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Accounting long term investment

1. Concept, classification and assessment of long-term investments

Long-term investments - these are the costs of creating, increasing the size, as well as acquiring non-current durable assets (over one year), not intended for sale, with the exception of long-term ones financial investments to government securities, securities and authorized capitals of other organizations.

Long-term investments are associated with the following actions:

* implementation of capital construction in the form of new construction, as well as reconstruction, expansion and technical re-equipment of existing enterprises and non-production facilities;

* acquisition of buildings, structures, equipment, vehicles and other individual objects (or parts thereof) of fixed assets;

* acquisition land plots and environmental management facilities;

* acquisition and creation of intangible assets (patents, software products, research and development, design and survey work, etc.);

* making profitable investments in material values;

* implementation of scientific, technical, development and technological work.

Completed long-term investments are assessed based on the inventory value of completed construction projects and acquired individual species fixed assets and other long-term assets.

In the balance sheet, long-term investments are reflected under the item “Construction in progress”. Under this article, the developer shows the cost of unfinished construction carried out by economic and contract methods.

2. Organization of accounting for long-term investments

Accounting for long-term investments is carried out according to actual expenses:

* in general for construction and for individual objects (buildings, structures, etc.) included in it;

* for purchased individual fixed assets, land plots, environmental management facilities and intangible assets.

When constructing facilities, the developer keeps track of costs on an accrual basis from the beginning of construction by reporting periods until the commissioning of the facilities or the complete production of the relevant work and costs.

Along with taking into account costs at actual cost, the developer, regardless of the method of construction work, keeps records of production capital investments at a negotiated price. When organizing cost accounting for the construction of facilities, the developer must provide for obtaining information about the reproductive and technological structure of costs, the method of carrying out construction work, as well as the purpose of the facilities under construction and other acquisitions.

Accounting for long-term investments is kept on account 08 “Investments in fixed assets" This account reflects investments by their types in specially opened sub-accounts:

1 “Purchase of land”;

2 “Acquisition of natural resources”;

3 “Construction of fixed assets”;

4 “Acquisition of fixed assets”;

5 "Acquisition intangible assets»;

6 “Transfer of young animals to the main herd”;

7 “Acquisition of adult animals”;

8 “Performing research, development and technological work”, etc.

On subaccount 1 “Purchase of land” the costs of acquiring land plots into the organization's ownership are taken into account;

on subaccount 2 “Purchase of natural resources” - costs for the acquisition of environmental management facilities by organizations;

on subaccount 3 “Construction of fixed assets” - costs for the construction of buildings and structures, installation of equipment, the cost of equipment transferred for installation and other costs provided for in estimates, financial estimates and title lists for capital construction(regardless of whether this construction is carried out by contract or economic method);

on subaccount 4 “Purchase of fixed assets” - costs for the acquisition of equipment, machinery, tools, inventory and other fixed assets that do not require installation;

on subaccount 5 “Purchase of intangible assets” - costs of acquiring intangible assets;

on subaccount 6 “Transfer of young animals to the main herd” - costs of raising young productive and working livestock transferred to the main herd;

on subaccount 7 “Purchase of adult animals” - the cost of adult productive and working livestock purchased for the main herd or received free of charge, including the costs of its delivery;

on subaccount 8 “Performance of scientific, technical, development and technological work” - costs of carrying out these works.

The debit of account 08 “Investments in non-current assets” reflects the actual costs of construction and acquisition of relevant assets, as well as the costs of forming the main herd.

The generated initial cost of fixed assets, intangible and other assets accepted for operation and registered in the prescribed manner is written off from account 08 to the debit of accounts 01 “Fixed Assets”, 03 “Income Investments in Tangible Assets”, 04 “Intangible Assets”, etc. Costs for completed operations of forming the main herd are written off from account 08 to the debit of account 01 “Fixed assets”.

The balance on account 08 reflects the amount of capital investments of the organization in unfinished construction and the acquisition of fixed assets and intangible assets, as well as the amount of unfinished costs for the formation of the main herd. Since 01/01/2000, unfinished capital investments include real estate objects that have not passed state registration.

Actual cost of capitalized fixed assets, profitable investments in tangible assets and intangible assets (Сн + expenses of the reporting month - Ск)

Analytical accounting for account 08 is carried out for each object under construction or acquired, as well as by type of animal.

For analytical accounting costs by type and composition of capital investments use the following statements:

* No. 18 - for accounting for costs of unfinished, undelivered work, costs of the reporting period and from the beginning of the year, as well as written-off amounts for objects put into operation;

* No. 18-1 - to account for costs that make up initial cost objects put into operation by their types. In addition, order journals No. 10/1, 13, 1 can be used

3. Accounting for construction costs

* for construction work;

* for equipment installation work;

* for the purchase of equipment handed over for installation;

* for the purchase of equipment that does not require installation, tools and equipment; equipment that requires installation, but is intended for permanent supply;

* for other capital costs;

· for expenses that do not increase the cost of fixed assets.

Cost accounting for construction work and equipment installation work.

The procedure for accounting for costs for these works depends on the method of their production - contract or business.

At contracting method of production, construction work completed and documented in the prescribed manner and equipment installation work is reflected by the developer-customer on account 08 “Investments in non-current assets” at the contractual value according to paid or accepted for payment invoices of contractor organizations.

At economic method of performing the specified work, cost accounting is also carried out by the developer on account 08 “Investments in non-current assets” and is carried out in accordance with the procedure established by the Standard methodological recommendations on planning and accounting for the cost of construction work (33). At the same time, account 08 “Investments in non-current assets” reflects the costs actually incurred by the developer.

In accordance with the specified Standard Methodological Recommendations, construction organizations are recommended to keep records of the costs of construction work according to the following expense items:

* "Materials";

* “Costs for workers' compensation”;

* “Costs for the maintenance and operation of construction machinery and mechanisms”;

* "Overhead expenses".

A construction organization can, based on accepted accounting objects and economic feasibility, independently expand the range of articles for construction work.

These expenses are debited to account 08 from the credit of account 10 “Materials” (for the cost of materials used in construction), 70 “Settlements with personnel for wages” (for the amount accrued wages workers involved in construction), 69 “Calculations for social insurance and security” (for amounts accrued to extra-budgetary funds) and other accounts.

Accounting for the costs of purchasing equipment handed over for installation

In the case of the acquisition of equipment for construction directly by the customer when carrying out construction work by contract, as well as during construction using an economic method, accounting for the acquisition, installation and commissioning of equipment is carried out by the developer (customer).

When equipment requiring installation arrives, it arrives by actual cost purchases on the debit of account 07 “Equipment for installation” from the credit of account 60 “Settlements with suppliers and contractors” and other accounts.

The following subaccounts can be opened for account 07 “Equipment for installation”:

1 “Domestic equipment for installation”;

2 “Imported equipment for installation.”

The costs of purchasing equipment consist of its cost according to suppliers' invoices, transportation costs for the delivery of equipment and procurement and storage costs (including markups, commissions paid to supply and foreign economic organizations, cost of services commodity exchanges, customs duties, etc.).

The amount of VAT on received equipment is reflected in the debit of account 19 “Value added tax on acquired assets” from the credit of account 60 and other accounts.

Primary accounting of the movement of equipment is carried out in the manner prescribed for accounting of materials, but with the use of primary records designed specifically for accounting for equipment, acceptance of equipment, etc.).

When constructing objects by contract, the customer re-equipment for installation by the construction organization according to the equipment delivery certificate. At the same time, the equipment continues to be accounted for by the customer in account 07 “Equipment for installation”, and for the construction organization it is accepted into the off-balance sheet account 005, equipment accepted for installation.”

After the construction organization delivers the equipment for installation and certificates of work completed or inventory reports of construction work in progress, the cost of the equipment is written off from the customer from the credit of account 07 “Equipment for installation” to the debit of account 08 “Investments in non-current assets”.

In the developer’s accounting, the equipment handed over for installation is reflected on account 08 “Investments in non-current assets” at actual expenses, starting from the month in which work began on its installation at a permanent place of operation (attachment to the foundation, floor, interfloor ceiling or other load-bearing structures buildings or structures) or large-scale assembly of equipment has begun.

Installation of equipment is recorded by the presence of expenses in the certificate of the volume of work performed for the installation of this equipment (or in the act of their inventory), drawn up in the prescribed manner.

The costs of delivering equipment to the on-site warehouse and procurement and storage costs are taken into account in advance on the equipment account in the total amount of deviations of the actual cost of purchasing equipment from their cost according to suppliers' accounts and are included in the cost of construction of the facility in proportion to the cost of the equipment commissioned for installation, taking into account the amount of these costs , attributable to the cost of equipment that is included in the balance at the end of the reporting period. In those cases when these costs are significant, developers can take into account transport and procurement and storage costs before they are written off to account 07 “Equipment for installation” on account 15 “Procurement and acquisition of material assets”. These expenses are accounted for on account 15 according to the nomenclature of items approved by the customer. Monthly expenses accounted for 15 are written off from the credit of this account to the debit of account 07 and include them in the deviations of the actual cost of purchasing equipment from their cost according to suppliers' accounts.

When carrying out construction installation work In an economic way, equipment transferred for installation is written off from the credit of account 07 to the debit of account 08 “Investments in non-current assets” and reflected on account 08.

4. Accounting for the acquisition of fixed assets

The cost of buildings, structures, equipment, vehicles and other individual fixed assets acquired by an enterprise separately from the construction of facilities, as well as the cost of intangible assets acquired by enterprises, are reflected on account 08 “Investments in non-current assets” according to paid or accepted for payment sellers’ invoices after their receipt and registration.

The cost of equipment that does not require installation, tools and equipment, as well as equipment that requires installation, but is intended for permanent stock, is reflected on account 08 according to supplier invoices received or accepted for payment after the receipt of the specified material assets at the destination and posting.

If paid equipment and inventory do not arrive at the developer’s warehouse, their cost is reflected in the equipment accounts as being in transit.

When providing construction sites with the specified material assets in accordance with construction contracts directly from construction organizations, the developer reflects them in accounting as part of construction costs at the contractual value in accordance with the invoices of construction organizations paid or accepted for payment.

5. Accounting for other capital costs

Other capital expenses provided for in the estimates are taken into account by their types and reflected on account 08 “Investments in non-current assets” in the amount of actual expenses as they are produced or at the contract value based on paid or accepted invoices third party organizations.

The inventory value of acquired individual types of fixed assets and other long-term assets is determined in the following order:

* the inventory value of buildings, structures, equipment, vehicles and other individual objects consists of the actual costs of their acquisition and the costs of bringing them to a state in which they are suitable for use for the intended purposes;

* the inventory value of land plots and environmental management facilities consists of the costs of their acquisition, including costs of improving their quality condition, commissions and other payments. The costs of construction of various structures on acquired land plots are taken into account separately from the cost of these plots and, upon completion of the construction of structures, their value is determined when the structures are included as separate objects in fixed assets.

