List of PBUs applied in 2010

Why do you need PBU 4/99?

PBU 4/99 (hereinafter referred to as PBU) was introduced for mandatory application by order of the Ministry of Finance of the Russian Federation dated July 6, 1999 No. 43n.
This PBU represents a methodological basis and set of rules for the preparation of reporting by legal entities. Its effect applies to all organizations, with the exception of credit and state (municipal) institutions (clause 1 of the PBU), which are guided in reporting matters by special methodological documents, also approved by the Ministry of Finance of the Russian Federation. For example, autonomous municipal institutions operate in accordance with the order of the Ministry of Finance of the Russian Federation dated December 28, 2010 No. 191n. In PBU 4/99, an accountant will be able to find answers to the questions (clause 3 of PBU):

about the report forms used;
about the procedure for their compilation;
about a simplified version of accounting;
about the features of the formation of consolidated, liquidation and reorganization reporting;
on the publication of reporting documents in the media.

Read about who can create accounting reports in a simplified form in this article.

In what cases, when preparing financial statements, is it permissible to deviate from the rules of PBU 4/99? The answer to this question is in ConsultantPlus. Get free demo access to K+ and go to the material to find out the opinion of K+ experts.

Users of financial statements

Accounting must be neutral in nature, that is, satisfy the interests of all groups of its users (clause 7 of the PBU), which can be divided into external and internal.

Internal include business owners, managers, internal services and company employees. For example, top managers are interested in final financial indicators for strategic planning of activities and adjustments to the current plan; Sales department specialists will be interested in information about receivables from counterparties for the purpose of further collection.

For internal purposes, a balance sheet may:

be drawn up for a specific date;
have an abbreviated form;
formed for each type of economic activity of the company;
appear in the form of a current forecast, preliminary and interim report.

External users may need financial information for various purposes:

tax authorities - to verify the correctness and completeness of payment of taxes and fees;
credit organizations - to assess the solvency and financial stability of the organization, for example, when making a decision to issue a loan or loan;
investors and sponsors - for a long-term assessment of their financial investments in a commercial business and obtaining financial returns;
counterparties - to be confident in the reliability of your business partner.

To correctly analyze reporting indicators, various methods are used, which you will learn about from our material “Rules and methods for evaluating balance sheet items .

Another fundamental principle in IFRS is the concept of fair value.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This is a transaction that takes place between unrelated parties in an active market.

Fair value under IFRS can be determined in two ways:

Express course at Kontur.School

IFRS for beginners. Basic principles of reporting More details

Search for analogues in the current market. Most often used when valuing fixed assets, such as land. The difficulty is that it is not always possible to find one hundred percent analogues. For example, the selected land plots may differ in location, area, transport accessibility, availability of communications, and so on.

In case of incomplete analogy, the appraiser is forced to introduce adjustments for the difference between the valued object and what is available on the current market. Such adjustments can be difficult to calculate and subsequently justify to auditors. As for unique objects, there may be no active market for them at all. In this case, it will not be possible to conduct an assessment based on analogues.

Discounting future cash flows from an object. This method of estimating fair value involves estimating the future cash flow of an asset and discounting that cash flow at a market rate. The advantage of this method is that it is universal and can also be used for unique objects for which there are no absolute analogues. Technically, this method is complex and requires special competencies from the employee who prepares the assessment model.

IFRS fair value accounting requirements are mandatory for certain types of financial instruments. As for fixed assets and income-generating investments in tangible assets, there is the possibility of choosing an accounting policy: accounting at fair value or at actual costs.

There is no definition of fair value in RAS. But this does not mean that the concept does not apply at all. PBU 6/01 “Accounting for fixed assets” allows, although does not oblige, to conduct an annual revaluation of the organization’s fixed assets. The methods for estimating the value of fixed assets used in Russian accounting are similar to IFRS.

The convergence of RAS and IFRS in terms of accounting for fixed assets and financial instruments is planned after the release of new accounting standards:

FSBU “Fixed Assets” will be mandatory for use from 2021;
FSBU "Financial Instruments" - from 2022.

After the introduction of standards, the question will arise about the need to determine the fair value of fixed assets (in case of choosing the “revalued value” accounting policy) and certain types of financial instruments.

