Purchase of materials for production of products

Accounting for receipt of materials

Receipt of materials to the warehouse is reflected in accounting account 10 “Materials”. The debit of account 10 is intended to reflect the cost of materials received, the credit of account 10 is to reflect those released from the warehouse to production or outside the organization.

On the account 10, raw materials, supplies, semi-finished products, fuels and lubricants, containers, etc. can be taken into account. A separate sub-account can be opened for each type of inventory items. In turn, each sub-account can also keep analytical records for specific types of materials (or by grade, brand, storage location).

Accounting for receipt of materials

Inventory and materials are accepted for accounting on the basis of a receipt order, form M-4; in addition, an accounting card, form M-17, is created.

The employee responsible for receiving materials into the warehouse accepts valuables on the basis of a power of attorney (executed, for example, in form M-2 or M-2a). This employee must check the actual quantity with that indicated in the accompanying documents (bill of lading, delivery note). In addition, the condition of the received valuables, their serviceability, and expiration date are checked. If discrepancies in quality or quantity are detected, a discrepancy report is drawn up in form M-7, the completed report, along with the claim, is sent to the supplier for the return of the valuables or for their replacement.

When receiving materials from a supplier, their cost is entered in the debit of account 10 in correspondence with the account for accounting settlements with suppliers. In general, the posting for the receipt of materials has the form D10 K60.

If the buyer organization is a VAT payer, then VAT is allocated from the cost indicated in the accompanying documents by posting D19 K60, after which it is sent for deduction with posting D68.VAT K19. The materials themselves are delivered to the warehouse at cost excluding VAT.

It is worth recalling that in order to allocate VAT and send it for reimbursement from the budget, you need to receive an invoice from the supplier with the allocated tax amount. Only if this document is available, the buyer has the right to allocate VAT to a separate account.

The buyer pays the received and capitalized materials to the supplier in cash or non-cash funds, and postings D60 K50 or D60 K51 are reflected.

Upon receipt, materials can be received in two ways:

1. at actual cost
2. at discount prices

Let's look at each of these methods in more detail.

Capitalization of materials at actual cost

This method of accounting is most often found in enterprises. In this case, the organization sums up all the costs associated with the acquisition of valuables, and enters this amount into the debit of account 10.

What costs can be included in the actual cost:

• Cost of materials specified in the contract
• Transport and procurement costs, so-called TZR
• Services of third parties, for example, consulting, information
• Additional costs associated with bringing materials to a suitable condition

Postings upon receipt of materials at actual cost:

Capitalization of materials at accounting prices

This method is used, as a rule, by manufacturing enterprises for which the receipt of inventory items is regular. At the same time, the organization develops and approves accounting prices, for example, average purchase prices or planned costs. It is at these accounting prices that materials are debited to account 10.

To reflect the actual cost, additional account 15 “Procurement and acquisition of material assets” is used. The actual cost of the valuables received is reflected in the debit of account 15 in correspondence with the account. 60, while wiring D15 K60 is performed. If the organization is a VAT payer, then the tax amount is allocated to account 19, and the materials are charged at cost without VAT.

After this, the materials are credited directly to account 10, but at accounting prices, and posting D10 K15 is performed.

After performing these operations on account 15, a discrepancy between the actual and accounting prices is revealed. To take into account this discrepancy, additional account 16 “Deviation in the cost of material assets” is introduced.

Postings to reflect deviations in cost:

1. If the actual price is greater than the accounting price, then posting D16 K15 is performed for an amount equal to the deviation
2. If the actual price is less than the accounting price, then posting D15 K16 is performed

In the first case, a debit balance is formed on account 16. Within a month, materials are released into production. In this case, at the end of the month it is necessary to write off the amount of the deviation from the loan account 16. This amount is debited to the same account to which the materials were issued. The amount of deviation that must be written off at the end of the month depends on the amount of materials released from the warehouse for the month and is determined by the formula:

∗(Debit balance of account 16 at the beginning of the month + debit turnover of account 16 for the month) * credit turnover of account 10 for the month / (debit balance of account 10 at the beginning of the month + debit turnover of account 10 for the month) ∗

In the second case, when the actual price is less than the accounting price, a credit balance is formed on account 16. At the end of the month, part of the deviation amount is written off from credit account 16 using a reversal operation, that is, part of the amount is taken away and written off to the debit of the same account where the materials are issued. The amount that must be subtracted at the end of the month is determined by the formula:

∗(Credit balance of account 16 at the beginning of the month + credit turnover of account 16 for the month) * credit turnover of account 10 for the month. / (debit balance on account 10 at the beginning of the month + debit turnover on account 10 for the month)∗

Postings upon receipt of materials at accounting prices:

Example:

The company purchases material assets from the supplier - 2,000 pcs. total cost 236,000, including VAT. The amount of VAT is 36,000.