Buildings, structures and other fixed assets acquired separately from the construction of facilities, as well as land plots, environmental management objects are included in the amount of inventory value in the composition of fixed assets upon their receipt by the organization and completion of work to bring them to a state in which they are suitable for use. use for the intended purposes, on the basis of the acceptance certificate of fixed assets.

The inventory value of intangible assets consists of the costs of their creation or acquisition and the costs of bringing them to a state in which they are suitable for use for the intended purposes.

As intangible assets are created or received by the organization and work is completed to bring them to a state in which they are suitable for use for the intended purposes, intangible assets are included in the composition of intangible assets on the basis of an acceptance certificate.

Accounting for costs of modernization and reconstruction of facilities

As a result of the reconstruction, modernization and technical re-equipment of facilities, the useful properties of these facilities are improved (labor productivity increases, product quality improves, production costs decrease, etc.).

Work on reconstruction, modernization and technical re-equipment of facilities can be carried out by contract or in-house. Costs for these works are taken into account in the same way as for ordinary capital investments, i.e. first, costs are recorded on account 08 “Investments in non-current assets”, and then from account 08 they are written off to account 01 “Fixed assets”.

Until 01/01/2001 (in accordance with clause 5.2 of PBU 6/97), the increase in the initial cost of objects as a result of their modernization and reconstruction was attributed to Extra capital organizations. Therefore, after reflecting the costs of modernization and reconstruction of the facility on account 01 “Fixed Assets,” an additional accounting entry was made for the amount of these costs:

Debit of account 84 “Retained earnings ( uncovered loss)" Credit to account 83 "Additional capital".

It would be advisable to make an additional entry in the case when the organization controls the sources of financing for capital investments.

accounting investment costs equipment

7. Cost accounting for the formation of the main herd of productive and working livestock

The main herd of productive and working livestock is formed by transferring young animals to the main herd, purchasing adult animals and receiving them free of charge. The costs of forming the main herd are taken into account on account 08 “Investments in non-current assets”.

The transfer of young productive and working livestock to the main herd is documented by an accounting entry on the debit of account 08-6 “Transfer of young animals to the main herd” and the credit of account 11 “Animals for growing and fattening”. The transferred young animals are simultaneously written off to the debit of account 01 “Fixed assets” from the credit of account 08. Write-offs from account 11 are carried out at the cost recorded at the beginning of the year, with the addition of the planned cost of weight gain or increase for the period from the beginning of the year until the moment of transfer. At the end of the year, after compiling the reporting calculation, the difference between the indicated cost of the transferred young animals and its actual cost is written off by additional posting or using the “red reversal” method from account 11 to account 08 and from account 08 to account 01.

The cost of adult animals purchased from outside is debited to subaccount 7 “Purchase of adult animals” of account 08 at the actual cost of their acquisition, including delivery costs.

Costs for the delivery to the organization of adult working and productive livestock received free of charge from other organizations are reflected in the debit of subaccount 9 “Delivery of animals received free of charge” of account 08.

Adult animals received free of charge are accepted for accounting at market value, to which are added the actual costs of delivering the animals to the organization. Market price animals received free of charge are recorded as the debit of account 08 from the credit of account 98 “Deferred income”.

Costs for completed operations of forming the main herd are written off from the credit of account 08 “Investments in non-current assets” to the debit of account 01 “Fixed assets”.

8. Accounting for expenses for research, development and technological work (R&D)

The composition of these expenses, the procedure for their accounting and reporting and accounting policy organization is defined by PBU 17/02 (22).

It should be noted that this PBU does not apply to all types of R&D, but to those R&D for which the results obtained:

* are not subject to legal protection in accordance with the regulations current legislation;

* are subject to legal protection, but are not formalized in the manner prescribed by law.

If, for example, as a result of R&D a patent for an invention or other similar document is obtained, then the organization must write off such costs as intangible assets.

PBU 17/02 also does not apply to expenses:

* by mastery natural resources;

* for preparation and development of production;

* related to improving technology and production organization, improving product quality, its design and other operational properties.

R&D expenses should be accounted for as investments in non-current assets in account 08 “Investments in non-current assets”.

To account for these expenses, subaccount 8-8 “Performance of research, development and technological work” was introduced.

R&D expenses are recognized in accounting if the following conditions are met:

* the amount of expenses can be determined and confirmed (for example, in a contract);

* there is documentary evidence of the completion of work (acceptance certificate for completed work, etc.);

* use of work results for production or management needs will lead to future economic benefits;

* use of R&D results can be demonstrated.

R&D expenses, the results of which are subject to use in the production of products (performance of work, provision of services) or for the management needs of the organization are written off from the credit of account 08 “Investments in non-current assets” to the debit of account 04 “Intangible assets”.

From account 04 “Intangible assets”, R&D expenses are written off to the debit of accounts 20 “Main production”, 26 “ General running costs"or other accounts for recording the costs of production.

Write-off of R&D expenses is carried out in one of the following ways:

* linear method;

* in proportion to the volume of products (work, services) expected to be received over the entire period of application of R&D results*.

The period for writing off R&D expenses is determined by the organization independently, based on the expected period of use of the R&D. The deadline for writing off these expenses is set at 5 years and cannot exceed the life of the organization. In tax accounting, R&D expenses must be written off within three years.

R&D expenses are written off from the 1st day of the month following the month in which the application of R&D results began. Write-off of expenses for the specified works is carried out evenly in the amount of 1/12 annual amount regardless of the chosen method of writing off expenses.

In case of termination of the use of R&D results, the remaining part of the expenses is written off from account 08 to non-operating expenses(account 91 “Other income and expenses”).

R&D expenses, the results of which are not subject to use in the production of products (performance of work, provision of services), or for management needs, or for which positive results are not obtained, are written off from the credit of account 08 “Investments in non-current assets” to the debit of account 91 “Other” income and expenses".

Analytical accounting R&D expenses carried out according to types of work, contracts (orders). The unit of accounting for R&D expenses is an inventory object, which is understood as a set of expenses for work performed, the results of which are independently used in the production of products (performance of work, provision of services) or for the management needs of the organization.

*These methods are discussed in Chapter 7.

IN financial statements The organization must display information on the amount of R&D expenses:

* attributed in the reporting period to expenses for common types activities and non-operating expenses by type of work;

* not written off as expenses for ordinary activities and non-operating expenses;

* for unfinished R&D.

If significant, information on R&D expenses is reflected in balance sheet for a separate group of asset items (section “Non-current assets”).

As part of the information on the organization's accounting policies in the financial statements, at least information on the methods and timing of writing off R&D expenses must be disclosed.

9. Accounting for value added tax on received fixed assets and intangible assets

The procedure for accounting for VAT on fixed assets and intangible assets has been changed several times. Until January 1, 1993, VAT paid when making capital investments was included in their volume, and therefore in the initial cost of registered objects, and was subsequently reimbursed through the depreciation mechanism.

Since 01.01.93, the procedure for accounting for VAT on capital investments has changed. VAT on acquired fixed assets and intangible assets began to be taken into account on account 19 “Value added tax on acquired assets.” For construction and installation work carried out by contract or in-house, in the period from 01/01/93 to 12/31/2000, the amount of VAT was still taken into account in account 08 “Capital investments” and was included in the initial cost of capitalized objects.

Currently, VAT on acquired assets is recorded in accounts 19 “Value added tax on acquired assets” and 68 “Calculations for taxes and fees”, subaccount “Calculations for value added tax”.

Account 19 has the following subaccounts:

* 1 “Value added tax on the acquisition of fixed assets”;

* 2 “Value added tax on acquired intangible assets”;

* 3 “Value added tax on acquired inventories”, etc.

On a subaccount 1 takes into account the paid and payable amounts of VAT allocated in settlement documents for the construction and acquisition of fixed assets (including fixed assets, land plots and environmental management objects). For the remaining subaccounts, VAT is recorded on the purchased values corresponding to the name of the subaccounts.

The debit of account 19 reflects the amount of VAT on purchased assets from the credit of accounts 60 “Settlements with suppliers and contractors”, 76 “Settlements with various debtors and creditors” and other accounts.

Depending on the use of acquired values, the corresponding part of the VAT is written off from account 19 to the debit of account 68 “Calculations for taxes and fees” (for production use); to the debit of sales accounts (when selling valuables); to the debit of accounts accounting for sources of covering costs for non-productive needs (when used for non-productive needs).

For received equipment, both requiring and not requiring installation, the amount of VAT is reflected in the debit of account 19, the subaccount “Value added tax on the acquisition of fixed assets,” and the credit of accounts 60, 76, etc.

At the moment the equipment is registered, the amount of VAT on it is written off from the credit of account 19, subaccount 1, to the debit of account 68 “Calculations for taxes and fees.”

On acquired intangible assets, VAT is accounted for in the same way as on equipment (on the debit of account 19-2, from which, after the intangible assets are registered, it is written off to the debit of account 68).

For construction and installation work carried out by contract and economic methods, as already noted, in the period from 01/01/93 to 12/31/2000, the amount of VAT was included in the initial cost of the object and was not accepted for reimbursement from the budget. Accrued VAT amounts were reflected in the debit of account 08 “Capital investments” and the credit of account 68 “Calculations with the budget”.

From 01/01/2001, VAT amounts on completed construction projects put into operation industrial purposes are not included in the initial cost of objects - they are accepted for reimbursement from the budget at the time the construction project is put into operation.

When constructing industrial facilities using economic methods, the amount of VAT on construction and installation work from 01/01/2001 is also accepted for reimbursement and is not included in the initial cost of the objects. The amount of tax is calculated as the difference between the amount of tax accrued on the work performed and the amount of tax presented to the taxpayer for deduction on purchased goods (work, services) used in the performance of said work.

When constructing non-production objects using economic methods, the amount of VAT on construction and installation work is not subject to reimbursement from the budget and is allocated to book value object, i.e. is accounted for in account 08 “Investments in non-current assets”.

10. Disclosure of information on investments in non-current assets in the financial statements

Data on the value of construction in progress at the beginning and end of the reporting period are contained in Section I “Non-current assets” of the balance sheet.

Section 4 “Movement of funds for financing long-term investments and financial investments” of the Appendix to the balance sheet (form No. 5) contains information on the availability at the beginning and end of the year, formation and use of own and attracted sources of financing long-term investments with the allocation of bank loans and borrowed funds other organizations, equity participation in construction, funding from the budget and other sources.

