Postings at the receiving party when transferring OS for free use
In clause 23. Methodological guidelines for accounting for fixed assets, approved by Order of the Ministry of Finance of the Russian Federation dated October 13, 2003 No. 91n (hereinafter referred to as Order 91n), it is stated that fixed assets received by the organization are reflected in accounting at their original cost.
One of the options for receiving these assets to an enterprise is to receive them free of charge from other institutions. For such fixed assets, the initial cost is the market price on the date of their reflection on the company’s accounts (clause 29 of the Guidelines). The costs associated with the gratuitous receipt of fixed assets are accumulated on account 08, and the following entry is made:
Dt 08 Kt 98.
Additional costs (costs of delivery or bringing the OS into working condition) are also included in the debit of account 08:
Dt 08 Kt 60 (10, 23, 26, 76).
IMPORTANT! The gratuitous transfer of fixed assets from the donor is subject to VAT. But the organization receiving fixed assets cannot accept this tax for reimbursement and does not reflect information about it in accounting. For details, see the material “Is VAT paid when transferring property free of charge?”
VAT on additional expenses is reflected in the accounts:
Dt 19 Kt 60.
The commissioning of the facility is reflected in the following correspondence:
Dt 01 Kt 08.
Since assets received free of charge are recognized as other income, as depreciation is calculated, their value is written off on credit 91. In this case, two accounting entries are made - one reflects the amount of accrued depreciation, the second - the amount of deferred income included in other income:
Dt 20 Kt 02;
Dt 98 Kt 91.
Read about the nuances of accounting for property received free of charge in a typical situation from ConsultantPlus. If you do not have access to the K+ system, get a trial online access for free.
To learn more about operations with fixed assets, read the article “Accounting for fixed assets - accounting entries.”
Accounting for property transferred for free use
ACCOUNTING OF PROPERTY TRANSFERRED FOR FREE USE FROM THE LENDER When the owner organization transfers fixed assets or other property under an agreement for free use (loan), these objects or other property will continue to be listed on its balance sheet. In accordance with the current Chart of Accounts. financial and economic activities of organizations and Instructions for its application, approved by Order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n “On approval of the Chart of Accounts for accounting financial and economic activities of organizations and Instructions for its application”, fixed assets owned by the organization (including leased or for gratuitous use) are accounted for on account 01 “Fixed Assets”. Property transferred for use free of charge is subject to separate accounting by the transferring party. Thus, property transferred free of charge for use to another party is subject to accounting with the lender on account 01 “Fixed assets” subaccount “Fixed assets transferred for free use” and 02 “Depreciation of fixed assets” subaccount “Depreciation of fixed assets transferred for free use” "The transferring party, for accounting purposes, will have to make the following entries: Correspondence of accountsContent of transactionDebitCredit01-201-1Reflects the transfer of fixed assets under a loan agreement (act of acceptance of the transfer of a fixed asset, inventory card for recording a fixed asset)02-102-2Reflects the amount of depreciation on the transferred object fixed assets 91-202-2 Depreciation has been accrued on fixed assets transferred under a contract for free use 01-1 “Fixed assets”; 01-2 “Fixed assets transferred for free use”; 02-1 “Depreciation of fixed assets”; 02-2 “Depreciation of fixed assets funds transferred for free use.” Analytical accounting is maintained separately for each inventory item of fixed assets.
How to transfer fixed assets to another organization free of charge
From January 1, 2022, FSBU 6/2020 “Fixed Assets” and FSBU 26/2020 “Capital Investments” are in effect. They were approved by Order of the Ministry of Finance of Russia dated September 17, 2020 N 204n. At the same time, PBU 6/01 and Guidelines for accounting of fixed assets become invalid. You can start applying the Standards earlier.
The gratuitous transfer of fixed assets is their disposal. Therefore, entries in the accounting accounts begin with writing off the original cost and depreciation:
Dt 01-2 Kt 01-1;
Dt 02 Kt 01-2.
Clause 86 of Order 91n states that income and expenses associated with any disposal of fixed assets are reflected in account 91. Since the residual value relates to the expenses of the organization, it is debited to account 91:
Dt 91 Kt 01-2.
When transferring an OS free of charge, as well as when receiving it, additional costs may arise. They are reflected by wiring:
Dt 91 Kt 60 (76).
After this, a posting is made reflecting VAT on additional expenses:
Dt 19 Kt 60 (76).
Since VAT in this case is classified as an expense that is not taken into account for profit tax purposes, an accounting entry is made:
Dt 91 Kt 19.
The transfer of fixed assets on a free basis initially involves the accrual of VAT from the transferring party (such a transfer is considered a sale according to the provisions of Article 146 of the Tax Code of the Russian Federation, with the exception of cases specifically listed in the same article):
Dt 91 Kt 68.
As a result, the expenses incurred on account 91 are written off as losses to the enterprise. An accounting entry is prepared:
Dt 99 Kt 91.
Since the residual value and additional expenses cannot be taken into account when calculating income tax, a permanent tax liability arises, which is reflected:
Dt 99 Kt 68.
