The rules for accounting for securities are specified in the chart of accounts No. 94n. They must be accounted for in account 58. It is called “Financial Investments”. You can create subaccounts No. 1 and No. 2 for the account. Let's take a closer look at the rules for accounting for securities.
Question: How is the acquisition of shares traded on the organized securities market (OSM) reflected in accounting? The organization, under a purchase and sale agreement, acquired uncertificated shares at a price of RUB 1,000,000. The organization did not incur any other costs associated with the acquisition of shares. As of the last day of the month of acquisition of shares, their market value was RUB 1,020,000. For income tax purposes, income and expenses are determined using the accrual method. Interim financial statements are prepared at the end of each calendar month. View answer
What are securities?
Securities are documents confirming special property rights. Let's look at their types:
- Shares that give the right to receive part of the JSC's profits in the form of dividends.
- Bonds pay their face value as well as interest.
- A share gives the right to part of the company's property.
- A promissory note implies confirmation that one participant in the relationship must pay money to the other participant within a given period.
- Based on the check with the specified amount, the banking institution pays the funds to the other participant.
Typically, commercial firms purchase stocks and bonds.
How does a lender account for transactions under a securities lending agreement when taxing profits?
Features of securities valuation
Accounting for securities involves valuation. It can be carried out in various directions:
- Nominal cost. This is the price that is indicated on the paper itself. Considered a conditional value. That is, it does not reflect the actual cost of the paper.
- Market price. It is formed based on the values of supply and demand. The greater the demand, the higher the price. This type of cost gives an idea of the actual cost of the paper for a certain period.
- Book value. Represents the cost on the basis of which securities are recorded on the balance sheet.
- Accounting value. This is the value that is recorded in the accounting accounts.
- Liquidation value. It represents the cost of the liquidated joint-stock company, accrued per share.
If there is a difference between the nominal and market valuation, appropriate entries are made.
How to maintain tax accounting for securities denominated in foreign currency ?
Financial investments
The directory “Financial Investments” (Fig. 1), in addition to the standard ones, also has details newly created by the developers, which allow:
- store the discount amount;
- take into account the nominal price;
- take into account the start and end dates of interest accrual in accounting;
- take into account the start and end dates of interest accrual in tax accounting;
- generate contracts in MS Word with the following details: contract number, date of preparation, date of repayment;
- automatically fill in the document “Disposal of financial investments” with the actual date of sale.
Rice. 1. Directory “Financial Investments”.
In the same directory, the function of printing out the securities ledger was implemented (see Fig. 1).
During the implementation of the project, the document flow for financial investments was automated, consisting of the following documents (shown along with the corresponding transactions and a brief description; the analytics indicated in the transactions (with the exception of own bills of exchange) are standard for standard configurations):
1. Receipt of financial investments (Fig. 2).
Rice. 2. Document “Receipt of financial investments”.
“Receipt of financial investments" is the first element in the chain of documents and is intended for recording financial investments in accounting and tax accounts.
When posting this document, the transactions indicated in Table 1 are generated.
Accounting rules for bills of exchange
Bills of exchange are recorded in account 58, subaccount 2. They belong to debt securities. The debit direction displays the arrival and multiplication of the number of bills, and the credit direction shows the disposal. Let's look at the entries used to keep records:
- DT58.2 KT62. Receiving paper.
- DT91.2 KT58.2. Write-off of paper costs.
- DT58.2. KT51. The company bought the bills from another party.
- DT58.2 KT62. The paper is sent for payment to another person.
- DT91.2 KT58.2. Write-off of the book value of the paper.
If bills of exchange are sold, this transaction is recorded in account 91. However, account 91 is relevant only if the sale of securities is not considered the basic activity of the company. If this is a basic activity, account 90 will be required. To record transactions involving securities, account 58 is used.
Question: What differences between accounting and tax accounting may arise if in accounting the value of retiring securities that are not traded on the organized securities market (OSM) is determined by the average initial cost, and for profit tax purposes - by the FIFO method? How are these differences reflected in accounting in accordance with the Accounting Regulations “Accounting for calculations of corporate income tax” PBU 18/02, approved by Order of the Ministry of Finance of Russia dated November 19, 2002 N 114n? View answer
Bond Accounting Rules
Accounting rules are approved in “Accounting for expenses on loans”. The debt to the bond owner is indicated as a loan obligation. For correspondence, accounts 66 and 67 are used. Which account should be used? This is determined by the type of debt on the bonds: short-term or long-term. For short-term debts, account 66 is used, and for long-term debts, account 67. Consider the types of accounting entries:
- DT76 KT51. Buying bonds.