11. Task: record account correspondence for accounting for long-term investments

	Operations	Corresponding accounts

	The contractor's invoice for construction and installation work has been accepted: at a negotiated price including VAT
	Costs incurred for construction work carried out in an economic way
	Costs incurred to create intangible assets
	The supplier's invoice for equipment requiring installation has been accepted:
	Equipment handed over for installation
	Work on installation of equipment was carried out using economic methods
	The supplier's invoice for the purchased intangible assets has been accepted: at the purchase price including VAT
	Fixed assets were put into operation
	VAT is written off on equipment and construction and installation work for the reporting month
	Objects of intangible assets were put into operation
	The amount of VAT on intangible assets is written off

Checking task completion

Sides of the account	Transaction numbers


		02, 05, 10 69, 70, etc.	10, 60, 70, etc.	02, 10 69.70, etc.
	Transaction numbers

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Topic 5. Accounting for long-term investments and financial investments

5.1. Long-term investments, their composition and characteristics.

Long-term investments (investments in non-current assets, capital investments) - the organization’s costs for the creation and acquisition of assets that will subsequently be registered as fixed assets and intangible assets and used in the production process (including management) for a period of more than 12 months. These do not include the organization’s investments in securities and authorized (share) capitals of other organizations (financial investments).

Investments in non-current assets are divided into costs associated with:

Creation of fixed assets through capital construction (in the form of new construction, as well as reconstruction, expansion and technical re-equipment of existing production and non-production facilities);

Acquisition of land plots, environmental management facilities and individual fixed assets (buildings, structures, equipment, vehicles and other individual fixed assets or parts thereof);

Acquisition and creation of intangible assets;

Purchasing and raising a main herd of productive and working livestock.

Non-current assets are assessed before they are put into operation in the amount of actual costs .

Accounting for investments in non-current assets is carried out in accordance with the procedure established

Accounting Regulations “Accounting for Agreements (Contracts) for Capital Construction” (PBU 2/94), approved by Order of the Ministry of Finance of Russia dated December 20, 1994 N 167,

Regulations on accounting of long-term investments, approved by Letter of the Ministry of Finance of Russia dated December 30, 1993 N 160, as well as

Chart of accounts for financial and economic activities of organizations and Instructions for its application, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n.

The objects of accounting for investments in non-current assets are capital construction projects, purchased individual fixed assets, intangible assets and certain types of livestock.

Accounting for investments in non-current assets is carried out according to their types and objects on the account 08 "Investments in non-current assets".

To account for costs as objects of accounting for investments in non-current assets, sub-accounts are opened to account 08:

For acquisitions of land plots - 1 “Acquisition of land plots”;

For acquisitions of natural resources - 2 "Acquisition of natural resources";

For capital construction of facilities - 3 "Construction of fixed assets";

For acquisitions of fixed assets - 4 "Acquisition of fixed assets";

For acquisitions of intangible assets - 5 “Acquisition of intangible assets”;

For costs associated with the formation of the main herd - 6 “Transfer of young animals to the main herd”; 7 "Acquisition of adult animals";

For other similar objects, organizations open other sub-accounts they need.

Capital investments represent the total cost of reproducing operating systems and improving their qualitative composition - creating new ones, expanding and modernizing existing ones. Accounting primarily reflects the costs of capital investment processes, i.e. costs for

Design, construction and reconstruction of facilities

Purchase and installation of equipment, machines, devices

Costs of purchasing finished objects.

The diversity of capital investments requires their correct grouping.

According to the technological structure, capital investments are divided into:

Construction and installation works (CEM)

Equipment, tools and inventory

Other capital works

To construction include work on the construction, expansion and restoration of buildings and structures, installation of foundations and foundations, preparation and planning of development areas, etc.

To installation This includes installation of equipment, assembly and installation of power, lifting and transport and other equipment, which can only be operated after assembly and installation on the foundation at the place of its permanent use.

Part equipment, tools and supplies includes equipment that requires installation, and equipment, tools and inventory that does not require installation (cars, free-standing machines, etc.)

Other capital investments include design and survey work, drilling work, costs for land acquisition, provided for in the construction estimate.

By direction, capital investments are divided into:

New construction (construction on new sites according to the original project)

Reconstruction (reconstruction of existing workshops or production facilities)

Expansion (additional production facilities are built or existing ones are expanded)

Technical re-equipment (a set of works is being carried out to improve the technical and economic level of individual industries based on the introduction of advanced equipment and technology)

Maintaining capacity (constant renewal of retired assets)

According to the purpose of the costs incurred:

For the construction of industrial facilities

For the construction of non-production facilities

For rent, leasing, rental.

By degree of readiness:

Completed capital works

Not completed (unfinished capital construction)

The organization making the capital investment is the developer (customer).

Capital work is carried out either by contract (by special construction and installation organizations (contractors)), or by the developer himself - by household method.

The organization of the construction of facilities, monitoring its progress and maintaining accounting records of the costs incurred are carried out by the developer.

The procedure for accounting for costs of construction work and installation of equipment depends on the method of their production - contract or business.

With the contract method completed and executed construction and installation work is reflected in the developer's account. 08 at the agreed value according to the invoices accepted for payment contractor(including VAT):

Debt decreases as bills are paid:

Dt 60 Kt 51, 55, 52

After putting the OS into operation (Dt 01 Kt 08), the amount of VAT paid is accepted for reimbursement from the budget:

With the economic method during construction and installation work, costs are also recorded on account 08. This account reflects the costs actually incurred by the developer and are reflected as follows:

Dt 08 Kt 10, 70, 51, 50, etc.

VAT is charged on capital work performed for own needs: Dt 08 Kt 68

The commissioning of fixed assets is reflected as follows: Dt 01 Kt 08

Investments in the securities of other firms that are made without regard to the current objectives of the firm are generally classified and accounted for based on the purpose of acquiring the securities and in relation to the investee firm.

Investments for the purpose of controlling the activities of another firm (where more than 50% of the voting shares are acquired) should be included in consolidated statements. When investments don't provide controlling stake shares, but the investor can have a significant influence on the management of the company (acquired from 20 to 50% of voting shares), they should be accounted for based on the method equity. Investments in long-term financial papers are reflected in the reporting at the minimum of two estimates: market or cost. All other investments are accounted for at cost.

A security is a document expressing the property and non-property rights associated with it, which can independently circulate on the market, be the object of purchase and sale, and is a source of income. Securities are presented in the form of separate forms or in the form of accounting entries in the accounts of specialized institutions and banks.

Financial investments are the costs of an enterprise for the purchase of securities, i.e. investments of monetary, fixed, intangible and other assets in joint ventures, subsidiaries, joint stock companies, partnerships, and accounts receivable in the form of loans provided to other enterprises and organizations.

Accounting for fixed assets.

Enterprises have the right to own, use and dispose of fixed assets: transfer or sell free of charge to other enterprises, exchange, lease buildings, structures, equipment belonging to it, vehicles, inventory, write off the balance sheet if they are worn out or obsolete, regardless of whether they are fully depreciated or not.

The main objectives of accounting for fixed assets are:

· control over the safety and availability of fixed assets at the places of their use; correct documenting and timely reflection in the accounting of their receipt, disposal and movement;

· control over the rational expenditure of funds for the reconstruction and modernization of fixed assets;

· calculation of the share of the cost of fixed assets in connection with use and wear and tear for inclusion in the costs of the enterprise;

· control over the efficient use of working machines, equipment, production areas, vehicles and other fixed assets;

· accurate determination of the results from write-off, disposal of fixed assets.

1.1. Fixed assets, their classification and evaluation

The accounting regulation “Accounting for fixed assets” PBU 6/97 (approved by Order of the Ministry of Finance of the Russian Federation dated September 3, 1997 No. 65-and registered with the Ministry of Justice of the Russian Federation on January 13, 1998 No. 1331) defines fixed assets as part of the property, used as instruments of labor in the production of products, performance of work or provision of services, or for the management of an organization for a period exceeding 12 months, or the normal operating cycle if it exceeds 12 months

The time during which it is expected to receive income from the operation of a specific object or the performance of certain functions in a given period is considered in accounting as a period beneficial use.

The unit of accounting for fixed assets is an inventory object - a complete device with all accessories, or a structurally isolated object capable of independently performing the necessary functions in accordance with its purpose. If a device consists of several parts with different useful lives, then each of them is considered in accounting as an independent inventory item.

Classification of fixed assets is carried out according to the following criteria:

1. Having a material-natural form, the so-called tangible fixed assets and “intangible” - intangible fixed assets (intangible assets). Material fixed assets in the balance sheet are presented in the section “Non-current assets” under the article “Fixed assets” with the decoding: “land plots and natural resources”, “buildings, machinery and equipment”, i.e. non-depreciable and depreciable are clearly distinguished.

2. The degree of human participation in the creation of individual objects: direct participation - the so-called “man-made fixed assets” (buildings, machines, etc.). Without human participation - the so-called “fixed assets not made by human hands” (land plots and environmental management facilities - water, subsoil and other natural resources).

3. Sectors of the national economy (24 sectors, including industry, operations with real estate, information and computing services, general commercial activity to ensure the functioning of the market, etc.).

It includes tangible and intangible fixed assets. Material fixed assets are represented by the following groups:

structures;

cars and equipment;

vehicles;

2.1. Accounting for the availability and receipt of fixed assets

Fixed assets can be received by the enterprise in one of the following ways:

1. Acquisition for payment or in exchange for other property.

2. Construction and manufacturing.

3. Contribution by the founders to the account of contributions to authorized capital.

4 Free receipt.

5. In other cases.

In case of acquisition, fixed assets are taken into account at historical cost, which includes all actual acquisition costs, with the exception of refundable taxes, in particular VAT.

2.2. Accounting for depreciation of fixed assets

Depreciation of fixed assets is a method of reimbursing costs associated with the acquisition or construction of fixed assets by transferring the cost of fixed assets to the cost of products (works, services), and for non-production objects - to own sources. If materials and raw materials are written off to cost as they are written off for production in full, then fixed assets are written off in parts.

Firstly, this is due to the fact that fixed assets are not transferred directly to products (works, services).

Secondly, the service life of fixed assets exceeds one year.

Thirdly, the cost of fixed assets is usually high and including it immediately in the cost price will cause undesirable financial consequences.

Fixed assets leave the organization as a result of:

write-off or liquidation;

transfers in the form of a contribution to the authorized capital of other organizations;

gratuitous transfer;

for other reasons.

Before carrying out the inventory, the correctness of the primary registration is also clarified. accounting documentation on the availability and movement of fixed assets ( inventory cards or books, technical passports, acceptance certificates, etc.).

Financially responsible persons must confirm in writing that all incoming and outgoing documents for fixed assets have been submitted to the accounting department. Accepted objects are capitalized, and disposed objects are written off as expenses. This approach will help avoid possible conflicts between members in the future. inventory commission and persons with financial responsibility.

