Explanatory note to balance sheet- is it required in the composition annual reports, who should compile it and who may not, and most importantly, what does it look like? We will talk about this in our article.
Why explain the balance?
Reporting must be reliable and complete and provide the user with a clear picture financial situation organizations. In the balance sheet and Form 2 we present generalized indicators, from which, as a rule, it is difficult to draw comprehensive conclusions. This means that they need to be explained.
Let’s take the line “Accounts receivable” as an example. To put this figure in the report, you need not only to collect the balances of all settlement accounts, but also to take into account the amount of the reserve for doubtful debts (if any). It is not shown separately in the balance sheet, and interested users (owners, investors, regulatory authorities) need additional explanations in this regard.
All organizations must formulate explanations, with the exception of:
- small enterprises entitled to simplified accounting and reporting;
- public organizations that do not conduct business activities and have no sales.
Moreover, explaining the balance is in the interests of everyone who cares about their reputation. The more fully the figures from the report are disclosed, the more transparent the company’s activities will appear. Such reporting will help not only strengthen your credibility, but also attract new investors. Explanations on the balance sheet will also help avoid unnecessary questions from regulatory authorities.
Read about the requirements for accounting reporting in the material “What requirements must accounting satisfy?” .
NOTE! In paragraph 39 of PBU 4/99 (approved by paragraphResolution of the Ministry of Finance of the Russian Federation dated July 6, 1999 No. 43n) it is determined that companies have the right to provide along with reports Additional information, if it is useful to external users of the reporting. At the same time, the Ministry of Finance believes that companies are obliged to disclose information related to accounting reporting (information of the Ministry of Finance dated December 4, 2012 No. PZ-10/2012).
What information does the balance sheet note contain?
Usually, no explanations are provided separately for the balance sheet alone. Since it is not compiled alone, but as part of the reporting, an explanation is given immediately for all submitted reports.
Read about the reporting features of companies using the simplified tax system in the material “How to fill out a balance sheet using the simplified tax system?” .
It should be noted that all traditional reports decipher some lines of the balance sheet, that is, they are also its explanations.
So, from the report on financial results we learn about the size net profit for the period, and it is an integral part of the line “ retained earnings (uncovered loss)" balance.
Traffic report Money provides information on how the line indicator “Cash and cash equivalents” is formed (broken down by area of activity).
The statement of changes in capital deciphers the information reflected in section 3 of the balance sheet.
The remaining lines also require decoding and explanation. They are usually presented in the form of tables - they are convenient and visual. You can develop their form yourself, or you can use it already ready-made samples- they are in Appendix 3 to the order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n.
NOTE! Order No. 66n contains an example of preparing explanations for balance sheet information about intangible assets, R&D, fixed assets, financial investments, inventories, debts to debtors and creditors, estimated liabilities Oh, state aid.
What does a sample explanatory note to the balance sheet look like?
There is no single sample of explanations for the balance sheet. Everyone explains what they consider necessary and useful for reporting users.
We'll show you what an explanation of a balance sheet might look like using an example.
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Explanations to the balance sheet JSC "Symphony" for 2018 1. General information Joint Stock Company (JSC) "Symphony" was registered by the Federal Tax Service No. 6 for Moscow on October 29, 2009. (The following information can be provided: OGRN, INN, KPP, details of the certificate of state registration, address.) The balance sheet is formed in accordance with the rules in force in the Russian Federation accounting and reporting (if the balance sheet is prepared according to IFRS, this must be indicated). Authorized capital: 1,000,000 (one million) rubles. Number of shares: 1,000 pieces with a par value of 1,000 (one thousand) rubles. Main activity: milk processing and cheese production (OKVED 10.51). Composition of affiliates: Steklov Andrey Anatolyevich - member of the board of directors; Zavarzin Stepan Nikolaevich - member of the board of directors. 2. Basic accounting policies The accounting policy was approved by order of the director dated December 25, 2017 No. 156 (the following is a brief summary of its main provisions: depreciation methods, methods for assessing assets and liabilities, etc.). 3. Balance sheet structure (each line is shown as a percentage of the balance sheet currency, changes for the period are calculated). 4. Cost estimation net assets (the value of net assets is correlated with the authorized capital). 5. Analysis of the main financial indicators (indicated financial ratios: liquidity, supply of reserves, autonomy, return on assets, etc.; this section analyzes the degree of dependence on creditors, the position on the market valuable papers etc.). 6. Composition of fixed assets (rub.):
7. Estimated liabilities and provisions As of December 31, 2018, an estimated liability for payment of regular vacations was formed in the amount of RUB 1,426,000, the number of unpaid vacation days is 67, the due date is 2019. The reserve for doubtful debts was formed in the amount of RUB 1,678,000. due to the presence of overdue and unsecured debt of Quiet Dawns LLC. A reserve for impairment of the value of inventories was not created due to the absence of signs of impairment of inventories. 8. Labor and wages Payables for wages as of December 31, 2018 amounted to RUB 1,679,000. (for December 2018, payment deadline: 01/15/2019). Personnel turnover in the reporting period was 24.98%, the payroll number was 167 people. Average monthly salary— 20,675 rub. 9. Issued and received security and payments (all their types are indicated). 10. Other information (A list of extraordinary facts, their consequences, a description of significant facts that influenced the balance sheet indicators committed major transactions, events after the reporting date, adjustments made and other relevant information.) Director of JSC "Symphony" Devyatov Devyatov A. N. 03/20/2019 |
Results
Explanations to the balance sheet are allowed to be drawn up in any form. They may contain tables, graphs and charts. The detail of information in them is permissible in a wide variety of ways - it all depends on the company’s intention to disclose in a certain way any important indicators. The main thing is that the information contained in the explanations is reliable and useful for users.