The FSBU project “Financial Instruments” is not yet publicly available. The Ministry of Finance of the Russian Federation reported that the new standard will be based on IFRS 9 “Financial Instruments”. If this is true, then hedging instruments, financial investments in debt instruments (shares, bonds) and even some types of loans will need to be taken into account at fair value. Such changes will make a real revolution in Russian accounting.

How to make entries when determining fair value, see the video:

Recommendations: it is important for companies to decide now which accounting policy will be chosen for fixed assets: at fair value or at actual costs. And in 2021, after the release of the FSBU “Financial Instruments” project, analyze what financial instruments the company has and who will assess their fair value

Accountants will likely need to review the results of the valuation report, so additional training may be required for accounting staff.

Latest edition of PBU 4/99 “Accounting statements of an organization”

The latest (current) edition of PBU 4/99 is dated November 8, 2010, as amended by the Decision of the Supreme Court of the Russian Federation dated January 29, 2018 No. AKPI17-1010. Compared to the text that existed before it, the provisions of the PBU have changed slightly.

The updates turned out to be related to the replacement of wording. The definition of “budgetary organizations” was replaced by “state (municipal) institutions” due to a change in the status of the latter (Order of the Ministry of Finance of the Russian Federation of November 8, 2010 No. 142n). Such institutions were divided into budgetary, autonomous and state-owned.

And the Supreme Court excluded from the PBU the requirement for the preparation of interim reports by all organizations.

Financial statements of the organization according to PBU 4/99 in 2020–2021

The financial statements for 2021 include (clause 5 of the PBU):

balance sheet;

Read about the rules for filling it out in the article “Procedure for drawing up a balance sheet (example)” .

For a sample filling, see the material “Balance Sheet for 2021: Sample Completion.”

financial results report;

For information on how to fill it out, read the article “Filling out Form 2 of the balance sheet (sample)” .

reports on changes in capital, cash flows and intended use of funds;

For information on these forms, see the publication “Filling out Forms 3, 4 and 6 of the Balance Sheet” .

explanatory note for accounting.

Read about the features of its design in the material “Drafting an explanatory note to the balance sheet (sample)” .

ATTENTION! From 2021, financial statements, incl. simplified, submitted exclusively electronically. Paper forms will no longer be accepted. Read more about changes to the rules for presenting financial statements here. We also remind you that in 2021 the reporting forms were updated.

Accounting rules: what they are and why they are needed

PBUs or accounting regulations (sometimes informally referred to as accounting rules) are regulations that establish the procedure for preparing financial statements and maintaining accounting in one or another area of a company’s business activities. PBUs can regulate the specifics of accounting for various assets, liabilities, and individual facts of economic activity.

Find out what standards to rely on when doing accounting.

Accounting standards are generally issued by the Ministry of Finance of the Russian Federation, and for credit organizations - by the Bank of Russia. All organizations must comply with the standards established by the PBU, unless exceptions are expressly stated in a particular provision. For example, paragraph 3 of PBU 8/2010 states that the rules enshrined in the relevant source may not be applied by organizations that use simplified accounting schemes. These include, in particular, small businesses, non-profit organizations and other entities (information of the Ministry of Finance dated June 29, 2016 No. PZ-3/2016).

In 2021, 24 different accounting standards are applied in the Russian Federation, defining accounting rules. Let's take a closer look at them.

General rules for preparing financial statements according to PBU 4/99

Despite the fact that each form has its own characteristics of filling out, the PBU prescribes a general approach to the preparation of accounting records, which highlights the following points:

accounting records must be reliable and complete, must be compiled in accordance with the norms of current legislation (clause 6 of the PBU);
it is filled out in Russian (clause 15 of PBU) and indicating the amounts in rubles (clause 16 of PBU);
for enterprises with branches, unified (general) reporting is generated (clause 8 of the PBU);
data for the reporting year must be interrelated with previous periods (clause 33 of the PBU);
the allocation of information reflected in the reporting determines the principle of materiality (clause 25 of the PBU);
reporting period - calendar year (clause 13 of PBU);
it is possible to prepare interim reporting (clauses 48–52 of the PBU) on a monthly or quarterly basis on an accrual basis with 2 mandatory forms (balance sheet and financial results report) no later than 30 days after the end of the period;
accounting records are open to access by interested parties (clause 42 of the PBU);
assets and liabilities of the balance sheet are divided into short-term (up to 1 year) and long-term (more than 1 year) (clause 19 of PBU);
accounting data should be confirmed by an inventory of property and liabilities (clause 38 of the PBU);
offset between the items of assets and liabilities, profits and losses is not carried out, except for the cases prescribed in PBU 4/99 (clause 34 of PBU);
indicators must be reflected at net (net) value (clause 35 of PBU 4/99).

