Financial investments- these are assets that bring income to the organization in the form of interest, dividends, etc. (Clause 2 PBU 19/02).

Financial investments include, for example:

securities;

contributions to the authorized (share) capital of other organizations;

loans provided to other organizations;

To account for each type of financial investment, subaccounts are opened to account 58 “Financial investments”.

Information about such loans is reflected in section. II balance sheet under the item "Accounts receivable".

In addition, the Instructions for the use of the Chart of Accounts stipulate that such financial investments as deposits can be accounted for in account 55 “Special accounts in banks”, subaccount 55-3 “Deposit accounts”, and interest-bearing loans issued to employees of the organization can be reflected in account 73 “Settlements with personnel for other operations”, subaccount 73-1 “Settlements for loans provided”.

Disposal of financial investments

When the debtor repays monetary obligations, the organization reflects the disposal of financial investments.

In this case, amounts received from the debtor are taken into account as part of the organization’s other income.

The initial cost of a retiring financial investment is taken into account as part of other expenses (clauses 25, 34 PBU 19/02, clauses 7, 16 of the Accounting Regulations “Income of the Organization” PBU 9/99, approved by Order of the Ministry of Finance of Russia dated 06.05. 1999 N 32n, clauses 11, 19 of the Accounting Regulations “Expenses of the organization” PBU 10/99, approved by Order of the Ministry of Finance of Russia dated 05/06/1999 N 33n).

Thus, upon disposal of financial investments, their value is written off from the credit of account 58 “Financial investments” in correspondence with subaccount 91-2 “Other expenses”.

Financial investments and accounting statements

Regardless of which accounting account reflects assets that, in accordance with the requirements of PBU 19/02, are financial investments, information about them must be shown in the balance sheet as part of financial investments.

Thus, line 1170 “Financial investments” of the balance sheet indicates shares, bonds, financial bills and other securities acquired by the organization.

It also reflects contributions to the authorized (share) capital of other organizations, joint venture agreements and the amount of interest-bearing loans provided by your company.

Note that line 1170 “Financial investments” reflects long-term financial investments (clauses 2, 3 of PBU 19/02), that is, those whose maturity (circulation) period exceeds one year after the reporting date.

The cost of short-term financial investments (with a circulation or maturity period of no more than 12 months after the reporting date) should be reflected in line 1240 “Financial investments (except for cash equivalents)” of the balance sheet.

According to the clarification of the Ministry of Finance of Russia, line 1170 “Financial investments” of the balance sheet should also reflect information on the amount of funds transferred by the organization on account of a deposit in another organization, before the state registration of the corresponding changes in the constituent documents (Letter dated 02/06/2015 N 07-04 -06/5027).

If an organization draws up Explanations to the Balance Sheet and the Statement of Financial Results according to the forms contained in the Example of Explaining Explanations given in Appendix No. 3 to Order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n, then for a detailed decoding of information on financial investments, tables 3.1 and 3.2 are filled out. included in the standard form of explanations to the balance sheet.

Still have questions about accounting and taxes? Ask them on the accounting forum.

