Income recognition criteria and revenue assessment under IFRS and in Russian regulations. Income and expenses in Russian accounting and IFRS

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Having characterized “income” as an economic category, the international Conceptual Framework defines the criterion for inclusion

income in the financial statements. The fact that income is included in the financial statements is called “income recognition”. The need to test the income recognition criterion is due to the uncertainty of the increase in economic benefits in a particular situation. Income recognition criterion under IFRS is that income is recognized in the income statement and other comprehensive financial result if there is an increase in future economic benefits associated with an increase in assets or a decrease in liabilities that can be measured reliably.

The Russian Concept and PBU 9/99, like IFRS, have a section on income recognition. Unlike the Concept, PBU 9/99 regulates the principles for recognizing different items of income in accordance with their classification. Income from ordinary activities in PBU 9/99 is called "revenue". PBU 9/99 is a combination of conceptual foundations with the order of their practical implementation.

If the definition of the category "income" is contained in the international Conceptual Framework, then a separate IAS (IAS) 18 "Revenue" is devoted to the revenue of the organization, which from January 1, 2018 (previously provided for from January 1, 2017) is replaced by IFRS (IFRS) 15 The requirements of the latter are analyzed in detail in paragraph 5.1. And here we will consider the regulations of the still valid IFRS (IAS) 18. In this standard, revenue recognition is carried out in different ways depending on the type of revenue:

from the sale of goods;
from providing services;
from the use by other parties of the organization's assets that bring interest, royalties and dividends.

IAS 18 does not exhaust all possible types of revenue, but revenue not covered by this standard is covered in other standards. For example, the generation of income from leases is covered in IAS 17 Leases; dividends - in IFRS (IAS) 28 "Accounting for investments in associates and joint ventures"; changes in the fair value of financial assets and financial liabilities - in IFRS 9 Financial Instruments. Depending on the type of revenue, IFRS provides for different criteria for its recognition in financial statements.

Unlike IFRS, Russian accounting standards pay less attention to revenue. According to PBU 9/99, the revenue recognition criteria include five items that apply to all types of revenue (Table 2.14, paragraphs “a” - “e”). The exception is the proceeds from the provision of assets for temporary use for a fee, for the recognition of which it is sufficient to fulfill only three of these points. The criteria for revenue recognition, regulated by PBU 9/99, are closest to the conditions for recognizing revenue from the sale of goods, formulated by IFRS (1AS) 18. Schematically, the correspondence of these conditions to one another is shown in Table. 2.14.

Table 2.14. Revenue recognition criteria

	IAS 18
a) the entity has a right to receive the revenue arising from a specific contract or otherwise appropriately evidenced	(a) the company has transferred to the buyer the significant risks and rewards of ownership of the goods
b) the amount of revenue can be determined	(c) the amount of revenue can be measured reliably
c) there is confidence that as a result of a particular transaction there will be an increase in the economic benefits of the organization	(d) it is probable that the economic benefits associated with the transaction will flow to the entity
d) the right of ownership (possession, use and disposal) of the product (goods) has passed from the organization to the buyer or the work has been accepted by the customer (the service has been rendered)	(b) the company no longer participates in management to the extent normally associated with ownership and no longer controls the goods sold
e) the costs incurred or to be incurred in connection with this transaction can be determined	(f) the costs incurred or expected to be associated with the transaction can be measured reliably

Of the five conditions given in Table. 2.14 are identical: "b" - (c); "in" - (d); "g" - (b); "d" - (e).

Conditions "a" and (a) are not equivalent. Under IAS 18, the timing of the transfer of significant risks and rewards of ownership by an entity to an acquirer depends on the terms of the transaction. In most cases, the transfer of the risks and rewards of ownership coincides with the transfer legal rights property or possession of the buyer. This happens in most retail sales. In other cases, the transfer of the risks and rewards of ownership occurs on dates that are different from the time when legal ownership or possession was transferred. Such cases include:

bringing the company to liability for unsatisfactory performance in excess of standard warranty obligations;
the transfer of goods to an intermediary, when the receipt of proceeds depends on whether these goods are sold to them;
the case when the shipped goods are subject to installation, the cost of which is a significant part of the contract not yet completed;
the right of the buyer to terminate the contract of sale for a reason specified in this contract, as a result of which the receipt of profit becomes problematic.

If significant property risks remain, no revenue is recognized as the transaction is not considered a sale; when the risks associated with the property are negligible, the transaction is considered a sale and revenue is recognised.

In PBU 9/99 there is no concept of risks, and revenue is recognized if the organization has the right to receive it, confirmed by an agreement or otherwise appropriately.

Let's move on to revenue estimation. Under IAS 18, the amount of revenue arising from a particular income transaction is usually determined by the contract between the supplier and the buyer or user of the asset. Revenue is measured at the fair value of the consideration received or receivable, taking into account the amount of any trade or volume discounts granted by the company.

Fair value, as already noted, under IFRS 13 is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

PBU 9/99 clearly establishes the relationship between the amount of revenue and the price determined by the contract, while IFRS uses the word “usually” in relation to the contract. Unlike IAS 18, PBU 9/99 does not use the concept of “fair value”. Thus, the procedure for assessing revenue in the financial statements of Russian organizations may differ from the regulations of IAS 18.

The elements reflecting the financial results of the enterprise are income and expenses. The concepts of economic categories "income" and "expenses" of the enterprise are formulated in the chapter IFRS "Principles". In Russia, they are disclosed in the Concept accounting, as well as in the Accounting Regulations: PBU 9/99 "Income of the organization" and PBU 10/99 "Expenses of the organization" (with subsequent additions and changes).

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Definition of the category "income" in IFRS. Income is the increase in economic benefits during the reporting period, occurring in the form of an inflow or increase in assets or a decrease in liabilities, which is expressed in an increase in capital that is not related to the contributions of participants share capital.

Definition of the category "income" in the Russian Concept and in PBU 9/99. The definitions of the category "income" in the Russian Concept, as well as in PBU 9/99, are essentially identical to those in the "Principles" chapter of IFRS. In all definitions, income is treated as an increment in economic benefits resulting in an increase in the capital of the organization, excluding contributions from participants. However, according to the Concept, income is not only an increase in economic benefits, but also a decrease in liabilities. In IFRS, an increase in economic benefits is interpreted as an increase in assets or a decrease in liabilities, resulting in an increase in capital. This is fully consistent with the definition of capital as the portion of a company's assets remaining after deducting all of its liabilities. In PBU 9/99 (in the latest edition), the definition of income almost completely coincides with the IFRS regulations.

Having defined income as an economic category, the documents we are considering then regulate the classification of their constituent parts.

Classification of income under IFRS. According to IFRS, income is divided into two classes:

Income from ordinary activities;

Other income.

Income from ordinary activities is called "revenue" and is generated in the course of the regular activities of the enterprise in various types: in the form of income from the sale of products of labor; in the amounts of remuneration, interest, dividends received; in the form of royalties and rent.

Other income is an irregular, occasional income that may or may not occur in the activities of the enterprise. These include, for example, income from the sale of fixed assets, inventory, foreign exchange gains, fines and penalties received. IFRS notes the conditional nature of attributing income to one or another group depending on the specific activity of the enterprise and the uniform nature of various income items by economic nature, since they all represent an increase in economic benefits.

Classification of income in Russian regulatory documents. In the Concept, unlike IFRS, there is no classification of income, while in RAS 9/99, by analogy with IFRS, income is divided into income from ordinary activities and others. At the same time, the principle of attributing income to a specific group coincides with IFRS: it is determined by the nature of the production activity of the enterprise and its non-production operations. Unlike IFRS, PBU 9/99 regulates in more detail the procedure for determining income from ordinary activities: it is determined by the subject of the enterprise's activity, which, according to the Civil Code of the Russian Federation, is indicated in its constituent documents. If the subject of the enterprise’s activity is not indicated in the constituent documents, then it has the right to establish the procedure for attributing income to income from ordinary activities on its own (this is provided for in Article 4 PBU 9/99).