In the report header you will need to indicate:

the unit of measurement is in thousands of rubles, you cannot fill out reports in millions;
code from OKVED2.

Contents of financial statements

The balance sheet must indicate the financial position of the company as of the reporting date (clause 18 of the PBU). This is achieved by reflecting data on the balances in the accounts of assets and liabilities as of this date. The balance sheet includes numerical indicators reflected in 5 of its sections (clause 20 of the PBU):

2 asset sections dedicated to non-current and current assets;
3 sections of liabilities allocated to capital and reserves, long-term and short-term liabilities.

Income and expenses in the financial results report are divided into ordinary and other, which must be presented in several numerical indicators (clause 23 of the PBU).

Explanations for the balance sheet and financial results report take the form of 3 additional reports (on cash flows, changes in capital, intended use of funds) and an explanatory note (clause 28 of the PBU).

Explanations for accounting statements must contain the following information (clause 27 of the PBU):

on the availability at the beginning and end of the period, the movement of fixed assets (including leased ones) and intangible assets, financial investments; on capital, issued shares, accounts receivable and payable, reserves for future expenses;
about sales volumes;
about production costs;
about other income and expenses;
about received and issued obligations;
about emergency events that occurred in the activities of the enterprise;
about facts that happened at the enterprise after the reporting date.

And also (clause 31 of PBU):

legal address of the company;
main types of activities carried out by the enterprise;
data on the average annual number of personnel;
composition of the executive and supervisory bodies of the company, indicating positions.

The cash flow statement must reflect information about cash flows for 3 types of activities: financial, current and investing. It discloses actual data on balances at the beginning and end of the reporting period, cash inflows and outflows (clause 29 of the PBU).

The report on changes in capital must inform about the decrease and increase in capital: additional, authorized, reserve (clause 30 of the PBU).

The explanatory note must contain a note stating that the statements have been prepared in accordance with the requirements of Russian accounting legislation (clause 25 of the PBU).

Explanations must contain information about the applied accounting policy and additional information disclosing the data included in the reporting (clause 24 of the PBU). This information cannot be shown in the balance sheet and financial results report. But without them it is impossible to give a real assessment of the financial condition of the enterprise.

PBU 24/2011

Registered with the Ministry of Justice of the Russian Federation on December 30, 2011 N 22875

MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION ORDER dated 06.10.11 N 125n ON APPROVAL OF THE ACCOUNTING REGULATIONS “ACCOUNTING FOR COSTS FOR THE DEVELOPMENT OF NATURAL RESOURCES” (PBU 24/2011)
In order to improve legal regulation in the field of accounting and financial reporting and in accordance with the Regulations on the Ministry of Finance of the Russian Federation, approved by Decree of the Government of the Russian Federation of June 30, 2004 N 329 (Collected Legislation of the Russian Federation, 2004, N 31, Art. 3258; N 49, Art. 4908; 2005, N 23, Art. 2270; N 52, Art. 5755; 2006, N 32, Art. 3569; N 47, Art. 4900; 2007, N 23, Art. 2801 ; N 45, Art. 5491; 2008, N 5, Art. 411; N 46, Art. 5337; 2009, N 3, Art. 378; N 6, Art. 738; N 8, Art. 973; N 11, Art. 1312; N 26, Art. 3212; N 31, Art. 3954; 2010, N 5, Art. 531; N 9, Art. 967; N 11, Art. 1224; N 26, Art. 3350; N 38 , Art. 4844; 2011, N 1, Art. 238; N 3, Art. 544; N 4, Art. 609; N 10, Art. 1415; N 12, Art. 1639; N 14, Art. 1935; N 36, Art. 5148), I order:
1. Approve the attached Accounting Regulations “Accounting for costs for the development of natural resources” (PBU 24/2011).
2. Establish that this Order comes into force from the 2012 financial statements.
And about. Minister A.G.SILUANOV