The discount price per piece is 90 rubles. During the month, 700 units were released into production.

What entries should the accountant reflect at the end of the month?

Postings:

Manufacturing of materials

If material assets are not purchased for a fee from a supplier, but are created on their own or with the help of third-party organizations, then they are included in the warehouse at a cost that includes all the costs of their production. Costs may include the services of third-party organizations, wages of workers involved in production, depreciation of fixed assets involved in their production, and raw materials.

All costs are recorded in the debit of accounts related to production (20, 23), after which the cost is transferred from the credit to the debit of account 10.

Postings:

Free receipt of materials

Another way to receive material assets is to receive them for free. When donated, values ​​are accrued at the average market value, including other costs associated with receipt, for example, transportation costs.

To account for such materials, account 98 “Deferred income” is used. Valuables are supplied with D10 K98 wiring.

As valuables are released into production, the value is proportionally written off from account 98 to other income (entry D91/2 K98).

VAT is not allocated on the cost of materials received free of charge.

At actual cost

When using this method, all costs associated with the purchase of materials are taken into account in account 10 “Materials”. Depending on the type of materials, a subaccount is selected:

• 10-1 “Raw materials and supplies”;
• 10-2 “Purchased semi-finished products and components, structures and parts”;
• 10-3 "Fuel";
• 10-4 “Containers and packaging materials”;
• 10-5 “Spare parts”;
• 10-6 “Other materials”;
• 10-7 “Materials transferred for processing to third parties”;
• 10-8 “Building materials”;
• 10-9 “Inventory and household supplies”;
• 10-10 “Special equipment and special clothing in the warehouse”;
• 10-11 “Special equipment and special clothing in operation.”

When posting materials, the following entries are made:

Debit 10 Credit 60 - reflects the cost of purchased materials

Debit 10 Credit 76 - reflects transportation and procurement costs and others associated with the purchase of materials.

Debit 19 Credit 60.76 - VAT on capitalized materials is taken into account.

Debit 68 Credit 19 - VAT is accepted for deduction based on invoices.

Debit 60.76 Credit 51 - expenses related to the purchase of materials were paid.

Issue of materials from warehouse

Once materials are accepted for accounting at the warehouse, they can be moved both within the organization and outside it.

Internal movements are documented with the document requirement-invoice for the release of materials in the M-11 form. At the same time, they are released from the warehouse, where they are stored from the moment of receipt, and transferred to other units located within the territory of the organization. Material assets may be needed for various business needs, to carry out repair and construction work within the organization or, for example, to perform production tasks.

External movements are documented using the document invoice for the release of materials to the side in the form M-15. In this case, materials can be transferred both to third parties, for example, through sale, and to other separate divisions of the enterprise located outside its borders.

Postings when releasing materials from the warehouse

Accounting account 10 is used to account for materials. The debit of account 10 reflects the receipt of material assets into the warehouse, and the credit reflects their write-off: release to production, to other departments, to third parties. Depending on the direction of movement of materials. 10 corresponds with the relevant accounts.

The posting for writing off materials for main production has the form: D20 K10.

When releasing materials for the needs of auxiliary production, the wiring has the form D23 K10.

If materials are sold for general business or general production needs, then the wiring looks like this: D25 (26) K10.

If material assets are used for trade operations of an enterprise related to the sale of goods, then posting D44 K10.

When transferring valuables for internal construction and installation work, wiring D96 K10 is performed.

If materials leave the enterprise during the sale to third parties, then posting D91/2 K10 is reflected.

Postings when writing off materials from the warehouse:

When material assets arrive at the warehouse, they can be charged at actual cost directly to account 10; in this case, when released from the warehouse, the cost of materials is simply written off from the credit of account 10 to the debit of the corresponding accounts.