The main purpose of compiling explanatory note– decoding of indicators financial statements. A well-written explanatory note will place inspectors in favor of your company, make it much easier to submit your balance sheet, and reduce the likelihood of an extraordinary tax audit.
Explanations to the balance sheet and financial results statement may consist of two parts - tabular and text. To reflect quantitative data, it is more convenient to use the tabular form given in Appendix No. 3 to Order No. 66n of the Ministry of Finance of Russia dated July 2, 2010.
The numbers of explanations are indicated in column 1 (“Explanations”) of the balance sheet.
If the information presented in tabular form is not enough to reveal the picture as fully as possible financial condition organizations (and this is exactly what happens most often) additionally provide explanations in text form.
In the application it is advisable to disclose:
Fixed assets
Section 2 of the notes to the balance sheet and income statement consists of four tables.
2.1. Availability and movement of fixed assets.
2.2. Unfinished capital investments.
2.3. Changes in the value of fixed assets as a result of completion, additional equipment, reconstruction and partial liquidation.
2.4. Other use of fixed assets.
Table 2.1 contains information about availability and company. The data in the columns of the table is reflected separately for fixed assets, separately for profitable investments in material values. The information is provided broken down into groups of fixed assets and income-generating investments, respectively. The data is for the reporting and previous years.
The presence of groups of fixed assets and income-generating investments is reflected in the columns “At the beginning of the year” and “At the end of the period.” The amount of accumulated depreciation must also be entered here.
In the column “Changes for the period” you should enter information about the receipt, disposal, revaluation of groups of objects, as well as the amount of depreciation accrued on them.
Please note: in case of revaluation of objects in the columns “Original cost” the current market price or current (replacement) cost.
EXAMPLE. REFLECTION OF OS AND INCOME INVESTMENTS
Fixed assets
At the beginning of the reporting year, a building and a car used by the administration were listed on the balance sheet of JSC Aktiv.
Their initial cost was respectively 1,000,000 rubles. and 180,000 rubles, and accrued depreciation – 240,000 rubles. and 36,000 rub.
Besides, in reporting year"Aktiv" built a warehouse with an initial cost of 1,300,000 rubles.
The amounts of depreciation accrued on existing and acquired assets in the reporting year were:
For a car – 24,000 rubles;
For buildings – 64,000 rubles.
Profitable investments
Let’s assume that the main activity of JSC Aktiv is rental passenger cars. At the beginning of the reporting year, the company had 10 rental cars with a total initial cost of 1,000,000 rubles.
The amount of depreciation accrued on them was 250,000 rubles. During the reporting year, it increased by another 200,000 rubles.
In June of the reporting year, Aktiv bought another car worth 180,000 rubles. (excluding VAT). For the year, depreciation was accrued on it in the amount of 18,000 rubles.
The total amount of depreciation accrued for reporting period, amounted to 218,000 rubles. (200,000 + 18,000).
Thus, depreciation is accrued in the amount of:
At the beginning of the reporting year - 250,000 rubles;
At the end of the reporting year - 468,000 rubles. (250,000 + 200,000 + 18,000).
The accountant will fill out Table 2.1 as shown on page 34 (to simplify the example, data for last year are not given).
Table 2.2 reflects the cost of unfinished capital investments.
Unfinished capital investments include:
- unfinished operations for acquisition, modernization and other similar actions with fixed assets. The information is provided broken down into groups of fixed assets. Data is entered for the reporting and previous years.
