Accounting policy PBU: application and general position

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

Most large commercial organizations have an accounting policy. This may be due to both the requirements of the law and the objective needs of firms, due to the specifics of doing business, its scale, and the peculiarities of business operations. The norms governing the conduct of accounting policies by enterprises can be fixed both at the level of the legislation of the Russian Federation and in the local regulations of the organization. What main sources of law regulate this area of activity of Russian firms? What are their main points?

What is an accounting policy?

Under the accounting policy it is customary to understand the activities of the organization, which is associated with the preparation of various documents reflecting significant events in the economic life of the company. In the Russian Federation, it is represented by 2 main types of accounting - accounting and tax. As a rule, the first type of reporting is more complicated, therefore, in order to regulate it, the state issues specialized regulations. The company's accounting policy is mainlyrelated to its financial statements, should be stable, legal, up-to-date. It is formed based on the priorities of a particular organization, but must comply with established rules of law. Let's consider in what sources they can be recorded.

Accounting policy of accounting: basic rules of law

The accounting policy of PBU in the Russian Federation is regulated by the provisions of regulations at the federal level. The main regulatory legal act of the corresponding type is the order of the Ministry of Finance of Russia No. 106n, adopted on October 6, 2008. Through this source, the provision “Accounting policy of the organization PBU 1/2008”, as well as PBU 21/2008, which supplements the first document, was approved. Previously, the normative source PBU 1/98 was in force in the Russian Federation.

It can be noted that, along with the main NLA regulating accounting - PBU 1/2008, the sources have been adopted, in accordance with which records should be kept for certain business transactions, payments to the budget of the Russian Federation. For example, if a company pays income tax, then the main NLA, in accordance with which its accounting policy should be lined up, is PBU 18.

There are separate sources of norms that regulate accounting for various assets, loans, investments that the company deals with. But, one way or another, the main source of accounting standards is PBU 1/2008. It contains rules common to all firms that regulate accounting policies - regardless of the organization's taxation system, the specifics of its business operations.

Let's consider the main provisions contained in the document PBU 1/2008 (“Accounting policyorganizations ). 2015 and 2016 were not characterized by significant legislative adjustments to the relevant legal acts. But they were. Thus, the current version of the Accounting Policy was adopted on April 6, 2015. So, let's study the main provisions of this legal act.

PBU 1/2008: general provisions

The considered source of law forms the rules for compiling the accounting policy of firms in the status of legal entities. The jurisdiction of this NLA does not apply to banking organizations, state and municipal structures. If business in the Russian Federation is conducted by a representative office of a foreign company, then it can adhere to the relevant norms or those rules that are established in their state, provided that they do not contradict the provisions of Russian legislation governing accounting.

PBU "Accounting policy of the organization" regulates the activities of enterprises that are associated with accounting, monitoring, measuring, grouping and subsequent generalization of the results of economic activities in the company. Accounting in accordance with the norms of the source of law under consideration can be carried out using different methods. For example:

- grouping, as well as assessment of the facts of activity;

- asset compensation;

- document management;

- inventory;

- use of accounting accounts;

- maintaining specialized registers;

- processing various types of information.

The Accounting Policy PBU norms apply to all Russian firms. But in terms of the actual disclosure of procedures within theaccounting policy - for those organizations that publish their statements in accordance with the legislation of the Russian Federation, statutory documents, or by virtue of their own initiative.

How is accounting policy formed?

Let's consider how the PBU accounting policy is formed in accordance with the NLA under consideration. This direction of the company's activity is carried out under the guidance of the organization's chief accountant or other responsible employee of the organization.

As part of accounting, must be approved:

- working plan of accounts used by the company;

- forms of documents used in accounting, as well as registers;

- form of sources used in internal reporting;

- inventory rules;

- methods of valuation of the company's assets, as well as its liabilities;

- methods of document management and information analysis;

- rules for exercising control over various business transactions.

The firm's accounting policy staff may make other decisions within the scope of the firm's line of business.

