Measures for the transition to the application of the federal standard “Fixed assets. Public sector

In connection with the application of Federal Accounting Standards for public sector organizations from January 1, 2018:

• Conceptual foundations of accounting and reporting of public sector organizations (Order of the Ministry of Finance of Russia dated January 31, 2016 No. 256n);
• Fixed assets (order of the Ministry of Finance of Russia dated January 31, 2016 No. 257n);
• Rent (order of the Ministry of Finance of Russia dated January 31, 2016 No. 258n);
• Impairment of assets (Order of the Ministry of Finance of Russia dated January 31, 2016 No. 259n)

03/31/2018 orders of the Russian Ministry of Finance were approved

• No. 64n - on amendments to appendices No. 1 and No. 2 to the order of the Ministry of Finance of Russia dated December 1, 2010 No. 157n, hereinafter referred to as Order No. 64n;
• No. 65n - on amendments to the annexes to the order of the Ministry of Finance of Russia dated December 6, 2010 No. 162n;
• No. 66n - on amendments to the annexes to the order of the Ministry of Finance of Russia dated December 16, 2010 No. 174n;
• No. 67n - on amendments to the annexes to the order of the Ministry of Finance of Russia dated December 23, 2010 No. 183n.

These orders were registered by the Ministry of Justice of Russia on April 26, 2018. As a general rule, the orders came into force on May 8, 2018. According to paragraph 2 of these orders, they are used in the formation of accounting policies and accounting indicators starting from 2018.

By Order of the Ministry of Finance of Russia dated December 27, 2017 No. 255n, changes were made to the Instructions on the procedure for applying the budget classification of the Russian Federation - KOSGU articles on income and expenses were detailed. In accordance with Order of the Ministry of Finance of Russia dated February 20, 2018 N 29n, the new KOSGU are applied from January 1, 2018.

Order No. 64n introduced significant changes to the Unified Chart of Accounts. The changes, among other things, involve the abolition of a number of analytical accounts, the use of new synthetic and analytical accounts, and a change in the purpose of accounts, which entails the transfer of incoming balances to new accounts. Due to the late entry into force of the orders and the extension of their effect from January 1, 2018, in addition to the transfer of incoming balances, it is also necessary to transfer the turnover of 2018 to new accounts.

For state institutions at the budget level of the subject (Krasnodar Territory), as well as municipal budgets, budgets of city districts and settlements, the Ministry of Finance of the Krasnodar Territory approved “Action plan for the implementation of federal accounting standards for public sector organizations”, which can be printed from the link.

The above plan approved the method of transferring balances and turnover in connection with the entry into force of regulations:

• For opening balances as of 01/01/2018 – transfer of balances to the inter-reporting period with a possible change in the balance sheet currency;
• For 2018 turnover – each accounting entry with detailing using the “Red reversal” method on the transition date approved by the institution independently.

For institutions at the Federal budget level, the methodology for switching to a new chart of accounts should be agreed upon with the superior manager of budget funds or the institution performing the functions of the founder.

Starting with release 1.0.52.4 (Transition instructions) for the program "1C: Public Institution Accounting 8" rev. 1 and 2.0.56.36 (Transition instructions) for the program "1C: Public Institution Accounting 8" edition 2, the program functionality includes processing that implements the above transition to new regulations.The description of the changes when updating the program release contains detailed instructions for the transition to the provisions of Order 64n (on the transformation of balances and turnover in 2018).

After familiarizing yourself with the “Action Plan for the Implementation of Federal Accounting Standards for Public Sector Organizations”, as well as with the Instructions for the transition to new provisions approved by Order of the Ministry of Finance of Russia dated March 31, 2018 No. 64n, you can independently perform all the necessary actions, which are described in detail in the above documents.

In order to assist employees of financial services of government institutions on the application of budget classification, taxation, formation and presentation of quarterly reports in 2018, as well as accounting for the first application of the GHS "Fixed Assets", "Rent" using practical examples in "1C: Accounting" state institution 8" (editions 1 and 2) for state-owned, budgetary and autonomous institutions in accordance with current regulatory documents, the Competence Center for Budget Accounting of the 1C company invites on June 21, 2018, employees of financial services of state-funded, budgetary and autonomous state institutions to accept participation in the seminar of the "1C:Consulting" series: "Changes in accounting and reporting of state and municipal institutions in 2018. New rules for the application of budget classification. Practical examples in "1C: Public Institution Accounting 8."