- DT91.2 KT58.2. Debt identified.
- DT91 KT58.2. Amortization.
- DT58.2 KT91. Write-off of the difference between the initial and nominal valuation of securities.
- DT51 KT62. Receiving payments on papers.
If the funds paid are greater than the nominal value of the security, the amount of the difference is included in the structure of other income.
Share Accounting Rules
To account for shares, accounts 58.1, 81 and 76 are needed. Accounting must solve the main task - control over the movement of shares of the company itself, as well as acquired shares. Postings are used to reflect the purchase, disposal, and sale of securities. Shares are the primary property of an enterprise that is included in the authorized capital. For this reason, the account 80 often appears in postings.
Let's look at the accounting entries used to account for shares:
- DT58.1 KT76. Purchase of shares.
- DT76 KT91. Calculation of interest on securities.
- DT91 KT58. Write-off of the value of securities disposed of due to sale.
- DT59 KT91. Write-off of the reserve formed due to depreciation.
- DT58 KT60. Accounting for the acceptance of securities on the balance sheet.
If a company has purchased shares, it must send a corresponding notification to the tax office. Also, the fact of purchase is recorded in the documentation. The purchase of shares must be reflected in the quarterly report. However, an accountant may also record relevant information in documents at the time of purchase. For example, this could be the preparation of sales and purchase agreements.
Automation of accounting for transactions with securities in holding structures
The main features of the activities of the Department of Financial Consulting and Investment Support of JSCB Promsvyazbank are:
- carrying out a large number (more than 80 per day) of transactions for the purchase and sale of securities with the execution of relevant agreements. At the same time, the number of circulating securities reaches several hundred per month;
- the presence of a large number of shares, shares and certificates of deposit, as well as own bills of exchange (both discount and interest-bearing);
- the need to maintain a book of securities accounting, a book of accounting of own bills for submission to regulatory authorities;
- the need to prepare accounting certificates explaining the procedure for calculating interest on bills, credits and loans.
Example of bond accounting
The company bought bonds of a banking institution in the amount of 1,500 rubles. The par value of the securities was 1,000 rubles. In this case, an expense occurs in the form of payment to the issuer. The maximum maturity period is 2 years. The owner of the bonds receives an income of 40% per annum every 6 months. In this case, the following transactions are performed:
- DT76 KT51. The cost of bonds in the amount of 1,500 rubles was transferred to the issuer.
- DT58.1 KT76. Fixation of the book value of securities in the amount of 1,500 rubles.
- DT76 KT91. Accrual of dividends in the amount of 300 rubles.
- DT51 KT76. Transfer of dividends in the amount of 300 rubles.
- DT91 KT58. Fixation of the share of reduction in the value of bonds.
This example lists the minimum number of transactions. However, in practice, as a rule, the number of transactions can reach 20.
IMPORTANT! In accounting, securities are recorded at their book value.
The bond issuer will use these shares:
- DT51 KT67. Issue and sale of securities at par value, if the par value is less than the purchase price.
- DT51 KT67. Issue and sale of securities at purchase price, if the nominal value is greater than the purchase price.
- DT51 KT98. The positive difference between the purchase price and the nominal value is taken into account. It is recognized as income in subsequent periods.
- DT97 KT67. A negative difference has been created.
- DT26 KT67. Interest accrued.
The write-off of differences between the nominal and purchase prices is recorded using these entries: DT98 KT91 and DT91 KT97.
Errors that often occur when accounting for securities
Errors in accounting can be significant or insignificant. The former can influence the decisions of managers and raise questions among regulatory authorities. Therefore, the occurrence of major errors is unacceptable. Let's look at common accounting errors that are significant:
- Entering incorrect entries. For example, this could be the use of incorrect accounts or incorrect transaction amounts.
- Incorrect accounting of the buyer's bill. The security must be recorded in account 58. However, if the buyer has issued a bill of exchange, it must be recorded in the debit of account 62. If the person has transferred the security to third parties, the security is classified as short-term debt.