Actual availability and technical condition objects are established by members of the inventory commission together with material responsible persons by direct inspection at the location.

The results of the inspection are entered into inventory lists(f. Inv. No. 1) manually or by computer technology in the context of each name of the object, with the obligatory indication of their inventory number.

And objects of non-productive sphere;

acquisition of buildings, structures, equipment, vehicles and other individual fixed assets;

acquisition of land plots and environmental management facilities;

acquisition and creation of intangible assets, including the implementation of research, development and technological work. Long-term investments can be classified according to a number of characteristics, for example, by form, by degree of readiness, by structure, by purpose, by industry, and by sources of financing.

By form, long-term investments are divided into: new construction, reconstruction, expansion, technical re-equipment, maintaining the capacity of existing production facilities and non-production facilities.

According to the degree of readiness, long-term capital investments are divided into completed and unfinished (unfinished). By structure, long-term investments in the form of capital investments are divided into: construction and creation of fixed assets, acquisition of fixed assets, acquisition of natural objects, creation and acquisition of intangible assets.

By purpose, all long-term investments are divided into investments in production and non-production facilities, objects intended for rental, leasing, rental.

By industry, long-term capital investments are divided into: investments in industry, transport, housing construction, healthcare, agriculture and other industries.

According to sources of financing, long-term investments are divided into investments through own funds investors and at the expense of raised funds.

Construction object- a separate building or structure, type or complex of work, for the construction of which a separate project and estimate must be drawn up.

Sources of financing for long-term investments

Before any investment project it is necessary to determine the sources of its financing. Sources of financing for long-term investments can be both the organization’s own and borrowed funds.

The organization's own funds include:

profit remaining at the disposal of the organization after paying all taxes and mandatory payments;
depreciation charges for fixed assets and intangible assets;
budget funds provided by various levels of government on a non-refundable basis;
insurance compensation received to cover losses and damages from insured events.

The current accounting methodology does not provide for synthetic accounting of the use of the organization's net profit as a source of long-term investment. But the organization can independently conduct analytical accounting and control over the use of profits for these purposes. For this it is necessary to synthetic account 84 “Retained earnings (uncovered loss)” open separate sub-accounts: “Profit in circulation” and “Profit used”. When using profits as a source of long-term investment, an entry can be made in these accounts:

D-84 “Retained earnings (uncovered loss)”, subaccount “Profit in circulation”
Kt 84 “Retained earnings (uncovered loss)”, subaccount “Used profit”.

The next source of financing for long-term investments may be depreciation charges. Depreciation charges are included in the cost of products (works, services) and therefore are part of the proceeds from the sale of final products. Revenue in the form of cash goes either to the organization's cash desk or to its accounts in bank institutions. These funds can be used to finance capital investments in fixed assets and intangible assets. Systematic accounting does not provide records of the use of depreciation as a source of financing long-term investments. But when analyzing the sufficiency of funds for the planned investment, it is necessary to compare the amounts that are required with the balances in accounts 02 “Depreciation of fixed assets” and 05 “Depreciation of intangible assets”.

If budget funds are used on an irrevocable basis to finance long-term investments, their movement is recorded in account 86 “Targeted financing”. Targeted financing received as a source of long-term investment is reflected:

The purchase of equipment for installation is reflected in the customer’s accounting accounts by the following entry:

Dt 07 “Equipment for installation”
Kit 60 “Settlements with suppliers and contractors”

But the acquisition of equipment and its receipt in the warehouse does not yet mean capital investments in the full sense of the word. During installation, the equipment is transferred to the contractor according to the equipment acceptance certificate for installation. Only after its actual transfer to the contractor for installation is an accounting entry made in the accounts:

Kit 07 “Equipment for installation”.

The contractor, who received equipment from the customer for use in the construction of the facility, accounts for such equipment in off-balance sheet account 005 “Equipment accepted for installation.” When receiving equipment that requires installation, the contractor makes a simple entry: D-t 005 “Equipment accepted for installation”, and when installing equipment in a facility under construction: K-t 005 “Equipment accepted for installation”. The customer accepts the installed equipment according to the work completion certificate. The act shows only the cost of installation and commissioning work performed, without the cost of equipment.

If the contractor provides the construction with the necessary equipment, then its cost is reflected by the customer on account 08 “Investments in non-current assets” along with the cost of installation and other work (according to the invoice).

When carrying out construction and installation work on an economic basis, costs are accounted for in account 08 “Investments in non-current assets”. This account reflects the actual costs incurred by the developer:

Dt 08 “Investments in non-current assets”
Kit 10 “Materials”, 70 “Settlements with personnel for wages”, 69 “Calculations for social insurance and security”, etc.

If organizations have independent structural divisions who carry out construction and installation work, they take into account their costs on account 23 “Auxiliary production”:

Dt 23 “Auxiliary production”
Kit 10 “Materials”, 70 “Settlements with personnel for wages”, 69 “Calculations for social insurance and security”, etc.

Upon completion of this work, the costs are written off:

Dt 08 “Investments in non-current assets”
Kit 23 “Auxiliary production”.

The commissioning of fixed assets is reflected in the accounting accounts:

Dt 01 “Fixed assets”
Kit 08 “Investments in non-current assets”.

The acquisition of fixed assets and intangible assets is considered in Accounting for the receipt of fixed assets and Accounting for the receipt of intangible assets, respectively.

One of the main tasks of accounting for capital investments is to determine the entire set of costs related to the constructed construction project, its reconstruction or acquisition. These costs upon completion of the work will determine the inventory (initial) cost of the objects put into operation - buildings, structures, equipment, etc.

The inventory cost of commissioned facilities consists of the costs of construction and other capital work. The inventory value of completed construction, reconstruction, and acquisition is determined. Special commissions are created to check the suitability of the facility for operation. Full readiness for operation is confirmed by the acceptance certificate of the object. It indicates the volume, production capacity, area, parameters characterizing the object, its readiness for operation, the quality of the work performed, the presence of deficiencies, and the timing of their elimination. A fully completed and signed act is transferred to the customer-developer and is the basis for determining the inventory value of the capital investment object.

When carrying out capital construction, the organization incurs costs that are not directly related to the construction of the facility, but without them it cannot be built. They are defined as costs that do not increase the inventory value of objects. Costs that do not increase the value of fixed assets are recorded on account 08 “Investments in non-current assets” separately from construction costs. Such costs can be divided into costs provided for in estimates and calculations, and costs not provided for by them.

The first group includes: costs for training operational personnel for the main activities of enterprises under construction; costs of reimbursing the cost of buildings and plantings demolished during the allocation of land for construction; funds transferred for the construction of objects in the form of shared participation during the subsequent transfer of constructed objects, etc.

The second group includes costs: to pay interest on bank loans in excess of the discount rates established by the Central Bank of the Russian Federation; for conservation of construction; for demolition, dismantling and protection of objects stopped by construction, etc.

Disclosure of information about long-term investments in financial statements

In the financial statements, at least the following information is subject to disclosure, taking into account materiality:

about the amount of unfinished construction;
on the volume of acquired non-current assets;
on sources of financing long-term investments in the form of capital investments.

The creation of non-current assets, especially their construction, is extended over time, often lasting several reporting periods, during which capital expenditures are in a transitional form - expenses have been incurred, but the objects of these assets have not yet been taken into account. Therefore, there is a need to take into account capital costs in unfinished non-current assets. The balance sheet (Form No. 1) reflects the balances of construction in progress at the beginning of the year and at the end of the reporting period.

As for information about non-current assets received by the organization (fixed assets, profitable investments in tangible assets and intangible assets), in total it is contained in the balance sheet, as well as in other reporting forms, which represent a breakdown of the balance sheet. So, for example, in the appendix to the balance sheet (Form No. 5) the receipt of intangible assets, fixed assets and objects of profitable investments in tangible assets by their types for reporting period. In addition, this form reflects all expenses for research, development and technological work, as well as those that were not completed and did not produce positive results.

Information about sources of financing long-term investments in the form of capital investments is contained in several forms of financial statements. For example, the balance sheet shows the amount retained earnings organization, and is reflected in the profit and loss statement net profit organizations for the reporting period. In the report on changes in capital (form No. 3), in the “Certificates” section, the amounts received for reporting year from the budget and extra-budgetary funds of targeted revenues to finance capital investments in non-current assets. The appendix to the balance sheet (form No. 5) reflects two indicators: total amount received budget funds, including by their types for the reporting period and for similar period previous year, and the amount of types of budget loans received as of the beginning and end of the reporting period, as well as the amounts received and returned during the reporting period.

Control questions

What is a long-term investment?
How do long-term investments differ from short-term ones?
What does the term "capital investment" mean?
What are the main features of the classification of long-term investments in the form of capital investments?
Name the main sources of financing capital investments.
Describe your own sources of long-term investment.
How can you show and control the use of your own sources of long-term investments in your accounts?
Describe the attracted sources of long-term investment.
Give the main accounting records, reflecting the attraction of external sources to finance long-term investments.
How are capital investments for construction carried out by contract reflected in the accounting accounts?
Who carries out construction and installation work using the economic method of carrying it out?
How are capital investments made in an economic way reflected in the accounting accounts?
In what account are the actual costs of capital investments made?
Who organizes construction, monitors its progress and keeps accounting records of costs incurred?
What does the term "new construction" mean?
What does the term “unfinished capital construction” mean?
What do the terms “modernization”, “reconstruction”, “expansion” and “technical re-equipment of an economic entity” mean?
How is equipment that requires installation reflected in accounting?
What does the inventory value of a completed non-current asset consist of?
What costs are classified as costs that do not increase the value of non-current assets?

Investment of funds is the investment of resources in order to increase the volume of functioning capital. Investments with a validity period of more than a year are classified as long-term.

In accordance with the Regulations on accounting of long-term investments, approved by order of the Ministry of Finance of the Russian Federation dated December 30, 1993 No. 160, long-term investments are the costs of an organization for the creation, increase in size and acquisition of non-current assets with a useful life of more than a year, not intended for sale, with the exception of investments in government securities, securities and authorized capitals of other organizations.

Long-term investments are associated with the following activities:

capital construction in the form of new construction, reconstruction, expansion and technical re-equipment of existing enterprises and non-production facilities;
acquisition of buildings, structures, equipment, vehicles and other objects (or parts) of fixed assets;
acquisition of land plots and environmental management facilities;
acquisition and creation of intangible assets.

Capital construction is an industry material production, carrying out the reproduction of the main production and non-production assets of the national economy Russian Federation. The main directions of reproduction of fixed assets are new construction, expansion, reconstruction and technical re-equipment of existing enterprises and organizations.