For consulting and methodological assistance, you can use the paid services of accounting consultants from the Intersoft Competence Center, who, under your direct supervision, will make the transition to the use of the new chart of accounts and the provisions of federal standards for the public sector in accordance with the Instructions on the transition date you choose. You can submit an application for paid work by filling out the Application form on our website using the link.

2018 has brought new changes in accounting and will be active. Chief accountants need to be attentive to all the subtleties of the transition to new standards. You should pay special attention to the correctness of record keeping in the information base and put all matters in order. Otherwise, errors and inaccuracies are fraught with fines and inspections.

In April 2015, the Russian Ministry of Finance approved a program for the development of federal accounting standards for public sector organizations (Order No. 64n dated April 10, 2015).

According to the program, ten standards must be in effect from January 1, 2018. However, the entry into force of three of them was planned to be postponed from 2018 to 2020: the Russian Ministry of Finance prepared a draft order to introduce appropriate changes to the program.

On October 31, 2017, the Russian Ministry of Finance issued Order No. 170n “On approval of the program for the development of federal accounting standards for public sector organizations for 2017-2019.” and on the recognition as invalid of the orders of the Ministry of Finance of Russia dated April 10, 2015 No. 64n “On approval of the program for the development of federal accounting standards for public sector organizations” and November 25, 2016 No. 218n “On amending the order of the Ministry of Finance of Russia dated April 10, 2015 No. 64n “On” approval of the program for the development of federal accounting standards for public sector organizations."

The standards come into force in stages from January 1, 2018. The final transition to use is planned for 2020. At the same time, changes will be made to the current instructions for accounting and reporting, forms of primary accounting documents and registers.

Currently, five standards have been approved and registered with the Russian Ministry of Justice:

• “Conceptual foundations of accounting and reporting of public sector organizations” (Order of the Ministry of Finance of Russia dated December 31, 2016 No. 256n);
• “Fixed assets” (Order of the Ministry of Finance of Russia dated December 31, 2016 No. 257n);
• “Rent” (Order of the Ministry of Finance of Russia dated December 31, 2016 No. 258n);
• “Impairment of assets” (Order of the Ministry of Finance of Russia dated December 31, 2016 No. 259n);
• “Presentation of accounting (financial) statements” (Order of the Ministry of Finance of Russia dated December 31, 2016 No. 260n).

Drafts of other standards are posted on the website of the Ministry of Finance of Russia in the section “Accounting and accounting (financial) reporting of the public sector”, subsection “Financial reporting standards for the public sector”.

As noted, changes in accounting will be introduced gradually, from 2018 to 2020. Total expected 29 new standards. Innovations entail a number of significant changes. Their goal is to increase the efficiency of government agencies.

The name of the standard, “Conceptual Framework for Accounting and Reporting for Public Sector Organizations,” speaks for itself. This is a basic document that defines uniform requirements for accounting and reporting in public sector organizations:

• basic rules (methods) of accounting;
• accounting objects, general rules for their recognition (derecognition), valuation (monetary measurement) and valuation methods;
• general rules for the formation of information disclosed in accounting (financial) statements, their qualitative characteristics;
• basic principles (assumptions) of reporting preparation;
• basic requirements for inventory of assets and liabilities.

Public sector organizations must apply the standard when maintaining accounting (budget) records from January 1, 2018. To prepare reports, the provisions of the standard must be followed starting from the 2018 reporting. Reporting for 2017 is presented according to the old rules.

The provisions of the standard are applied simultaneously with other approved standards, as well as regulatory legal acts that govern accounting (budget) accounting and reporting.

To understand the essence of the upcoming changes, the study of standards must begin with the conceptual foundations. Let's analyze the provisions of the document. What are fundamentally new approaches to data generation?

Global changes

Accounting objects

The main innovations concern accounting objects. The standard defines assets, liabilities, net assets, income, and expenses for the first time.

An asset is property (including cash and non-cash funds) that meets the following conditions:

The definition of an asset uses a number of new terms. Useful potential is the suitability of an asset for use in the activities of the institution, exchange, and repayment of accepted obligations. The use of property does not necessarily have to be accompanied by the receipt of funds. It is sufficient that it serves to enable the institution to perform its functions and achieve its goals. Thus, the asset is characterized by certain consumer properties.

Future economic benefits are recognized as receipts of cash (cash equivalents) resulting from the use of an asset, for example, lease payments.

Control over an asset can be said if an institution has the right to use the asset (including temporarily) to extract useful potential or obtain future economic benefits and can exclude or regulate access to this useful potential or economic benefits. For accounting purposes, it is assumed that the institution controls the property that the owner (founder) has assigned to it.