- When a company receives a bill of exchange free of charge, it does not notify the tax office about it. This is also a significant mistake, since reports must also be sent to the Federal Tax Service on gratuitous receipts.
- Expenses arising from the sale of securities are recorded as expenses. However, this is incorrect, since sales expenses cannot reduce tax payments.
A significant mistake is also the lack of primary documentation. Postings are always based on documents.
What taxes will we pay on securities in 2021? Calculation using examples.
From January 1, the taxation of citizens' income has changed. A tax on bank deposits appeared, a progressive scale came into force, and the taxation of income on securities changed.
You can see about taxes on deposits here, and there is also a separate review about the progressive scale.
Before you start investing in securities, you need to understand how taxes arise and how will we pay them starting this year?
There are three types of income from securities that are subject to taxation:
1. Income from the fact that we sold a security at a higher price than we bought it. Such income arises mainly from the sale of shares or shares, less often - bonds. This income is subject to personal income tax at a rate of 13%.
2. Coupon income is the interest income on bonds that we receive during the time we were the owner of the bond. This income is subject to personal income tax at a rate of 13%.
3. Dividends on shares are part of the profit of a joint-stock company, which is paid to shareholders annually. It happens that dividends are paid more often - once every six months or even once a quarter.
This income is subject to dividend tax at a rate of 13%.
For everyone who lives and pays taxes in Russia, for all three types of income the rate remains unchanged - 13%.
In most cases, we will not have to independently determine how many taxes have arisen and transfer them to the tax office, since tax agents - brokers, management companies, depositories and issuers of securities - will do this for us, but knowing how they arise and how they can be legally avoid, we can increase income.
All coincidences in this article are random, no investors were harmed!
Sold for more than I bought
A year ago, Yandex shares could be bought on the Moscow Exchange at a price of 2,680 rubles per share. The inquisitive mind and insight of my friend, Ilya, told him that he needed to buy 100 of these shares in the amount of 268,000 rubles, and he bought them.
Over the year, Yandex shares have increased in price and now they cost about 5,190 rubles. for one share. If Ilya sells these shares now, he will receive 519,000 rubles from the sale.
In this case, the difference between the proceeds from the sale of shares and the costs associated with their acquisition (purchase amount and commission of the exchange, broker or trustee) will be taxed.
Thus, the profit will be taxed - 250,000 rubles. Income tax will be 13% or RUB 32,500.
What will happen if Ilya sells not all, but only 50 shares of Yandex?
From the sale of these shares he will receive 259,500 rubles. When calculating the tax base, the costs of purchasing only these 50 shares (RUB 134,000) and a commission of RUB 500 are deducted from this amount. In this case, the net profit will be 125,500 rubles, and the tax will be 16,315 rubles.
It is important to note that in this case, tax can only arise on the sale of securities. If Ilya does not sell his Yandex shares, then he will have a “paper” profit, not a real one. There is no need to pay taxes on “paper” profits.
The tax will be withheld by the broker or trustee when withdrawing funds from the investment account or, if Ilya does not withdraw money, in January of the following year.
Sold it cheaper than I bought it
Not all stock trades are so successful. When investing in securities on an exchange, investors purchase a portfolio of securities, the results of which may vary.
A year ago, when Ilya was buying Yandex shares, the broker persuaded him to buy another 1,000 Gazprom shares at 260 rubles on the stock exchange. From the very beginning, this idea seemed suspicious to Ilya, but he succumbed to persuasion.
A year later, as he suspected, Gazprom shares fell in price to 210 rubles. for one share. By his own decision, Ilya sold Gazprom shares and received a loss of 51,000 rubles.
Overall, it’s an unpleasant situation, but there are still two positive aspects. First, in August Gazprom paid dividends on its shares in the amount of 15.24 rubles per share, and Ilya was supposed to receive 15,240 rubles for his shares, but less came, only 13,258 rubles, since tax was also withheld from the dividends. Secondly, the loss received upon sale reduced the overall result of the portfolio, and the tax also decreased by 6,630 rubles.
The airport did not “take out”
Lately there has been a proliferation of all sorts of “crazy” bloggers-analysts who write all sorts of nonsense and recommendations on which stocks to buy. And if it weren’t for the stormy celebration of the New Year before last, Ilya would not have responded to these recommendations and bought shares of air carriers and airports!