If they are accounted for at accounting prices using accounts 15 and 16, then in this case you must not forget to write off from account 16 the deviation of the actual price from the accounting price, in proportion to the materials supplied. The amount of deviation that must be written off at the end of the month is calculated using certain formulas.

Materials Evaluation Methods

As we have already said, upon receipt of materials, they are received at the warehouse either at actual cost, which includes all the costs of their acquisition, including the contract price, or at accounting prices established at the enterprise.

The cost at which materials are released from the warehouse is estimated using one of three methods.

There are 3 methods for evaluating materials when they are released from the warehouse:

1. At the cost of each unit
2. At average cost
3. FIFO method

Not so long ago, there was another valuation method called LIFO, this method was the reverse of the FIFO method, and currently it is no longer used. Let's look at each method in more detail; to reinforce it, let's look at examples of calculating the selling price of material assets for each of the three methods.

At the cost of each unit

This method is used, as a rule, in relation to unique values, for example, precious metals, radioactive substances. It can also be used by enterprises with a small range of materials.

With this method, each incoming batch is tracked, and the prices at which each batch of materials is received are noted. When releasing materials from the warehouse, you can see which batch they belong to and at what price they were taken into account; it is at this cost that they are written off. That is, the cost of each unit of incoming valuables is tracked.

To reinforce this, let's look at an example.

Example:

During the month, 2 batches of materials arrived at the warehouse:

1 – 500 pieces at a price of 100 rubles/piece. total cost 50,000 rubles.

2 – 500 pieces at a price of 130 rubles/piece. total cost 65,000 rubles.

800 units of materials were released from the warehouse: 400 from the first batch and 400 from the second.

Total cost of materials supplied = 400x100 + 400x130 = 92,000 rubles.

The total cost of materials remaining in the warehouse = 100x100 + 100x130 = 23,000 rubles.

At average cost

With this method, the average cost of materials is calculated by dividing the total cost of materials stored in the warehouse by their total quantity.

This assessment method is used for those materials that are similar to each other in their characteristics.

Example:

Let's take the same conditions.

Cost of a unit of materials = (50,000 + 65,000) / (500 + 500) = 115 rub./piece.

Total cost of materials released from the warehouse = 800 * 115 = 92,000 rubles.

Cost of the balance in the warehouse = 200 * 115 = 23,000 rubles.

FIFO method

With this method, materials are written off one by one as they are received. Suppose several batches arrived at different prices. We need to write off a certain amount of material assets into production. First, materials are taken from the first batch at the cost of this batch. When the first batch ends, they move on to the second batch, from which the required quantity is written off at the cost of this batch; if this is not enough, then the third batch is taken, etc.

The materials remaining in the warehouse at the end of the month are valued at the cost of the last batch received at the warehouse.

The method is convenient to use if the cost of material assets does not increase significantly from batch to batch.

Example:

We take the same conditions.

If you need to write off 800 units, take 500 units first. from the 1st batch at 100 rubles/piece, then 300 from the 2nd batch at 130 rubles/piece.

Total cost of valuables sold = (500*100) + (300*130) = 89,000 rubles.

Cost of valuables remaining in the warehouse = 200 * 130 = 26,000 rubles.

The chosen method for writing off material assets from the warehouse is indicated in the order for the organization’s accounting policy.

At discounted prices

Some organizations use accounting prices when reflecting the receipt of materials, with subsequent adjustment of deviations between accounting prices and actual costs (savings, overruns).

Why use discount prices? They make it possible to simplify accounting in large organizations with a large range of materials and a large number of supplies.

Imagine that any intermediary services related to the acquisition of materials have been provided, but the documents have not yet been received. The materials have been capitalized and have already been written off for production, and then documents arrive from the counterparty. The accountant will have to change the actual cost of materials (it has increased) and, accordingly, adjust the write-off operation of materials. If documents related to the purchase of materials often arrive late, then it is advisable for the organization to use discount prices.

Registration prices can be:

• supplier price;
• fixed price approved for a certain period of time;
• actual cost of materials according to the previous month.

The accounting policy needs to establish the procedure for determining accounting prices.

Disposal of materials to third parties

Material assets received at the warehouse can be used by the enterprise for its internal and production purposes, or they may leave the enterprise. The disposal of materials from an organization to a third party can occur as a result of their sale to third parties, they can be made as a contribution to the authorized capital of another organization, or they can be donated, that is, transferred free of charge (without payment).