Unlike IFRS, PBU 9/99 regulates the classification of other income:

operating income;

non-operating income;

Extraordinary income.

The above groups of other income differ from each other in terms of economic content, composition and impact on the overall financial results of the enterprise. Meanwhile, PBU 9/99 does not formulate the criteria for classifying income as one or another group; only examples of operating, non-operating and extraordinary income are given, the list of which ends with vague indications: "other", "etc.". Thus, the grouping of other income in RAS 9/99 as a whole remains exemplary for the compiler and user of the statements.

Working Chart of Accounts
Accounting records of property, liabilities and business transactions are kept in foreign currency Russian Federation(in rubles and kopecks) on the basis of physical meters in monetary terms by their consolidation ...

Other forms of reporting
In accordance with American standards, there is a practice of presenting a statement of retained earnings. This report may be presented separately or combined with the income statement...

Composition of International Financial Reporting Standards
IFRS includes: - Chapter "Principles", which defines the basis for the preparation of financial statements; - standards governing the procedure for valuation, accounting and reflection ...

"International accounting", 2012, N 14

The article provides Comparative characteristics income accounting under International Financial Reporting Standard (IAS) 18 "Revenue" and Russian accounting rules. The concept of "income" as an economic category, classification and assessment of income is considered. Special attention focuses on the recognition of income for each significant category.

Every year the number of companies applying International Financial Reporting Standards (IFRS) is growing. Even the financial crisis did not prevent companies from actively implementing IFRS in Russia. In 2011, more than half of Russian firms prepared financial statements in accordance with international standards.

At the end of 2011, a new version of the Federal Law "On Accounting" was adopted, which will come into force on 01.01.2013. From this period, the reporting of all legal entities will have to comply with new national standards, which, in turn, will be developed on the basis of IFRS. In Art. 20 of the new Federal Law "On Accounting" establishes that the regulation of accounting in the Russian Federation will be carried out by applying international standards as the basis for the development of federal and industry standards.

Speaking about the tasks in the field of accounting, Director of the Department for Regulation of State Financial Control, Auditing, Accounting and Reporting of the Ministry of Finance of Russia L.Z. Shneidman noted: "On traditional important accounting issues ... Russian rules will be applied, but the task is to bring Russian rules as close as possible to IFRS. These will be rules very close to international standards, which will be formalized in the form traditional for Russian practice." Igor Sukharev, Head of the Accounting and Reporting Methodology Department of the Ministry of Finance of Russia, spoke in a similar vein in his interview for Glavbukh magazine: “The necessary amendments to RAS will be worked out and new standards adopted. But it is planned to focus on the practice of applying Russian standards, the accounting policies of organizations "In the end, we must come to the conclusion that the financial statements prepared in accordance with RAS will fully comply with the requirements of IFRS. After all, only then can we consider that the transition to IFRS has been completed."

At present, the issues of the transition of Russian enterprises to IFRS, which, in turn, are the methodological basis for the development of the Russian accounting system, are becoming increasingly important. In the context of the current transitional situation, there is a need for a more detailed consideration of issues related to the classification, measurement and recognition of revenue. Revenue as one of the most important indicators of the company's financial performance is of particular interest to compilers and users of both Russian and international reporting, which directly expresses the practical significance of this article.

In international accounting practice, the definition of income as an economic category is disclosed in the Principles for the preparation and presentation of financial statements. General issues of presentation of information about income in the accounting (financial) statements are considered in IAS (IAS) 1 "Presentation of Financial Statements". The issues of accounting for certain types of income are covered by most standards, in particular IFRS (IAS) 18 "Revenue", IFRS (IAS) 16 "Fixed assets", IFRS (IAS) 17 "Rent", etc. In domestic practice, the concept of "income" is disclosed in Accounting concepts in market economy Russia and in the Accounting Regulation "Income of the organization" PBU 9/99. According to the IFRS Principles, income is an increase in economic benefits during the reporting period, occurring in the form of an inflow or increase in assets or a decrease in liabilities, which is expressed in an increase in capital that is not related to contributions from equity participants.

According to the Russian Accounting Concept and PBU 9/99, an organization's income is recognized as an increase in economic benefits as a result of the receipt of assets (cash, other property) and (or) the repayment of obligations, leading to an increase in the capital of this organization, with the exception of contributions from participants (property owners). Thus, the given interpretations of the economic category "income" in Russian and international standards are essentially identical.

income classification. The domestic standard provides a detailed classification of income items depending on the nature of income, the conditions for their receipt and the activities of the organization. In turn, the principle of attributing income to a particular group is determined by the nature of the enterprise's production activities and its non-production activities, which coincides with the rules of IAS 18 Revenue. The procedure for determining income from ordinary activities is determined by the subject of the enterprise, which, according to the Civil Code of the Russian Federation, is indicated in its constituent documents. If the subject of the enterprise’s activity is not indicated in the constituent documents, then it has the right to establish the procedure for attributing income to income from ordinary activities on its own.<1>. Both PBU 9/99 "Income of the organization" and IAS 18 "Revenue" there is some uncertainty in the classification of income to income from ordinary activities for different enterprises: the same income can be the main income for some enterprises and others for others (eg rent).

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Under IAS 18 Revenue, income is classified by economic substance into operating income and other income. Revenue from core activities means income received as a result of the sale of goods, the provision of services, the use by other parties of the assets of the enterprise that bring interest, royalties and dividends. The category "goods" includes not only property acquired by the organization for resale, but also products of its own production intended for sale. The provision of services involves the fulfillment by the organization of the tasks stipulated by the contract within the established period within one or more reporting periods. The provision of the organization's assets for use by other parties leads to revenue in the form of: "interest - a fee that is charged for the use in cash and cash equivalents or debt ... royalties - payments for the use of non-current assets of the organization, such as patents, trademarks, copyrights; dividends - the distribution of profits between the owners of share capital in proportion to their share in the capital of a certain class"<2>. Thus, IAS 18 "Revenue" considers the accounting treatment only in transactions related to the sale of goods, the provision of services, the use by other parties of the organization's assets that bring interest, royalties and dividends. Of particular note is the limitation in the application of this Standard, as evidenced by the existence of contracts and transactions, the implementation of which also generates revenue or other income, but they are governed by other standards, namely: IAS 11 Construction Contracts, IAS 17 Leases, IFRS 4 Insurance Contracts, IAS 39 Financial Instruments: Recognition and Measurement, etc.

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According to PBU 9/99 "Income of the organization", all income, similar to IAS (IAS) 18 "Revenue", is divided into income from ordinary activities and other income. Income from ordinary activities includes proceeds from the sale of products, goods, performance of work and provision of services. Revenue is also considered to be rent in organizations whose activities are related to the provision of their assets for temporary use under a lease agreement for a fee. Revenue may be represented by royalties for the use of intellectual property, including royalties. Revenues are considered receipts, the receipt of which is associated with participation in the authorized capitals of other organizations in organizations associated with this type of activity.

According to IAS (IAS) 18 "Revenue", other income includes income from the sale of fixed assets, inventories, received fines, penalties, etc. The occurrence of other income not from core activities is irregular, random. In the domestic standard, more attention is paid to the types of other income. The composition of other income of the organization, if this is not the main activity of the organization, includes income related to the provision for a fee for temporary use of the organization's assets, income related to the provision for a fee of rights arising from patents for inventions, other types of intellectual property, income associated with participation in the authorized capital of other organizations. Also, the category "other income" includes fines, penalties, forfeits, assets received free of charge, accounts payable with an expired limitation period, exchange differences, the amount of revaluation of assets, etc.

According to the International Standard, revenue refers only to the gross inflow of economic benefits received and receivable by an entity to its account. Payments received from a third party, such as indirect taxes, do not fall under the category of economic benefits received by the organization and do not lead to an increase in capital, as they are subject to transfer to the budget. Therefore, they are not included in revenue. In accordance with PBU 9/99 "Income of the organization", receipts from other legal entities and individuals, for example, the amount of value added tax, excise taxes, export duties and others, are not recognized as income of the organization.