The PBU accounting policy also assumes that:

- resources and liabilities of the firm are considered separately from the assets and debts of the owners of the relevant organization and other companies;

- the company is running a stable business, and its managers have no intention of liquidating the business or reducing economic activity, as a result of which the company's debts will be paid according to the establishedschemes;

- the accounting policy adopted in the company is characterized by stability, consistency and is carried out according to uniform principles in different years;

- the facts of the organization's economic activities are correlated with specific reporting periods.

The legislator requires firms implementing accounting policies to ensure:

- the correctness of fixing in the accounting of certain facts of economic activities;

- the relevance of reflecting information about the company's activities in the reporting;

- preferential willingness to consider expenses and debts than revenues and assets without the formation of hidden resources;

- reflection of facts in accounting, primarily based on their real economic content, and not legal form;

- equality of accounting indicators in terms of turnovers and balances on synthetic accounts within reporting periods;

- the priority of rational accounting methods used taking into account the conditions of the company's business activities, as well as the scale of the organization.

The legislation of the Russian Federation allows small businesses to form a simplified accounting policy.

The PBU accounting policy assumes that a company, having not found the necessary guidelines in the regulations of the Russian Federation, should use its own rules, as well as IFRS - international rules for preparing financial statements.

The company, having adopted an accounting policy, must formalize it through separate administrativedocuments approved by the management of the organization. The accounting methods determined by the organization shall be applied from the beginning of the year following the one in which the corresponding methods were approved. If the company was established recently, then the accounting policy in it must be adopted within 90 days from the date of registration of the company.

Adjustment of accounting policy

Document PBU 1/2008 (“Accounting policy of the organization”) regulates how the company should adjust the accepted accounting standards. Thus, appropriate changes can be made if the regulatory provisions have changed in the legislation of the Russian Federation. Adjustment of the accounting policy can be carried out if certain conditions of economic activity are changed in the company - for example, due to reorganization or due to changes in certain types of commercial activities. If the company has decided to change the accounting policy, the rules in question prescribe this action based on the principle of reasonableness.

In general, accounting policy adjustments take effect from the beginning of the reporting year. Other terms may be due to the factors that caused the corresponding changes. Accounting policy (PBU 1/2008) requires firms to consider the consequences of adjusting the rules governing the line of business in question. So, if the relevant changes affect the financial stability of the company, the results of its activities or the movement of capital, they are evaluated in monetary terms on the basis of reliable data.

If the adjustmentaccounting policy is due to changes in the norms of regulatory legal acts, they are reflected in accounting in the manner prescribed by law. Companies that have the right to use simplified accounting methods may report adjustments in their accounting policies that could potentially affect financial results, unless otherwise prescribed by the legislation of the Russian Federation.

If the changes in question are capable of having a significant impact on the dynamics of capital turnover in the organization, then they should be separately disclosed in the financial statements. Let's consider this aspect in more detail.

Disclosure of adopted accounting policies

In accordance with the accounting policy PBU 1-2008, firms are required to disclose their accounting policies through established methods. First of all, in such an aspect as accounting methods, which decisively influence the process of evaluation and practical application of solutions by reporting users.

The key in this case should be considered those methods that allow for the most reliable acquaintance of stakeholders with the financial results of the organization. The manner in which financial statements should be disclosed is determined by the legislation of the Russian Federation. If the company's accounting policy is created taking into account possible assumptions that are provided for by the rules of law, then disclosure of such approaches may not be carried out in the reporting. But if the assumptions made by the company are not provided for by law, then they, in theirturn, must be disclosed.

PBU "Accounting Policy" provides for an option in which, in the process of preparing reports, some uncertainty is formed in the aspect of considering events and factors that can cast doubt on the continuity of business activities, then the company must reflect in the accounting documents the circumstances related to such problem. If a company's accounting policy is changed, it must disclose information that reflects:

- reasons for adjusting the accounting policy, as well as the nature of the changes in it;

- the order in which the consequences of innovations in accounting policies are reflected in the statements;

- financial indicators of adjustments reflecting the changes in question, in relation to each reporting line item.