A liability is a debt, the settlement of which will result in the disposal of assets embodying useful potential or economic benefits. Obligations are accepted for accounting if they arose by virtue of a law, another regulatory legal act, a municipal act or an agreement (contract, agreement).

The difference between assets and liabilities on a certain date shows the value of net assets. Property for which the institution is not responsible for its obligations is not included in the calculation of net assets. Net assets can take both positive and negative values.

Income is an increase in the useful potential of assets and (or) the receipt of economic benefits during the reporting period (except for income associated with contributions of the owner, founder). The contribution of the owner (founder) is the property that he transferred to the institution (except for cash and cash equivalents).

An expense is a decrease in the useful potential of assets and (or) a decrease in economic benefits for the reporting period as a result of the disposal or consumption of assets or the occurrence of liabilities.

The exception is the seizure of property by the owner (founder), with the exception of cash and cash equivalents.

The difference between income and expenses represents the financial result for the reporting period.

Budget income is taken into account by administrators, expenses are taken into account by the main managers (managers) and recipients of budget funds.

Thus, when reporting for 2017, only assets can be listed on the balance sheet. But by 2018, the accounting department of the institution needs to sort out the division of property into an asset and a non-asset (Fig. 2). The same thing should happen with accounts receivable, they need to be written off and removed from the balance sheet.

Recognition of accounting objects

An object is accepted for accounting and (or) reflected in financial statements if three conditions are simultaneously met:

If the value of an object cannot be assessed, it is not recognized in accounting, but information about it is disclosed in the explanatory note to the financial statements.

The object is removed from the balance sheet on the date when at least one of the listed conditions is no longer met.

If income is recognized over several accounting periods, expenses that correspond to these income must be allocated between the same accounting periods.

Assessment of accounting objects

The standard introduces a new concept of “fair value”. It corresponds to the price at which ownership of the asset is transferred between independent parties to the transaction. Accounting items that need to be measured at fair value, and the cases in which it is used, will be established in the standards dedicated to these items.

The fair value of assets and liabilities can be determined by two main methods:

As an example of the cost of restoring (reproducing) an asset, the cost of restoring a building in the event of its destruction is given. The replacement cost of an asset is calculated based on the market purchase price of a similar asset with a comparable remaining useful life. For example, the cost of replacing a destroyed building with another building with a comparable useful life.

Generating data for reporting

The standard for the first time formulates the characteristics that information in reporting must meet:

The standard for the first time enshrines the principle of priority of content over form. It means that information about accounting objects and facts of economic life should be presented in accordance with their economic essence, and not just their legal form.

The legal and economic content of the facts of economic life may differ or even contradict each other. For example, if we talk about property, then from a legal point of view the volume of rights to this property is important: it is in an institution with the right of operational management or leased, received for free use, for storage, or on commission.

From an economic point of view, to recognize property as an asset, what is important is not the rights to it, but its useful potential, ability to bring economic benefits and the ability to control the object.

Property may be used in the activities of the institution to achieve its statutory goals, but not owned by the right of operational management, but leased. The opposite situation is also possible: the property is assigned to the institution with the right of operational management and is listed on the balance sheet, but is unsuitable for use.

Currently, only property that is assigned under the right of operational management is reflected on the institution’s balance sheet. Property received for paid or gratuitous use is shown on off-balance sheet accounts. However, since 2018, the principle of presenting information in accounting and reporting has changed dramatically. It is not the legal, but the economic interpretation of the facts of economic life that becomes decisive. Thus, the accounting methodology comes closer to the approaches adopted in international financial reporting standards.

In relation to operations with property, this means that the right to use leased fixed assets will be reflected by the user (lessee) as part of non-financial assets as an independent accounting object. This is also enshrined in the federal “Rent” standard, which also comes into force on January 1, 2018.

What should employees of public sector institutions prepare for?

First of all, you need to be prepared for the fact that new accounts and subaccounts will be introduced into a single chart of accounts, and the process of filling out documents will change slightly. To do this, you need to download a new OKOF from 2018 and update the edition.

Changes in subaccounts of the unified chart of accounts:

101.х3 "Investment real estate".

101.x7 “Biological resources”.

In depreciation accounts, 104 subaccounts change in the same way!

Intangible assets account 102 will now be divided by type:

102.x1 “Software and Databases.”

102.x2 “Original works.”

102.x3 “Results of research work.”

102.x9 “Other intangible assets.”

Accounts are also added:

111.00 “Rights to use property.”

114.00 “Impairment of assets.”