The procedure for recognition of income. In IAS 18, revenue is recognized depending on the type of revenue: from the sale of goods, from the provision of services, from the use by other parties of the assets of the enterprise that bring interest, royalties and dividends.

According to IAS 18, revenue from the sale of goods can be recognized in accounting only when the following conditions are met:

the buyer has transferred the significant risks and rewards of ownership of the goods;
the seller does not take part in the management of the goods to the extent that ownership implies, and does not control the goods sold;
it is probable that the economic benefits associated with the transaction will flow to the seller;
the incurred or expected costs associated with the operation can be measured reliably.

Particular attention in the International Standard is given to assessing the moment of transfer of risks and rewards, depending on the terms of the transaction. The transfer of the risks and rewards of ownership can occur both simultaneously with the transfer of legal rights of ownership or possession to the buyer, examples of which are retail sales, and at other times. Features associated with a number of transactions create special rules for revenue recognition. For example, when selling goods under the "issue and postpone" scheme, delivery is delayed at the request of the buyer, despite this, he acquires ownership and recognizes the invoice. Revenue is recognized when the buyer acquires ownership, if delivery is possible, the goods are available and ready to ship to the buyer at the time the sale is recognized, the buyer confirms the deferred delivery and the normal terms of payment apply. When goods are shipped under certain conditions (installation, erection, delivery on consignment, cash on delivery), revenue is recognized when the relevant conditions of their sale are met. When partial or full prepayments are made for goods that are not yet in stock, revenue is recognized in inventory only after the goods have been delivered to the customer. In the case of a sale of real estate, revenue is usually recognized when legal ownership of the property is transferred to the buyer. If the receipt of the sale price is considered to be "securely secured", which can be evidenced by the buyer's down payment along with continuing payments, revenue may be recognized earlier. In connection with the above, there is a need for a more thorough analysis of the terms of the transaction and the possibility of obtaining revenue by analyzing the circumstances associated with the relevant transactions, such as the buyer's credit history, age, condition and location of the property, etc.

If situations arise in practice that leave the entity with significant risks and rewards, the transaction is not considered a sale and no revenue is recognised. If the entity retains insignificant risks associated with ownership, such as legal ownership, in order to secure payment due to it for the goods, the transaction is a sale and revenue is recognised.

So, according to the International Standard, revenue is recognized when it is probable that future economic benefits will flow and the amount of revenue can be measured reliably. However, the receipt by the seller of economic benefits may be accompanied by the presence of conditions of uncertainty. Uncertainty may relate to the receipt of payments from a foreign buyer, to the assessment of the costs of marketing services associated with the sale, the realization of the right to return the goods by the buyer.

PBU 9/99 "Income of the organization" also defines five conditions, with the simultaneous fulfillment of which the proceeds from the sale of goods, the provision of services and the performance of work are recognized in accounting:

the organization has a right to receive revenue that follows from a specific contract or is otherwise confirmed as appropriate;
the amount of proceeds can be determined;
there is confidence that as a result of a particular operation there will be an increase in the economic benefits of the organization. Such assurance exists when the entity has received an asset in payment, or there is no uncertainty as to whether the asset will be received;
the right of ownership (possession, use and disposal) of the product (goods) has passed from the organization to the buyer or the work has been accepted by the customer (the service has been rendered);
the costs incurred or to be incurred in connection with this transaction can be determined.

The funds and other assets received by the organization are recognized in Russian accounting as accounts payable if at least one of the above conditions is not met.

The Russian Standard sets out the conditions for recognizing revenue from the provision for a fee for temporary use of the organization's assets, rights arising from patents for inventions and other types of intellectual property, from participation in the authorized capital of other organizations. Also PBU 9/99 "Income of the organization" highlights the conditions for recognizing revenue for small businesses, with the exception of issuers of publicly placed valuable papers. Small business entities, with the exception of issuers of publicly placed securities, recognize revenue as funds are received from buyers in accordance with the conditions determined by PBU 9/99 "Income of the organization". Even if the entity has not transferred ownership of the product to the customer, or the work has not been accepted by the customer, or the service has not been provided, small businesses may recognize revenue when cash is received from the customer, provided all other conditions are met. The expenses of small businesses should be recognized as the debt is repaid, if the organization has adopted the procedure for recognizing revenue as funds are received from customers<3>.

<3>Regulation on accounting "Income of the organization" RAS 9/99: Order of the Ministry of Finance of Russia dated 06.05.1999 N 32n (as amended on 08.11.2010).

According to the Russian standard, revenue is taken into account "... in an amount calculated in monetary terms, equal to the amount of receipt of cash and other property and (or) the amount of receivables ..."<4>. In cases where receipts cover only a part of the proceeds, the proceeds are taken into account, determined "... as the sum of receipts and receivables (in the part not covered by receipts)"<5>. If the price of a good or service is not fixed in the contract between the buyer and the seller and it is impossible to establish it on the basis of other terms of the contract, the enterprise determines the amount of proceeds and receivables based on the market price of the goods (works, services). If the company sells goods with a deferred payment or in installments, on the terms of a commercial loan, the buyer's debt to the seller arises, which is stipulated by the sales contract. The seller who has entered into a sale and purchase agreement will have to accept the proceeds in the full amount of the resulting receivables. The amount of receipts (accounts receivable) is accepted taking into account all discounts and markups provided. The initial amount of receipts (accounts receivable) can be adjusted if, under the agreement under which the accounts receivable(or revenues have been taken into account), there have been changes in liabilities.

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Other receipts, according to the Russian standard, such as forfeits, fines, damages, penalties, are accepted for accounting in amounts recognized by debtors or appointed by the court in the reporting period in which the court issued a decision on their collection or they were recognized as a debtor. Assets received free of charge are accepted for accounting at market value. Accounts payable with an expired limitation period are accepted for accounting in the amount in which it was reflected in the accounting of the enterprise, and in the reporting period in which the limitation period expired. To determine the amount of revaluation of assets, the rules established for the revaluation of assets apply. In accounting, they are recognized in the reporting period to which the date of the revaluation relates. To determine the amount of proceeds from the sale of fixed assets and other assets other than cash (except for the sale of foreign currency), interest received for the use of the company's funds, income from participation in the authorized capital of other organizations, the rules are used similar to the rules for accounting for proceeds from ordinary types activities.

The recognition of revenue is accompanied by the recognition of expenses associated with this revenue. The simultaneous recognition of income and expenses relating to the same transaction is called the process of linking income and expenses. Under IAS 18, revenue cannot be recognized if expenses cannot be measured reliably. In such situations, any consideration already received for the sale of the goods is recognized as a liability. According to PBU 9/99 "Income of the organization", if the amount of revenue cannot be determined, then it is accepted for accounting in the amount of the expenses recognized in accounting for the manufacture of these products, the performance of this work, the provision of this service, which will subsequently be compensated to the organization.

International accounting systems require revenue to be measured at the fair value of the consideration received or receivable. This is usually the amount of cash or cash equivalents received or receivable. Fair value is the amount for which an asset could be exchanged or a liability settled in a transaction between knowledgeable, willing parties.<6>.

<6>International Financial Reporting Standard (IAS) 18 "Revenue".

An exchange for goods or services of a similar nature is not considered to be a transaction that gives rise to income. Nevertheless, the exchange of different goods or services is considered as income. If cash or cash equivalents are deferred, the fair value of the consideration may be less than the nominal amount of cash received or receivable. For example, the enterprise can provide an interest-free loan to the buyer or accept a bill of exchange receivable from him with an interest rate below the market as compensation for the sale of goods.

According to PBU 9/99 "Income of the organization", the amount of receipts and receivables under contracts providing for the fulfillment of obligations by non-monetary means is accepted for accounting at the cost of goods received or to be received by the organization. The Civil Code of the Russian Federation provides only one option for a non-monetary form of settlement - an exchange agreement, thus, the rules of PBU 9/99 "Income of an organization" expand the definition of revenue for non-monetary settlements.