New construction is the construction of an enterprise, building, structure on new or released land plots (sites) for this purpose according to the original project approved in the prescribed manner. Such construction is considered a new building until it is fully completed and put into operation at full design capacity. If during the construction process, before the facility's capacity is put into operation, a revision of the construction project is carried out, ensuring the production of the main product, then the continuation of this construction according to the amended project is also considered a new building.

Expansion of existing enterprises are the second and subsequent stages of construction, additional production complexes and production facilities at the enterprise; additional new auxiliary and service production facilities on the territory of the existing enterprise; increasing the capacity of existing auxiliary and service industries on the territory of the operating enterprise or adjacent sites. The expansion of enterprises is also carried out according to design and estimate documentation approved in accordance with the established procedure.

Reconstruction of existing enterprises represents the renewal of fixed assets on a new technical basis. This includes the complete or partial re-equipment of enterprises without the construction of new and expansion of existing workshops of the enterprise. Depending on the volume of work performed and the degree of renewal of fixed assets, a distinction is made between complete, partial and small reconstruction of enterprises.

Technical re-equipment– these are measures and work to improve the technical level of individual industries and production areas. Activities and work on the technical re-equipment of production are carried out according to projects and estimates at existing enterprises. During technical re-equipment, physically and morally obsolete equipment is replaced, equipment and technical processes are modernized.

Subjects investment activities during capital construction, expansion and reconstruction of real estate are:

investors - legal or individuals those investing in the creation and reproduction of fixed assets in the form of their own, borrowed and borrowed funds;
customers – legal entities and individuals authorized by investors who carry out the implementation of capital investment projects;
developers - organizations specializing in the practical organization of construction of objects and control of its implementation;
contractors – legal entities or individuals performing construction work on the basis of construction contracts;
owners - legal entities or individuals who have the right of ownership, that is, the right to own, use and dispose of the construction project;
users objects of completed capital investments– legal entities and individuals to whom the owners transfer constructed objects for use under certain conditions.

The tasks of accounting for long-term investments include:

timely, complete and reliable reflection of all expenses incurred during the construction of objects by their types and the objects taken into account;
ensuring control over the progress of construction and commissioning of production facilities and fixed assets;
correct determination and reflection of the inventory value of commissioned constructed and acquired fixed assets, land plots, environmental management facilities and intangible assets;
ensuring control over the availability and use of sources of financing for long-term investments.

Long-term investment objects are subject to assessment upon registration. The assessment is made based on the actual costs associated with the acquisition (construction) of the object, which include:

cost of design and survey, geological exploration and drilling work;
costs of construction and installation work, including installation of equipment;
expenses for bringing the object to a condition suitable for use;
costs of land acquisition and resettlement;
costs for radical land improvement (reclamation, drainage, etc.);
costs for perennial plantings;
costs of forming the main herd;
expenses for paying interest on borrowed funds before registering the property.

Accounting for long-term investments is carried out at actual costs:

in general for construction and for individual objects (buildings, structures, etc.) included in it;
for acquired individual fixed assets, land plots, environmental management facilities and intangible assets.

During the construction of objects, the organization and management of construction, monitoring the progress of construction, maintaining accounting records, as well as commissioning of objects is carried out by the developer. The developer keeps track of costs on an accrual basis from the beginning of construction by reporting periods until the commissioning of the facilities or the complete production of the relevant work and costs.

Along with taking into account costs at actual cost, the developer, regardless of the method of carrying out construction work, keeps records of production capital investments at the contractual cost.

When organizing cost accounting for the construction of facilities, the developer must provide for obtaining information about the reproductive and technological structure of costs, the method of carrying out construction work, as well as the purpose of the facilities under construction and other acquisitions.

Accounting for long-term investments is kept on account 08 “Investments in non-current assets”. This account reflects investments by their types in specially opened sub-accounts:

08-1 “Acquisition of land”;

08-2 “Acquisition of natural resources”;

08-3 “Construction of fixed assets”;

08-4 “Acquisition of fixed assets”;

08-5 “Acquisition of intangible assets”;

08-6 “Transfer of young animals to the main herd”;

08-7 “Acquisition of adult animals”;

08-8 “Performing research, development and technological work”, etc.

On subaccount 1 "Purchase of land" the costs of acquiring land plots into the organization's ownership are taken into account.

On subaccount 2 “Purchase of natural resources” the costs of acquiring environmental management facilities into the ownership of organizations are taken into account.

On subaccount 3 "Construction of fixed assets" the costs of construction of buildings and structures, installation of equipment, the cost of equipment transferred for installation and other costs provided for in estimates, financial estimates and title lists for capital construction are taken into account (regardless of whether this construction is carried out by contract or in an economic way).

On subaccount 4 "Purchase of fixed assets" the costs of purchasing equipment, machinery, tools, inventory and other fixed assets that do not require installation are taken into account.

On subaccount 5 "Acquisition of intangible assets" the costs of acquiring intangible assets are taken into account.

On subaccount 6 “Transfer of young animals to the main herd” - costs of raising young productive and working livestock transferred to the main herd.

On subaccount 7 "Acquisition of adult animals" the cost of adult productive and working livestock purchased for the main herd or received free of charge, including the costs of its delivery, is taken into account.

On subaccount 8 “Performance of scientific, technical, development and technological work” the costs of carrying out these works are taken into account.

The organization of analytical accounting for account 08 “Investments in non-current assets” depends on the type of long-term investment.

For costs associated with the construction and acquisition of fixed assets, analytical accounting is maintained for each fixed asset item under construction or acquisition. At the same time, the construction of analytical accounting should provide the ability to obtain data on the costs of construction work and reconstruction; drilling operations; installation of equipment; equipment requiring installation; equipment that does not require installation, as well as for tools and equipment provided for in estimates for capital construction, design and survey work; other costs of capital investments.

For costs associated with the acquisition (creation) of intangible assets, analytical accounting is maintained for each intangible asset acquired or created by the organization itself.

For costs associated with the implementation of research, development and technological work, analytical accounting is carried out by type of work performed, as well as by contracts (orders).

The debit of account 08 “Investments in non-current assets” reflects the actual costs of construction and acquisition of relevant assets, as well as the costs of forming the main herd.

The balance on account 08 reflects the amount of capital investments of the organization in unfinished construction and the acquisition of fixed assets and intangible assets, as well as the amount of unfinished costs for the formation of the main herd. Since January 1, 2000, unfinished capital investments include real estate that has not passed state registration.

In the balance sheet, incomplete long-term investments are reflected in accordance with Art. “Unfinished construction” section. 1 “Non-current assets”.

2.2. Accounting for long-term investments in capital construction

As noted, capital construction is a type of activity that ensures the reproduction of fixed assets by creating new and expanding existing facilities, as well as their reconstruction and technical re-equipment.

Accounting for capital construction is organized in accordance with the requirements regulatory documents in accounting, the main of which are:

Regulations on accounting of long-term investments, approved by order of the Ministry of Finance of the Russian Federation dated December 30, 1993 No. 160;
Accounting Regulations “Accounting for Agreements (Contracts) for Capital Construction” PBU 2/94, approved by Order of the Ministry of Finance of the Russian Federation dated December 20, 1994 No. 167;
Accounting Regulations “Accounting for Fixed Assets” PBU 6/01, approved by Order of the Ministry of Finance of the Russian Federation dated March 30, 2001 No. 26n (as amended by Order of the Ministry of Finance of the Russian Federation dated May 18, 2002 No. 45n).

Construction is organized by the developer. The role of developer can be the directorates of under construction and existing enterprises carrying out capital construction. The developer can carry out capital construction by contract or economic method. With the economic method, construction and installation work is carried out by the developer himself, with the contract method - by a specialized construction and installation organization acting as a contractor. In this case, the developer is the customer who enters into an agreement with the contractor to perform construction and installation work - a contract agreement. The construction contract is drawn up on the basis of design and estimate documentation, which, along with special construction indicators, indicates the cost of the construction project. In the contract, the parties (customer and contractor) agree on the scope of construction and installation work, their cost, acceptance and delivery procedures, deadlines, and penalties.

For the customer-developer, when carrying out capital construction, the accounting objects are unfinished construction and completed construction.

Construction in progress– these are the costs of the customer-developer for the construction of the facility from the beginning to the completion of construction, i.e., until acceptance by the state acceptance commission.

Completed construction– actual cost construction project on the date of its acceptance by the state acceptance commission before its commissioning or transfer to investors.

The developer’s costs for the construction of the facility in accordance with the Regulations on accounting for long-term investments in accounting are grouped according to the technological structure of costs determined by the design estimate documentation. It is recommended to keep records using the following cost structure:

for construction work;
for equipment installation work;
for the purchase of equipment that requires and does not require installation;
for the purchase of tools and equipment;
for other capital costs.

TO construction costs include costs associated with the construction, expansion and reconstruction of buildings and structures for various purposes. This category of expenses includes not only expenses for work related directly to capital investment objects that are subject to further commissioning in the form of inventory fixed assets, but also expenses for work on the construction of temporary title buildings and structures. Temporary title buildings and structures are temporary construction infrastructure facilities, erected specifically for the construction of the facility, included in its design and estimate as auxiliary production facilities. Such facilities at large construction sites include concrete plants, enterprises for the production of asphalt, crushed stone and others. building materials and designs. Such buildings and structures are usually designed for the duration of the construction of the main facility. At the start of construction, they are put into operation as part of the developer’s fixed assets and transfer their value to the cost of the main construction project by calculating depreciation calculated per unit of production or the construction period of the main object. Upon completion of construction, such facilities are usually demolished due to disrepair.

Costs for construction work also include costs for preparing sites for construction, production of earthworks, general construction, sanitary, electrical and finishing works, works on improvement of the territory adjacent to the facility. In addition, the costs of construction work include costs included in construction estimates associated with the business trip and transportation of workers to the construction site, including compensation and additional payments associated with the mobile and traveling nature of the work, hazardous working conditions, paid to construction workers in accordance with current legislation.

TO equipment installation work include work on the installation of the main technological equipment of the facility under construction in accordance with the specialization of its subsequent operation.

TO costs for the purchase of equipment that requires and does not require installation, include the costs of purchasing basic technological equipment included in the estimate for the construction of this facility.

The costs associated with the acquisition and installation of equipment do not include the costs of the acquisition and installation of equipment for the construction of a facility related to construction technological equipment, for example, construction machinery and equipment, vehicles serving the construction.

In the construction estimate may also be included tools and equipment, intended for the initial equipment of a construction site in connection with its purpose. For example, furniture and other equipment are included in the estimates for the construction of hotels, educational institutions, hospitals and other social and service facilities.

Part others capital works and costs construction estimates include:

pre-design and design and survey work, expenses;
expenses associated with land acquisition for construction and resettlement from areas allocated for construction, compensation for the losses of displaced persons;
costs associated with implementation investment conditions, upon receipt of a building permit;
costs of maintaining directorates of enterprises under construction or capital construction divisions at existing enterprises;
costs for technical and architectural supervision on the part of the customer and designer;
expenses associated with the recruitment of workers and training of operational personnel of the enterprise under construction.