Account 401.00 (Financial result) is added:

401.11 “Revenues of the current fiscal year.”

401.18 “Income of previous years.”

401.19 “Result of correcting errors in income.”

Account 401.20 (Current fiscal year expenses):

401.21 “Expenditures of the current fiscal year.”

401.27 “Result from the assessment of reserves.”

401.28 “Expenditures of previous years.”

401.29 “Result of correction of errors in expenses.”

120 (Income from property) KOSGU is expanding, it now contains a list of:

121 “Income from operating leases”.

122 “Income from finance leases”.

123 “Natural resource (rent) payments.”

124 “Interest on deposits”.

125 “Interest on borrowings”.

126 “Interest on other financial instruments”.

127 “Dividends from investment objects.”

128 “Share in profit (loss) of investment objects.”

129 “Income from participation in other organizations.”

12T “Income from a simple partnership.”

12K “Income from concession fees.”
When calculating depreciation, specialists need to be careful, since due to changes in accounting in 2018, there will be two more subsections depreciation charges (Fig. 7).

You should be careful, since they are used only for BGU two new methods(reducing balance method and method proportional to production volume). Additional depreciation charges and write-offs of fixed assets to off-balance sheet accounts are not yet required.
As for inventory objects, the unit of accounting, as is known, is the inventory object. The OS object of the inventory object includes everything that was previously, and one more item is added “ Complex of OS objects". These are heterogeneous objects, the useful life of which is the same, and the cost is not significant. And in the structural part of the OS object, you can independently determine the period of receipt of economic benefits.
Due to changes in accounting in 2018, only one separate inventory card (0504031) will need to be opened for the entire complex for heterogeneous OS objects. For example, an office in a government agency containing chairs, tables, and computers. All fixed assets will be accounted for as one inventory object, for which one inventory card is created.
The accounting of rental income from the lessor goes to account 401.40 (Deferred income), and the account for the rights to use leased property is listed on account 111.00 (Rights to use property) (Fig. 8).

In conclusion, we note once again that the article examines only part of the changes that were introduced by federal standards for public sector organizations.

Federal standards approved by the Ministry of Finance of Russia, in accordance with paragraph 1 of Art. 21 of the Federal Law of December 6, 2011 No. 402-FZ “On Accounting” are one of the main documents regulating accounting.

Following the federal ones, industry standards should be approved, as well as recommendations for their application.

Letter of the Ministry of Finance of Russia dated December 15, 2017 No. 02-07-07/84237 “Methodological recommendations on the application of the federal accounting standard for public sector organizations “Fixed assets””;

Letter of the Ministry of Finance of Russia dated December 13, 2017 No. 02-07-07/83464 “Guidelines for the application of the federal accounting standard for public sector organizations “Rent”.”

Consequently, despite the fact that federal standards will come into force on January 1, 2018, their correct and uniform application cannot be ensured without approved industry standards and relevant recommendations.

In other words, for now, accountants of state and municipal institutions can only monitor the rule-making of the Russian Ministry of Finance and wait.

A.Yu. Shikhov,
expert editor of the Publishing House "Accountant Advisor"

It is possible that accountants of state and municipal institutions will submit reports for the first quarter of 2017 according to the old “patterns” for the last time, because in a year, in 2018, all financial statements must be prepared in accordance with the standards approved by the Ministry of Finance of Russia based on the new accounting concept.

Conceptual Framework

Time will fly by quickly, and on January 1, 2018, the orders of the Russian Ministry of Finance will come into force from 12/31/2016:
- No. 256n"On approval of the federal accounting standard for public sector organizations "Conceptual framework for accounting and reporting of public sector organizations" (hereinafter referred to as Standard No. 256n);
- No. 260n"On approval of the federal accounting standard for public sector organizations "Presentation of accounting (financial) statements" (hereinafter referred to as Standard No. 260n).
Note that both standards do not contain any revolutionary provisions. Rather, everything new in them is well forgotten old. In any case, we recommend that all accountants do not put off studying the standards for too long.
Let us recall that in the last days of 2016, the Ministry of Finance approved five more accounting standards for the public sector<*>, and at the time of preparation of this issue, draft orders for the approval of several more standards were posted on the department’s website www.minfin.ru, in the “Documents” section. In total, in accordance with the Program for the Development of Federal Accounting Standards for Public Sector Organizations, approved by Order of the Ministry of Finance of Russia dated April 10, 2015 No. 64n, the phased introduction of 29 federal standards is expected.
<*>Read more about the approved accounting standards in the article by A.Yu. Shikhov in the magazine "Advisor to the Accountant of State and Municipal Institutions" No. 2 for 2017.