PBU 9/99 "Income of an organization" does not use the term "fair value", which may lead to disagreements in the course of estimating revenue in domestic and international accounting.

The criteria for recognition of revenue, regulated by PBU 9/99 "Income of the organization", are the closest to the conditions for recognition of revenue from the sale of goods, formulated by IAS 18 "Revenue", with the exception of the first paragraph. Thus, the criterion for recognition of revenue is the transfer of ownership (possession, use and disposal) of products (services) from the seller to the buyer, and not the transfer of risks and rewards, as in the International Standard. Under IAS 18 Revenue, the timing of the transfer of the significant risks and rewards of ownership by an entity to a buyer depends on the terms of the transaction. PBU 9/99 "Income of the organization" does not contain the concept of "risks", and revenue is recognized if the enterprise has the right to receive it, confirmed by an agreement or otherwise appropriately.

Recognition of revenue from the provision of services. IAS 18 Revenue does not fully define the rules for recognizing revenue from the provision of services and performance of work. For example, the service period may be longer than a predetermined period or one financial year, and, accordingly, the rules for determining the amount of revenue will be different than in IAS 18 Revenue. These rules are defined in more detail by IAS 11 Construction Contracts.

In contrast to the International Standard, in PBU 9/99 "Income of an organization", the rules for recognizing revenue from the provision of services in accounting are similar to the rules for recognizing revenue from the sale of goods and the performance of work.

According to the requirements of IAS 18, revenue from the provision of services can be recognized in accounting only if it can be measured reliably. Such an assessment can be obtained under the following conditions:

the amount of revenue can be measured reliably;
it is probable that the economic benefits associated with the transaction will flow to the entity;
the degree of completion of the transaction at the end of the reporting period can be measured reliably;
the costs associated with performing and completing an operation can be measured reliably.

A reliable assessment of the procedure for the provision of services can be ensured by agreeing with the participants in the operation on the methods and terms of settlements, the amount of compensation received, as well as providing legal protection for each of the parties to the transaction. Revenue from a service transaction is recognized to the extent that it is completed at the reporting date, provided that the outcome of the transaction can be measured reliably. This method of revenue recognition is known as the stage of completion method, whereby revenue is recognized in the period in which the services are provided. In this regard, the organization needs to review the transaction revenue as services are provided and monitor the process of agreeing and executing the transaction with the customer through an internal financial planning and reporting system. If there is uncertainty about the receipt of an amount already included in revenue from services rendered, the amount that is not received or is not probable to be received is recognized as an expense and not as an adjustment to the amount of revenue originally recognized.

If the outcome of a service transaction cannot be measured reliably, revenue from the transaction should be recognized only to the extent of recognized reimbursable costs at the reporting date. On initial stages execution of the transaction, there are doubts about the reliability of the assessment of its result. Contract revenue is recognized only to the extent that costs incurred are expected to be recovered. This is due to the fact that the company is likely to cover the costs associated with the execution of the transaction. If there is uncertainty about whether the customer will recover the costs incurred, no revenue can be recognized and the costs incurred are recognized as an expense. Removing the uncertainty associated with a reliable estimate of the outcome of a contract results in revenue being recognized on a general basis.

Based on the above, revenue from the provision of services is recognized in the same reporting period in which the services are provided. IAS 18 makes reference to IAS 11 Construction Contracts, noting that work is required to recognize revenue on the same basis.

According to PBU 9/99 "Income of the organization", the proceeds from the provision of services, the performance of work, the sale of products with a long manufacturing cycle can be recognized in accounting as soon as they are ready or upon completion of the manufacture of the product as a whole. Revenue from the performance of a specific work, service, sale of a product is recognized as soon as it is ready only if such readiness can be determined. It is possible to simultaneously apply these methods of revenue recognition in one reporting period, if the performance of work, the provision of services and the manufacture of products are different in nature and conditions. In the contract between the contractor and the customer, it is necessary to take into account the possibility of a phased delivery of works, services, products. If the phased delivery of works, services is impossible for a number of reasons, the revenue in the accounting records of the contractor is recognized upon completion of the work, provision of services, sales finished products generally.

In the International Standard, the approach to revenue recognition allows reporting the amount of revenue that will actually be received in the near future, and not the amount of receivables, which may or may not be real collectible.

Recognition of revenue from the use by other parties of the enterprise's assets that generate interest, royalties and dividends. Loan proceeds. An organization can receive revenue not only from the sale of goods, the provision of services and the performance of work, but also by providing loans, transferring property to third parties for use in accordance with license agreements, and also making investments in the capital of other organizations. IAS 18 specifies that revenue from the use by other parties of an entity's assets that generates interest, royalties and dividends shall be recognized only when it is probable that the economic benefits associated with its receipt will flow to the entity and amount revenue can be measured reliably. IAS 18 makes direct reference to IAS 39 Financial Instruments: Recognition and Measurement for the recognition of revenue arising from the use by other entities of an entity's interest, royalty and dividend bearing assets.

Under IAS 39, loans from which an entity earns income are generally carried at amortized cost. The amount of revenue is determined by the change book value of the loan granted using the effective interest rate method. Therefore, this method determines the amortized cost of the financial asset and the distribution of revenue over the loan periods.

According to PBU 9/99 "Income of the organization", the proceeds from the provision for a fee for temporary use of the organization's assets, rights arising from patents for inventions and other types of intellectual property, from participation in the authorized capital of other organizations, should be recognized when the organization has the right to receive given revenue, the amount of revenue can be determined and there is confidence that there will be an increase in the economic benefits of the organization.

The accounting regulation "Accounting for financial investments" PBU 19/02 establishes that contributions to the authorized capital of other organizations and loans granted to other organizations are related to the organization's financial investments. To accept assets as financial investments for accounting, it is necessary to have documents confirming the organization’s rights to financial investments and to receive cash or other assets, the transition to the organization of financial risks associated with financial investments, and the ability of assets to bring economic benefits to the organization in the form of interest , dividends or growth in their value.

Based on PBU 19/02 "Accounting for financial investments" and PBU 9/99 "Income of the organization", interest received for the provision of the organization's funds for use is other income that is recognized in accounting for each expired reporting period in accordance with the terms of the contract . For granted loans, the organization can make a calculation of their assessment based on the present value. However, the organization needs to provide evidence that such a calculation is justified. According to the accounting policy of the organization, the facts of economic activity refer to the reporting period in which they took place, regardless of the actual time of receipt or payment of funds associated with these facts. Thus, interest on loans granted to other organizations is subject to recognition by the organization in the amounts of proceeds due during the term of the loan agreement evenly (unless otherwise specified by other regulatory legal acts on accounting) regardless of when payments are actually received according to the loan agreement.

Revenue from license agreements (royalties). Revenue from license agreements (royalties), under IAS 18 Revenue, is accrued in accordance with the terms of the relevant agreements and is usually recognized on that basis, unless another systematic rational basis is more appropriate, taking into account the content of the agreement, for revenue recognition. Revenue is recognized on an accrual basis. When there are license fees at the end of the term of use of the entity's assets or rights granted under the contract and it is probable that economic benefits will flow to the entity, revenue is accrued annually.

In accordance with PBU 9/99 "Income of organizations", in organizations whose subject of activity is the provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property, revenues are considered to be receipts, the receipt of which is associated with this activity (license payments (including royalties) for the use of intellectual property). For income in the form of royalties (including royalties) for the use of intellectual property, the date of receipt of income is the date of settlement in accordance with the terms of the concluded agreements or the last day of the reporting period. Accrued income in the form of royalties is recognized in the reporting period in which they occurred, regardless of the actual receipt of funds, other property and property rights. For income relating to several reporting periods, income is distributed taking into account the principle of uniform recognition of income and expenses.

