For accounting purposes and reporting in financial statements The organization's income and expenses are divided into income and expenses from ordinary activities and other income and expenses. What is included in income from common species activities, as well as the features of accounting for expenses for ordinary activities, we will tell you in our consultation.

Income from ordinary activities

Income from ordinary activities includes revenue from the sale of products and goods, receipts associated with the performance of work, provision of services (clause 5 of PBU 9/99).

Eat individual species income, which can be either income from ordinary activities or other income. Their assignment to one group or another depends on whether such income is the subject of the organization’s activities. What relates to the subject of activity, each organization determines independently, taking into account the criteria of materiality, systematicity of income and other factors.

The following may be recognized as income from ordinary activities or other income:

• proceeds from the provision for a fee for temporary use (temporary possession and use) of their assets under a lease agreement ( rent);
• proceeds from the provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property (license payments, including royalties);
• proceeds from participation in authorized capitals other organizations.

All income from ordinary activities of the organization is recognized subject to the conditions provided for in clause 12 of PBU 9/99, regardless of their type, they are called revenue and are reflected in the credit of account 90 “Sales” (Order of the Ministry of Finance dated October 31, 2000 No. 94n):

Income from other types of activities that are not revenue is reflected in account 91 “Other income and expenses.”

Expenses for ordinary activities

Expenses for ordinary activities are expenses associated with the manufacture and sale of products, the acquisition and sale of goods, as well as the performance of work and the provision of services (clause 5 of PBU 10/99).

When considering income from ordinary activities, we cited the types of income that can be accounted for in account 90 or 91, depending on whether they are the subject of the organization’s activities. Accordingly, if income such as rent, license fees and other similar income are the subject of the organization’s activities, then expenses for ordinary activities also include expenses associated with conducting such activities.

We can say that an organization’s expenses for ordinary activities are expenses associated with generating income accounted for in account 90.

Classification of expenses by ordinary activities

Expenses for ordinary activities are grouped according to the following elements (clause 8 of PBU 10/99):

• material costs;
• labor costs;
• contributions for social needs;
• depreciation;
• other costs.

The organization determines the procedure for maintaining cost accounting by cost items independently, taking into account its needs.

Accounting for expenses for ordinary activities: postings

Expenses for ordinary activities are recorded in the debit of account 90, as well as cost accounts included in Section III “Production Costs” and Section IV “Finished Products and Goods”. Among the main cost accounts for ordinary activities are:

• 20 “Main production”;
• 23 “Auxiliary production”;
• 25 “General production expenses”;
• 26 “General business expenses”;
• 44 “Sales expenses.

Let's give examples accounting records for accounting expenses for ordinary activities:

Operation	Account debit	Account credit
Salaries accrued to main production workers	20	70 “Settlements with personnel for wages”
Depreciation of workshop equipment has been calculated	25	02 “Depreciation of fixed assets”
Accrued insurance premiums for the salary of the organization's management staff	26	69 “Calculations according to social insurance and provision"
Materials written off for production	20	10 "Materials"
The costs of delivering goods to customers are taken into account	44	60 “Settlements with suppliers and contractors”
Cost of goods sold written off	90, subaccount “Cost of sales”	41 "Products"

On this line of the Statement of Financial Results, organizations - small businesses reflect the amount of recognized expenses for ordinary activities that form the financial result of the reporting period (clause.

P. 5, 7, 9 PBU 10/99). This indicator includes (Note 8 in Appendix No. 5 to Order No. 66n):

Cost of sales;

Business expenses;

Management expenses.

For more information on what is considered expenses for ordinary activities, see:

Sec. 3.2.2.1 “What expenses form the cost of goods, products, works, services sold”;

Sec. 3.2.4.1 “What expenses are included in commercial expenses”;

Sec. 3.2.5.1 "Which expenses are management."

Attention!

If an organization is a small business entity (with the exception of issuers of publicly placed valuable papers) revenue from the sale of products and goods is recognized not as the rights of ownership, use and disposal for the delivered products or goods sold are transferred, but after receipt of payment, then expenses are recognized after the debt is repaid (clause 18 of PBU 10/99).