If disclosure of data is impossible for one reason or another, then this fact should be taken into account in accounting documents, provided that the period within which the company begins to use the new accounting policy is indicated.

PBU "Accounting policy of the organization" contains rules under which firms are required to disclose information about the non-application of legal acts that are adopted, but do not apply until a certain period, as well as a prospective assessment of the consequences of applying this act in the period when it becomes legally effective. How the company keeps accounting, as well as information about the adjustment of its accounting policy, must be disclosed in a special explanatory note that is attached to the documents.accounting.

Along with PBU on accounting policy, by order of the Ministry of Finance of the Russian Federation No. 106n, another regulatory source was introduced - PBU 21/2008. Consider its features in more detail.

PBU 21/2008: basic norms

The document in question contains provisions that govern the procedure for recognition, as well as disclosure in accounting of information relating to the adjustment of estimated values for certain accounting elements. As such, PBU 21/2008 prescribes to understand changes in the price of an asset or a company's debt or a value that reflects compensation for the value of an asset due to the appearance of updated significant information. At the same time, the adjustment of the method of estimating the company's resources and liabilities is not classified as a change in estimated value. But if any innovation in accounting cannot be considered within a separate category that characterizes changes in accounting policies, then for reporting purposes it is recognized as a change in estimated value. Let's explore how it is recognized in practice.

Recognition of accounting adjustments

The NLA, which supplements the PBU-2008 document (“Accounting Policy of the Organization”), contains rules according to which changes in the estimated value should be recognized in accounting by inclusion in the company's revenue or expenses:

- within the period in which this or that change is recorded, if it directly affects the accounting data;

- within the period in which the change was recorded, as well as future periods, if the adjustment affectedreporting for both intervals.

If the change affects the firm's capital, it should be recognized by adjusting the equity shares in the accounts for the period in which the change was recorded.

IFRS accounting standards

Along with PBU-1 (“Accounting Policy of an Organization”), a Russian source of law, accounting can also be regulated by international standards. Let's study their specifics in more detail.

One of the main international documents that establish RAS is IFRS 8. In accordance with its provisions, accounting policy should be understood as the principles, foundations, contracts, rules, as well as practical actions that are carried out by the company in order to prepare financial statements. The main principle of international accounting regulation is the priority of reliability over formalities.

Another noteworthy nuance that characterizes IFRS is that in the original texts of the relevant sources of law, the phrase "accounting policy" most often sounds in the plural. Experts explain this by the fact that abroad this area of activity of firms involves a combination of various actions. In turn, in Russia, even the latest version of PBU (“Accounting Policy of the Organization”) of 2015 suggests the use of this term in the singular.

Another noteworthy nuance of the IFRS is that international standards allow companies to independently determine howinformation related to accounting. So, it can be disclosed in the form of notes or as a separate reporting component.

An exceptionally important characteristic of IFRS is that the relevant rules of law do not require firms to use single charts of accounts in the accounting process. In principle, it is optional - although in practice it is rather difficult to do without it, since, as a rule, there is a need for double-entry recording of transactions in firms. In turn, in Russia there is a single chart of accounts and should be applied in accordance with the norms established by law.

Quite superficially, IFRS norms govern the compilation of appendices to the accounting policy. Firms, according to international rules, do not have to draw up them - but, again, in practice, they usually have to develop such documents.

CV

The main source of law, according to which Russian firms must take various business transactions into account - "Accounting policy of the organization" RAS 1/2008. It can be supplemented by other legal acts that regulate certain aspects of accounting. Russian laws governing financial reporting may be applied along with international standards. There are a number of fundamental differences between them. IFRS rules can be applied in the Russian Federation, if they do not contradict the norms of Russian legal acts governing accounting.

The sources of law, in accordance with which accounting should be kept in the Russian Federation, are mandatory, but contain rather general requirements for the implementation of the direction in question by firmsactivities. A significant part of the work on creating a local accounting system should be carried out directly by the company - its chief accountant and other responsible employees. The accounting rules adopted by the organization are approved by its management and are binding on all financial departments of the company.