Capital investments are reflected in columns with a breakdown of “At the beginning of the year,” “Changes during the period,” and “At the end of the period.”
Let us remind you that in the balance sheet form there is no line to reflect information on unfinished capital investments. Therefore, such information is reflected in line 1170 “Other non-current assets”.
On line 1140, costs for unfinished capital investments cannot be indicated, since they do not meet the requirements according to which the asset is taken into account as an item of fixed assets (clause 4 of PBU 6/01).
Table 2.3 should contain data on changes as a result of completion, additional equipment, reconstruction and partial liquidation.
The rows of the table separately indicate the increase and decrease in the value of fixed assets. An increase can occur as a result of completion, additional equipment and reconstruction, and a decrease can occur due to partial liquidation.
Information about an increase or decrease in value is indicated for each value of which has changed.
The data in the columns of Table 2.3 are for the reporting and previous period s.
Table 2.4 reflects information about other uses of the company's fixed assets. Here, in particular, information about the cost is indicated:
- fixed assets that are leased or leased and are listed both on the company’s balance sheet and behind it;
- fixed assets transferred for conservation;
- real estate that has been put into operation and is actually used, but is under state registration;
- others (for example, transferred or received as collateral, but used by the company).
The columns of Table 2.4 indicate their cost:
- on reporting date(column 2);
Accounts receivable and payable
This section details the firm's accounts receivable and accounts payable. It consists of four tables.
5.1. Availability and movement accounts receivable.
5.2. Overdue accounts receivable.
5.3. Availability and movement accounts payable.
To fill out the tables, use the data on the settlement accounts:
- 60 “Settlements with suppliers and contractors”;
- 62 “Settlements with buyers and customers”;
- 63 “Provisions for doubtful debts”;
- 66 “Calculations according to short-term loans and loans";
- 67 “Settlements for long-term loans and borrowings”;
- 68 “Calculations for taxes and fees”;
- 69 “Calculations according to social insurance and provision";
- 70 “Settlements with personnel for wages”;
- 71 “Settlements with accountable persons”;
- 73 “Settlements with personnel for other operations”;
- 75 “Settlements with founders”;
- 76 “Settlements with various debtors and creditors.”
First, divide all debts according to their repayment periods into short-term (must be paid within the 12 months following the reporting date) and long-term (with a repayment period of more than a year).
When filling out this section of the explanations to the balance sheet and the income statement, in the column “At the beginning of the year”, reflect the balance of the relevant accounts as of January 1 of the reporting year: – debit, for accounts payable – credit.
In the “At the end of the period” column, indicate the balances of receivables and payables as of the end of the reporting year. The column “Changes for the period” reflects the receipt and disposal of debts, as well as the transfer of debt from long-term to short-term.
EXAMPLE. REFLECTION OF INFORMATION ABOUT DEBT
Last year, Aktiv JSC issued an interest-free loan to an employee in the amount of 50,000 rubles. for a period of two years with the condition of lump sum repayment. This operation was reflected in accounting by posting:
Debit 73, subaccount “Long-term accounts receivable” Credit 50
- 50,000 rub. – an interest-free loan was provided.
At the beginning of the reporting year, these receivables were reflected as part of outside current assets balance sheet, and at the end of the reporting year (reporting date) the accountant transferred it to current assets. In analytical accounting, this operation is reflected by the entry:
Debit 73, subaccount “Short-term receivables” Credit 73, subaccount “Long-term receivables”
- 50,000 rub. – transfer from long-term to short-term debt.
In this case, the corresponding fragment of table 5.1 “Assets” will look like this.
The Russian Ministry of Finance recommends not reflecting in Table 5.1 debts received and repaid (written off) in the reporting year. Therefore, include in this table only those receivables and payables that are not repaid at the end of the reporting year. For example, it is not necessary to reflect debit and credit turnover on account 70 “Settlements with personnel for wages”. Therefore, the accountant should focus on the balances as of January 1, 2016, tracking their disposal, and also reflect the receipt of debts that you have as of December 31, 2016.
Table 5.2 reflects information on overdue receivables. Data on debt is indicated by its type. The columns indicate the amount of debt accounted for under the terms of the agreement and the book value.
The book value is the value under the terms of the contract, reduced by the amount created for it.
- at the reporting date (column 2);
- 31th of December previous year(column 3);
- December 31 of the year preceding the previous one, i.e. the year before last (column 4).
Table 5.3 is intended to reflect data on the availability and movement of accounts payable. It is filled out in the same way as Table 5.1.
Table 5.4 reflects information on overdue accounts payable.