What accounting data is used?

when filling out the line "Expenses for ordinary activities"

The value of the line indicator "Expenses for ordinary activities" (for reporting period) is determined on the basis of data on the total debit turnover for the reporting period on account 90, subaccount 90-2 “Cost of sales”, in correspondence with accounts 20, 23, 26, 29, 40, 41, 43, 44, etc. The indicator in question is indicated in parentheses.

The indicator for this line for the same reporting period of the previous year is transferred from the Statement of Financial Results for that reporting period.

Let us recall that small businesses (except for issuers of publicly placed securities) have the right to reflect the consequences of changes in accounting policies prospectively, except in cases where a different procedure is established by the legislation of the Russian Federation and (or) regulatory legal act on accounting (clause 15.1 of PBU 1/2008). Thus, comparative indicators (indicators for previous years), reflected in the financial statements of these organizations, are not subject to mandatory recalculation due to changes in accounting policies. Retrospective recalculation of comparative indicators of financial statements is not carried out by small businesses (except for issuers of publicly offered securities) and in the event of correction of errors of previous years identified after approval of the financial statements for the reporting year in which errors were made (clauses 9, 14 of PBU 22 /2010).

The line "Expenses for ordinary activities" is assigned code 2120, 2210 or 2220, depending on which component this indicator has the greatest share - cost of sales, business expenses or administrative expenses.

Example of filling a line

"Expenses for ordinary activities"

Indicators for subaccount 90-2 account 90 in accounting:

Fragment of the Financial Results Report for 2012

The indicator for the line “Expenses for ordinary activities” is:

for 2013 - 79,220 thousand rubles;

for 2012 - 87,966 thousand rubles.

The largest share in the indicator is the cost of sales ((79,219,990 rubles - 860,342 rubles - 6,345,970 rubles) / 79,219,990 rubles x 100% = 91%). Therefore, the line “Expenses for ordinary activities” is assigned code 2120.

A fragment of the Income Statement in Example 31 would look like this.

5. Expenses for ordinary activities are expenses associated with the manufacture of products and the sale of products, the acquisition and sale of goods. Such expenses also include expenses the implementation of which is associated with the performance of work or provision of services.

In organizations whose subject of activity is the provision for a fee for temporary use (temporary possession and use) of their assets under a lease agreement, expenses for ordinary activities are considered expenses the implementation of which is associated with this activity.

In organizations whose subject of activity is the provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property, expenses for ordinary activities are considered expenses the implementation of which is associated with this activity.

In organizations whose subject of activity is participation in the authorized capital of other organizations, expenses for ordinary activities are considered expenses the implementation of which is related to this activity.

Expenses, the implementation of which is associated with the provision for a fee for temporary use (temporary possession and use) of one’s assets, rights arising from patents for inventions, industrial designs and other types of intellectual property, and from participation in the authorized capital of other organizations, when this is not the subject of the organization's activities are classified as other expenses.

Expenses for ordinary activities are also considered to be reimbursement of the cost of fixed assets, intangible assets and other depreciable assets carried out in the form of depreciation charges.

6. Expenses for ordinary activities are accepted for accounting in an amount calculated in monetary terms equal to the amount of payment in monetary and other form or amount accounts payable(subject to the provisions of paragraph 3 of these Regulations).

If payment covers only part of the recognized expenses, then the expenses accepted for accounting are determined as the sum of payment and accounts payable (in the part not covered by payment).

6.1. The amount of payment and (or) accounts payable is determined based on the price and conditions established by the agreement between the organization and the supplier (contractor) or other counterparty. If the price is not provided for in the contract and cannot be established based on the terms of the contract, then to determine the amount of payment or accounts payable, the price at which, in comparable circumstances, the organization usually determines expenses in relation to similar inventories and other valuables, works, services is accepted. or providing for temporary use (temporary possession and use) of similar assets.

6.2. When paying for purchased inventories and other valuables, works, services on the terms of a commercial loan provided in the form of deferred and installment payment, expenses are accepted for accounting in the full amount of accounts payable.

6.3. The amount of payment and (or) accounts payable under contracts providing for the fulfillment of obligations (payment) is not in cash, is determined by the cost of goods (valuables) transferred or to be transferred by the organization. The cost of goods (valuables) transferred or to be transferred by an organization is established based on the price at which, in comparable circumstances, the organization usually determines the cost of similar goods (valuables).