Sector organizations

When starting to study the approved standards for public sector organizations, it is necessary to clearly understand what organizations the public sector unites, as well as what place state and municipal institutions (hereinafter referred to as GMU) occupy in it.

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New federal accounting standards for the public sector from 2018 must be applied by all institutions. From January 1, 2018, five standards will come into force. We will tell you how the new federal standards will affect changes in budget accounting from 2018, and how to implement the federal standard for fixed assets.

New federal accounting standards from 2018

From January 1, 2018, all institutions must begin to apply five new federal accounting standards, approved by orders of the Ministry of Finance dated December 31, 2016:

1. (No. 256n).
2. (No. 257n).
3. (No. 258n).
4. (No. 259n).
5. (No. 260n).

Unified portal of Federal public sector accounting standards

Experts from the State Finance System and developers of accounting standards jointly prepared.

For detailed explanations, developer comments, and answers to questions,

Program for the development of federal accounting standards

The new program for the development of federal accounting standards was approved by Order of the Ministry of Finance of Russia dated October 31, 2017 No. 170n. It came into force on December 11, 2018.

According to the new program for the development of federal accounting standards, 24 standards will gradually come into effect in 2019-2020. In particular:

1. Accounting policies, estimates and errors.
2. Events after the reporting date.
3. Reserves. Disclosure of contingent liabilities and contingent assets.
4. Cash flow statement.
5. Non-produced assets.
6. Income, etc.

Useful material in the article

Federal accounting standards for the public sector since 2018

Transition to federal budget accounting standards

Each of the standards is associated with changes in budget accounting in 2018. Therefore, accountants will now have to understand the general methodological rules for applying the 2018 federal standards and make changes to the accounting policies and working chart of accounts. Describe all accounting methods that have several options in your account. Choose the one you will use in practice.

Federal standard Fixed assets in 2018

Budgetary accounting of fixed assets will change in 2018 - institutions will take into account fixed assets in a new way. You need to prepare now, since in January you will have to not only rebuild your accounting, but also prepare annual reports.

In order not to start the financial year with a rush, until the end of the year:

• analyze all fixed assets that are recorded on the balance sheet. Since some of them will have to be transferred to the off-balance sheet, and only assets will remain on the balance sheet;
• select low-value assets that can be combined into one property. This way you will simplify accounting and get rid of numerous inventory cards and numbers;
• Decide which assets make sense to divide into separate inventory items. For example, computers. This will allow you to better control your property, and it will become easier to write it off.

The Ministry of Finance of Russia, in letter No. 02-07-07/79257 dated November 30, 2017, provided guidelines on how to implement the standard in accounting, as well as all the transitional provisions of the GHS “Fixed Assets” on the issues of reflecting real estate in accounting.

Please note that the approach to assessing the value of fixed assets will change. There will be seven types of cost at which fixed assets are reflected in accounting. Two of them are completely new in budget accounting since 2018 - fair and revalued values. The other five are familiar to accountants. However, they will have to be applied according to new rules.

Read more about the Federal Standard “Fixed Assets” in.

Standard Rent No. 258n

The new federal standards of 2018 provide for another separate accounting procedure for leased property. If an institution takes or provides property for temporary possession and use or temporary use, from January 1, 2018 it must be reflected according to the “Rent” standard. Such transactions are formalized under lease agreements, property rental agreements or free use agreements. In order to correctly reflect property in accounting, you first need to determine what type of lease it is: operating (non-financial) or non-operating (financial).

Do not apply the federal standard in 2018 if the institution is provided with:

• for use of subsoil plots for geological study of subsoil, exploration or extraction of minerals: oil, natural gas, other similar non-renewable resources;
• temporary possession and use or temporary use of biological assets;
• temporary use of intangible assets: tangible media with the results of intellectual activity or means of individualization.

The property that the institution received for use under non-operating lease is reflected as part of fixed assets. At the same time, accounting recognizes a liability in accounting - lease payables as of the date of classification of the object.

The value at which property is recorded consists of rent and costs associated with negotiating a lease. These are, for example, the costs of agency fees or legal fees for negotiations, preparation and conclusion of a contract.

A comment

On January 1, 2018, the federal accounting standard for public sector organizations “Fixed assets”, approved. by order of the Ministry of Finance of Russia dated December 31, 2016 No. 257n (hereinafter referred to as the Standard). The provisions of the Standard are applied together with the standard "Conceptual Framework for Accounting and Reporting of Public Sector Organizations" (hereinafter - the Conceptual Framework). Read more about the basic standard.