The columns contain the following data:
- at the reporting date (column 2);
- December 31 of the previous year (column 3);
- December 31 of the year preceding the previous one, i.e. the year before last (column 4).
Explanations in text form
It is advisable to include essential information in the text part of the explanations:
- about your company;
- about her financial situation;
- on the comparability of data for the reporting and preceding years;
- on valuation methods and significant items of financial statements;
- about deviations from the accounting rules, if following them did not allow you to reliably reflect the property status and financial results of your company (clauses 6 and 37 of PBU 4/99);
- about changes in accounting policy companies for the next reporting year;
- O financial activities, for example, purchasing shares of other enterprises;
- about investment activities companies, for example, on the development of material and technical base;
- on subsidiaries and dependent companies (Articles 105 and 106 of the Civil Code of the Russian Federation);
- about the reorganization of the company;
- about events after the reporting date.
Information about the company's activities
In this section you can give:
- a brief description of the size and structure of the company;
- a brief description of it common species activities;
- sales volumes of products, goods, works, services by type and geographic markets;
- emergency data economic activity and their consequences;
- information about business activity organizations;
- resource efficiency indicators, etc.
If possible, present the information over time (over several years). In this case, indicate the factors that influenced the financial results of the company in the reporting year.
The size of a company (scale of business) can be partly judged by the size of its workforce, the size of production space and other resources.
Briefly describe the production structure of the organization: its production, workshops, services, as well as branches and representative offices.
When characterizing the company's activities by type, do not skimp on details. Provide information:
- on the range and volumes of products produced (work performed, services provided) for the reporting and previous years;
- about the directions of its investments;
- about plans to expand or change the industry and species structure activities of the company.
When disclosing information on sales volumes of products (goods, works and services) by type, provide not only general data, but also information broken down by the main geographic sales areas.
If extraordinary events occurred in the past year, describe them in the explanations. This could be a fire, flood, technological accident, theft of property and other similar situations.
Reflect also economic consequences of these incidents: the amount of direct damage and liquidation costs, the amount of compensation received from the guilty citizens and organizations or from insurance companies, etc.
The business activity of the company is evidenced by the following data:
- the presence of contracts for export supplies, indirectly confirming the quality of products (works, services) and the breadth of sales markets;
- the presence of well-known clients purchasing the company’s products, works and services;
- participation of the company in research and development work, the effectiveness of such activities;
- carrying out environmental and other similar activities.
Beneficial Ownership Information
Since the end of last year, the company has had a new responsibility. According to Federal Law No. 215-FZ dated June 23, 2016, all companies are required to keep information about their companies and document the accuracy of this data.
Thus, the Federal Law of 08/07/2001 No. 115-FZ (hereinafter referred to as Law No. 115-FZ) “On combating the legalization (laundering) of proceeds from crime and the financing of terrorism” added Article 6.1 “Obligations of a legal entity to disclose information about their beneficial owners”, according to which individuals and legal entities new rights and responsibilities appeared.
Clause 7 new article It has been established that information about the beneficial owners of a company is disclosed in its financial statements. Therefore, in the financial statements for 2016 you should pay attention to Special attention to disclose information about their beneficial owners.
The beneficial owner is individual which ultimately directly or indirectly (through third parties) owns (has a predominant participation of more than 25% in the capital) the client - a legal entity or has the ability to control the actions of the client (Article 3 of Law No. 115-FZ). Unlike Law No. 115-FZ tax code uses the term " interdependent persons».
EXAMPLE. REFLECTION OF INFORMATION ABOUT BENEFICIARIES
I. P. Sidorov owns 51% of shares in Alfa JSC. In turn, Alpha is the owner of 60% of the shares in Gamma JSC. Since I.P. Sidorov does not directly own shares of JSC Gamma, his participation in the capital of this company should be considered indirect. The share of Sidorov’s indirect participation in Gamma JSC will be: 0.51 × 0.6 = 0.306 or 30.6%. Consequently, Sidorov has a predominant participation in the capital (more than 25%) and meets the characteristics of the beneficial owner of Gamma JSC.
1) have information about their beneficial owners and take reasonable and accessible measures in the current circumstances to establish the following information in relation to their beneficial owners:
- Full Name;
- citizenship;
- Date of Birth;
- details of the identity document;
- details of the migration card, document confirming the right foreign citizen or stateless persons to stay (reside) in the Russian Federation;
- address of place of residence (registration) or place of stay;
- Taxpayer Identification Number (if available).
If it is impossible to easily determine the beneficiary, then to be on the safe side you need to have evidence confirming that the company has taken measures to identify him.