Revenue in the form of dividends. Dividends represent the distribution of profits among the shareholders of the company. IAS 18 Revenue specifies that dividends are recognized as revenue only if the shareholder's right to receive the payment is established, which is when the dividend is declared. Under U.S. accounting standards, the amounts and distributions of preference and common stock are determined based on the established preference dividend rate, the presence or absence of participation rights, the characteristics of the cumulative and indebtedness of the preference shares, and the decisions of the company's board of directors or board of directors. . If the board of directors believes that the fair value of the company's net assets will remain positive after the payment of dividends, the company has the right to declare and pay dividends in excess of the carrying amount of retained earnings (for example, through share premium). This practice is not applicable both in our country and in Europe and requires special disclosure of information in the financial statements.

Dividends may be paid in cash, in which case the proceeds from dividends are determined by a fixed amount of money or a percentage of the par value of the share. Dividend payments can also be represented by tangible property or shares. Dividends in the form of tangible property (materials, products, goods, fixed assets) are recognized as revenue at the fair value of the property. Share dividends involve a regrouping of the equity of the company paying the dividend, and if the dividend is significant, it is treated as a stock split. Such dividends are not recognized as income to the investor and do not change the carrying amount of the share investment.

For accounting purposes, dividends received are other income for the organization. On the basis of PBU 9/99 "Income of the organization", the recognition of dividends in accounting is carried out on the date the general meeting of shareholders of the issuing organization makes a decision on the payment of dividends.

Based on the foregoing, revenue from the use by other parties of the enterprise's assets that generate interest, royalties and dividends should be recognized on the following basis:

interest income is recognized using the effective interest method in accordance with IAS 39 Financial Instruments: Recognition and Measurement;
royalties should be recognized on an accrual basis in accordance with the content of the relevant agreement;
Dividends should be recognized when the shareholder's right to receive the payment is established.

In Russian accounting, the concept of "effective interest rate" is not included in the current standards, however, the calculation of the present value of financial investments according to approved methods makes it possible to judge the effectiveness of production investments.

Information disclosure. The principles of disclosure in PBU 9/99 "Income of the organization" and IAS (IAS) 18 "Revenue" are largely the same. The domestic standard requires disclosure in the accounting policy of the procedure for recognizing revenue and methods for determining the stage of completion of operations. International Standards require an entity to disclose the accounting policies adopted for revenue recognition, including the methods used to determine the stage of completion of transactions related to the provision of services.

The income of the organization is reflected in the income statement and is divided into revenue and other income, discrepancies in the standards arise regarding the disclosure of the amounts of certain categories of revenue.

In accordance with IAS 18 Revenue, disclosures are made for the amount of revenue arising from the sale of goods, from the provision of services, the amount of interest, royalties and dividends recognized during the period, as well as the amount of revenue arising from the exchange of goods or services included in each significant revenue category. It is also required to disclose any contingent liabilities and assets arising from warranty repair costs, claims, penalties and other possible losses.

In turn, PBU 9/99 "Income of the organization" requires showing revenue and other income for each category, if the amount of revenue for this category is 5% or more of the total income of the organization for the reporting period. Other income may be reflected in the income statement net of expenses related to these incomes, provided that the accounting rules regulate and do not prevent such recognition of income, and income and expenses arising from the same fact of economic activity are not material. to assess the financial condition of the organization. Other income of the organization for the reporting period, which are not credited to the profit and loss account, must be disclosed separately in the financial statements. Also subject to disclosure is information relating to revenue received as a result of the execution of contracts, according to which payment is made in non-monetary funds.

The domestic standard focuses on the construction of accounting, according to which the disclosure of information about the organization's income is possible in the context of current, investment and financial activities.

It should be noted that the reporting prepared according to Russian accounting is primarily intended for control government bodies and not for private investors. IFRS contain the principle of the priority of economic substance over legal form, this principle is also reflected in the Accounting Regulations "Accounting Policy of the Organization" (PBU 1/2008). However, PBU 9/99 "Income of the organization" contains a requirement for mandatory confirmation of the fact of implementation by an agreement or other document, which indicates the opposite. Thus, IAS 18 Revenue provides principles that are not as rigidly defined as the domestic accounting rules under which financial statements are prepared, thus leaving room for professional judgment.

As part of this article, I would like to summarize the analysis done and highlight some of the "controversial issues" in revenue accounting that Russian companies may have to face in the process of convergence of Russian accounting standards (RAS) with IFRS, they can be conditionally divided into four groups:

Choice of accounting policy.
Issues of accounting valuation.
The question of materiality.
Volume of disclosure.

According to the authors of the article, Russian companies need to abandon the transformation of reporting or parallel accounting, giving preference to the maximum convergence of Russian accounting rules with international standards. This approach will reduce the cost of maintaining parallel accounting and transformation and will allow the formation of transparent financial statements that are understandable to both owners and investors. The process of convergence of Russian and international accounting methods can be divided into several stages. The stages of convergence of IFRS and RAS given in this article are not exhaustive; in practice, the methods of convergence of accounting in different companies will have their own characteristics and "pitfalls":

Creation of a unified accounting policy of the company according to RAS.

In Russian practice, such situations are not uncommon when a company has a single template for accounting policies for accounting and tax accounting, within which accountants are given the right to choose alternative methods of accounting. All this leads to significant differences in the company's accounting principles. Thus, prior to the implementation of the transition project to IFRS, accountants must be given the right to choose alternative accounting methods that will most fully reflect the specifics of a particular business process.

Analysis of the compliance of accounting methods with the requirements of IFRS and development of recommendations for their convergence.

In the event of unavoidable differences in accounting, a methodology should be developed to account for such deviations. To carry out such work, cooperation with auditors is necessary, which will make it possible to form a high-quality working tool in the form of an accounting policy and minimize methodological disputes regarding professional judgments in the future when generating reports. So, in an interview with Andrey Kovalev, chief accountant of Transaero, it was noted: "...everything contentious issues should be discussed with the auditors and only after the company and the auditor come to a common decision, reflect a common position in the accounting policy. For example, the airline's accounting policy had to specify what exactly is considered the moment of revenue recognition. The fact is that in air transportation it is not so easy to determine when to recognize revenue: when buying a ticket, at the end of the flight, or in some other situation. Transaero has chosen to recognize revenue for each flight segment separately at the time the passenger enters the aircraft. The auditors agreed with this approach of the company.

Contractual work to properly recognize revenue.

At this stage, it is necessary to identify contracts for which IFRS revenue recognition differs from RAS. This stage is important for understanding the significance of revenue adjustments in the reporting period, for example, when it comes to a contract for the supply of goods with a deferred payment, a contract for the supply of goods with a transfer of ownership after payment, often under the terms of the contract, the company assumes an obligation to correct manufacturing defects within a specified time frame .

Documenting significant issues and procedures.

After carrying out the above steps, it is necessary to generate the working documents necessary to draw up an accounting policy according to RAS that is as close as possible to accounting methods according to IFRS.

In conclusion, I would like to touch upon the issues of the prospects for the development of the regulatory framework of domestic accounting within the scope of this article. The main innovations are aimed at developing a new edition of PBU 9/99 "Income of the organization", as close as possible to the rules of IFRS 18 "Revenue". The most relevant of them can be identified - this is the replacement of the criterion "transfer of ownership" with the criterion "transfer of risks and control over the receipt of benefits", "recognition of revenue from the provision of services and the implementation of work as soon as it is ready" with "discounting receivables with a significant deferred payment". The possibility of combining PBU 9/99 "Income of the organization" and the Accounting Regulations "Expenses of the organization" PBU 10/99 into one accounting standard is also being considered.

Despite the news about the mandatory introduction of IFRS accounting standards in Russia since 2012, non-public commercial companies, small and medium-sized businesses will continue to keep records in accordance with RAS. As part of the changes in legislation, domestic accounting will be modified and, as a result, will be closer to IFRS. However, in our opinion, it is not worth expecting their complete convergence within a specific timeframe, since IFRS standards are more flexible than RAS.