Approved by order of the Ministry of Finance of the Russian Federation dated October 6, 2011 N 125n

ACCOUNTING REGULATIONS “ACCOUNTING FOR COSTS FOR DEVELOPMENT OF NATURAL RESOURCES” (PBU 24/2011)

I. General provisions
1. These Regulations establish the procedure for the formation in accounting and disclosure in the financial statements of organizations that are legal entities under the legislation of the Russian Federation (with the exception of credit organizations and state (municipal) institutions), subsoil users (hereinafter referred to as organizations) information about costs for the development of natural resources.

2. These Regulations are applied by organizations that incur costs for the search, evaluation of mineral deposits and exploration of minerals (hereinafter referred to as search costs) in a certain subsoil area.

This Regulation is applied by organizations in relation to prospecting costs carried out until the moment when, in relation to the subsoil area in which prospecting, evaluation of mineral deposits and exploration of mineral resources is carried out, the probability (more likely than not) that the economic benefits from mining will exceed the costs incurred, subject to the technical feasibility of mining and the organization having the resources necessary for mining (hereinafter referred to as the commercial feasibility of mining).

3. This Regulation is not applied by organizations in relation to costs:

a) for regional geological and geophysical work, geological surveys, engineering-geological surveys, scientific research, paleontological and other work aimed at the general study of the subsoil, geological work on forecasting earthquakes and studying volcanic activity, creating and maintaining monitoring of the natural environment, control for the regime of groundwater, other work carried out without significant violation of the integrity of the subsoil, carried out until the receipt of a license giving the right to carry out work on the search and assessment of mineral deposits in a given subsoil area (except for the costs specified in paragraph 15 of these Regulations);

b) for the extraction of mineral resources in relation to a subsoil plot, which are incurred after the commercial feasibility of extraction has been established;

c) for geological exploration work carried out on a subsoil plot in respect of which the commercial feasibility of production has been established.

II. Recognition of search costs

4. The organization establishes the types of search costs recognized as non-current assets. The remaining search costs are recognized as expenses for ordinary activities.

5. Exploration costs recognized as non-current assets (hereinafter referred to as exploration assets), as a rule, relate to a separate subsoil plot in respect of which the organization has a license giving the right to carry out work on the search, evaluation of mineral deposits and (or) exploration of minerals .

6. Exploration costs related primarily to the acquisition (creation) of an object that has a tangible form are recognized as tangible exploration assets. Other search assets are recognized as intangible search assets.

7. Tangible exploration assets, as a rule, include those used in the process of searching, assessing mineral deposits and mineral exploration:

a) structures (pipeline system, etc.);

b) equipment (specialized drilling rigs, pumping units, tanks, etc.);

c) vehicles.

8. Intangible exploration assets usually include:

a) the right to carry out work on the search, assessment of mineral deposits and (or) exploration of mineral resources, confirmed by the presence of an appropriate license;

b) information obtained as a result of topographical, geological and geophysical studies;

c) results of exploratory drilling;

d) results of sampling;

e) other geological information about the subsoil;

f) assessment of the commercial feasibility of production.

9. Tangible and intangible exploration assets are accounted for in separate subaccounts to the account for accounting for investments in non-current assets.

10. The accounting unit for tangible and intangible exploration assets is determined by the organization in relation to the accounting rules for fixed assets and intangible assets, respectively.

11. The accounting policy chosen by the organization for recognizing and classifying exploration assets should be applied consistently to similar costs and activities.

III. Valuation of exploration assets upon recognition

12. When recognized in accounting, exploration assets are valued at the amount of actual costs.

13. The actual costs of acquiring (creating) exploration assets include:

amounts paid in accordance with the agreement to the supplier (seller);

amounts paid to organizations for performing work under construction contracts and other contracts;

remunerations paid to the intermediary organization and other persons through which the exploration asset was acquired;

amounts paid for information and consulting services;

customs duties and customs fees;

non-refundable taxes, government and patent fees;

depreciation of other non-current assets (including exploration assets) used directly in the creation of an exploration asset;

remuneration to employees directly involved in the creation of the search asset;

the organization's obligations in relation to environmental protection, land reclamation, liquidation of buildings, structures, equipment arising in connection with the performance of work on the search, evaluation of mineral deposits and mineral exploration associated with recognized exploration assets;

other costs directly related to the acquisition (creation) of a prospecting asset, providing conditions for its use for the planned purposes.