According to the explanations of Rosfinmonitoring of the Russian Federation, documents confirming the adoption of such measures may be copies of requests to the founders and responses to them:
2) regularly, but at least once a year, update information about their beneficial owners and document the information received;
3) store information about their beneficial owners and the measures taken to establish them for at least five years from the date of receipt of such information;
4) provide available documented information about their beneficial owners or about measures taken to establish information regarding their beneficial owners upon request authorized body, tax authorities or other federal body executive power authorized by the Government of the Russian Federation.
For failure to comply with the above requirements, administrative penalty(Article 14.25.1 of the Code of Administrative Offenses of the Russian Federation):
- For officials– from 30,000 to 40,000 rubles;
- for legal entities – from 100,000 to 500,000 rubles.
Budgetary and autonomous institutions submit an Explanatory Note to the Balance Sheet of the institution as part of their annual and quarterly financial statements. 0503760. We will tell you about the composition of the forms, the procedure and deadlines for filling out the Explanatory Note f. 0503760. Since reporting for 2018, several forms of information in the explanatory note have been updated.
Submit an explanatory note (f. 0503760) as part of the annual and quarterly reports. Form 0503760 consists of a text part, five tables and twelve reporting forms (applications), which are grouped into sections.
Download form 0503760 in word, and below you will find an example of filling out the Explanatory Note.
For quarterly reporting in 2018, submit forms: 0503760, 0503779, 0503295, 0503769 (except for the 1st quarter), 0503793 (if established by regional and local authorities).
Form 0503760 Explanatory note to the institution’s balance sheet: example of filling
To submit the Explanatory Note to the Institution's Balance Sheet without errors, see the example of form 0503760. Download a sample of filling out the Explanatory Note f 0503760. Inside you will find the text part, all the tables and main appendices.
The procedure for filling out the explanatory note f. 0503760
Note! Since reporting for 2018, some forms in the explanatory note have changed. Use the reporting guide for 2018 with updated forms in the State Finance System
For detailed instructions on filling out the new Explanatory Note form, see the cheat sheet. Next, we will look at the composition of the form.
The composition of the explanatory note of budgetary and autonomous institutions is determined by paragraph 56 of Instruction No. 33n. In general, the explanatory note to the Balance Sheet of the institution f. 0503760 is a set of tables and applications, combined according to the appropriate criteria into information blocks. Let's take a closer look at form 0503760: instructions for filling out.
Text part– this is the initial part of the Explanatory Note (f. 0503760). In it, reflect information about the institution that is not grouped into tables and reporting forms (applications):
- name of the institution, its legal and postal address;
- organizational and legal form;
- information about the founder;
- kinds financial security activities;
- numbers of personal and bank accounts that are opened with the FC authority or credit institutions;
- information about the owner of the property;
- who does the accounting: institution or centralized accounting;
- information that the founder established and about events after the reporting date. Including describe the events that were not reflected in the accounting due to late documents. It is enough to indicate such an event in the text part 0503760 and provide its monetary value;
- other material information that is not included in the tables and appendices.
In section 1 “Organizational structure of the institution” include:
- information about the main activities (Table No. 1);
- about quantity separate divisions(f. 0503761);
- in the text part - information that is not included in the tables and appendices. This is information that influenced the results of operations and characterizes organizational structure institutions. For example: the presence of a supervisory board, changes in the composition of powers to approve plans, the number of separate divisions, etc.
In section 2 “Results of the institution’s activities”:
- information on the results of the institution’s activities in fulfilling the state (municipal) task (f. 0503762);
- in the text part - information that influenced the results of activities and characterizes the organizational structure of the institution. For example, about measures to improve the skills of specialists and resources: staffing and actual number of employees, total cost property, structure of OTsDI and real estate, volumes of purchases, etc.
In section 3 “Analysis of the report on the institution’s implementation of its activity plan,” include:
- information on the implementation of activities within the framework of subsidies for other purposes and for the purpose of capital investments (f. 0503766);
- use of targeted foreign loans (f. 0503767);
- in the text part - information that influenced the results of the institution’s activities and characterizes the institution’s execution of the plan. For example, about accepted and monetary obligations, the fulfillment of which is envisaged in the following years.
In section 4 “Analysis of institution reporting indicators”:
- information on the movement of non-financial assets of the institution (f. 0503768);
- accounts receivable and payable of the institution (f. 0503769);
- financial investments of the institution (f. 0503771);
- amounts of borrowings (f. 0503772);
- changes in balance sheet currency balances (form 0503773);
- accepted and unfulfilled obligations (f. 0503775);
- performance court decisions By monetary obligations institutions (f. 0503295);
- the institution’s cash balances (f. 0503779);
- in the text part - information that is not included in the tables and appendices. For example, indicate the reasons that influenced the amount of cash balances in accounts, information about damage and theft in the institution.
