same time, income or expenses associated with the conduct of currency purchase and sale operations are not subject to accounting in the total amount of exchange rate differences. There is a certain order according towhich regulates assets. Specifically:

1. Exchange differences resulting from the translation of debt in foreign units are subject to disclosure. In this case, it is obligatory to comply with the conditions of its payment in recalculation money.
2. Assets resulting from the translation of foreign currency debt. In this case, it must be paid in rubles.
3. Exchange differences posted through the organization's balance sheet. But the assets at the same time did not go to those accounts that take into account the financial result of the enterprise.
4. The rate set by the parties to the agreement on the reporting date (in some cases, it may be the official exchange rate against the ruble, which is set by the Central Bank at the reporting moment).

However, assets arising from the translation of foreign currency debt do not need to be separately reflected in the final income statement. Exchange differences generating income (with the exception of those that are displayed on the additional capital account) go through line 090 (form No. 2) and are included in other income. The parts forming the expense (with the exception of those that are reflected in the additional capital account) go through line 100 (form No. 2) and are included in other expenses.

Tax documentation

The exchange rate difference in the context of the organization's activities can generate income or expenses. Unlike accounting documentation, the purpose of which is to determine the financial result fromactivities of a particular enterprise, the main task of tax reporting is to determine the base on the basis of which the tax paid to the budget is charged. Exchange differences in this case are considered from the point of view of increasing or decreasing this base. Assets that increase the income of the organization are called positive in tax documentation. According to the current Tax Code of the Russian Federation, such receipts must be included in non-operating income. Exchange differences that increase the expenses of the organization are called negative in tax accounting. According to the current Tax Code, which is adopted and operates in the Russian Federation, such assets must be included in non-operating expenses.

Practical activities of the organization

Under the exchange rate difference is understood any kind of revaluation of obligations, claims, property, carried out in foreign currency. Accordingly, payment for them must also be made in the same monetary units. In cases where payment for the revaluation of obligations, claims, property is made in rubles, the difference arising as a result of exchange rate fluctuations is called the sum difference. At the same time, a taxpayer working on a cash basis does not encounter such assets at all in the course of his activities. With this approach, exchange rate differences arise at the time of revaluation of the organization's values expressed in currency, or during the direct revaluation of the monetary units in the cash of the enterprise.

Reflection in tax reporting

Tax documentation takes into account the occurrence of exchange rate transactions not only on the last day in the reporting period. This happens every time they appear. Accounting for sum receipts, in contrast to exchange rate, is carried out only with the direct repayment of debt. In this case, the assets do not have any effect on the size of the tax base. This is due to the fact that they are not calculated as of the reporting date according to the documentation. These conditions, within the framework of today's tax legislation, are valid only for taxpayers whose basis for work is the accrual method to reflect their tax base. Under the condition that an enterprise or an entrepreneur uses the cash method in their work, no total assets arise in the course of their activities. The occurrence of exchange rate differences is also due to the revaluation of currency values, expressed in the balance of monetary units, which are on the accounts or in the cash of the company.

Reflection in the Declaration

Positive sum (exchange) differences in tax documentation are reflected in line 100 of Appendix No. 1, sheet 02 of the Declaration, in the structure of non-operating income. Accordingly, negative assets fall on non-operating expenses. They go through line 200 from Appendix No. 2 to sheet 02 of the Declaration.

Share capital investment in tax documentation

Under the current tax legislation, it is allowed when determining the tax base,used to calculate profit payments, do not take into account the organization's funds received from the owners and aimed at increasing the authorized capital. In addition, the taxpayer's receipt of rights to property acquired in exchange for his shares (shares) transferred to the disposal of the enterprise is not considered a profit that has arisen from the taxpayer. In this regard, exchange differences aimed at changing the authorized capital are not grounds for charging income tax from them.

Differences in financial result and tax base

The result of different definitions of the moments of occurrence of the considered exchange rate and total assets in accounting and tax documentation is the discrepancy between the final financial result of the organization and its tax base used to calculate income tax. However, this discrepancy is not critical, since, in its essence, this is a non-permanent phenomenon and it is included in the category of temporary taxable (deductible) differences. The formed assets will certainly be taken into account in the future, when compiling accounting documentation when calculating the organization's income tax.

Conclusions

Activities to reflect the formed assets in the accounting documentation are carried out in accordance with the procedure established by law. Exchange differences on all types of obligations, the value of which is set in a foreign currency, but payment for which is made in rubles, are formed as a result of recalculation on the date of the obligation repayment or onthe last day in the reporting period. This is one of the differences from tax accounting. As mentioned above, it provides for the calculation of the resulting assets only at the time of repayment of liabilities. At the same time, exchange rate differences that have arisen in accounting on reporting dates are not grounds for calculating income tax.