Methodological recommendations for the application of the Standard are communicated by letter of the Ministry of Finance of Russia dated December 15, 2017 No. 02-07-07/84237 (hereinafter referred to as the Methodological Recommendations). Let's consider the main changes in comparison with the previous procedure for accounting for fixed assets.

Criteria for recognition of OS objects

Criteria for recognizing objects as part of fixed assets, which are established in paragraphs. 38, 41 instructions, approved. by order of the Ministry of Finance of Russia dated December 1, 2010 No. 157n (hereinafter referred to as Instruction No. 157n), remained in the Standard:

• useful life - more than 12 months;
• repeated or constant use in the activities of the institution;
• performing independent functions, certain work;
• being in operation (in stock, on conservation).

At the same time, the concept of “fixed assets” in the Standard contains an important clarification. It says that fixed assets are tangible assets that are assets. Previously this was implied on the basis of Art. 5 of Federal Law No. 402-FZ of December 6, 2011, where assets were listed as part of accounting objects, but were not enshrined in Instruction No. 157n. In addition, the legislation did not contain a definition of an asset. Now it is given in paragraph 36 of the Conceptual Framework and is decisive when accepting an object for accounting as part of fixed assets.

An asset is property that meets the following criteria:

• belongs to the institution and (or) is in its use;
• controlled by the institution as a result of the facts of economic life that have occurred;
• contains useful potential or economic benefits.

Based on this concept, along with objects that are assigned to an institution with the right of operational management, now objects that are received for temporary possession and use or for temporary use under a lease agreement (property lease) or under a free use agreement should be taken into account as fixed assets . Previously, such objects were included in the balance on account 01.

Objects that do not and will not bring economic benefits to the institution, do not have useful potential, should be taken into account on the balance sheet in account 02 “Material assets accepted for storage” (Section 10 of the Methodological Recommendations).

Please note: the useful potential of a thing is not necessarily expressed in the fact that it must ensure the flow of money (its equivalents) or directly participate in the provision of services. For example, an institution plans to purchase a painting in 2018 to decorate its office. For correct reflection in accounting, it is necessary to assess whether the painting is a fixed asset.

For accounting purposes, the useful potential contained in an asset is its suitability:

• for use independently or jointly with other assets for the purpose of performing state (municipal) functions (powers) in accordance with the goals of creating an institution, activities for the provision of state (municipal) services or for the management needs of the institution, without necessarily ensuring the flow of funds (their equivalents);
• exchange for other assets;
• repayment of obligations assumed by the institution.

From this definition, we can conclude that the painting has useful potential, since it can be used for the administrative needs of the institution (office decoration), can be exchanged for other assets, or used to pay off liabilities. Therefore, its acquisition should be reflected in the corresponding analytical account of the balance sheet account 101 00 “Fixed Assets”.

The provision of premises for use for several hours (hourly rent) does not need to be shown in the fixed asset accounts and in the off-balance sheet account 25 (26). In accounting, only accounts receivable are formed and income from this operation is accrued.

Fixed asset accounting unit

As before, the unit of accounting for fixed assets is the inventory item. Its concept, as well as the procedure for assigning inventory numbers, have not changed. However, now an institution, when recognizing a fixed asset item, must determine the composition of the inventory item.

Initial OS cost

The procedure for determining the initial cost of an object, as before, depends on the method of its receipt by the institution - whether it was purchased (created) or received free of charge. To characterize these methods, the Standard introduces the terms “exchange” and “non-exchange” operations.

During exchange transactions, the institution transfers (receives) assets on the condition of receiving (transferring) assets comparable in monetary value (value). This may be cash (their equivalents), other material assets (work, services), rights to use property.

In non-exchange transactions, an institution receives (transfers) assets without directly providing (receiving) assets of comparable monetary value (cash equivalents) in exchange. Essentially, this is the transfer (receipt) of assets free of charge (without charging a fee) or at insignificant prices in relation to the market price of an exchange transaction with similar assets.

As before, the initial cost of a fixed asset acquired as a result of exchange transactions or created by the institution itself is determined in the amount of capital investments, taking into account the requirements of tax legislation regarding VAT.

The list of costs that can be included in the initial cost of an object is given in clause 15 of the Standard. In general, it repeats the list from paragraph 47 of Instruction No. 157n, but is more detailed. Clause 17 of the Standard lists costs that are not included in the initial cost of the object.

