Requirements for financial statements

What is a financial statement used for and who prepares it?

When the reporting period in any organization ends, all legal entities and individual entrepreneurs (IP) must submit annual financial statements. It is necessary for internal work, as well as for external specialists who will evaluate the activities of an enterprise or individual entrepreneur.

Organization or enterprise data

The preparatory part of drawing up this document consists of the following steps:

• the correctness of the recording of correspondence on accounting transactions for the previous year is checked;
• all erroneous entries that were identified during the inventory period are corrected;
• if the reporting needs to reflect transactions that were identified in the new year, then accountants make notes and carry out all events according to the documents;
• after checking all the data, taxes for the reporting period are calculated;
• the last step is to make accounting entries for the calculation of taxes and reform the balance sheet of the company or enterprise.

Chief accountant - responsible person

Annual reports are prepared by the chief accountant . The accountants who are subordinate to him must provide all the necessary figures for the reporting period for their area.

This document is the final document in the accounting process. This helps to trace the unity of all available indicators in primary papers and accounting registers.

Principles for drawing up the annual form

There are general requirements that apply to this document. These include the following:

• all information must be reliable, and each figure must be confirmed by another (monthly or quarterly) document;
• The sequence of filling out one or another form, which is a component of the annual accounting, must be followed. reporting;
• all figures must be verified and comparable with the figures reflected in the internal documents of the enterprise.

Also, the general requirements include the materiality and neutrality of the preparation of the annual report. The enterprise is obliged to attach to the papers with annual figures transcripts of individual items and, if necessary, additional indicators.

The following items should be disclosed in additional accompanying information:

• dynamics (in the form of a graph or table) of important financial indicators of the company or enterprise over the past few years;
• a certificate containing information about the planned development;
• planned financial investments;
• how the company uses borrowed funds and how risks are managed;
• the work of company specialists in the field of design work and during various experiments and scientific activities;
• environmentally friendly activities and so on.

Strict reporting forms: what applies to them

If errors were identified in the accounting entries for certain business transactions of the current period before the end of the year, then corrective entries should be made in the month when the shortcomings were identified. If distortions were identified after the end of the reporting year, then corrections should be made in December of the reporting year.

When errors were found after the annual report had already been completed and approved, then corrections were not made to the accounting records for the previous year.

Principles for preparing a public annual report

1. Balance. The report must reflect the positive and negative aspects of the NPO’s activities in order to give a reasonable assessment of the results of the work. You cannot hush up failures and highlight achievements.

2. Comparability. Information must be comparable over time. For example, financial information for 2021 and 2021 is structured in the same way and calculated using the same rules.

3. Accuracy. The information must be as accurate as possible. Approximate estimates should be avoided.

4. Clarity. Information must be presented in a clear and accessible form. There is no need to abuse special terminology, for example, medical. This will not allow some readers to understand what you are doing.

5. Reliability. The information reflected in the report must be documented. The reader should be able to verify it using open data sources.

Composition of annual financial statements: what is included in the document

The chief accountant can draw up the document himself or instruct his deputy to do this, but he will sign it with his own hand.

Interim report

First, interim reporting must be prepared, which consists of the following forms:

1. "Balance sheet".
2. “Profit and Loss Report.”

In addition, the company must provide other reporting forms, for example, a “cash flow report.”

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Annual

To provide annual financial statements, the chief accountant must be able to prepare the following documents:

• enterprise balance sheet;
• a document containing data on income and expenses;
• capital statement;
• a document containing figures reflecting the movement of money;
• document attachment to the balance sheet;
• a note explaining the figures reflected in the report;
• public, budgetary and non-profit companies submit a report on the use of funds;
• the result of the audit report, which is issued based on the results of the audit of the accounting records. report.

The balance sheet is generalized figures in rubles for a certain date. This document is a table with columns and rows.

In one part of the form, which is on the right, funds are reflected by receipt, and in the left - by expense or composition of placement.

These are the passive and active parts, in which each type of funds is called a “balance sheet item.”

The amounts in the “Total” column of assets and liabilities must be equal, since these lines reflect the same funds.

Income and Expense Report

The income and expense report contains the following data:

• profit or loss from sales of goods or services, management expenses;
• income (+) and expenses (-) from operations;
• income tax, VAT, operating profit, non-operating income and expenses;
• net income (retained) minus extraordinary expenses.

Statement of changes in equity

The statement of changes in capital consists of the following documents:

• “Section on capital” - reflects the remaining amount at the beginning and end of the year, income and expenses.
• “Reserve future expenses” – the balance at the beginning and end of the year, and the movement of future expenses.
• “Data on estimated reserves” – the balance at the beginning and end of the reporting period, and estimated reserves.
• “Change in capital amounts” – information about the amount of capital, its increase or decrease.
• “Certificate” reflects data on assets at the beginning and end of the reporting period and information on budgetary and extra-budgetary funds for capital investments.

More information about reporting is described in this video:

The cash flow report consists of the following subsections:

• amount at the beginning of the period;
• incoming monetary units during the year;
• money was sent for expenses;
• residual amount at the end of the reporting year.

The “Intangible assets” section is presented in the form of two tables with detailed information on the amounts of accrued depreciation. Types of intangible assets include :

• intellectual property;
• organizational expenses;
• business reputation;
• other assets.

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What information should be included in the annual report of a joint-stock company?

• full: Open Joint Stock Company “Znaybiz.ru”;
• abbreviated: OJSC "Znaybiz.ru".

Location of the Company and location of the General Director of the Company: 123456, Russian Federation, Moscow, st. Pervaya, 1, office. 1.