In section 5 “Other issues of the institution’s activities” include:
- information about the specifics of the institution’s accounting (Table No. 4).
Download an example of filling out table 4 of the explanatory note of form 0503760; - results of internal state (municipal) activities financial control(Table No. 5);
- carrying out inventories (Table No. 6);
- results of external state (municipal) financial control (Table No. 7).
Download an example of filling out table 7 of the explanatory note f 0503760; - a list of forms that are not included in the financial statements due to the lack of numerical values of indicators in them;
- in the text part - information that is not included in the tables and appendices.
Above you can download a sample explanatory note to the balance sheet budgetary institution forms 0503760.
Sample of filling out form 0503760: text part of the Explanatory Note
Form 0503760 Table 5: example of filling
When preparing an explanatory note to the annual financial statements f. 0503760 it is necessary to fill out table No. 5 “Information on the results of internal control measures.” In this table, reflect information about the results of activities on internal control that were carried out in the reporting period. In this case, in column 1 of the table, indicate the type control event(preliminary, subsequent, current), and in column 4 - measures taken to eliminate violations.
Sample table 5:
Information (f. 0503762)
Information on the results of the institution’s activities in fulfilling the state (municipal) task (f. 0503762) contains information corresponding to the name in the context of planned and actual indicators.
In form 0503762, fill in the data on the state (municipal) services that the institution performed within the framework of the state task: code, name, unit of measurement, physical and cost indicators of performance. If the state (municipal) task has not been completed or has not been completed in full, indicate the reasons for this.
Information (f. 0503769)
In the Information (f. 0503769), indicate generalized data on the status of settlements for receivables and payables for the reporting period. 0503769 draw up separately for all types of financial security and separately for receivables and payables.
Information (f. 0503775)
In the Information (f. 0503775), indicate information about unfulfilled obligations, as well as cost savings, grouping the data into four sections: analytical information about
- unfulfilled obligations;
- unfulfilled monetary obligations;
- expenditure obligations incurred in excess approved plan FHD;
- savings when concluding contracts using competitive methods.
Information (f. 0503790)
From reporting for 2017 introduced new uniform Information about unfinished construction projects, investments in real estate of a budgetary (autonomous) institution (f. 0503790). In the form, please indicate in particular:
- in column 4 the code of the capital investment object;
- 5 – cadastral number of the real estate property;
- 6 – accounting number of the capital investment object as of the reporting date, assigned by the institution;
- 7 – object account number assigned by the previous balance holder
- 8 – object status code. For example, 02 the object is mothballed, 04 – construction of the object has not begun, etc.;
- column 12 indicates the reason why construction was stopped or terminated;
- column 16 – size estimated cost construction (reconstruction) as of the reporting date according to design and estimate documentation.
How to check the form? The indicator in line 600 of column 17 must correspond to line 091 of column 6 of the Balance Sheet (form 0503730) minus the indicator of line 170 of column 4 of section 1 of the Information (form 0503768). And the line indicator is 600, column 20 equal to string 091 column 10 of the Balance Sheet (form 0503730) minus line 170 column 11 of section 1 of form 0503768.
The rules by which the organization's financial statements are prepared were approved by Order of the Ministry of Finance No. 43n dated July 6, 1999. PBU 4/99 defines the structure of the documentation. An explanatory note to the balance sheet serves as its integral elements. Let's look at this document in detail.
General information
As mentioned above, the financial statements of an organization include several elements. These include:
- Audit report. It confirms the accuracy of the balance. The conclusion is provided by those enterprises for which, according to the standards, a mandatory audit is provided.
- Final document on financial results.
- Balance sheet.
- Explanations.
- Applications.
Explanatory note to the balance sheet
This document discloses the information present in the final accounting documents. The explanatory note to the balance sheet must contain information about:
Important point
The explanatory note to the balance sheet should also include a description of the facts of non-application of PBU in cases where their use does not allow a reliable description of the property status and financial results of the company, with justifications. Otherwise, the relevant circumstances will be considered as non-compliance with the rules and act as a violation of legal requirements. Accordingly, control authorities can apply sanctions provided by law against those responsible.
Additional Information
In addition to basic data, accounting note may include information that accompanies the final documents if the management of the enterprise decides that they will be useful to users when making management decisions. Additional information includes:
The explanatory note to the balance sheet may contain other additional information. If necessary, this data can be presented in the form of charts, graphs or analytical tables.
