If there are doubtful debts in the accountingthe enterprise is obliged to form the reserve of the same name. This provision is contained in paragraph 70 of the PBU. It does not matter, there was a provision for doubtful debts in the tax account or not. This provision is explained in the letter of the Ministry of Finance. Next, let's take a closer look at how the provision is made for doubtful debts in accounting. Posting of invoices will also be described in the article.
As a doubt, anythe debt that has arisen in the sale of goods, the performance of work or the provision of services, if it is not repaid within the period established in the contract, and is not secured by a bank guarantee, surety, or security. Hopeless obligations are those for which the statute of limitations has passed, or which are terminated due to the impossibility of execution.
Provisions for doubtful debts 2015 may beformed by banks on the delay of interest, which arose after January 1 of the year. It does not matter whether there is a pledge, guarantee or surety. For companies that determine expenses and incomes using the method of calculation under co-insurance, insurance, reinsurance agreements with formed reserves, the reserve for doubtful debts related to the payment of premiums (contributions) is not created.
As such, among other things, suchdebts, the impossibility of payment of which is confirmed by the bailiff's decision on the completion of the enforcement proceedings, upon return to the recoverer of the relevant document on the basis of:
If the company is recognized as a small entityentrepreneurship, it also needs to create a reserve for bad debts. In paragraph 70 of the PBU there are no indications of the exemption of such enterprises from this procedure. In the letter of the Ministry of Finance No. 07-02-18 / 01 there is, however, an order according to which the provision for doubtful debts can not be formed if the company has confidence at the reporting date that the overdue accounts receivable will be repaid.
Consider how to create a reserve for doubtfuldebts. To assess the company's solvency, it is necessary to collect all available information about the organization's activities. For example, to obtain information about probable liquidation, an extract from the Unified State Register of Legal Entities is requested. As one of the sources of information on solvency is accounting. It can be obtained from the statistics bodies. In accordance with the reporting data, a number of standard coefficients are calculated. Their values show the debtor's financial status. Based on the information received, a decision is made on the amount of the reserve or on writing off the debt that is unrealistic for collection. Insolvency signs can be fixed in the financial documentation of the enterprise. The allowance for doubtful debts is an evaluation criterion. Its formation, increase or decrease is necessarily reflected in expenses or revenues.
The order of formation is developed by the enterpriseyourself. In this case, the established scheme should be fixed in the financial documentation of the company. The creation of a provision for doubtful debts in accounting is carried out as follows:
This order is provided for in paragraph 70 of the PBU.
The deductions under this item are recorded in other expenses. Account 63 shows periodic deductions and the creation of a reserve for doubtful debts. In this case, the posting will be as follows:
Debit on account 91-2 Credit on account 63 - formation of stock.
The counterparty may discharge the obligations partially or completely. In this case, the part of the reserve is restored, which is reflected as follows:
Debit sc. 51 (50) Credit сч. 62 - part of the obligations was repaid.
Debit sc. 63 Loan on acc. 91-1 - recovery of the provision for the paid debt.
Analysis of accounts receivable from acc. 62 should be organized so that it is possible to receive all necessary information about unpaid parts. This requirement is provided in the Instruction to the Chart of Accounts.
They are reflected in other expenses for acc. 91. In this regard, the creation of the reserve in the balance sheet causes a decrease in the profit of the reporting period. The costs that are associated with its formation in the current financial cycle, affect the profitability of the coming years. If there is no reserve created in the tax balance, then, accordingly, there is no expense. In this case, the difference between profits (losses) is formed. In the forthcoming reporting periods, it is expected that the obligation will be canceled or written off as uncollectible. In this regard, the resulting difference in accounting, in fact, is temporary. This is explained in PBU 18/02, item 8. The temporary difference leads to the formation of a deferred tax asset. It reduces the amount of the deduction for profit, which must be paid in the periods following the reporting period. This provision is explained in PBU 18/02, in paragraph 11. For a deferred asset, the occurrence of which caused the creation of a provision for doubtful debts, the posting will be as follows:
Debit sc. 09 Credit ac. 68, sub.ch., reflecting calculations on deductions for profit - the deferred asset is indicated.
In the future, the reserve can be restored whenrepayment of debt. The amount is included in other income and is reflected in acc. 91. Recovery may occur as a result of payment by the counterparty following the period that follows the one in which the provision for doubtful debts took place. The wiring in this case is similar to the above. The amount is also included in other income at acc. 91. The reserve can be used - due to it the bad debt is written off.
When the reserve is restored in the financial balance sheetthere will be incomes, which will not be recognized in tax accounting. When using the stock, expenses will be generated. They were already taken into account when the provision for doubtful debts was made. The posting in this case is as follows:
Debit sc. 68, the subaccount, fixing calculations on deductions on profit, Credit сч. 09 - the deferred asset is reduced (canceled).
The amount of the reserve in this case is determined inthe amount of debt at the exchange rate at the date of its creation. Reporting in the Russian Federation on economic transactions and liabilities is conducted in rubles. In this regard, the creation and change of the reserve is also carried out in the domestic currency. In the PBU 3/06 paragraph 7 there is no revaluation. Nevertheless, in accordance with the results of the inventory, the company can adjust the amount of the reserve due to the recalculation of the receivable at the official rate. This provision follows from paragraph 3.54 of the Methodological Recommendations approved under the Order of the Ministry of Finance No. 49 of June 13, 1995.