Bibliography

Vakhrushina M.A. International Financial Reporting Standards: Textbook. M.: Reed Group, 2011. 654 p.
Civil Code of the Russian Federation (part one): the federal law No. 51-FZ dated November 30, 1994 (as amended on December 6, 2011).
International Financial Reporting Standard (IAS) 11 "Construction Contracts" / Order of the Ministry of Finance of Russia dated November 25, 2011 N 160n.
International Financial Reporting Standard (IAS) 18 "Revenue" / Order of the Ministry of Finance of Russia dated November 25, 2011 N 160n.
International Financial Reporting Standard (IAS) 39 "Financial Instruments: Recognition and Valuation" / Order of the Ministry of Finance of Russia dated November 25, 2011 N 160n.
On approval of the Accounting Regulation "Income of the organization" PBU 9/99: Order of the Ministry of Finance of Russia dated 06.05.1999 N 32n (as amended on 08.11.2010).
On approval of the Accounting Regulation "Accounting for financial investments" PBU 19/02: Order of the Ministry of Finance of Russia dated 10.12.2002 N 126n (as amended on 08.11.2010).
Pyatov M.L., Smirnova I.A. Conceptual Foundations of International Financial Reporting Standards: Textbook. Method. allowance. M.: 1C-Publishing, 2008. 199 p.

V.V. Syroizhko

Professor

All-Russian correspondence

financial and economic institute

E.V. Mazurina

Graduate student

departments of accounting,

analysis and audit

Russian State

trade and economic university

In IFRS, certain income and expenses can be recognized without documentary evidence. The main thing is who actually owns the asset and can benefit from its use. There are other differences in accounting, which primarily relate to the moment of recognition of revenue.

What is regulated

In Russian accounting (RAS), the criteria for recognizing income and expenses are regulated by PBU 9/99 “Income of an organization” and PBU 10/99 “Expenses of an organization”.

Moreover, a distinctive feature of Russian accounting standards from IFRS is their detailing and binding nature.

In IFRS, income and expenses are considered as elements that are directly related to the profit of the organization. After all, the difference between income and expenses is nothing but the financial result of the company. Therefore, IFRS should be guided by the Framework for the Preparation and Presentation of Financial Statements (hereinafter referred to as the Principles) and IAS 18 Revenue (IAS 18 - Revenue).

Note that there is not a single special standard in IFRS regulating the accounting and reporting of expenses. All this is written in separate standards. For example, IFRS 2 "Inventories" (IAS 2 - Inventories) govern the assessment of costs for materials, IFRS 16 "Fixed assets" (IAS 16 - Property, Plant and Equipment) - depreciation costs, IFRS 19 "Employee Benefits" (IAS 19 - Employee Benefits - payroll expenses. These standards, among other things, regulate the procedure for including costs in the initial cost of products (materials, goods), fixed assets and intangible assets (their capitalization), as well as the procedure for their write-off in the form of depreciation (decapitalization) or disposal. In addition, IAS 23 "Borrowing costs" (IAS 23 - Borrowing costs) determines how to account for borrowing costs.

Income

Income under PBU 9/99 is generally determined in the same way as in IFRS - based on the nature of the enterprise and its operations. Similarly to IFRS 18, PBU 9/99 notes that the same income can be basic for some enterprises and other for others (for example, rent, etc.)

In many ways, the income recognition criteria in PBU 9/99 and IFRS are also similar (see), however, there are some differences. Let's consider them.

When revenue is not recognized under IFRS. RAS does not provide for the analysis of significant risks associated with the ownership of goods. According to Russian standards, the main thing is whether the transfer of ownership has occurred or not. And IFRS focus on the economic content of the transaction. Of course, in most cases, the transfer of risks and rewards associated with a purchase coincides with the transfer of ownership to the buyer. But this is not always the case. For example, if, under the terms of the transaction, the seller has the right to buy back the goods, paying a penalty, such a transaction, from the point of view of IFRS, may be recognized not as a sale, but as a loan with a pledge of property. Here the main question is: how high is the probability that the goods will be bought back.

Here are a few more examples where revenue cannot be recognized under IFRS:
- receipt of proceeds from a particular sale is possible only after the resale of goods by the buyer;
- the sold objects are subject to installation, and it constitutes a significant part of the cost of the contract, which has not yet been completed by the company. Revenue from this transaction is not recognized until installation is completed;
- the buyer has the right to terminate the transaction. For example, if the terms of the contract provide for the return of goods, but it is impossible to assess its probability.

When revenue is recognized gradually. If the transaction involves the subsequent service of the sold goods, according to IFRS, revenue is recognized over the entire period of service.

EXAMPLE 1

Entity A sells a vehicle worth $15,000. e. Under the terms of the contract, Entity A has undertaken to service the vehicle annually for three years. The cost of one maintenance vehicle is 400 cu. e.

Under IFRS 18, Entity A's revenue is CU13,800. e. (15,000 - 1200), and the amount is 1200 c.u. e. (400 c.u. * 3 years) is recognized as deferred income and is included in revenue only after the actual provision of the service.

According to RAS, revenue is recognized immediately in full.

There is one more nuance. In IFRS, in the event of a deferred payment, revenue is recognized at an amount less than it is stipulated by the contract, at the so-called fair value. The value of the contract is reduced by the notional interest rate, and the difference is recognized as deferred income. Let's show this with an example.

EXAMPLE 2

Organization "A" is engaged in the production and sale of packaged vegetable oil. Under the terms of the contract, organization "A" ships to the address of organization "B" a wagon of packaged vegetable oil worth 55,000 c.u. e. in exchange for a promissory note with a maturity of one year from the date of purchase. The interest rate on the bill is 7 percent.

In our case, the revenue of the organization "A" will be:

55 000 c.u. e.: 107% \u003d 51,401.87 c.u. e.

On the date of the sale, the following entry will be made in the accounting of organization "A":

DEBIT Accounts Receivable CREDIT Profit and Loss Account

$51,401.87 e. - recognized revenue from the sale of vegetable oil.

The difference between the fair value and the nominal amount of the contract is recognized as interest income in accordance with IAS 18 and IAS 39 (IAS 39) Financial Instruments - Recognition and Measurement.

Thus, the difference is 3598.13 c.u. e. (55,000 - 51,401.87) is recognized as deferred income:

DEBIT "Receivables Account" CREDIT "Deferred Income Account"

3598.13 c.u. e. - interest income on the bill is recognized.

DEBIT "Deferred Income Account" CREDIT "Profit and Loss Account"

$299.84 e. - part of the income on the bill is included in the profit of the current period.

Barter. There are also differences in accounting for barter. According to IFRS, if goods or services are exchanged for other goods or services of the same and similar value, such a transaction is not recognized as a sale.

EXAMPLE 3

Organization "A" entered into an exchange agreement with organization "B", according to which organization "A" transfers to organization "B" 15 tons of cement grade PC 400-D-20 at a price of 1500 USD. e. per ton, and organization "B" transfers to organization "A" cement grade PC 500-DO in the amount of 15 tons at a price of also 1500 c.u. e.

In the accounting of the organization "A" the following entry will be made:

DEBIT “Inventory Account, Cement grade PC 500-DO” CREDIT “Inventory Account, Cement grade PC 400-D-20”

22 500 c.u. e. (15 t * 1500 c.u.) - exchanged.

According to RAS, when bartering, revenue is recognized regardless of what goods are exchanged in the transaction.

But in cases where there is an exchange of heterogeneous goods, the proceeds should be valued at the fair (that is, market) value of the goods (services) received. In the Russian accounting system, barter transactions are always treated as sales.

Expenses

The criteria for accounting for expenses under IFRS and RAS are generally comparable (.).

However, PBU 10/99 "Expenses of the organization" includes an additional condition that the expense is recognized in accounting if an agreement is concluded, there are relevant requirements of regulatory enactments or business practices. That is, unlike IFRS, an expense cannot be recognized only on the basis of an accountant's professional judgment about the decrease in economic benefits and must be documented.