Example of an explanatory note
The document is drawn up according to approved rules. An example explanatory note consists of the following sections:
- Basic information about the enterprise.
- Revenues from sales.
- Expenses associated with the sale.
- The financial result that is obtained from the main activity.
- Other income.
- Other expenses.
- Calculation of income tax.
- Financial result of economic activity.
- Information about accounting policies.
Basic information about the company
The explanatory note to the balance sheet begins with it. The form of the document is not unified. The company has the right to independently develop the form. The section on basic information about the enterprise should contain:
The basic information also indicates the number of employees, information about the size authorized capital, main activities.
Income/expenses from sales
The explanatory note to the balance sheet discloses data on income and expenses received/made during the performance of work, provision of services, as well as the sale of goods. The document indicates specific figures for certain periods (by year). The resulting difference in accounting for management and production costs must be justified. In this case, specific calculations are provided.
Financial result from core activities
The accounting note contains indicators for the current reporting period. In this case, the amount of profit for tax purposes is indicated. If any information is not reflected in the balance sheet, this fact is explained in the note. Let’s say that an enterprise entered into an agreement for the supply of a large consignment of goods, but the transfer and signing of the invoice was delayed. The note also indicates an account that reflects the amount of actual costs for manufacturing the product.
Other income
This section indicates total amount revenues. The document also provides the value non-operating income and the amount of funds received from the sale of OS. Based on these data, the amount of income for taxation purposes is indicated. The note explains the reasons for the difference. Other expenses are described in the same way. 
Income tax calculations
The explanatory note indicates the regulatory document that guides the enterprise when calculating obligatory payment to the budget. It is PBU 18/02. The note should indicate the specific amount of profit for tax purposes. The sources of information are registers tax accounting and declaration information. The document describes the main operations related to the calculation of the mandatory payment. For example:
"The tax rate for 2013 is 20%. The amount of the calculated mandatory payment to the budget is 327,000 rubles. Amount accounting profit– 470 thousand rubles. Conditional consumption reflected by db sch. 02.99.1 – 94 thousand rubles. The amount of deferred tax assets at the beginning of 2013 was 50 thousand rubles. During the reporting period, there was an increase in TNA by 34 thousand rubles. due to the formation of a temporary difference in the amount of 170 thousand rubles. The value of PNA (constant tax assets) – 10 thousand rubles. It arose as a result of the difference in the amount of the founding contribution of the participant owning 100% of the authorized capital. Amount of PNO ( tax obligations) in 2013 – 209 thousand rubles. It arose due to constant differences - 1,045,000 rubles. Current tax from the profit of the enterprise, calculated in accordance with the provisions of PBU 18/02 - 327 thousand rubles, which corresponds to the information in the declaration for 2013." 
Financial result of economic activity
This section also states the specific amount received in this year. The note lists the factors that influenced the financial result. These may include, in particular, commercial, administrative and other expenses incurred and written off relating to the sale of a large batch. finished products, released in the last quarter of the completed year and sold in the first quarter of the period that began.
Accounting Policy Data
This section indicates regulations, on the basis of which it was formed and approved. The accounting policies describe:
Conclusion
The final documents, provided at the end of the period to interested users, contain dry numbers. The necessary clarifications on certain areas of accounting are provided by the explanatory note to the balance sheet. The FSS in some cases requires this document, although the regulations do not provide for the obligation of enterprises to provide it. The main users, as a rule, are the founders and the Federal Tax Service. The explanatory note can also be checked by auditors to ensure that its indicators correspond to the balance sheet figures. In practice, there are usually no difficulties in drawing up this document. Because the unified form no, experts use established unspoken rules for filling out. The explanatory note must be certified by signatures general director and chief accountant.
Until 2013, the explanatory note was part of the financial statements. But after certain legislative changes it is no longer part of reporting, although the law states that taxpayers may submit additional information that they consider useful.
According to the current legal regulation accounting reports also have applications. As attachments, you can specify a statement of changes in capital, a report on intended use means, explanations to and. What features do the explanations have and how should they be compiled?
General provisions
As mentioned above, they are part of the annual financial statements. However, they may not be presented by non-profit organizations and public associations that are not involved in entrepreneurial activity and do not have turnover in the sale of products or goods.
Explanations can be presented both in text form and in tables. At the same time, companies have the opportunity to independently determine the content. But the corresponding order of the Ministry of Finance of the Russian Federation (N 3 dated 07/02/2010) presents recommended forms.
During their registration, certain requirements must be met:
- everything must be numbered;
- The number must be indicated in the column on the corresponding lines.
