How to record interest (discount) on a bill received

Interest calculation

The calculation of the interest paid on your own bill depends on the following factors:

• the amount on which interest is calculated;

• interest rate on a bill;

• the duration of the reporting month for which the calculation is made.

To determine the amount of interest on a bill for the reporting month, use the formula:

This follows from paragraph 8 of PBU 15/2008 and paragraphs 1 and 4 of Article 328 of the Tax Code of the Russian Federation.

The amount on which interest is calculated is usually the face value of the note.

The rate at which interest is calculated is indicated on the bill itself. If the rate is not specified in the bill, it is considered non-interest bearing.

This procedure follows from Articles 5 and 77 of the Regulations, approved by Resolution of the Central Executive Committee and Council of People's Commissars of the USSR dated August 7, 1937 No. 104/1341.

To correctly determine the number of calendar days in the reporting month during which the bill was in circulation and interest was accrued on it, you need to know:

• the date from which interest should begin to accrue;

• the date on which accruals should stop.

Start calculating interest for the reporting month from the day following the day the bill was drawn up, but not earlier than it was transferred to the counterparty (for the reporting month when the bill was transferred), or from the start of the reporting month (if the bill was transferred to the counterparty last month). If the bill itself indicates a later date from which interest is calculated, calculate it also from the next day (but not earlier than the bill was transferred to the counterparty).

The last day for interest accrual is:

• the last day of the reporting month in accounting or tax accounting (if the bill is in circulation on this date);

• the day on which the bill must be presented for redemption (the end of the bill's circulation period);

• the day on which the period during which interest accrues ends (if it is established in the bill and does not coincide with the date of its repayment).

This follows from paragraph 8 of PBU 15/2008, subparagraph 2 of paragraph 1 of Article 265 and paragraphs 1 and 4 of Article 328 of the Tax Code of the Russian Federation, Chapter V and Articles 5, 73 and 77 of the Regulations approved by the resolution of the Central Executive Committee and the Council of People's Commissars of the USSR dated August 7, 1937. No. 104/1341, and paragraph 19 of the resolution of the Plenum of the Supreme Court of the Russian Federation of December 4, 2000 No. 33 and the Plenum of the Supreme Arbitration Court of the Russian Federation of December 4, 2000 No. 14.

An example of calculating interest on an organization's own bill of exchange for the reporting month

On January 12, Alpha LLC (buyer) entered into an agreement for the supply of a consignment of goods with Torgovaya LLC (seller) for a total amount of 23,600 rubles. (including VAT – RUB 3,600). The contract provides for the buyer to secure the cost of goods with his own bill of exchange.

On the same day, Hermes shipped the goods, and Alpha issued a bill of exchange with a face value of 23,600 rubles. The payment term for the bill is upon presentation. The bill provides for accrual of 5 percent per annum from the date of its preparation.

On March 31, Hermes presented the bill for payment. On the same day, Alpha extinguished it.

Alpha's accountant calculated the amount of interest for each reporting month during the entire period that the bill was held by Hermes, starting from the moment of its transfer (from January 13 to March 31).

The amount of interest on the issued own bill was:

– for January: 23,600 rubles. × 5% : 365 days/year × 19 days = 61 rub.;

– for February: 23,600 rub. × 5% : 365 days/year × 28 days = 91 rub.;

– for March: 23,600 rub. × 5% : 365 days/year × 31 days = 100 rub.

Repayment amount

The total amount paid on the note on the maturity date is called the maturity amount. It consists of the principal amount of the bill and interest. The repayment amount of a 1,000 note issued for 90 days at an interest rate of 8% is calculated as follows:

Sometimes an interest-free promissory note is issued. In this case, the redemption amount is the same as the face value or principal amount of the note, which includes implied interest costs.

Payment term: upon presentation, but not earlier

Situation: when is it necessary to accrue interest on your own bill of exchange, transferred to a counterparty, with a maturity date of “at sight, but not before...”? The early date has not arrived.

Interest on a bill of exchange for which the payment term is specified “at sight, but not earlier than...”, is calculated from the day following the day indicated as the earliest date on which the bill can be presented for payment. It is explained like this.

Interest must be accrued on your own bill from the date of its transfer to the counterparty or a later date indicated on it (Articles 5 and 77 of the Regulations, approved by Resolution of the Central Executive Committee and Council of People's Commissars of the USSR dated August 7, 1937 No. 104/1341).