How is the disposal of materials recorded in each of these cases? Below we will look at the entries that an accountant must make.

Sales of materials

Since this operation, as a rule, is not a regular type of activity of the organization, the implementation should be processed not through the traditional account 90 “Sales”, but through account 91 “Other income and expenses”.

91 accounting accounts are built according to the following principle:

• In subaccount 1, entries are made only on credit - other income is reflected here
• In subaccount 2, entries are made only in debit - other expenses are reflected here
• subaccount 9 is intended for summing up the final financial result

When selling materials, their cost is written off from the credit account 10 to the debit account 91.2 (entry D91.2 K10).

Materials are sold at market value, and you must remember to include VAT in this price.

An organization selling material assets must pay VAT to the budget. The amount of tax must be separated from the amount of revenue. If the rate of 18% is applied to the materials sold, then to calculate VAT from the amount of revenue, you need to multiply the sales price by 18 and divide by 118. If the VAT rate is 10%, then the sales price is multiplied by 10 and divided by 110.

In accounting, it is necessary to make a posting for the calculation of VAT payable to the budget D91.2 K68.VAT.

The cost of materials and VAT will act as expenses incurred by the enterprise in connection with the sale of material assets. If there are any other expenses (for example, transportation), then they are also written off as a debit to account 91.2 by posting D91.2 K76.

The income will be the sales value, which is reflected by posting D62 K91.1.

Payment by the buyer of the received valuables is reflected using posting D51 K62.

As a result of the sale, account 91 collected all expenses on debit and all income on credit. In subaccount 9, account 91, it is necessary to reflect the overall financial result of the transaction.

To do this, take credit turnover (credit account 91.1) and debit turnover (debit account 91.2). The second value is subtracted from the first value; the resulting value can be either greater than 0 in the case of a profit from the sale, or less than 0 in the case of a loss.

Profit is reflected by posting D91.9 K99, loss - D99 K91.9.

Postings when selling materials:

Free transfer of materials

If material assets are transferred to another organization without payment, that is, free of charge, then the operation is also processed through account 91, only in this case only expenses will be present. There will be no income, since the organization will not receive payment for the disposed materials.

The expenses for a donation, just as in the case of a sale, are the cost of material assets, VAT accrued at the average market value for similar materials, as well as other related expenses.

The posting for writing off the cost of materials for gratuitous transfer has the form: D91.2 K10.

Posting for calculating VAT on market value: D91.2 K68.VAT.

Entering materials into the management code of another organization

By contributing material assets to the authorized capital of another organization, an enterprise makes a financial investment from which it will receive income in the form of dividends in the future. That is why the contribution to the Criminal Code is not recognized as an expense and is not registered through account 91.

In this case, it is necessary to use account 58, and the accountant makes the following two entries:

D58 K76 – debt on contribution to the capital of another organization is reflected;

D76 K10 – material assets were transferred.

For any method of disposal of materials from the enterprise, it is necessary to make a note on the M-17 accounting card indicating that the valuables have been disposed of.

Reflection in accounting of materials delivery services

The method of reflecting additional expenses in accounting is established by the organization independently in its accounting policies.

Accounting options may be as follows:

• are included in the cost of inventories by allocating costs for each unit of materials;
• are taken into account in a separate expense account (clause 83 of Order of the Ministry of Finance of the Russian Federation dated December 28, 2001 N 119n). This option cannot be applied in 1C without additional modifications to the program.

In NU, additional costs when purchasing materials are included in the cost of materials and equipment (clause 2 of article 254 of the Tax Code of the Russian Federation).

Find out more about the procedure for accounting for costs for the delivery of materials in the articles Accounting for additional costs when purchasing assets and Options for accounting for additional costs when purchasing inventory items

Additional expenses, which are included in the actual cost of materials, are documented in the document Additional Receipt. expenses in the section Purchases – Purchases – Additional receipts. expenses or from the document Receipt (act, invoice) Create based on button .

On the Main it is indicated:

• Content - the name of the service, in our example - Transport services .
• Amount - the amount of delivery costs - 1,200 rubles.
• Distribution method - the method of distributing additional costs between individual purchased materials. Can take on the following values: By amount – i.e. proportional to the cost of inventory items. (in our example);
• By quantity - i.e. proportional to the quantity of goods and materials.