ConsultantPlus experts explained in detail how gratuitous transactions are taken into account for income tax purposes. If you don't have access to the system, get a free trial online.
Postings in the budget if fixed assets were transferred free of charge
Just like private companies, budgetary organizations, within the framework of their legal capacity, can transfer OS free of charge or be their recipients.
In the budget, the main regulatory legal act regulating the correctness of registration of the gratuitous transfer of fixed assets in accounting accounts is Order of the Ministry of Finance of Russia dated December 1, 2010 No. 157n. In addition, depending on the type of organization, 3 more regulatory documents are used: order of the Ministry of Finance of Russia dated December 23, 2010 No. 183n - for autonomous institutions, order of the Ministry of Finance of Russia dated December 16, 2010 No. 174n - for budgetary organizations, order of the Ministry of Finance of Russia dated December 6, 2010 No. 162n - for state-owned enterprises.
For details of maintaining budgetary accounting of fixed assets, see the material “Budget accounting of fixed assets in 2021 - 2021 (nuances).”
In government and budgetary organizations, when receiving fixed assets free of charge, it is necessary to take into account which budget manager of the institution that transfers the assets. Thus, only the account credit in the accounting entry will change:
- if organizations have the same fund manager - 030404310,
- if different managers - 040110180,
- other receipts - 040110100.
By debit in such a posting, the corresponding subaccounts of account 010100000 will always be used.
Disposal of fixed assets due to gratuitous transfer in budgetary and government organizations is reflected:
Dt 030404310 (040120200) Kt 010100000.
Since autonomous institutions do not have funds managers, free receipt of OS is possible either from the founders or from third-party organizations. The procedure for recording transactions for the gratuitous receipt and disposal of fixed assets on the accounts of such organizations is specified in Order 183n.
The legislation provides for cases when the gratuitous transfer of fixed assets is not subject to VAT taxation:
1. If fixed assets were transferred to a non-profit organization and they will be used to carry out the main activities reflected in the institution’s charter.
2. When transferring OS to government and local governments, state and municipal institutions, state and municipal unitary enterprises.
In other cases, the transferring party charges VAT.
In addition to the calculation of VAT, when transferring fixed assets free of charge, an important issue is their inclusion in income that affects the taxable base for income tax. Thus, when transferring within one budget level and during interbudgetary transfer, income from gratuitously received fixed assets is not taken into account.
If the assets were not received from institutions of the budget system, then you should pay attention to whether they came as a donation or under a gift agreement. Because in accordance with sub. 1 item 2 art. 251 of the Tax Code of the Russian Federation, only income in the form of donations is exempt from profit taxation. If property was received under a gift agreement, its market value is included in non-operating income (subclause 1, clause 4, article 271 of the Tax Code of the Russian Federation).
Accounting for property transferred for free use
ACCOUNTING OF PROPERTY TRANSFERRED FOR FREE USE FROM THE LENDER When the owner organization transfers fixed assets or other property under an agreement for free use (loan), these objects or other property will continue to be listed on its balance sheet. In accordance with the current Chart of Accounts. financial and economic activities of organizations and Instructions for its application, approved by Order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n “On approval of the Chart of Accounts for accounting financial and economic activities of organizations and Instructions for its application”, fixed assets owned by the organization (including leased or for gratuitous use) are accounted for on account 01 “Fixed Assets”. Property transferred for use free of charge is subject to separate accounting by the transferring party.
Thus, property transferred free of charge for use to another party is subject to accounting with the lender on account 01 “Fixed assets” subaccount “Fixed assets transferred for free use” and 02 “Depreciation of fixed assets” subaccount “Depreciation of fixed assets transferred for free use” "The transferring party, for accounting purposes, will have to make the following entries: Correspondence of accountsContent of transactionDebitCredit01-201-1Reflects the transfer of fixed assets under a loan agreement (act of acceptance of the transfer of a fixed asset, inventory card for recording a fixed asset)02-102-2Reflects the amount of depreciation on the transferred object fixed assets 91-202-2 Depreciation has been accrued on fixed assets transferred under a contract for free use 01-1 “Fixed assets”; 01-2 “Fixed assets transferred for free use”; 02-1 “Depreciation of fixed assets”; 02-2 “Depreciation of fixed assets transferred for free use.”
Results
The gratuitous transfer of fixed assets is considered a receipt of assets if the organization is their recipient. In this case, correspondence is drawn up, the result of which is the inclusion of the amount of fixed assets received in the income of the enterprise.
If, on the contrary, an organization transfers an asset to someone, then for it it will be a disposal, which will subsequently be reflected in the accounts as a loss of the organization.
Accounting for gratuitous revenues in the budgetary sector differs from accounting for other enterprises and is regulated by its own legal regulations.
Sources:
- guidelines for accounting of fixed assets, approved. by order of the Ministry of Finance of the Russian Federation dated October 13, 2003 No. 91n
- chart of accounts, approved by order of the Ministry of Finance of Russia dated December 1, 2010 No. 157n
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