The following are not included in the costs of construction of facilities:

start-up costs and trial operation of equipment;
expenses for eliminating defects and defects due to the fault of suppliers of materials and equipment;
the cost of temporary non-title (not included by name in the construction estimate) structures purchased or erected by contractors at the expense of their overhead expenses during the construction period, as well as the costs of their demolition;
the amount of fines paid for violation of construction rules or in connection with taxation;
other expenses not included in construction estimates.

Cost accounting is carried out for each construction project as a whole and for its individual components, and in the case of the contract method of construction and under construction contracts.

Accounting for the actual costs of construction of each facility is carried out on an accrual basis from the beginning of construction to the commissioning of the facility.

The procedure for documenting and accounting for the costs of capital construction by the developer depends on the method of their implementation.

2.2.1. Accounting for contract construction

As noted, with the contract method, work on the construction of a facility is performed for the customer-developer under contracts construction contract specialized construction organizations. In this case, the customer, as part of the construction in progress, along with other construction costs (organizational, pre-design, design, etc.), takes into account the work accepted from the contractor, as well as other capital costs provided for in the estimates.

Amounts of VAT presented to the customer-developer by design, contracting and other organizations for work performed are accounted for on account 19 “VAT on acquired assets”, subaccount 1 “VAT on the acquisition of fixed assets”

The completed design and survey work accepted by the customer for accounting is reflected as part of construction in progress by recording:

The contractor records the work performed in a cumulative manner from the beginning of the work until the full completion of the contractor's obligations for the construction project under the control of the customer in the work log book (Form No. KS-6a) in one copy. Upon delivery to the customer, the construction and installation work (CEM) performed by the contractor on the basis of journal No. KS-6a is formalized with an acceptance certificate for the work performed (form No. KS-2) and a Certificate of the cost of work performed and expenses (form No. KS-3).

Forms No. KS-2, No. KS-Z, etc. were approved by the Decree of the State Statistics Committee of Russia dated November 11. 1999 No. 100.

Forms No. KS-2 and KS-3 are drawn up in at least two copies: the first for the contractor, the second for the customer and are drawn up as the work is completed within the time limits established by the contract. The cost of work performed is reflected in the certificate at the contractual cost on an accrual basis from the beginning of the work (in column 4), from the beginning of the year (in column 5) and including for the reporting period (in column 6) for the construction as a whole and for each included in its composition to the object. The customer reflects the work accepted from the contractor in accounting on the basis of an act of form No. KS-2 at the cost of the reporting period indicated in form No. KS-3 in the debit of account 08.3 with the entry:

Debit account 08, subaccount 3 “Construction of fixed assets”,

Debit account 19, subaccount 1 “VAT on the acquisition of fixed assets”

Credit account 60 “Settlements with suppliers and contractors.”

Other capital costs provided for in the estimates are accounted for in the debit of account 08.3 by their types in the amount of actual costs as they are produced or at the contract value by writing:

Debit account 08, subaccount 3 “Construction of fixed assets”,

Debit account 19, subaccount 1 “VAT on the acquisition of fixed assets”

Credit account 60 “Settlements with suppliers and contractors.”

VAT on work performed by the contractor and other organizations is accepted by the customer for accounting on the basis of their invoices.

In accordance with the procedure established by clause 6 of Art. 171 of the Tax Code of the Russian Federation and clause 5 of Art. 172 of the Tax Code of the Russian Federation, VAT paid to contractors and other organizations in connection with the construction of fixed assets is subject to deduction based on the invoices of contractors and other organizations and the corresponding entries in the purchase book.

Behind last years The procedure for crediting VAT on capital construction projects has been changed several times. Until January 2001, VAT on objects under construction was not subject to offset and was included in the initial cost of the object. From 2001 to 2006, the amount of VAT was subject to offset after the payment of bills from contractors and other organizations and the commissioning of the facility. Since 2006, in accordance with paragraph 5 of Art. 172 of the Tax Code of the Russian Federation, deductions of tax amounts presented to the customer-developer are made in general procedure. Therefore, to apply deductions you must have:

the acceptance document for the next stage of work on the construction of the facility (or the entire facility);
invoices.

At the same time, the capital construction project must be used in the future to carry out operations subject to VAT. An entry is made for the amount of VAT presented to the budget for deduction on work performed by the contractor and other organizations:

Debit account 68 “Calculations for taxes and fees”

Credit account 19, subaccount 1 “VAT on the acquisition of fixed assets.”

Example

The developer entered into an agreement with the contractor for the construction of a production facility. The costs of the developer's organization for construction were: the cost of work on drawing up the estimate - 118,000 rubles, including VAT - 18,000 rubles; the cost of construction work according to the contractor's invoices is 1,180,000 rubles, including VAT – 180,000 rubles;

The construction costs of the facility in the developer’s accounting are reflected in the following entries:

No.		Account correspondence		Amount, rub.
No.		Debit	Credit	Private	General
	The cost of services provided by a third party organization for preparing estimates is reflected.


	The cost of construction work is reflected in accordance with the Certificate of the cost of work performed and expenses (form No. KS-3) presented by the contractor


	Submitted to the budget for deduction of VAT on work performed by a third-party organization and contractor

Example

The organization is carrying out capital construction of the workshop by contract.

In April 2010, the contractor completed the next stage of construction work, for which documents were drawn up in form No. KS-2 “Certificate of acceptance of work performed” and No. KS-3 “Certificate of the cost of work performed and expenses” in the amount of 591,143 rubles, including VAT - 90,174.36 rubles, and an invoice is also provided.

The following entries must be made in the accounting:

No.	Content business transactions	Account correspondence		Amount, rub.
No.	Content business transactions	Debit	Credit	Private	General
	The cost of the stage of work completed and accepted by the contractor is reflected.


	Submitted to the budget for deduction of VAT on the stage of work completed and accepted by the contractor

2.2.2. Accounting for the economic method of construction

TO construction and installation work carried out in an economic way, refers to work carried out for its own needs by the developer’s own resources without the involvement of contractor construction and installation organizations.

In accordance with standard methodological recommendations for planning and accounting for the cost of construction and installation work, approved by the Ministry of Construction of Russia on December 4, 1995, No. BE-11-260/7, organizations are recommended to keep records of the costs of construction work under the following items:

Construction Materials;
wages of construction workers;
contributions for social needs;
depreciation of fixed assets;
expenses for maintenance of construction machinery and mechanisms (including depreciation of fixed assets);
overhead (general production and general business) expenses.

A construction organization can independently expand the range of cost items for construction work.

With the economic method, construction work can be carried out both by repair and construction shops and by capital construction departments (CCD). In the first case, all costs are preliminarily taken into account on account 23 “Auxiliary production”, subaccount “Repair and construction shop”.

Debit account 23 “Auxiliary production”, sub-account “Repair and construction shop”

Debit account 23 “Auxiliary production”, subaccount “Repair and construction shop”

Debit account 23 “Auxiliary production”, sub-account “Repair and construction shop”

Credit account 25 “General production expenses”

Until the completion of work at the construction site, all costs for construction and installation work, recorded in the debit of account 23, are work in progress. Upon completion of work on a construction site, all costs for its construction are written off from the account credit with entry 23:

Debit account 08 “Investments in non-current assets” subaccount 3 “Construction of fixed assets”.

Credit account 23 “Auxiliary production”, subaccount “Repair and construction shop”.

When construction is carried out by a special capital construction department, construction costs are reflected directly on account 08 “Investments in non-current assets”, subaccount 3 “Construction of fixed assets”.

At the same time, as expenses are incurred, entries are made:

Credit account 10 “Materials” – for the cost of materials used in construction;

Debit account 08 “Investments in non-current assets”, subaccount 3 “Construction of fixed assets”

Credit account 70 “Settlements with personnel for wages” - for the amount of accrued wages for employees engaged in construction;

Debit account 08 “Investments in non-current assets”, subaccount 3 “Construction of fixed assets”

Credit account 69 “Calculations for social insurance and security” - for the amount of contributions for social needs;

Debit account 08 “Investments in non-current assets”, subaccount 3 “Construction of fixed assets”

Credit account 02 “Depreciation of fixed assets” – for the amount of depreciation of fixed assets used during construction;

Debit account 08 “Investments in non-current assets”, subaccount 3 “Construction of fixed assets”

Credit account 25 “General production expenses”

Credit account 26 “General business expenses” – for the amount of overhead expenses.

In accordance with tax legislation construction and installation work performed in an economic way are considered as construction and installation work performed for one’s own consumption.

From January 1, 2001, according to Art. 146 of the Tax Code of the Russian Federation, the performance of construction and installation work for one’s own consumption is recognized as subject to VAT. In this case, the tax base is determined as the cost of work performed, calculated on the basis of all actual expenses of the taxpayer for their implementation.

The procedure for calculating VAT when performing construction and installation work for one’s own consumption has changed several times over the past 5 years. Until January 1, 2006, organizations had to charge VAT only on fully completed work, i.e. upon the creation of an object, and accordingly, VAT could also be deducted only upon the fact of registering an object. This procedure continues at the present time in relation to those works that were completed before 01/01/2006, but VAT in respect of which has not been claimed for deduction to date.

From January 1, 2006, in accordance with Federal Law No. 119-FZ dated July 22, 2005, VAT was calculated on the cost of construction and installation works based on the results of each tax period(month or quarter, and starting from 2008 - only quarter) based on the volume of work performed (clause 10 of article 167 of the Tax Code of the Russian Federation). Submission of VAT for deduction was carried out only upon payment to the budget of the tax calculated by the taxpayer when performing construction and installation work for his own consumption in accordance with Article 173 of the Tax Code of the Russian Federation (clause 5 of Article 172 of the Tax Code of the Russian Federation).

Starting from January 1, 2009, organizations ( individual entrepreneurs) in accordance with the amendments made by Federal Law dated November 26, 2008 No. 224-FZ in paragraph 5 of Art. 172 of the Tax Code of the Russian Federation has the right to make deductions for VAT when performing construction and installation works for one’s own consumption at the time of determination tax base for VAT, i.e. the moment of determining the tax base and the deduction coincide.

The specified procedure applies to construction and installation work completed after 01/01/2009. Tax amounts calculated earlier and not accepted for deduction before the specified date are subject to deduction in the manner previously in force, i.e. after transferring the VAT amounts calculated from the cost of construction and installation work to budget (clause 13, article 11 Federal Law dated November 26, 2008 No. 224-FZ).