On the Products , the materials for which you want to distribute the amount of additional costs according to the selected method are indicated. This tab can be filled out for several documents Receipt (act, invoice) .

You should install:

• Accounting account (BU) - 10.01, additional accounting account. expenses in accounting.
• Accounting account (NU) - 10.01, additional accounting account. expenses at NU.
• VAT account - 19.03 “VAT on purchased inventories”: in our opinion, it is more correct to indicate the account for input VAT relating to an asset to the cost of which additional expenses are added.

Postings according to the document

The document generates transactions:

• Dt 10.01 Kt 60.01 - additional cost. expenses are included in the cost of inventories;
• Dt 19.03 Kt 60.01 — VAT on additional charges. expenses are taken into account.

Carrying out an inventory of goods and materials

Inventory of inventory is a procedure that is periodically carried out at each enterprise and helps maintain order in accounting. During the inventory process, the actual presence of valuables at the enterprise is checked and compared with the accounting data.

The frequency of inventory is at least once at the end of the year. Also, the procedure can be carried out throughout the year if necessary, for example, during a control check or changing the person responsible for storing inventory items.

During the inventory, unusable materials are identified that are subject to further write-off.

The procedure for inventory inventory

The procedure for reconciling actual and accounting data is entrusted to a commission appointed by management. The commission usually includes financially responsible persons, accounting employees and representatives of the management team of the enterprise. The chairman of the commission is appointed as the head. The commission’s tasks include monitoring and organizing the inventory and proper documentation.

Documentation of inventory of goods and materials

First of all, the manager approves the inventory order. The text of the order specifies which values ​​are subject to recalculation and reconciliation with accounting data, approves the composition of the inventory commission, and also sets the deadline for the procedure.

When checking and recounting materials, inventory lists are drawn up, in which a sequential list of all recalculated property is provided, indicating the name, article, actual quantity and other necessary indicators.

To account for materials stored in the warehouse, an inventory list of inventory items INV-3 is filled out.

In addition to the fact that you need to recalculate inventory items in the enterprise’s warehouse, you also need to take into account those materials that are not currently in the warehouse, but still belong to the enterprise.

These include:

• Inventory transferred for safekeeping to other organizations
• Inventory items that are in transit (that is, purchased from other enterprises, but have not yet reached the warehouse)
• Valuables sold and shipped from the warehouse for which payment has not yet been received from the buyer
• Valuables transferred for processing to other organizations

To account for these inventory items, fill out the following forms:

• INV-4 “Inventory report of shipped goods and materials”
• INV-5 “Inventory list of goods and materials accepted for safekeeping”
• INV-6 “Act of inventory of payments for inventory items in transit”

Information in these inventories and acts is entered on the basis of documents confirming the fact of transfer to custody, shipment to customers, purchase and payment from the supplier.

Upon completion of the inventory procedure, discrepancies between accounting data and actual data are identified, which are reflected in the matching sheet INV-19.

All this data is transferred to the accounting department. The accountant carries out the necessary actions and reflects the postings for capitalizing surpluses and writing off shortages.

Accounting for inventory results

Accounting for surplus:

Surpluses are inventory items that are actually available, but are not documented in any way.

Surplus inventory items are recognized as other income and are reflected in the credit of account 91. The surplus is credited to the debit of the materials accounting account (account 10).

The posting for accounting for surplus has the form: D10 K91.1.

Accounting for shortages:

Shortage of goods and materials are values ​​that are listed at the enterprise according to documents, but are actually missing.

The shortfall must be written off to the credit of the materials account.

To account for shortages, account 94 “Shortages and losses from damage to valuables” is used.

The posting to reflect the shortage identified during the inventory process has the form D94 K10.

Within the limits of the norms, the shortage can be written off as a debit to production cost accounts. Wiring: D20 (23) K94.

If the culprit is identified, then the shortage is written off by posting D73.2 K94. Then the guilty person can independently deposit the amount of the shortage into the cash desk of the enterprise D50 K73.2, or the amount can be withheld from his salary D70 K73.2.

If the culprit is not identified, then the amount of shortage of materials is written off as other expenses using posting D91.2 K94.

Postings for material inventory:

How to properly account for and write off fuel and lubricants?