14. The actual costs of acquiring (creating) exploration assets do not include:

tax refunds;

general business and other similar expenses, except for cases when they are directly related to the performance of work on the search, evaluation of mineral deposits and mineral exploration and relate to a separate subsoil area in which the organization carries out such work.

15. Costs incurred by an organization prior to obtaining a license giving the right to perform work on the search and evaluation of mineral deposits are included in the actual costs of obtaining this license only if such costs are directly related to its receipt.

IV. Subsequent evaluation of exploration assets

16. The subsequent assessment of tangible and intangible exploration assets, including depreciation, is carried out in relation to the rules for the subsequent assessment of fixed assets and intangible assets, respectively, taking into account the features established by paragraphs 17 - 20 of these Regulations.

17. The procedure for calculating depreciation on exploration assets is determined by the organization. When a prospecting asset is used to create another prospecting asset, the associated depreciation expense is included in the cost of its creation.

18. The costs of obtaining a license, which, along with the right to carry out work on the search, evaluation of mineral deposits and (or) exploration of mineral resources, gives the right to extract minerals, are not subject to depreciation until the commercial feasibility of extraction is confirmed.

19. The organization must conduct an analysis at each reporting date of the presence of circumstances indicating possible impairment of exploration assets (hereinafter referred to as indicators of impairment). At a minimum, the following indicators of impairment must be considered:

a) the end, within 12 months after the reporting date, of the period for which the organization received a license giving the right to carry out work on the search, evaluation of mineral deposits and exploration of minerals in a certain area, in the absence of intentions and (or) the possibility of extending the corresponding rights;

b) significant costs necessary to carry out work on further search, evaluation of mineral deposits and exploration of minerals in a certain area are not taken into account in the organization’s plans;

c) making a decision to terminate activities related to the search, assessment of mineral deposits and exploration of minerals in a certain area, due to the fact that the search, assessment of mineral deposits and exploration of minerals in this area did not lead to the discovery of industrially significant minerals;

d) there are indications that, with continued exploration, evaluation of mineral deposits and exploration of minerals in a certain area, the cost of exploration assets, taking into account accumulated depreciation and impairment, is likely not to be fully recovered upon extraction of mineral resources or transfer of the right to use the subsoil plot to other persons.

20. If there are indications of impairment, the entity must test exploration assets for impairment and account for the change in the value of exploration assets due to impairment in accordance with International Financial Reporting Standards (IAS) 36 Impairment of Assets, IFRS 6 Exploration and Evaluation of Mineral Reserves . ——————————————————— Put into effect for use on the territory of the Russian Federation by order of the Ministry of Finance of the Russian Federation dated November 25, 2011 N 160n (registered by the Ministry of Justice of the Russian Federation on December 5, 2011 g., registration N 22501; Rossiyskaya Gazeta, 2011, December 9).

V. Derecognition of exploration assets

21. The organization ceases to recognize exploration assets in relation to a certain subsoil area upon confirmation of the commercial feasibility of production or recognition of mineral extraction there as unpromising.

22. The organization provides documentary evidence of the commercial feasibility of mining or recognition of the futility of mining at a subsoil site.

23. When confirming the commercial feasibility of production, the organization must carry out the following sequential actions:

a) check recognized exploration assets for impairment and, if confirmed, recognize their impairment;

b) transfer exploration assets to fixed assets, intangible or other assets at residual value (actual costs taking into account revaluations made minus accumulated depreciation and impairment);

c) stop recognizing subsequent costs on this subsoil plot as exploration assets.

24. The cost of a tangible or intangible exploration asset that is retired or is not capable of bringing economic benefits to the organization in the future is written off in the manner established for writing off fixed assets or intangible assets, respectively.

25. If during the reporting period the extraction of minerals at a subsoil site is recognized by the organization as unpromising, exploration assets related to this subsoil site are written off, except for cases where they continue to be used in the organization’s activities. Income or expenses from the write-off of exploration assets are included in the financial results of the organization.