If it is impossible to determine the value of goods (valuables) transferred or to be transferred by the organization, the amount of payment and (or) accounts payable under contracts providing for the fulfillment of obligations (payment) not in cash is determined by the value of the products (goods) received by the organization. The cost of products (goods) received by the organization is established based on the price at which similar products (goods) are purchased in comparable circumstances.

6.4. In the event of a change in the obligation under the contract, the initial amount of payment and (or) accounts payable is adjusted based on the value of the asset to be disposed of. The value of the asset to be disposed of is determined based on the price at which, in comparable circumstances, the entity would normally determine the value of similar assets.

6.5. The amount of payment and (or) accounts payable is determined taking into account all discounts (discounts) provided to the organization in accordance with the agreement.

(see text in the previous edition)

7. Expenses for ordinary activities form:

Expenses associated with the acquisition of raw materials, materials, goods and other inventories;

Expenses arising directly in the process of processing (refinement) of inventories for the purposes of production, performance of work and provision of services and their sale, as well as sale (resale) of goods (costs of maintenance and operation of fixed assets and other non-current assets, as well as maintaining them in good condition, commercial expenses, administrative expenses, etc.).

8. When forming expenses for ordinary activities, their grouping should be ensured by the following elements:

material costs;

Expenses for ordinary activities according to paragraph 5 of PBU 10/99 are:

· costs associated with the manufacture and sale of products;

· expenses associated with the purchase and sale of goods;

· expenses associated with the performance of work and provision of services;

· expenses, the implementation of which is associated with the provision for a fee for temporary use (possession and use) of its assets under a lease agreement, if this type activity is the subject of the organization’s activities;

· expenses, the implementation of which is associated with the provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property, if this type of activity is the subject of the organization’s activities;

· expenses associated with participation in the authorized capitals of other organizations, if the subject of the organization’s activities is participation in the authorized capitals of other organizations;

· expenses in the form of depreciation, that is, expenses to reimburse the cost of fixed assets, intangible assets and other assets that are depreciable.

It should be noted that if the provision for a fee for temporary use (ownership and use) of its assets, rights arising from patents for inventions, industrial designs and other types of intellectual property, as well as participation in the authorized capital of other organizations is not the subject of the organization’s activities, then the costs associated with the implementation of these types of activities will be classified as operating expenses.

The types of activities that an organization can carry out are specified in its charter. Let us turn to paragraph 2 of Article 52 Civil Code Russian Federation. It says the following:

"In the constituent documents legal entity The name of the legal entity, its location, the procedure for managing the activities of the legal entity must be determined, as well as other information provided by law for legal entities of the corresponding type must be contained. In the constituent documents of non-profit organizations and unitary enterprises, and in provided by law In cases of other commercial organizations, the subject and goals of the legal entity’s activities must be determined. Subject and specific goals of the activity commercial organization may be provided for by the constituent documents even in cases where this is not mandatory by law.”

The fact is that it is not always possible to determine from the constituent documents what types of activities are the main ones for the organization, so it is advisable to indicate this in the order accounting policy in order to accounting.

In some cases, the organization carries out activities that are not specified in the constituent documents. In this regard, the Letter of the Ministry of Finance of the Russian Federation dated September 24, 2001 No. 04-05-11/71 states that if the constituent documents do not reflect the objects of activity from which income was received by the organization, one of important rules accounting – the rule of materiality. Thus, if the amount of income received from activities not specified in the statutory documents is five percent or more, then these incomes should form income from ordinary activities. Accordingly, expenses related to these types of activities will be expenses from ordinary activities.

According to paragraph 7 of PBU 10/99, expenses for ordinary activities form:

ü expenses associated with the acquisition of raw materials, materials, goods and other inventories;

ü expenses arising directly in the process of processing (refinement) of inventories for the purposes of production, performance of work and provision of services and their sale, as well as sale (resale) of goods (costs for the maintenance and operation of fixed assets and other non-current assets, and also on maintaining them in good condition, and others).