How to account for fuels and lubricants in accounting. How to correctly calculate fuel consumption rates. Where and how and in what amounts should fuel and lubricants be written off at the enterprise, what kind of wiring is done?

Fuel and lubricants are fuels and lubricants, which include fuel, lubricating oils, brake and coolant fluids. That is, these are all those materials that will be useful during the operation or repair of vehicles.

Why is it important to properly account for fuel and lubricants? Expenses for fuels and lubricants reduce the base from which income tax is calculated. In order for the tax amount to be calculated correctly: neither overestimated nor underestimated, you need to correctly calculate the norms by which fuel and lubricants will be written off.

Of course, I would like to write off fuel and lubricants in a larger amount to reduce taxes. However, unjustifiably inflating costs does not lead to anything good. The Tax Code of the Russian Federation clearly states that expenses written off as expenses must be economically justified and documented. Only in this case the tax authority will not have any additional questions.

In order to write off fuel and lubricants in the required amount, you need to calculate them correctly. All accountants know about the so-called fuel write-off standards, but nevertheless, a lot of questions arise about this. What are these standards, by whom and how are they established, can they be calculated independently or do we need to use standards approved by law?

How to write off fuel and lubricants correctly?

Indeed, the Ministry of Transport of the Russian Federation has established standards for the write-off of fuel and lubricants - these are some recommended figures that can be used as a guide when operating vehicles.

For write-off, you can use these approved standards, but the Tax Code of the Russian Federation does not say that these standards are mandatory for use. Organizations can independently calculate and approve fuel consumption standards for themselves, based on the characteristics of their activities.

If an enterprise decides to use the standards approved by the Ministry of Transport, then the standards for the consumption of fuel and other lubricants for the type of transport used by the enterprise are determined and written off as expenses in accordance with the specified figures.

If an enterprise wants to develop its own standards for the consumption of fuel and lubricants, then it can go in two ways.

How to calculate the fuel consumption rate yourself?

So, to determine your standards, you need to make some calculations and measurements. There are two ways to do this.

In the first case, technical documentation for the vehicle used is taken, which shows the standard consumption of fuels and lubricants for a given vehicle. Based on these data, set standards for various weather conditions, seasons, take into account traffic congestion in your city, traffic congestion and other factors.

In the second case, you can use real data on fuel consumption, which can be obtained using measurements. This method of determining standards is more convenient and realistic; it is what organizations usually use.

How to measure fuel consumption?

The process of taking measurements and developing fuel write-off standards should be controlled by a special commission, which is appointed by the head of the enterprise by administrative document.

Next, you need to determine what the real fuel consumption of a particular vehicle is.

For example, take a car for which fuel write-off rates are calculated. Fuel, such as gasoline, is poured into its empty tank. The tank is filled completely, the amount of gasoline filled and the speedometer readings at the moment are noted. The vehicle should then be used in normal operating mode. As soon as the fuel in the tank runs out, the speedometer readings are recorded again. The difference between the speedometer readings with a fully filled fuel tank and an empty one is found, this will be the number of kilometers that the car has driven on a fully filled tank (mileage).

There are two numbers: the amount of fuel filled and the mileage in kilometers on this fuel. Divide the first figure by the second and get fuel consumption per 1 km. The resulting figure will be the standard that must be used to write off fuel for this vehicle.

Such measurements are carried out for all types of transport used at the enterprise. The fuel consumption rate per 1 km is determined.

In the future, if it is necessary to write off fuel and lubricants as expenses, it will be enough to take this standard and multiply it by the mileage of the car, and write off the resulting value as expenses of the organization.

The conditions in which vehicles are used may vary significantly. Fuel consumption depends on the time of day when the vehicle is used, the time of year, road congestion, traffic congestion, and idle time with the engine running. Therefore, it is necessary to carry out measurements for various conditions and develop several standards for various conditions of transport use.

An organization can also use one standard measured under standard conditions. And to write off fuel and lubricants in conditions different from standard ones, apply correction factors, which also need to be calculated and approved in advance.

Whatever method of determining fuel write-off rates the organization chooses, the results obtained must be reflected in the fuel write-off report, the execution of which should be handled by a commission appointed by the manager. All members of the commission must sign the drafted act, and the head must approve it.

Now, when writing off fuel and lubricants as expenses, the accountant will rely on the approved standards, and he will not have any questions.