Formation of the value of an item of fixed assets on account 106 00 ceases when the item is suitable for its intended use. Costs associated with the use, maintenance or subsequent movement of an item of fixed assets are reflected as part of the expenses of the current period (clause 19 of the Standard). At the same time, until the moment of commissioning, the object is accounted for in account 106 00 (Section 5 of the Methodological Recommendations).

To understand what is meant by substitution, you need to refer to paragraphs. 27, 28 Standard. Their content is new; previously the legislation did not contain such norms.

If the procedure for operating a fixed asset item (its components) requires the replacement of individual components of the facility, then in accordance with clause 27 of the Standard, the costs of such replacement (including during major repairs) are included in the cost of the fixed asset item at the time of their occurrence. This is allowed only on the condition that such components are an asset according to the recognition criteria for fixed assets established in clause 8 of the Standard.

In this case, the cost of a fixed asset item in respect of which restoration work (major repairs) has been carried out is reduced by the cost of the replaced (retired) parts in accordance with the provisions of the Standard on the derecognition (disposal from accounting) of fixed asset items. A necessary condition is the availability of documentary evidence of cost estimates for the disposed object.

The institution establishes in its accounting policy the application in accounting of the provisions of clause 27 of the Standard in relation to groups of fixed assets.

Definitions of reconstruction and major repairs of capital construction projects are given in Art. 1 of the Town Planning Code of the Russian Federation. Approximate lists of work that can be performed during major repairs of buildings and structures are given:

• in the Methodology for determining the cost of construction products on the territory of the Russian Federation MDS 81-35.2004, approved. Resolution of the State Construction Committee of Russia dated March 5, 2004 No. 15/1;
• departmental building standards "Regulations on the organization and implementation of reconstruction, repair and maintenance of residential buildings, communal and social-cultural facilities", approved. by order of the State Committee for Architecture of November 23, 1988 No. 312 (hereinafter referred to as VSN 58-88 (r)).

During a major overhaul, an economically feasible modernization of a building or facility can be carried out - improving the layout, equipping it with missing types of engineering equipment. The list of additional work carried out during major repairs of the building is given in Appendix 9 to VSN 58-88 (r).

If, during regular inspections of fixed assets for the presence of defects, which are a prerequisite for their operation, as well as during repairs, independent asset objects are created, the costs of creating such assets form the volume of capital investments. Subsequently, these investments are recognized in the cost of the fixed asset item (either increase the cost of the item being accounted for, or are recognized as an independent accounting item). This is established by clause 28 of the Standard.

In this case, any amount of costs for the creation of a similar asset during the previous repair, previously taken into account in the cost of the fixed asset, is written off as expenses of the current period (to reduce the financial result) in the amount of the residual value of the asset being replaced.

The institution establishes in its accounting policy the application of the provisions of clause 28 of the Standard when maintaining records of fixed assets and groups of fixed assets.

In our opinion, from the provisions of paragraphs. 27, 28 of the Standard, as well as the Methodological Recommendations, it follows that the initial cost of an object based on the results of a major overhaul (repair, regular inspection) can be changed only if its part is replaced, which can be recognized as an item of fixed assets (asset). For example, if a group of objects is combined into one inventory object (computer equipment, an office in an educational institution, a set of furniture, etc.), replacing one of them may change the value of the object. The cost of the replaced object must be reliably estimated.

In relation to buildings, the initial cost may change in the case of installation (replacement) of a boiler room, fire-fighting equipment, fire alarm equipment, i.e. those objects that can be recognized as assets.

This conclusion is indirectly confirmed by an example from the Methodological Recommendations: the costs of repairing a premises in the scope of painting, whitewashing, replacing windows, doors, and other similar work are included in the expenses of the current financial year without being attributed to the increase in the cost of the fixed asset being repaired.

Thus, the costs of current (overhaul) repairs of fixed assets, which do not result in the creation of objects recognized as assets, do not change the initial cost of the fixed asset.

New provisions are also contained in paragraphs. 29, 30 Standard. If an item of fixed assets is intended for transfer or sale not in favor of public sector organizations, it is revalued to fair value, which is determined by the market price method. The result of such revaluation is reflected in accounting and disclosed separately in the financial statements. Previously, when selling objects, their original cost was not revalued; the price of the object formed the income from the operation.

Depreciation of fixed assets

The procedure for determining the useful life of an asset and the start and end dates of depreciation have not changed.

The accrual of depreciation of an item of fixed assets is not suspended in cases where it is idle or not used or is held for subsequent transfer (write-off), except in cases where the residual value of the item has become equal to zero.