We draw the readers' attention to Letter of the Ministry of Finance of the Russian Federation dated October 5, 2005 No. 07-05-12/10 “On the organization’s expenses for ordinary activities.” It says that in accordance with PBU 10/99, the organization’s expenses related to the manufacture of products and the sale of goods, the performance of work and the provision of services and meeting the definition of expenses of the organization are expenses for ordinary activities. Based on this, financial department specialists believe that the amounts of property tax paid (to be paid) by an organization form its expenses for ordinary activities.

In the Letter of the Ministry of Finance of the Russian Federation dated March 29, 2005 No. 07-05-06/91 “On accounting of intangible assets,” financial department specialists express the opinion that the organization’s expenses associated with the international registration of marks used for goods or services should considered as expenses for ordinary activities.

Questions often arise about the procedure for reflecting in accounting the costs of paying, at the employer’s expense, temporary disability benefits for the first two days of incapacity to employees of the organization engaged in the manufacture and sale of products, performance of work, and provision of services. The Letter of the Ministry of Finance of the Russian Federation dated May 6, 2005 No. 07-05-06/132 “On the reflection in accounting of expenses for the payment of temporary disability benefits for the first two days of incapacity” states that the amounts of benefits paid should be included in the costs of manufacturing and sale of products, performance of work, provision of services. In accounting, these amounts are reflected as other costs in those accounts for accounting for production costs (sales expenses) to which the costs of remuneration of employees receiving benefits are attributed.

Learn more about costs related questions for ordinary activities you can find in the book of JSC “BKR-Intercom-Audit” “Expenses of the organization”.

• Vovnyanko Elena Alexandrovna, student
• Nasakina Liliya Arkadyevna, Candidate of Sciences, Associate Professor, Associate Professor
• Volga State University of Service

• DEPRECIABLE PROPERTY
• TAX ACCOUNTING
• ACCOUNTING
• EXPENSES FOR ORDINARY ACTIVITIES

The main purpose of enterprises' activities various industries and the area of ​​activity is making a profit. The determining condition for increasing the profit of an economic entity remains the reduction of production and marketing costs. Therefore, cost management issues are very relevant for enterprises. However, the amount of expenses reflected in accounting rarely coincides with the amount of expenses written off when determining and accounting for profit and tax on it. The article discusses the procedure for reflecting expenses for ordinary activities in accounting and tax accounting and their distinctive features, which make it possible to establish the reasons for different estimates of costs for the formation financial results activities of the organization.

• Accounting and analytical procedures in accounts receivable management
• Risks of non-payment of wages to employees of the organization and measures of liability for their occurrence
• Problems of formation of the wage fund and directions for analyzing the use of funds for wages in the organization
• Analysis of income and expenses as the economic basis for effective management of various types of activities of the organization
• Disclosure of information in the accounting (financial) statements of a small enterprise

Expenses for ordinary activities are regulated by Order of the Ministry of Finance of Russia N 33n “On approval of the Accounting Regulations “Expenses of the Organization” PBU 10/99”. These expenses form: expenses associated with the acquisition of raw materials, materials, goods and other inventories; expenses arising directly in the process of processing inventories for the purposes of producing products, performing work and providing services and their sale, as well as the sale (resale) of goods (selling expenses, administrative expenses, etc.) (Fig. 1).

Fig.1. Expenses for ordinary activities

Currently, all expenses of an organization are divided into direct and indirect. At the same time, direct ones form work in progress, balances finished products in the warehouse and the remains of shipped but not sold finished products.

The list of direct expenses for ordinary activities, used for accounting purposes, does not coincide with the list of direct expenses established by Article 318 of the Tax Code of the Russian Federation and used for tax accounting. Selling and administrative expenses may be recognized in the cost of products, goods, works, services sold in full reporting year their recognition as expenses for ordinary activities. That is, only certain types of expenses can be directly excluded from sales income according to accounting rules - managerial, associated with the maintenance of the management apparatus, and commercial, associated with the sale of finished products. These expenses can be immediately attributed to a decrease in income only if such an accounting methodology is included in the accounting policy of the organization. Take, for example, the cost of renting a production facility. These costs are neither administrative nor commercial. Therefore, for accounting purposes, they must form the cost of finished products (including their balances in the warehouse). For tax purposes, these expenses are recognized as indirect, which means they directly reduce the income from the sale.