The Supreme Arbitration Court of the Russian Federation explained this procedure as follows. Interest must accrue after the date of the bill of exchange if:

• it contains a direct clause about this (i.e., the inscription “interest is calculated from such and such a date” indicating a specific date);

• The payment term for it is “on presentation, but not earlier than...” indicating a specific date.

This is stated in paragraph 19 of the resolution of the Plenum of the Supreme Court of the Russian Federation dated December 4, 2000 No. 33 and the Plenum of the Supreme Arbitration Court of the Russian Federation dated December 4, 2000 No. 14.

In any case, when calculating interest, do not include the day the bill was drawn up or the later date indicated on it for the calculation of interest. That is, the counting of the number of days begins from the day following one of the specified moments (but not earlier than the day the bill is transferred to the counterparty). This follows from Article 73 of the Regulations, approved by Resolution of the Central Executive Committee and Council of People's Commissars of the USSR dated August 7, 1937 No. 104/1341.

Types of stock instruments

One of the most important markets in the economic system of any country is the securities market.
It performs a number of functions that have a direct impact on the stability of the economy, as well as its potential for growth. The most important functions of the stock market include:

• obtaining income from assets and free cash flows;
• formation of market prices for stock instruments, impact on the balance of supply and demand;
• creation of a single information field accessible to all participants;
• regulation of relations within the market between participants in transactions;
• distribution of financial risks;
• creating conditions for the movement of money and capital assets between sectors of the economy;
• attracting citizens to investment activities by transferring savings into investments;
• additional financing of the budget without additional emission of money supply.

Finished works on a similar topic

• Coursework Discount and interest bill 480 rub.
• Abstract Discount and interest bill 230 rub.
• Test work Discount and interest bill 250 rub.

Get completed work or advice from a specialist on your educational project Find out the cost
All relationships in the market are carried out using securities. The economic essence of the stock market comes down to production and transactions with them.

About fifteen types of securities are used in Russia. An investor who wants to receive additional financing or income from his free funds, as a rule, resorts to the formation of a package of stock documents. This approach is called an investment portfolio. It allows its owner to create a flexible instrument for generating income on their assets at different times and with varying degrees of risk. The use of securities with varying degrees of liquidity, maturities and riskiness makes it possible to reduce losses across the entire package of documents that form the investment portfolio.

Currently, electronic types of documents are increasingly used. However, there are securities that must be issued only in paper form. One of these is a bill.

Discount calculation

The calculation of the discount on a bill of exchange transferred to a counterparty depends on the following factors:

• the total amount of the discount (the difference between the face value of the bill and the value at which it was transferred to the counterparty);

• the number of calendar days remaining until the expiration date of the bill of exchange (that is, until the last day when it can be presented for payment);

• the duration of the reporting month for which the calculation is made.

To determine the discount amount on a bill for the reporting month, use the formula:

This calculation procedure follows from paragraph 8 of PBU 15/2008, paragraph 3 of Article 43 and paragraph 4 of Article 328 of the Tax Code of the Russian Federation.

Determine the number of calendar days remaining until the end of the circulation period, starting from the day following the day the bill was drawn up, but not earlier than it was transferred to the counterparty, until the day when its circulation period ends (Chapter V and Article 77 of the Regulations approved by the resolution Central Executive Committee of the USSR and Council of People's Commissars of the USSR dated August 7, 1937 No. 104/1341).

As a rule, the end of the circulation period (the last day on which the bill can be presented for payment, or any indication of this date) is indicated on the bill itself (Articles 1 and 75 of the Regulations approved by the resolution of the Central Executive Committee of the USSR and the Council of People's Commissars of the USSR dated August 7, 1937 No. 104/1341). For example, this could be the inscription “The bill is payable on the following date: December 23, 2021.”

To correctly determine the number of calendar days in the reporting month during which the bill was in circulation and the discount was taken into account, you need to know:

• the date from which you need to start distributing the discount;

• the date on which the distribution must cease.

Start calculating the discount for the reporting month from the day following the day the bill of exchange was drawn up, but not earlier than it was transferred to the counterparty (for the reporting month in which the bill of exchange was transferred), or from the beginning of the reporting month (if the bill of exchange was transferred to the counterparty last month) . Consider the last day of discount distribution to be:

• the last day of the reporting month in accounting or tax accounting (if the bill is in circulation on this date);

• the day on which the bill must be presented for redemption (the end of the bill's circulation period).