26. In the cases established by paragraphs 23 and 25 of these Regulations, subject to further use in the organization’s activities, exploration assets are transferred to fixed assets, intangible and other assets (including exploration assets intended for use in other subsoil areas) based on their compliance with the criteria (conditions) of recognition established by regulatory legal acts on accounting for this type of assets.

Tangible search assets, as a rule, are transferred to fixed assets, intangible search assets - to the intangible assets of the organization.

In some cases, the value of an intangible exploration asset may form the actual cost of an organization's fixed assets. For example, the costs of geological exploration related to specific wells, recognized as part of intangible exploration assets, can be included in the actual cost of wells when they are recognized as objects of property, plant and equipment of the organization.

VI. Disclosure of information in financial statements

27. Significant information about exploration assets, as well as liabilities arising from the search, evaluation of mineral deposits and exploration of mineral resources, income, expenses, cash flows from current and investment operations is reflected in separate groups of balance sheet items, as well as individual indicators of the income statement and cash flow statement, respectively.

28. Information about tangible and intangible exploration assets is subject to disclosure in relation to the requirements established for the disclosure of information, respectively, about fixed assets and intangible assets of the organization.

In addition, with respect to groups of tangible exploration assets, the organization must disclose in its financial statements information about:

actual costs taking into account the revaluations made, the amounts of accumulated depreciation and accumulated impairment at the beginning and end of the reporting period;

the residual value of assets impaired in the reporting year at the beginning and end of the reporting period and impairment recognized during the reporting period.

Expenses from the write-off of exploration assets related to a subsoil area in which mineral extraction is recognized by the organization as unpromising are disclosed in the income statement separately from exploration costs recognized as expenses for ordinary activities (taking into account materiality).

29. At a minimum, the following information is subject to disclosure as part of information about the organization’s accounting policies:

a list of types of search costs recognized as non-current assets, or an indication that all search costs are recognized as expenses for ordinary activities;

features of the classification of tangible and intangible exploration assets;

the procedure for calculating depreciation on exploration assets;

grouping of exploration assets in order to test them for impairment;

conditions for transferring search assets to fixed assets, intangible and other assets of the organization.

An example of disclosure in the financial statements of an organization of information on the accounting policy in relation to the costs of searching, evaluating mineral deposits and exploring mineral resources is given in the appendix to this Regulation.

Appendix to the Accounting Regulations “Accounting for Costs for the Development of Natural Resources” (PBU 24/2011), approved by Order of the Ministry of Finance of the Russian Federation dated October 6, 2011 N 125n

EXAMPLE OF DISCLOSURE IN THE ACCOUNTING REPORTS OF AN ORGANIZATION OF INFORMATION ABOUT ACCOUNTING POLICIES REGARDING COSTS OF SEARCHING, EVALUATING MINERAL DEPOSITS AND EXPLORING FOR MINERAL RESOURCES

1. Recognition of search costs.

Search costs recognized as tangible search assets include:

costs of drilling and arrangement of prospecting and appraisal, exploratory and advanced production wells;

costs for geological and geophysical work carried out in wells;

costs for the acquisition and installation of equipment and installations used for searching, evaluating mineral deposits and exploring oil and gas reserves.

The actual costs of acquiring (creating) tangible exploration assets include:

customs duties and customs fees;

non-refundable taxes, government and patent fees paid in connection with the acquisition of a prospecting asset;

remunerations paid to the intermediary organization and other persons through which the exploration asset was acquired;

amounts paid for information and consulting services related to the acquisition of a prospecting asset;

other costs directly related to the acquisition of a prospecting asset and providing conditions for its use for the planned purposes.

The actual costs of acquiring (creating) intangible exploration assets include:

costs of obtaining a license for geological exploration or oil and gas production;

costs of acquiring geological information;

costs for drilling reference, parametric and structural wells;

costs of assessing the technical feasibility and commercial viability of oil and gas production at the site, carried out by third parties;

costs for 3-D and 4-D seismic surveys.

The costs of acquiring licenses giving the right to carry out work on the search, evaluation of mineral deposits and mineral exploration include:

costs associated with paperwork to obtain a license;

costs of paying for participation in a competition or auction;

costs of paying a one-time payment for the use of subsoil.