Example

The organization carries out economic construction of a fixed asset facility intended for the production of products, the sale of which is subject to VAT. Construction costs were:

cost of materials - 212,400 rubles, including VAT - 32,400 rubles;
wages of construction department employees – 500,000 rubles;
the amount of deductions for social needs is 130,000 rubles;
insurance premiums for mandatory social insurance from accidents at work and occupational diseases - 15,000 rubles;
depreciation of fixed assets used in construction - 200,000 rubles;
the cost of services of third-party organizations for the construction of the facility is 118,000 rubles, including VAT – 18,000 rubles.

Operations for the construction of a fixed asset facility using an economic method are reflected in the organization’s accounting records by the following entries:

No.	Contents of business transactions	Account correspondence		Amount, rub.
No.	Contents of business transactions	Debit	Credit	Private	General
	Received materials are received into the warehouse


	Materials were transferred to the construction department
	Included in construction costs is the cost of services provided by third-party organizations for the construction of the facility.


	Paid debts to suppliers
	Wages accrued to employees of the construction department
	Insurance contributions to extra-budgetary funds and insurance contributions for compulsory social insurance against industrial accidents and occupational diseases have been assessed
	Depreciation of fixed assets used in construction has been calculated
	VAT is charged on construction and installation work performed in an economic way
	Transferred to the VAT budget
	Submitted to the budget for deduction of VAT on construction carried out using economic methods

2.2.3. Accounting for equipment requiring installation

Equipment that requires installation for a facility under construction can be purchased by both the customer and the contractor.

In the case of the purchase of equipment for construction directly by the customer when carrying out construction work by contract, as well as during construction by economic means, the developer (customer) carries out accounting for the acquisition, installation and commissioning of equipment for the purpose of installing it in objects under construction.

To account for equipment requiring installation, account 07 “Equipment for installation” is used.

Analytical accounting for account 07 “Equipment for installation” is carried out by equipment storage locations and individual items.

This account is maintained by construction organizations to reflect information on the availability and movement of technological, energy and production equipment, including equipment for workshops, pilot plants, laboratories, requiring installation and intended for installation in facilities under construction and reconstruction. Such equipment also includes equipment that is put into operation only after assembly and attachment to the foundation or supports, interfloor ceilings and other load-bearing structures of buildings and structures, as well as sets of spare parts for this equipment, instrumentation and other instruments intended for installation .

Equipment that does not require installation (vehicles, free-standing machines, construction machinery, agricultural machines, production equipment, production tools, measuring and other instruments) is not taken into account on account 07 “Equipment for installation”.

Primary accounting of equipment movement is carried out in the procedure established for accounting for materials, but using primary documents designed specifically for equipment accounting.

To register and record equipment received at the warehouse for the purpose of its subsequent use as an item of fixed assets, an act of acceptance (receipt) of equipment (form OS-14) is used.

The act is drawn up in two copies and signed by a commission appointed by order of the head of the organization to inspect and accept the equipment.

In the act, the commission indicates its conclusions about the condition of the equipment and the possibility of accepting it for accounting. The act is accompanied by accompanying documents (technical passport, operating instructions, waybill, etc.). The act is approved by the head of the organization or his authorized person.

If it is impossible to carry out high-quality acceptance of the equipment upon its arrival at the warehouse, the report form No. OS-14 is preliminary and is drawn up on the basis of an external inspection of the equipment.

When carrying out installation work by contract, the commission for acceptance of equipment may include a representative of the contract installation organization. In this case, a separate act for the transfer of equipment for installation is not drawn up. When receiving equipment for safekeeping, the authorized representative of the installation organization signs directly on the equipment acceptance (receipt) certificate, Form No. OS-14, and is given a second copy of the report.

In other cases, the transfer of equipment for installation is formalized by an act of acceptance and transfer of equipment for installation (form No. OS-15).

This act is drawn up in the case when the equipment for installation is transferred to the installation organization and previously, when accepting the equipment according to the act of form No. OS-14, a representative of the installation organization did not participate. The act is drawn up in two copies, the first of which is sent to the accounting department. The second copy of the act is handed over to the installation organization along with the equipment specified in the act.

If equipment defects are identified during its installation, adjustment or testing, as well as based on the inspection results, a report on the identified equipment defects is drawn up (Form No. OS-16).

The act notes the identified defects and specifies in detail the measures or work to eliminate the identified defects, as well as the performers and deadlines for completion. The act is drawn up in at least three copies and signed by representatives of the customer organization, installation organization and manufacturer. Each of the signing organizations receives its own copy of the report on identified equipment defects

Equipment requiring installation is accepted for accounting and reflected in account 07 “Equipment for installation” at the actual cost of acquisition, which is the sum of all costs associated with its acquisition and commissioning.

Costs associated with the acquisition and commissioning of equipment for a facility under construction include its cost according to suppliers' invoices, transportation costs for delivering equipment to the facility, as well as procurement and storage costs, including the amount of commissions paid to supply and foreign economic organizations; cost of commodity exchange services; amounts of customs duties, etc.

VAT on received equipment is not included in the cost of its acquisition and is not reflected on account 07. To account for VAT paid on the purchase of equipment for objects under construction, account 19 “Value added tax on acquired assets” is used, subaccount 1 “Value added tax on the acquisition of fixed assets”

The purchase of equipment for installation for a fee from other organizations and persons is reflected in the developer’s records by recording:

Credit account 60 “Settlements with suppliers and contractors.”

When receiving equipment from the founders as a contribution to the authorized capital of the organization, they make the following entry:

Debit account 07 “Equipment for installation”

Credit account 75 “Settlements with founders.”

The costs of delivering equipment requiring installation to the on-site warehouse and procurement and storage costs are also taken into account in advance on account 07 “Equipment for installation” by recording:

Debit account 07 “Equipment for installation”

Debit account 19 “Value added tax on acquired assets, subaccount 1 “Value added tax on the acquisition of fixed assets”

Credit account 60 “Settlements with suppliers and contractors.”

When carrying out construction and installation work in an economic way, the equipment transferred for installation is written off from the credit of account 07 “Equipment for installation” only after the installation work has begun at a permanent place for operation. At the same time make a note:

Debit account 08 “Investments in non-current assets”, subaccount 3 “Construction of fixed assets”

When constructing objects by contract, the customer transfers equipment for installation to the construction organization according to the equipment transfer certificate. In this case, the equipment continues to be accounted for by the customer in account 07 “Equipment for installation”, and for the construction organization it is accepted in the off-balance sheet account 005 “Equipment accepted for installation”.

After the construction organization has handed over the equipment for installation on the basis of certificates of completed work or inventory reports of construction work in progress, the cost of the equipment is written off from the customer from account 07 “Equipment for installation” by recording:

Debit account 08 “Investments in non-current assets”, subaccount 3 “Construction of fixed assets”

Credit account 07 “Equipment for installation”.

In this case, the contractor removes the cost of the equipment or its parts handed over for installation from off-balance sheet accounting, i.e., writes it off from account 005 “Equipment accepted for installation.

In the developer’s accounting, equipment handed over for installation is recorded on account 08 “Investments in non-current assets” according to actual expenses, starting from the month in which work began on its installation at a permanent place of operation (attachment to the foundation, floor, interfloor ceiling or other load-bearing structures of a building or structure) or large-scale assembly of equipment has begun.

The costs of installing equipment are recorded in a certificate of the volume of work performed on installing equipment (or in an inventory report), drawn up in the prescribed manner, and are reflected in the developer’s records with the entry:

Debit account 08 “Investments in non-current assets”, subaccount 3 “Construction of fixed assets”

Debit account 19 “Value added tax on acquired assets, subaccount 1 “Value added tax on the acquisition of fixed assets”

Credit account 60 “Settlements with suppliers and contractors.”

If the developer purchases equipment that does not require installation, then the developer’s costs associated with this are reflected in account 08 “Investments in non-current assets”, subaccount 3 “Construction of fixed assets” in the amount of supplier invoices accepted for payment by the entry:

Debit account 08 “Investments in non-current assets”, subaccount 3 “Construction of fixed assets”

Debit account 19 “Value added tax on acquired assets, subaccount 1 “Value added tax on the acquisition of fixed assets”

Credit account 60 “Settlements with suppliers and contractors.”

As noted, the amount of VAT charged to the organization when purchasing equipment for installation is taken into account on account 19 “Value added tax on acquired assets” and is not included in its cost.

The organization that purchases the equipment for installation can subsequently submit the VAT amount presented by the supplier for deduction when making payments to the budget.

In accordance with paragraph 1 of Art. 172 of the Tax Code of the Russian Federation, deductions of VAT amounts presented to the organization upon acquisition or paid upon import into the customs territory of the Russian Federation of fixed assets, including equipment for installation, are made in in full after they are registered.

In accordance with paragraph 5 of Art. 172 of the Tax Code of the Russian Federation, in the case when the equipment for installation was purchased by an organization to perform construction and installation work as part of the capital construction of a fixed asset facility, then the deduction of the amount of VAT presented by the supplier of the equipment must be carried out in the generally established manner.

In other words, VAT deduction in the latter case should be made on the basis of an invoice and as the purchased equipment is accepted for installation.

Thus, in in this case, in contrast to the previously existing procedure, deductions of VAT amounts should be made not after the completion of construction of fixed assets and their acceptance for registration, but in the generally established manner.

This norm applies to fixed assets, the construction of which began after January 1, 2006.

VAT amounts subject to tax deduction, are written off from the credit of account 19 “Value added tax on purchased assets” to the debit of account 68 “Calculations for taxes and fees”, subaccount 68-1 “Calculations for value added tax”.

The primary documents confirming the receipt of equipment for installation by the organization are:

supplier invoice and invoice for equipment to be installed;
invoices and invoices confirming the costs associated with the purchase and delivery of equipment for installation at the organization’s warehouse or other storage location;
payment and settlement documents indicating payment for equipment for installation and all costs associated with its acquisition and delivery;
act on acceptance (receipt) of equipment (form No. OS-14).

Example

The developer organization carries out capital construction by contract method. According to the contract, the construction equipment is provided by the developer. The developer's costs were:

the cost of equipment requiring installation is RUB 2,360,000, including VAT - RUB 360,000;
cost of services transport organization for the delivery of equipment requiring installation - 47,200 rubles, including VAT - 7,200 rubles.
wages accrued for unloading equipment requiring installation - 3,000 rubles;
deductions for social needs from wages for unloading equipment that requires installation - 780 rubles;
insurance contributions for compulsory social insurance against accidents and occupational diseases from wages for unloading equipment that requires installation - 90 rubles.
the cost of equipment installation work according to the contractor’s invoices is 590,000 rubles, including VAT – 90,000 rubles;
the cost of equipment that does not require installation is 944,000 rubles, including VAT – 144,000 rubles;
the cost of services of a transport organization for the delivery of equipment that does not require installation - 23,600 rubles, including VAT - 3,600 rubles;
wages accrued for unloading equipment that does not require installation - 2000 rubles;
deductions for social needs from wages for unloading equipment that does not require installation - 520 rubles;
insurance contributions for compulsory social insurance against accidents and occupational diseases from wages for unloading equipment that does not require installation - 60 rubles.