As a result, there are significant discrepancies in the Profit and Loss Statement under IFRS and RAS.

A good example is the cost of bonuses to employees. As a rule, bonuses based on the results of the year are approved in May-June of the following year. In Russian accounting, costs are reflected after the accrual of premiums, that is, in the cost of the next reporting period. For example, bonuses for 2007 will fall into 2008 expenses.

For the purposes of IFRS, an accountant should estimate the approximate amount of possible premiums (for example, based on past experience) and accrue this amount in the previous year's financial statements. That is, 2007. Upon accrual and payment (in 2008), the difference between the actual amount and the amount of the accounting estimate is already reflected in the 2008 Profit and Loss Statement. However, the adjustment is usually minor.

EXAMPLE 4

Organization "A" in November 2007 entered into an agreement with organization "B" to conduct an independent audit of its financial statements. Under the terms of the contract, the services rendered must be paid for by March 20, 2008. The date of completion of work is the date of submission of the auditor's report, namely March 20, 2008.

Consider the solution of this example separately in RAS and IFRS.

The costs associated with the provision of audit services are reflected in 2007, regardless of the fact that the act was signed only on March 20, 2008.

Costs under the contract with auditors are expenses for the organization for ordinary activities. Such expenses are recognized in the reporting period in which they occurred.

Therefore, the date of recognition of expenses in RAS will be the date of signing the act. That is, the costs associated with the audit of financial statements for 2007 in 2008 will form the financial result of 2008.

In addition, according to IFRS, expenses are accounted for on the basis of a direct linkage of expenses incurred and income received (principle of matching costs and revenues). However, some costs, such as those related to sales or management, are always included in expenses at the end of the reporting period.

Basic IFRS terms related to income and expenses

Revenue, turnover, sales (Revenue,Revenues, Sales revenue)- proceeds from the sale of products, cash or other consideration received for the goods sold.

Net sales, net sales (Net sales)- the total amount of proceeds from sales (Gross sales) minus the return and markdown of goods sold, as well as discounts on sales for early payment.

Unearned revenues, advances from customers, deferred revenues (Unearned revenues, Advances from customers, Deferred revenues)- income received in advance; funds received for goods not yet delivered to the customer and services not yet provided.

Other revenues and expenses (Other revenues and expenses)- a section in the Profit and Loss Statement, which indicates profits and losses from operations other than core activities. For example, results from the sale of your property, interest on securities, rental income, etc.

Expenses- costs that result in a decrease in equity and arise in the course of the ordinary activities of the enterprise. It should be distinguished from accidental losses and losses (Losses) that arise as a result of rare, atypical transactions and events (for example, from the sale of fixed assets, securities, from changes in foreign exchange rates).

Capital expenditures- the cost of acquiring or expanding long-term assets (fixed assets).

Current expenses (Revenue expenditures)- expenses of the current reporting period.

Administrative expenses- recurring costs related to the operation of the enterprise as a whole. For example, management staff salaries, office supplies costs, interest on loans, general insurance, etc.

Selling expenses- expenses not included in the production cost associated with the sale and promotion of products on the market.

Overhead, indirect costs (Recovered overhead, Absorbed overhead, Applied overhead)- usually allocated to cost objects on the basis of a set ratio.

Operating expenses- include selling expenses (related to the sale), general and administrative expenses.

Organizational costs- the cost of setting up a company; can be considered as intangible assets with a corresponding write-off of their amount through depreciation.

Prepaid expenses- prepaid expenses. For example, insurance and rental costs.

Transportation costs (Freight out, Carriage out, Transportation out)- for example, the cost of delivering the goods sold to the buyer.

Financial expenses-expenses associated with the attraction or use of borrowed funds.

Topic: IFRS requirements for income recognition

Option 7

1. IFRS requirements for income recognition 3

3. Task 15

References 16

IFRS requirements for income recognition

In international accounting practice, the definition of income as an economic category is disclosed in the Principles for the preparation and presentation of financial statements. According to them income represents an increase in economic benefits during the reporting period, occurring in the form of an inflow or increase in assets or a decrease in liabilities, which is expressed in an increase in capital that is not related to contributions from equity participants. In domestic practice, the concept of "income" is disclosed in the Accounting Concept in the market economy of Russia and in the Accounting Regulations "Income of the organization" PBU 9/99, according to which income an organization recognizes an increase in economic benefits as a result of the receipt of assets (cash, other property) and (or) the repayment of liabilities, leading to an increase in the capital of this organization, with the exception of contributions from participants (property owners).

Thus, the given interpretations of the economic category "income" in Russian and international standards are essentially identical.

Income classification. The domestic standard provides a detailed classification of income items depending on the nature of income, the conditions for their receipt and the activities of the organization. In turn, the principle of attributing income to a particular group is determined by the nature of the enterprise's production activities and its non-production activities, which coincides with the rules of IAS 18 Revenue. The procedure for determining income from ordinary activities is determined by the subject of the enterprise. If the subject of the enterprise's activity is not indicated in the constituent documents, then it has the right to establish the procedure for classifying income as income from ordinary activities on its own.

The category "goods" includes not only property acquired by the organization for resale, but also products of its own production intended for sale. The provision of services involves the fulfillment by the organization of the tasks stipulated by the contract within the established period within one or more reporting periods. The provision of the organization's assets for use by other parties gives rise to revenue in the form of: "interest - fees charged for the use of cash and cash equivalents or debt ... royalties - fees for the use of the organization's non-current assets, such as patents, trademarks , copyrights; dividends - the distribution of profits between the owners of share capital in proportion to their share in the capital of a certain class.

Income recognition procedure. In IAS 18, revenue is recognized depending on the type of revenue: from the sale of goods, from the provision of services, from the use by other parties of the assets of the enterprise that bring interest, royalties and dividends.

According to IAS 18, revenue from the sale of goods can be recognized in accounting only when the following conditions are met:

The buyer has transferred the significant risks and rewards of ownership of the goods;

The seller does not take part in the management of the goods to the extent that implies ownership, and does not control the goods sold;

The amount of revenue can be reliably measured;

It is likely that the economic benefits associated with the transaction will flow to the seller;

The incurred or expected costs associated with a transaction can be measured reliably.

Particular attention in the International Standard is given to assessing the moment of transfer of risks and rewards, depending on the terms of the transaction. The transfer of risks and rewards of ownership may occur simultaneously with the transfer of legal ownership or possession to the buyer, as in retail sales, or at any other time.

Under International Standard, revenue is recognized when it is probable that future economic benefits will flow and the amount of revenue can be measured reliably. However, the receipt by the seller of economic benefits may be accompanied by the presence of conditions of uncertainty. Uncertainty may relate to the receipt of payments from a foreign buyer, to the assessment of the costs of marketing services associated with the sale, the realization of the right to return the goods by the buyer.

The entity has a right to receive revenue that follows from a particular contract or is otherwise evidenced as appropriate;

The amount of proceeds can be determined;

There is confidence that as a result of a particular operation there will be an increase in the economic benefits of the organization. Such assurance exists when the entity has received an asset in payment, or there is no uncertainty as to whether the asset will be received;

The right of ownership (possession, use and disposal) of the product (goods) has passed from the organization to the buyer or the work has been accepted by the customer (the service has been rendered);

The costs incurred or to be incurred in connection with this transaction can be determined.

The funds and other assets received by the organization are recognized in Russian accounting as accounts payable if at least one of the above conditions is not met.

How to evaluate income. Under IAS 18, income must be reported at the fair value of the consideration received or receivable. If payment under the contract is made in cash or cash equivalents upon delivery, then the fair value of the income recognized in the financial statements is, as a rule, equal to the amount of the consideration received.

In a situation where payment in cash is made well after the delivery of the goods, the consideration is discounted by taking into account an interest-free loan provided by the supplier.

The difference between the nominal amount of the consideration and its fair value is recognized as interest income. For example, if the goods are delivered with a deferred payment, the seller has a receivable, but it is far from always necessary to discount it. Discounting is applied where the fair value of the consideration may be less than the nominal amount (received or receivable). Such situations are possible when the transaction is not concluded on market terms, for example, the seller provides the buyer with an interest-free trade credit.