Costs for topographical, geological, geochemical and geophysical research, costs for the maintenance of services conducting these studies, and other costs in relation to a given subsoil plot, incurred from the moment a license is obtained until the commercial feasibility of oil and gas production is established, are recognized as expenses for normal activities.

2. The procedure for calculating depreciation on exploration assets.

Intangible exploration assets are not amortized during mineral prospecting, evaluation and exploration activities.

The costs of purchasing machinery and equipment are amortized using the straight-line method over their useful lives. Depreciation charges are included in the costs of geological exploration work for the relevant areas.

3. Grouping of exploration assets for the purpose of testing them for impairment.

For the purpose of testing exploration assets for impairment, such assets are allocated between oil and gas fields.

4. Transfer of exploration assets into fixed assets and intangible assets.

When the commercial feasibility of oil and gas production at a subsoil site is confirmed, exploration assets are checked for impairment and transferred to fixed assets or intangible assets that are intended for the development and production of mineral resources:

the costs of drilling and arrangement of prospecting and appraisal, exploration and advanced production wells and geological and geophysical work carried out in the wells are transferred to the corresponding wells intended for the extraction of minerals;

costs for the acquisition and installation of equipment and installations used for the search, evaluation of deposits and exploration of oil and gas reserves are transferred to the corresponding equipment and installations.

Publication of financial statements

Since accounting must be open to its users, the enterprise must provide access to it. Some companies are required to publish their financial statements. These include:

public joint stock companies;
credit and insurance organizations;
companies preparing consolidated financial statements;
joint stock companies and LLCs that engage in public placement of securities.

Public joint stock companies are exempt from the obligation to publish accounting reports in printed publications (letter of the Ministry of Finance of the Russian Federation dated June 5, 2014 No. 45n).

Results

PBU 4-99 - Financial statements of an organization are mandatory for use by all legal entities in our country, except for credit and state (municipal) organizations.
This document sets out the composition of accounting reports, its content, the procedure for compilation and publication. Accounting records must be complete and reliable, and also formed in accordance with the norms of current legislation. The financial statements include 6 forms. In cases of a mandatory audit, its conclusion is attached to the accounting records. You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

Review of general and transitional provisions

The provisions of the Standard “Inventories” are mandatory for use by government, budgetary and autonomous institutions, government bodies, management bodies of state extra-budgetary funds and local government bodies, as well as organizations exercising powers to maintain accounting (budgetary) records of institutions.

The “Inventories” standard is applied unless otherwise provided by other regulatory legal acts regulating the maintenance of accounting (budget) accounting and the preparation of accounting (financial) statements * (1), as well as other Federal standards applied since 2021. In addition, as with other current Federal Standards (for example, the “Rent” or “Fixed Assets” Standards*(2)), the “Inventory” Standard is applied simultaneously with the application of the provisions of the “Conceptual Framework...” Standard*(3).

The Inventories standard does not apply for accounting purposes:

library collections, regardless of their useful life;
living organisms (animals, plants, fungi) cultivated to obtain biological products (including wood), whose natural growth and restoration are under the direct control, responsibility and management of the accounting entity (biological assets);
work in progress formed by the accounting entity based on the results of its performance as a contractor under construction contracts;
objects related to cultural heritage assets;
financial instruments.

The fact is that to account for these objects, the relevant federal standards are applied, for example, the accounting of library collections and objects related to cultural heritage assets is carried out in accordance with the provisions of the Standard “Fixed Assets”.

The transitional provisions under the Inventory Standard generally resemble the transitional provisions under the Lease and Fixed Assets Standards. Briefly they can be characterized as follows:

Items that were not recognized as inventories and (or) reflected in off-balance sheet accounting prior to the first application of the Inventories Standard, and in accordance with its provisions should be reflected in the relevant balance sheet accounts, are recognized as inventories at their original cost, subject to the condition, that they correspond to the concept of an asset * (4);
information on inventories established before the first application of the Inventories Standard is not recalculated.

Adjustment of opening balances is carried out during the inter-reporting period using account 401 30 “Financial result of previous reporting periods”. The result is documented in an Accounting Certificate (f. 0504833). And information about changes is reflected in Information on changes in balance sheet currency balances (form 0503173), Information on changes in balance sheet currency balances of an institution (form 0503773).