But the “devil” (blogger) pulled Ilya to buy more shares in Koltsovo Airport. Since they cannot be bought on the stock exchange, Ilya asked his broker to buy 4 shares of Koltsovo Airport on the over-the-counter market (for those who don’t know, this is Yekaterinburg Airport). At this moment, very “luckily” a seller was found who sold them for 30,000 rubles. per share.
Now, a year later, it dawned on Ilya that the prospects for air transportation were vague, and he decided to sell these shares. At this moment, the broker also “successfully” finds a buyer for his shares, only at a price of 15,000 rubles. per share and there is even a suspicion that this buyer is the same person who sold these shares to Ilya a year ago.
Loss of 62,000 rubles, commissions spent and no dividends!
What’s most unpleasant is that this loss does not reduce the tax that Ilya must pay on income from the difference on other shares, since the results of investing on the stock exchange and on the over-the-counter market are not summed up.
Total frustration!
Lent to the state
Last March, the coronavirus epidemic began and the stock market fell. Since it was scary to buy shares (what if they fell in price!), and putting money into a bank deposit was scary, Ilya decided to lend the state at interest and bought 150 OFZ 29006 bonds on the stock exchange on March 19, 2021 at a price of 102.6 % of nominal value. Interest on such bonds is paid semiannually in the form of coupon payments.
Since the nominal value of one bond is 1,000 rubles, Ilya had to pay 1,026 rubles for each bond. and also additionally pay the accumulated coupon income (ACI) on March 19, which was 9.13 rubles. for each bond.
What is the accumulated coupon income of NKD?
Government bonds pay interest in the form of coupon payments every six months. In the intervals between payments, coupon income is accrued daily in the form of NKD, which the Exchange determines for each trading day. The seller, in addition to the bond price, also receives the NKD, and the buyers pay it. This is to ensure that bondholders receive interest for the number of days they actually held the bonds.
Despite the fact that Ilya bought these bonds at more than their face value, he liked the high coupon rate - 7.75% per annum. This income was paid to him on August 5, 2021, at 38.64 rubles. for each bond Since upon purchase, in addition to the price of the bond, he paid the NKD - 9.13 rubles, then by August 5 he received the difference in net interest - 29.51 rubles. for each bond or only 4,426.5 rubles.
After August 5, the next coupon income began to accumulate at a rate of 6.55% per annum, which will be paid on February 3, 2021.
The price of bonds from the moment of purchase increased to 103.2% of par value. By selling these bonds today, January 4, 2021, Ilya will receive 1,032 rubles for each bond. and NKD 27.46 rub. In total, for 150 bonds he will receive 154,800 rubles. at the price and 4,119 rubles. accumulated coupon income.
Since the bonds were sold at a higher price than purchased, income from the difference will arise, and tax will be withheld from it. Regarding coupon income, the situation is a little more complicated. Coupon income on government bonds is exempt from tax in 2021, and 13% tax must already be paid on coupons received in 2021.
As a result, Ilya invested 804,500 rubles and received 142,386 rubles. arrived and paid 25,995 rubles from it. taxes.
How to save on taxes?
In any case, Ilya will have to pay taxes on dividends and coupons. But the tax on the difference can be compensated, and it makes up the lion's share of our taxes.
The Tax Code gives us 2 ways to do this:
1. Open an Individual Investment Account (IIA) and invest in these securities through it.
In this case, we can choose: either receive a tax deduction for the money deposited into the IIS - 52,000 rubles, or exempt income from the increase in value from taxes. To receive this deduction, we will not be able to withdraw money from the account for 3 years from the date of opening. In our case, we still have 2 more years to wait.
You can decide which of the two options will be more profitable after 3 years of existence of the IIS in 2023.
For more details, see How to get 52,000 rubles. from the state?
2. Benefit for long-term ownership
This benefit can be used on a classic investment account, but for this you do not need to sell your securities for 3 years from the date of purchase. In this case, the deduction will be 9 million rubles, that is, when selling securities in the amount of up to 9 million rubles. There is no need to pay tax on income from increases in value.
Did you like the story about Ilya? Write questions in the comments!