When choosing a discount rate, the average cost of financing is often used, taking into account the term of attracting loans and the grace period. In other words, long-term receivables are discounted at the rate at which the company raises long-term loans. Short-term receivables are generally not discounted.

When payment is made by a counter-delivery of homogeneous, similarly priced goods or services, then such an exchange is not considered as an income-generating transaction. As an example, IAS 18 considers the exchange of milk stocks between suppliers in different regions.

If the goods are exchanged for heterogeneous products (services, works), then income is recognized at the fair value of the goods received, taking into account additional payments. For example, an organization exchanges food products for industrial products and receives an additional payment in cash. Revenue in this case is recognized at the fair value of the goods and cash received.

In practice, situations may arise where it is not possible to reliably estimate the fair value of the goods received. In this case, the company's income should be recorded at fair value of goods sold.

Information disclosure. The principles of disclosure in PBU 9/99 "Income of the organization" and IAS (IAS) 18 "Revenue" are largely the same. The domestic standard requires disclosure in the accounting policy of the procedure for recognizing revenue and methods for determining the stage of completion of operations. International Standards require an entity to disclose the accounting policies adopted for revenue recognition, including the methods used to determine the stage of completion of transactions related to the provision of services.

The amount of information disclosed depends on a number of factors, including the importance of information for users of financial statements, the unusual nature of accounting policies, adherence to established industry practices, the specifics of income recognition by this company compared to others operating in this area (industry), the methodology for determining the percentage of completion in the provision of services and implementation of works, etc.

The explanatory notes to the IFRS financial statements (comments, notes) disclose financial and non-financial performance indicators of the company that are not included in the statements themselves or documents detailing them, including:

Financial analysis of reporting is carried out

The position of the company in the market is given

Information is disclosed by business segments and transactions with

affiliated parties, for events occurring after the reporting date and contingent facts of economic activity

The prospects for the development of the company are described

Accounting policies and notes in reporting

Consider these indicators.

The standard requires disclosure in the financial statements of:

The maximum amount of credit risk for each class of financial instruments;

The results of an analysis of the credit quality of financial assets that are neither past due nor impaired;

The results of the aging analysis of financial assets that are past due but not impaired;

Information about the received collateral and other instruments that reduce credit risk (for example, guarantees, guarantees)

In addition, the company must present an analysis of financial liabilities by maturity and ways to manage the risks associated with these maturities.

The analysis is carried out on the basis of future payments in accordance with the terms of the concluded contracts. For example, cash flows from loans include both principal and interest payments; Payments under financial lease agreements must be presented based on the established schedule of lease payments. Cash flows should be presented in terms of time intervals at the earliest date when payment under the contract can be required.

Not all factors of uncertainty that can affect the financial result of the company require accounting, but a number of them must be disclosed in the financial statements.

Contingent assets and liabilities are not recorded in the company's accounting records, but they must be disclosed in the notes to the financial statements.

IAS 37 defines a contingent liability as: a possible liability arising from past events, the existence of which will be evidenced by the occurrence or non-occurrence of future events beyond the control of the entity; or an unconditional liability arising from past events that the entity does not recognize because the outflow of resources required to settle the liability is not probable, or the amount of the liability cannot be reliably determined.

Under the same standard, a contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of future events beyond the control of the entity.

In Russian accounting, the recognition of contingent assets and liabilities is regulated by PBU 8/01 “Contingent facts of economic activity”.

For each group of contingent liabilities, an entity shall disclose the following information:

A description of the uncertainties affecting the amount or timing of the performance of the obligation;

Assessment of the possible financial effect;

Possibility of receiving any refund.

Similarly, for each group of contingent assets, it is necessary to disclose such information as:

Brief description of the nature of the asset;

Assessment of the possible financial effect.

The standard also states that in cases where an entity is in dispute with other parties over the subject matter of a contingent liability or contingent asset reserve and disclosure would be detrimental to the entity, it may not disclose information relevant to the subject matter of the dispute but must state the subject matter of the dispute, the fact and reasons for non-disclosure.

IFRS 10 governs events that occur after the balance sheet date but before the financial statements are authorized for issue. Such events are divided into corrective and non-corrective: the former must be reflected in the reporting period, the latter are subject to disclosure in the financial statements.

From a disclosure point of view, non-adjusting events reflected in the financial statements are of interest to users, since they do not require clarification of the statements, but nevertheless are subject to disclosure due to their materiality. For example, IFRS rules require disclosure of the decline in the market value of assets after the balance sheet date in the notes to the financial statements.

Unlike RAS in IFRS, accounting policy is a concept that is more related to reporting than to accounting. Therefore, the main requirement for it is to be such that the financial statements comply with all the requirements of each applicable IFRS and interpretations of the CRP.

Accounting policies should disclose information about the basis for preparing financial statements; provide additional information that is not in the reporting, but it is necessary for its reliable presentation; contain a description or analysis of the amounts associated with changes in accounting policies and an analysis of the impact of these

changes to reporting, etc. At the same time, the reporting itself should contain references to specifying points in the notes to it.

Accounting policy is not a separate document, but a certain conceptual set of rules and methods adopted by the company. In the reporting, it appears as a section of the explanatory note. It contains all the clarifications and additional information not included in the reports.

According to IFRS 8, accounting policies are specific principles, bases and rules applied by an enterprise for the preparation and presentation of financial statements. A company may change its accounting policy:

1) if a new standard has been adopted or changes have been made to an existing one;

2) at their own request, only in order to increase the correctness and reliability of reporting data.

If a decision is made to change the accounting policy, it is necessary to recalculate the indicators of past periods that are included in the current reporting. All changes must be reflected in the notes to the financial statements.

Deviations from the requirements of IFRS are allowed only as an exception and must necessarily contain clear explanations of those good reasons why the entity was unable to apply certain provisions of IFRS. And only in those rare cases when the management of the organization comes to the conclusion that compliance with applicable international standards will mislead users of financial statements. In other cases, accounting treatment that does not comply with IFRS cannot be justified and corrected either by disclosure of the applicable accounting policies, or by explanations and notes, including references to differences in national accounting and reporting standards.

As a result of the appearance of the sections "disclosures and explanations" for virtually every article of the financial statements, such statements make it possible to characterize not only the volume and dynamics, but also the quality of the organization's economic activity. Thus, the user gets access to information about the conditions under which certain indicators were achieved and can extrapolate their changes in the future.

Task

The company is developing a new product. The cost of marketing research in 2009 amounted to 200,000 USD (1 USD = 1 USD). Costs in 2010, when the possibility of commercial implementation of the project became obvious, amounted to: for wages 200,000 c.u. and for registration of a patent 15,000 c.u. In 2011, defending patent rights in court, the company incurred additional costs of 30,000 USD. How will these costs be reflected in the statements of 2009, 2010, 2011?

Solution:

2009 - research phase

200000 - period expense;

2010 - development stage

NMA = 200000+15000=215000;

2011

30000 - expenses of the period.

List of used literature

Ageeva O.A. International Financial Reporting Standards: textbook /O.A. Ageeva. - M.: Publishing house "Accounting", 2008. - 464 p.
Babaev Yu.A. International financial reporting standards: textbook / Yu.A. Babaev, A.M. Petrov. - M.: Vuzovsky textbook: INFRA-M, 2012. - 398s.
Vakhrushina M.A. International accounting and financial reporting standards: textbook / M.A. Vakhrushina.- M.: Reed Group, 2011. - 656s.
Kondrashova R. Criteria for recognition of revenue and its reflection in financial statements in accordance with IFRS / R. Kondrashova // Financial newspaper. - 2007. - No. 45.
Pyatov M.L. Accounting policy of an organization that prepares financial statements under IFRS /M.L. Pyatov, N.V. Generalova // BUKH.1S. - 2008. - No. 2.

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