This follows from paragraph 8 of PBU 15/2008, subparagraph 2 of paragraph 1 of Article 265 and paragraphs 1 and 4 of Article 328 of the Tax Code of the Russian Federation, Chapter V and Articles 5, 73 and 77 of the Regulations approved by the resolution of the Central Executive Committee and the Council of People's Commissars of the USSR dated August 7, 1937. No. 104/1341, and paragraph 19 of the resolution of the Plenum of the Supreme Court of the Russian Federation of December 4, 2000 No. 33 and the Plenum of the Supreme Arbitration Court of the Russian Federation of December 4, 2000 No. 14.

An example of calculating the discount amount on an organization’s own bill of exchange for the reporting month

On January 12, Alpha LLC (buyer) entered into an agreement for the supply of a consignment of goods to Torgovaya LLC (seller) for a total amount of 118,000 rubles. (including VAT – 18,000 rubles). The contract provides for the buyer to secure the cost of goods with his own bill of exchange.

On the same day, Hermes shipped the goods, and Alpha issued a bill of exchange with a face value of 120,000 rubles. The payment deadline for the bill is March 31.

Alpha's accountant calculated the discount amount on the bill for January (from January 13 to January 31).

The number of calendar days remaining until the expiration date of the bill of exchange is 78 days (19 days + 28 days + 31 days).

For January, the discount amount on the issued own bill was: (120,000 rubles - 118,000 rubles): 78 days. × 19 days = 487 rub.

Market return

International Financial Reporting Standards require debt securities, whether owned or acquired, to be accounted for in a company's accounting and financial statements using the effective interest rate method, taking into account market yields. The fact is that the real yield of a bill, as a rule, differs from the amount of interest income indicated on it.

Suppose that on March 1, 20 × 6, the buyer K. Isaac paid for goods worth 910 with an interest-free bill, on which in a year he undertakes to pay 1,000. This means that, despite the indicated interest income on the bill of 0%, in a year K Isaac will pay 90 or 10% more than the cost of the goods he purchased. Thus, the real market yield of such a bill is 10% per annum; and it was purchased by the company at a discount (or discount).

If the market yield is greater than the interest income on the bill, then it is purchased at a discount, i.e. cheaper than face value. Conversely, when the market yield is less than the interest income, the bill is purchased at a premium (or premium), i.e. more than face value. Cases of issuing debt securities at a discount or premium are discussed in the “Liabilities” section. When issuing securities, the mechanism for recognizing a discount or premium is similar. The market yield equals the interest yield stated on the security, which means it was purchased at face value.

Payment term: upon presentation

Situation: how to determine the date when your own bill of exchange with a payment term “at sight” expires?

The expiration date of such a bill of exchange is the 365th (366th) day from the date of its preparation.

An organization is obliged to pay a bill of exchange upon presentation upon its presentation. Moreover, such a bill must be presented for payment within one year from the date of its preparation. Provided that this annual period has not been changed by the drawer or endorsers.

In this case, the bill does not have any inscriptions that shorten or extend its circulation period. Therefore, its circulation period is considered to be a calendar year - 365 or 366 calendar days, that is, all the days during which the bill can change hands or be in the ownership of any bill holder.

This procedure follows from Articles 34 and 77 of the Regulations, approved by Resolution of the Central Executive Committee of the USSR and the Council of People's Commissars of the USSR dated August 7, 1937 No. 104/1341.

Basic Concepts

First of all, it is necessary to understand the definitions that are used when conducting transactions with bills of exchange. First, the bill itself. This name is used in relation to a written monetary obligation of the person who provided this security (the drawer) to pay the debt to the creditor (the drawer) in the future.

A third party, the acceptor, may also participate in the process of demanding a refund within a specified period of time. This is the person (or organization) who undertakes to make payment on the presented bill.

The financial system uses the following types of bills:

• Simple and transferable. They differ in the number of participants in the transaction.
• Commodity and treasury. These bills are graded depending on the nature of the transaction.
• Bronze and counter. They differ in the possibility of provision.
• Bearer and order. The basis of their differences lies in the method of transmission.

The bill is designed to bring income to its owner, which in this case can be of two types:

• Interest that is supposed to accrue on the bill amount.
• Discount. This is the name given to the monetary difference between the amount determined on paper by the debtor himself and the one that was established upon its sale.

Discounting of a bill is the sale of a security by the holder of a bill of exchange to a credit institution before its presentation is due.

For

For a specific case, different types of bills can be used