Operations for the acquisition and installation of equipment for a fixed asset facility under construction in the accounting records of the developer organization are reflected in the following entries:

No.	Contents of business transactions	Account correspondence		Amount, rub.
No.	Contents of business transactions	Debit	Credit	Private	General
	Equipment requiring installation has been received into the warehouse


	The cost of services for the delivery of equipment requiring installation is reflected


	Wages accrued for unloading equipment requiring installation
	Insurance contributions to extra-budgetary funds and insurance contributions for compulsory social insurance against accidents and occupational diseases are calculated from wages for unloading equipment that requires installation
	The cost of equipment transferred for installation has been written off
	The cost of equipment installation work is reflected


	The cost of equipment that does not require installation is included in construction costs


	The cost of services for the delivery of equipment that does not require installation is reflected.


	Wages accrued for unloading equipment that does not require installation
	Insurance contributions to extra-budgetary funds and insurance contributions for compulsory social insurance against accidents and occupational diseases are calculated from wages for unloading equipment that does not require installation
	Transferred from the current account to repay debts to suppliers and contractors
	Submitted to the budget for VAT deduction on purchased equipment

Sources of financing for long-term investments, depending on their ownership, are divided into own and attracted.

Organizations' own funds, which are a source of financing long-term investments, include:

depreciation charges for fixed assets and intangible assets in operation;
net profit remaining at the disposal of organizations after payment of income tax and other similar payments;
insurance compensation received to cover losses and damages from insured events resulting from loss and damage to property, etc.

Funds raised include:

bank loans, loans;
facilities off-budget funds, facilities federal budget provided on a non-refundable and refundable basis;
funds received from shareholders equity participation in construction.

The use of own sources to finance long-term investments is not reflected in synthetic accounting.

Accrued amounts depreciation charges for fixed assets and intangible assets are recorded in accounts 02 “Depreciation of fixed assets” and 05 “Depreciation of intangible assets”. According to the Instructions for the application of the Chart of Accounts for accounting financial and economic activities of organizations, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 No. 94n, the amounts of accrued depreciation are written off from these accounts only in the event of disposal of fixed assets and intangible assets.

Insurance compensation received (receivable) to cover losses and damages from insured events resulting from loss and damage to property are included in other income that forms the profit of the organization.

The use of retained earnings to finance long-term investments is reflected only in analytical accounting. At the same time, in analytical accounting, organizations can separate funds of retained earnings used as financial security for the acquisition (creation) of new property, and accrued but not used for the specified purposes.

Accounting for funds raised to finance long-term investments is carried out in the following order.

Borrowed funds raised to finance capital construction, received under loan or credit agreements, are reflected in the borrower’s accounting records under the credit of account 67 “Settlements for long-term loans and loans" (when receiving funds for a period of more than 1 year) or a credit to account 66 "Settlements for short-term loans and borrowings" (when receiving funds for a period of less than 1 year). Borrowed funds are reflected in the borrower's accounting upon receipt of the corresponding monetary or material resources in correspondence with the debit of the accounts.

When using credits and borrowings, the amount of credit or loan received to finance long-term investments is reflected in the accounting records as follows:

Debit account 51 “Current accounts”

Interest on loans and borrowings received for the construction of facilities in accordance with the requirements of paragraphs 7, 8 of PBU 15/2008, accrued before the completion of construction and commissioning of the facility, are included in construction costs with a simultaneous increase in obligations under the loan or loan by recording:

Debit account 08 “Investments in non-current assets”

Credit account 66 “Settlements for short-term loans and borrowings”

Credit account 67 “Calculations for long-term loans and borrowings.”

Interest accrued after completion of construction and commissioning of the facility is included in other expenses.

Interest is calculated and accepted for accounting within the time limits specified provided for by the contract borrowing or lending.

Settlements with suppliers and contractors for operations related to the acquisition and creation of property, using funds received from a loan or loan, are reflected in the accounting records as follows:

When repaying debt on loans and borrowings, an entry is made in accounting:

Debit account 66 “Settlements for short-term loans and borrowings”

Debit account 67 “Calculations for long-term loans and borrowings”

Credit account 51 "Current accounts".

Funds received to finance capital investments from the budget and extra-budgetary funds on a repayable basis are taken into account in the same manner. In this case, the amount of funds received on a repayable basis is subject to separate storage in a special bank account and is reflected in accounting as the debit of account 55 “Special accounts in banks.”

If funds from the budget and extra-budgetary funds are received on a non-refundable basis, then they are subject to accounting as targeted funding. The following entries are made in accounting:

Debit account 76 “Settlements with various debtors and creditors”

Credit account 86 “Targeted financing”

–reflects the amount of funds for targeted financing of long-term investments;

Debit account 55 “Special bank accounts”

Credit account 76 “Settlements with various debtors and creditors”

– reflects the amount received Money in the order of targeted financing;

Debit account 60 “Settlements with suppliers and contractors”

Credit account 55 “Special bank accounts”

– settlements were made with suppliers and contractors for operations related to the acquisition and creation of property.

The use of targeted financing in accounting is reflected after the commissioning of fixed assets. In this case, the funds used are included in deferred income:

Credit account 98 “Deferred income”.

As depreciation accrues, a portion of future income in an amount corresponding to the amount of accrued depreciation is included in other income:

Debit account 98 “Deferred income”

Credit account 91 “Other income and expenses.”

Funds received from shareholders with shared participation in construction are also taken into account as part of targeted financing. In this case, the use of targeted financing funds is reflected after completion of construction when the corresponding part of the constructed facility is transferred to the shareholder. In this case, an accounting entry is made:

Debit account 86 “Targeted financing”

Credit account 08 “Investments in non-current assets”.

If the funds received as targeted financing exceed the cost of the transferred construction project, the difference is returned to the shareholder:

Debit account 86 “Targeted financing”

Credit account 55 “Special bank accounts.”

On the balance sheet commercial organizations sources of financing long-term investments are reflected as part of short-term (long-term) liabilities or as part of deferred income.

2.4. Accounting for completed construction

The completed construction facility is subject to handover to the state acceptance committee. The preparation of the construction project for delivery is carried out by the customer-developer with the involvement of designers and contractors. Acceptance of completed construction projects is carried out in two stages.

At the first stage, the customer and the designer accept the completed construction site from the contractor. Based on the acceptance results, an acceptance certificate for the completed construction of the facility is drawn up in form No. KS-11, approved by Resolution of the State Statistics Committee of Russia dated October 30, 1997 No. 71a. This document confirms the contractors’ final fulfillment of their obligations under the work contracts and serves as the basis for final settlements with them.

At the second stage, the object is handed over to the state acceptance commission. Acceptance committee created by decision local administration, on the territory and with whose permission the construction of the accepted facility was carried out. The commission, in addition to the handing over party and representatives of the administration, also includes (depending on the purpose of the facility) specialists who are able to establish the readiness of the completed facility for safe operation in accordance with the established design requirements. technical documentation mode. Based on the results of acceptance of the object, the commission members sign the acceptance certificate for the completed construction of the object in form No. KS-14, approved by Resolution of the State Statistics Committee of Russia dated October 30, 1997 No. 71a. This document serves as the basis for putting the facility into operation.

After receiving the act of the State Commission, the owners of the real estate object declare their rights to the constructed object to the State Bureau of Registration of Rights to the completed object or share of the object and, after receiving the Certificate of Ownership, accept the object for accounting as part of fixed assets with reflection in the debit of account 01 “Fixed Assets” in correspondence with the credit of account 08 “Investments in non-current assets”, subaccount “Construction of fixed assets”.

conclusions

Organizations invest funds in order to increase the volume of functioning capital. Long-term investments are associated with various types activities, including capital construction. Accounting for long-term investments in capital construction is carried out by the developer. With the contract and economic methods of capital construction, the documentation and the procedure for recording costs are different. The procedure for recording equipment purchased for installation in facilities under construction depends on whether the equipment requires installation or not. The rules for accounting for VAT paid when carrying out capital construction by contract and business method when purchasing equipment are determined Tax Code RF. Financing of long-term investments can be carried out using own and borrowed funds. The use of own funds is not reflected in accounting. The procedure for accounting for the use of raised funds depends on their type.

Self-test questions

Define long-term investment.
Name the types of long-term investments.
State the objectives of accounting for long-term investments.
How are long-term investments assessed?
Describe account 08 “Investments in non-current assets”.
Where are unfinished long-term investments reflected on the balance sheet?
How are construction costs grouped in accounting in accordance with the technological structure of costs determined by the estimate documentation?
Define contract and economic construction methods.
How are the costs of contract construction of fixed assets reflected in accounting?
How are the costs of constructing fixed assets in an economic way reflected in accounting?
What is the procedure for recording equipment that requires and does not require installation?
Name your own sources of financing long-term investments.
Name the attracted sources of financing for long-term investments.
How is the use of loans and borrowings received to finance long-term investments recorded?
How are funds received to finance long-term investments from the budget and extra-budgetary funds on a repayable and non-refundable basis accounted for?

Bibliography

Tax Code of the Russian Federation.
Accounting Regulations “Accounting for Agreements (Contracts) for Capital Construction” PBU 2/94: Approved. by order of the Ministry of Finance of the Russian Federation dated December 20, 1994 No. 167.
Regulations on accounting of long-term investments, approved. by letter of the Ministry of Finance of the Russian Federation dated December 30, 1993 No. 160.
Accounting Regulations “Accounting for Fixed Assets” PBU 6/01, approved. by order of the Ministry of Finance of the Russian Federation dated March 30, 2001 No. 26n (taking into account subsequent amendments and additions).
Chart of accounts for financial and economic activities of organizations and Instructions for its application, approved. by order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n (taking into account subsequent amendments and additions).
Unified forms primary accounting documentation for accounting of fixed assets, approved. Resolution of the State Statistics Committee of Russia dated January 21, 2003 No. 7.
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Investments in which accounts are taken into account. Accounting for long-term investments and financial investments. Long-term investments, their composition and characteristics

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Topic 5. Accounting for long-term investments and financial investments

5.1. Long-term investments, their composition and characteristics.

Accounting for fixed assets.

Sources of financing for long-term investments

Disclosure of information about long-term investments in financial statements

2.2. Accounting for long-term investments in capital construction

2.2.1. Accounting for contract construction

2.2.2. Accounting for the economic method of construction

2.2.3. Accounting for equipment requiring installation

2.4. Accounting for completed construction

conclusions

Self-test questions

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