You need to know that according to the current legal regulation they are not considered a separate reporting form, but are only an appendix to the financial statements. Essentially, this is a transcript of it. Explanations to the balance sheet and income statement consist of certain sections.
These include:
- financial investments;
- estimated liabilities;
- production costs;
- stocks;
- securing obligations, etc.
Each partition consists of one or more tables. Explanation lines are subject to coding. Compilation of explanations can be done using the word program.
The legislative framework
According to current legal requirements, the financial statements must reflect reliable data that makes it possible to prepare a statement about:
- financial position of the enterprise;
- financial results of its business activities;
- during the reporting period.
This area of legal relations received its regulation in Federal law“About accounting.”
When drawing up explanations, it is necessary to take into account the relevant provisions of PBU 4/99 (clauses 24-27). It is also necessary to be guided by the norms of other accounting provisions and subparagraph “b” of paragraph 4 of Order No. 66n.
For example, in the explanations it is necessary to disclose information that relates to the accounting policies of organizations. They mainly concern numerical indicators of financial statements.
In this case, it is necessary to take into account the fact that the financial statements do not include information that is related. The composition and content of such information are provided for in clause 39 of PBU 4/99. In particular, an enterprise may provide additional information if, in its opinion, executive body such data is useful for interested parties.
IN related information The following information may be disclosed:
- dynamics of the enterprise’s financial indicators;
- planned development of the company;
- proposed investments;
- risk management policy, etc.
The Law “On Auditing” states that audit procedures are also carried out in relation to explanations. And additional information, as a rule, is not subject to evaluation.
An example of formatting explanations for the balance sheet by section
The explanations consist of several sections.
In particular, there are the following sections:
| Section 1 | Dedicated to intangible assets and enterprise R&D expenses, including unfinished operations. |
| Section 2 | This part contains information about fixed assets, profitable investments in material resources, others non-current assets. |
| Section 3 | Dedicated financial investments enterprises. |
| Section 4 | Contains information about the company's inventory. |
| Section 5 | It discloses information about the company's receivables and payables. |
| Section 6 | Dedicated to production costs. |
| Section 7 | It contains information about estimated liabilities. |
| Section 8 | Dedicated to securing obligations. |
| Section 9 | Dedicated to data regarding government assistance. |
These are the main sections that must be completed. To have a more clear idea of how to fill them out, you can see an example of how to prepare notes to the balance sheet.
Required data
There is certain information that must be filled in mandatory. What data should be filled in?
| First section |
|
| Section 2 | It is necessary to provide information about fixed assets, profitable investments in tangible assets, as well as other non-current assets. In this case, data must be provided for both the current and previous reporting periods. |
| Section 3 | Information about initial cost long-term and short-term investments, as well as their changes. Information about investments that are pledged to third parties should also be reflected here. |
| Section 4 | Dedicated to enterprise costs. In this case, it is necessary to provide information about unpaid inventories, as well as about those objects that are the subject of pledge. |
| Section 5 | Is quite large and dedicated to accounts receivable and payable. It should disclose information about:
The section must contain information about doubtful debts. In this case, it is also necessary to indicate data not only at the end of the year: it is also necessary to reflect changes during the reporting period. |
| Section 6 | Dedicated to production costs. It contains information about the cost of sales, business expenses etc. Data must be provided for both the reporting period and the previous period of time. |
| Section 7 | It is necessary to reflect data on the amounts of estimated liabilities. In this case, it is necessary to indicate data both at the beginning and at the end of the reporting period. Information on the amount of recognized, settled and excess liabilities must also be provided. |
| Section 8 | Dedicated to securing obligations. Here you need to fill in information about both received and issued security for obligations. In this case, it is necessary to fill out this data for each type of security (pledge, surety, etc.). |
| Section 9 | Dedicated to government assistance. Here you need to disclose data about the received budget funds. In this case, you need to indicate them special purpose. Data must be filled in for both the current and previous reporting periods. |
This is the basic information that must be filled in. In addition to them, you can indicate additional information that is not part of the financial statements, but which may contain useful data.
Below is a description of several tables by section.
Section 1 consists of 5 tables, which are devoted to:
And section 2 consists of the following tables, which are devoted to:
- availability and movement of fixed assets;
- unfinished capital investments (lines 5240, 5250);
- change in the value of fixed assets (lines 5260, 5270);
- other use of fixed assets (lines 5280-5286).
For example, section 4 consists of tables on:
Each section of the explanations has its own tables with certain lines that must be filled in according to the requirements current legislation. A sample of filling out the explanations in 2019 can be viewed on the Internet.