There are also differences in the accounting of depreciable property, for the assessment of which three types of value are used in the accounting system: initial, replacement and residual. Formation order initial cost in accounting and tax accounting are basically the same. This cost consists of the costs of acquisition, construction, manufacturing and bringing to a condition in which the depreciable property is suitable for use, with the exception of taxes that are subject to deduction. At the same time, according to accounting rules, the initial cost includes non-refundable taxes paid in connection with the acquisition of objects, interest on the use of borrowed funds and amount differences accrued before the object was accepted for accounting. For tax purposes, the listed expenses are not taken into account when determining the initial cost of depreciable property: non-refundable taxes are included in other expenses; expenses in the form of interest on debt obligations relate to non-operating expenses; positive and negative amount differences are included in non-operating income and expenses accordingly.

From January 1, 2016, property whose value is more than 100,000 rubles is considered depreciable. Previously, objects worth more than 40,000 rubles were considered depreciable. Such amendments were made to Article 256 of the Tax Code of the Russian Federation Federal law from 06/08/2015 No. 150-FZ. Limit of 100,000 rubles. concerns fixed assets and intangible assets put into operation in 2016. Assets less than RUB 100,000. There is no need to depreciate in 2016. The costs of their acquisition can be written off immediately or gradually. It all depends on the chosen accounting policy method. In accounting, the limit on fixed assets remained 40,000 rubles. Because of this, for new objects costing from 40,000 to 100,000 rubles. differences arise. The rules for accounting for fixed assets are presented in Table 1.

Table 1. Rules for accounting for fixed assets in tax and accounting

Initial cost of the object	The procedure for reflection in tax accounting	The procedure for reflection in accounting
up to 40,000 rub.		The organization has the right to choose one of two ways: Include in the inventory and write off as current expenses upon commissioning;
from 40,000 rub. up to 100,000 rub. inclusive	write off as operating expenses upon commissioning	include in fixed assets and depreciate
over 100,000 rub.	include in fixed assets and depreciate	include in fixed assets and depreciate

The current chart of accounts and instructions for its application dated October 31, 2000. No. 94n, account 90 “Sales” is intended to summarize information on income and expenses associated with the organization’s normal activities, as well as to determine the financial result for them. By monthly comparison of the total debit turnover in subaccounts 90-2 “Cost of sales”, 90-3 “VAT” and credit turnover in subaccount 90-1 “Revenue”, the financial result from sales for the reporting month. The identified profit (loss) is written off monthly with final entries from subaccount 90-9 “Profit/loss from sales” to account 99 “Profits and losses”. Synthetic account 90 “Sales” is closed monthly and the balance is reporting date does not have. At the end of the year, all subaccounts opened to account 90 “Sales” are closed with internal entries to subaccount 90-9 “Profit/loss from sales”.

Thus, the main difference in the procedure for recognizing expenses in accounting and tax accounting is that in accounting, expenses are subject to recognition regardless of the intention to receive revenue or other income, while in tax accounting, any expenses are recognized as expenses, but provided that they are incurred to carry out activities aimed at generating income. In order to maintain competitiveness in the market, enterprises must take into account costs not only within the framework of accounting, but within the framework of tax accounting, taking into account the requirements of the law, which will allow us to establish the reasons for different estimates of costs for the formation of financial results and determine areas for optimizing expenses for ordinary activities economic entities.

Bibliography

1. Russian Federation. Laws. Tax code RF. Part two [Text]: federal. Law No. 146-FZ: adopted by the State Duma of the Federal Assembly on July 16, 1998. (as amended on 04/05/2016)
2. Russian Federation. Laws. ABOUT accounting[Text]: federal. Law No. 402 - Federal Law: adopted by the State Duma of the Federal Assembly on December 6, 2011 (as amended on May 23, 2016)
3. Russian Federation. Order. Accounting Regulations “Organization Expenses” PBU 10/99 [Text]: No. 33n: adopted by the Ministry of Finance of the Russian Federation on May 6, 1999 (as amended on 04/06/2015)
4. Russian Federation. Order. On approval of the Chart of Accounts for accounting financial and economic activities of organizations and Instructions for its application [Text]: No. 94n: adopted by the Ministry of Finance of the Russian Federation on October 31, 2000 (as amended on November 8, 2010)