There are three methods for calculating depreciation:

• linear - uniform accrual of a constant amount of depreciation throughout the entire useful life of the asset;
• reducing balance - the annual amount of depreciation is determined based on the residual value of the object at the beginning of the reporting year and the depreciation rate calculated based on the useful life and a coefficient not higher than 3;
• proportional to production - the amount of depreciation is based on the expected use or expected productivity of the asset.

Thus, using the linear method, the annual amount of depreciation is calculated using the formula:

A = C / SPI, where

A is the annual amount of depreciation;
C is the initial cost of the object;
SPI - useful life (in years).

With the reducing balance method, depreciation is calculated using the formula:

A = C ost × N a × K usk / 100%, where

Cresidual value of the object at the beginning of the reporting year;
N a - depreciation rate for the object;
Kac - acceleration coefficient (up to 3).

The diminishing balance method allows you to transfer the cost of an object to the financial result, taking into account their uneven return during its service life, when the property shows its full potential in the first years after purchase. An example is digital technology, which becomes obsolete within two to three years after purchase. The price of such objects will decrease significantly in a few years, although the performance characteristics may remain the same.

As can be seen from the formula, using the declining balance method, the object transfers most of its value to the financial result in the first years of operation; every year this amount becomes less and less.

The acceleration coefficient characterizes the intensity of use of a fixed asset, and therefore its wear and tear. The value of the coefficient is set by the institution independently within a certain limit. It must be justified. The justification may include technical documentation for fixed assets, recommendations from authorized government bodies, work schedules, time sheets, etc.

The amount of depreciation in proportion to the volume of production is calculated using the formula:

A = C × B p / B, where

In n - natural indicator of the volume of production for the reporting period;
B is the estimated volume of production for the entire useful life of the facility.

With this method of calculating depreciation, the useful life of the asset is not represented in years, but in the form of the expected volume of output that can be produced as a result of the operation of the fixed asset. This method allows you to most accurately reflect the actual intensity of use of the asset. For example, the amount of depreciation may be zero when production of a fixed asset is stopped. During periods of heavier use, the amount of accrued depreciation will be higher, and vice versa.

An institution selects the depreciation method that most closely reflects the expected manner in which the future economic benefits or service potential embodied in the asset will be realized. This choice must be fixed in the accounting policy.

If the expected method of obtaining economic benefits or the useful potential contained in the asset has changed, the validity of the depreciation method used is assessed as of January 1 of the year following the year of such change (clause 38 of the Standard). The depreciation method to be used over the remaining useful life can be changed. There is no need to recalculate accumulated depreciation as of the date of revision of the depreciation method when it changes.

An institution can apply all three methods of calculating depreciation for different groups of fixed assets. This procedure is established in the accounting policy.

From January 1, 2018, the cost criteria for calculating depreciation have changed. Comparative characteristics are presented in the table.

Please note that for fixed assets under conservation, the rules for calculating depreciation have been changed. The standard does not contain exceptions for suspending depreciation. Previously, they were established by clause 85 of Instruction No. 157n for the transfer of fixed assets to conservation for a period of more than three months, as well as the restoration of an object for a period of more than 12 months.

The institution identifies signs of asset impairment (listed in paragraphs 7 - 9 of the Impairment of Assets Standard) as part of the annual inventory of assets and liabilities. If such signs exist, a decision is made on the need to determine the fair value of the object.

The draft orders on amendments to accounting instructions for public sector institutions provide for account 0 114 00 000 “Impairment of non-financial assets” to reflect the amounts of accumulated losses.

Operations for accrual of losses from depreciation of fixed assets are planned to be reflected in the debit of account 0 401 20 274, the corresponding analytical accounts of account 0 109 00 000 in correspondence with the credit of account 0 114 00 000.

Disposal of fixed assets

The reasons why fixed assets are written off from the balance sheet are listed in clause 45 of the Standard. New grounds for write-off include:

• termination of use of an item of fixed assets for the intended purposes, termination of receipt of economic benefits or useful potential from further use of the item;
• transfer under a lease agreement (property lease) or an agreement for gratuitous use in the event that the recipient of the property acquires an accounting item as part of fixed assets.

These grounds are highlighted in connection with the new understanding of a fixed asset as an asset that should bring economic benefits or have useful potential.

Please note that the object continues to be accounted for as part of fixed assets when it is transferred for use to other right holders within the framework of an operating lease relationship that provides for the return of leased objects to the institution for their further use (clause 7 of the Standard, section 3 of the Methodological Recommendations). This is true for investment properties as well.