Postal address: 123456, Russian Federation, Moscow, st. Pervaya, 1, office. 1.

Registration information: registered with the Inspectorate of the Federal Tax Service of Moscow, entered on September 10, 2007 in the Unified State Register of Legal Entities under the main state registration number 1074823016256 (Certificate of entry into the Unified State Register of Legal Entities - series 48 No. 001190807 dated September 10, 2007 ).

INN 1234567890/KPP 123401001 (Certificate of registration of a legal entity with the tax authority at the location in the Russian Federation - series 48 No. 001002569 dated 09.10.2007).

Authorized capital of the Company:

• 201,203,000 (two hundred one million two hundred three thousand) rubles, made up of the par value of the Company's shares, and consists of 201,203 (two hundred one thousand two hundred three) ordinary shares with a par value of 1000 (one thousand) rubles each.

Information on the issue of shares of the Company:

1. Initial public offering:
   ordinary registered uncertificated shares;
2. registration number of the issue - 1-01-43535-A;
3. date of state registration of the issue and report on the results of the issue - from 02/27/2008.

According to the provisions of Article 9 of the Company’s Charter, the management bodies of the Company are:

1. General meeting of shareholders of the Company.
2. Board of Directors of the Company.
3. The General Director is the sole executive body of the Company.

The body of control over the financial and economic activities of the Company is the Audit Commission, consisting of three people. In 2021, by the decision of the shareholder of Znaybiz.ru OJSC dated June 25, 2021, an audit commission was elected in the following composition: Victoria Viktorovna Viktorova, Lyubov Sergeevna Cheretun, Larisa Aleksandrovna Vetchinkina.

The Board of Directors of the Company and the Audit Commission of the Company are elected by decision of the shareholders of the Company in the manner prescribed by the Charter of the Company.

By the decision of the shareholders dated June 25, 2021, the Board of Directors of the Company was elected with a numerical strength of 5 (five) people consisting of: Troshin Viktor Ivanovich, Polushin Igor Yurievich, Sarafanov Viktor Alekseevich, Troshin Vladimir Ivanovich, Ivanov Ivan Ivanovich.

Closed Joint Stock Company “Finance L”, OGRN 1024840824370, INN 4826027483, was approved as the Company’s auditor for 2021 by the decision of the shareholders.

1. The Company’s position in the industry.

1.1. OJSC "Znaybiz.ru" was created and registered as a legal entity on September 10, 2007.

1.2. OJSC "Znaybiz.ru" as an independent legal entity specializes in the production of poultry and livestock products. During its existence, the company has accumulated valuable experience in the above-mentioned field of activity.

2. Priority areas of the Company’s activities.

In accordance with paragraph 2.2 of Article 2 of the Charter, the Company carries out the following main activities:

• crop production;
• livestock farming;
• crop production combined with livestock farming (mixed agriculture);
• provision of services in the field of crop and livestock production, except for veterinary services, and other activities not prohibited by current legislation.

3. Report of the Board of Directors on the results of the Company’s development in priority areas of its activities in 2021.

In 2021, the Board of Directors of the Company was elected with a numerical strength of 5 (five) people consisting of: Troshin Viktor Ivanovich, Polushin Igor Yurievich, Sarafanov Viktor Alekseevich, Troshin Vladimir Ivanovich, Ivanov Ivan Ivanovich.

In 2021, an extraordinary meeting (meetings) of the board of directors was held: December 22, 2021 (on the transfer of the register of owners of registered securities for maintenance to the specialized registrar CJSC Industry REGISTER).

In the reporting year, the Company carried out organizational measures to form staff, develop internal regulations and provisions, accounting policies, organize the necessary conditions and equip personnel workplaces.

In terms of implementing the established priority areas of activity, the Company carried out the following work:

1. Regarding agricultural work:
   on owned agricultural lands located at the address: Lipetsk region, Lipetsk district, village Novoderevensky, work was carried out to grow agricultural crops - barley, wheat, tertiary;
2. a sublease agreement was concluded with OJSC Agrocomplex Dobrovsky for the cultivation of agricultural crops - barley, wheat, tertiary;
3. a lease agreement was concluded for the Krasny Kolos poultry farm with Lipetskptitsa LLC, which produces and sells chicken eggs.

Based on the results of financial activities in 2021, the book value of the Company’s assets as of 01/01/2021 amounted to 450,695 rubles. Profit based on the results of the Company’s financial and economic activities for 2021 amounted to 164,000 rubles. The Company’s net assets based on the results of 2021 amounted to 208,820 rubles.

Laws governing annual accounts

Article 14 of Law 402-FZ talks about documents that should be included in the annual financial statements. When drawing up a document, you must be guided by the following legislative acts:

• PBU 4/99 “Accounting statements”.
• Regulations on accounting and accounting. reporting in the Russian Federation No. 34n.
• Order of the Ministry of Finance dated July 2, 2010 No. 66n “On accounting forms. reporting of enterprises".

Based on these legislative documents, every enterprise and company must fully disclose its costs and expenses in the form of annual financial statements.

Accounting statements: due date 2021

According to Art. 23 of the Tax Code of the Russian Federation).

Results

1. Annual financial statements are prepared by the chief accountant. This document is necessary for work within the company and for users who are involved in assessing the activities of the enterprise.
2. The principles for drawing up the annual form are the correctness of the format and the reliability of all the numbers provided.
3. The annual report includes a balance sheet of the enterprise, a document with reflected profits and losses, and others.
4. The legal regulation of this document is carried out by certain documents.