Financial investments: details for an accountant

Accounting for factoring companies attracting external financing
...) 58/Loans (financial investments) 1,062,000,000 Closing financial investments 76/Settlements with...) 58/Client (financial investments) 1,180,000,000 Cost of financial investment written off 91/Expenses...) 58/ Client (financial investments) 1,180,000,000 Written off the cost of financial investment 91/Expenses...) 58/Client (financial investments) 1,180,000,000 Written off the cost of financial investments 91/Expenses...
Updated annual accounting reporting forms
204 00 000 “Financial investments” of which 241 The cost of long-term financial investments reflected in...
Reflection of the transaction to acquire a 100% share in the authorized capital of LLC
At original cost. The initial cost of financial investments acquired for a fee is recognized as the amount... in the actual costs of acquiring financial investments, general business and other similar... account 58 "Financial investments" is maintained by type of financial investments and objects, in... is not determined, therefore this financial investment is subject to reflection in accounting... capital of the LLC; - Encyclopedia of solutions. Financial investments (line 1170). Answer prepared by: Expert...
Changes to the Unified Chart of Accounts and instructions for its use
Accounts 0 204 00 000 “Financial investments”. For analytical accounting accounts...
What to pay attention to when preparing annual financial statements for 2017
Loans as financial investments and incorrectly reflected in the line “Financial investments” of the balance sheet... Accounting regulations “Accounting for financial investments” (PBU 19/02), approved by order... No. 126n, one of the main criteria for financial investments is the ability of an asset to bring an organization..., material assets, intangible assets and financial investments. ** Under gross violation of the requirements for...
Filling out the balance sheet (f. 0503130) for 2018: what to pay attention to?
0 201 22 000 241 Financial investments 0 204 00 000 251 ...
Pledge. Accounting and Taxation
On the basis of the loan agreement 58 "Financial investments", subaccount 3 "Provided...; Current accounts" 58 "Financial investments", subaccount 3 "Provided... debt (for example, accounts 62, 58 "Financial investments", subaccount "Provided loans ", 76 and... with the auction organizer" 58 "Financial investments", subaccount 3 "Provided... with the auction organizer" 58 "Financial investments", subaccount 3 "Provided...
Accounting for the assignment from the resource supplying organization
Requirements are one of the types of financial investments. According to the Instructions for the Application of the Plan... 94n, account 58 “Financial Investments” is intended for accounting for financial investments. At the same time... accounting for assets as financial investments requires the one-time fulfillment of the conditions contained... the difference between the sale (redemption) price of a financial investment and its purchase price in... and accordingly cannot be considered a financial investment. Such an asset can be taken into account...
Changes in financial statements for 2018
Funds of the institution in a credit institution, financial investments, receivables for income and... 0 201 30 000) 207 Financial investments (account 0 204 00 000 ...
The discrepancy between tax and accounting reporting indicators under the simplified tax system: how to explain it to the tax authorities?
... - accounts receivable; by code 1240 – financial investments (except for cash equivalents); by... shares purchased from shareholders; other financial investments. In the income statement... issued, short-term loans and other financial investments. Not all of these amounts...
Trade credit under a simplified taxation system
According to accounting “Accounting for financial investments” PBU 19/02 (approved... PBU 19/02 refers to the financial investments of an organization. Such investments are accepted by... 19/02). The initial cost of financial investments acquired under contracts providing for the execution...) provides for the use of account 58 "Financial investments", subaccount 3 "Provided... .1999 N 33n). The initial cost of a financial investment is the amount specified by the parties in.. .
Contribution to a subsidiary to increase net assets: how to take into account
As an asset in the form of financial investments (clause 2 of PBU 19/02 ... “Accounting for financial investments”). The position of the financial department, set out... PBU 19/02 "Accounting for Financial Investments", are carried out (see material: "... contribution to property as a financial investment and take it into account... 58 "Financial Investments". As already was us...
“What does it cost us to build a house”: a simple partnership for the construction of a building
PT, are included by the friend in the financial investments not according to their monetary valuation... activities will be taken into account as part of the financial investments of the fellow developer, not according to the valuation... accounting of the friend. The investor's size of financial investments will be equal to the nominal value of cash... Accounting provisions “Accounting for financial investments” PBU 19/02; para. 2...
Accounting statements – 2017: recommendations of the Ministry of Finance
Deposits), cash and payment documents, financial investments, funds in settlements, including...
A small enterprise was subject to an audit, but did not conduct it: what will be the punishment?
PBU 19/02 "Accounting for financial investments", clause 7 PBU 15 ..., material assets, intangible assets and financial investments. Existing judicial practice indicates...

9. The initial cost of financial investments acquired for a fee is recognized as the amount of the organization’s actual costs for their acquisition, with the exception of value added tax and other refundable taxes (except for cases provided for by the legislation of the Russian Federation on taxes and fees).

The actual costs of acquiring assets as financial investments are:

Amounts paid in accordance with the contract to the seller;

amounts paid to organizations and other persons for information and consulting services related to the acquisition of these assets. If an organization is provided with information and consulting services related to making a decision on the acquisition of financial investments, and the organization does not make a decision on such acquisition, the cost of these services is included in the financial results of a commercial organization (as part of other expenses) or an increase in the expenses of a non-profit organization of that reporting period when the decision was made not to purchase financial investments;

remuneration paid to an intermediary organization or other person through which assets were acquired as financial investments;

other costs directly related to the acquisition of assets as financial investments.

ConsultantPlus: note.

The accounting regulation “Accounting for loans and credits and the costs of servicing them” (PBU 15/01) was declared invalid by Order of the Ministry of Finance of Russia dated October 29, 2008 N 117n in connection with the publication of Order of the Ministry of Finance of Russia dated October 6, 2008 N 107n, which with accounting reporting for 2009, a new accounting regulation “Accounting for expenses on loans and credits” (PBU 15/2008) was approved.

When purchasing financial investments using borrowed funds, the costs of received loans and borrowings are taken into account in accordance with the Accounting Regulations "Expenses of the Organization" PBU 10/99, approved by Order of the Ministry of Finance of the Russian Federation dated May 6, 1999 N 33n (registered with the Ministry of Justice Russian Federation May 31, 1999, registration N 1790), and the Accounting Regulations “Accounting for loans and credits and the costs of servicing them” PBU 15/01, approved by Order of the Ministry of Finance of the Russian Federation dated August 2, 2001 N 60n (according to Letter of the Ministry of Justice of the Russian Federation dated September 7, 2001 N 07/8985-UD The order does not require state registration).

General and other similar expenses are not included in the actual costs of acquiring financial investments, except when they are directly related to the acquisition of financial investments.

(see text in the previous edition)

11. If the amount of costs (except for the amounts paid in accordance with the agreement to the seller) for the acquisition of such financial investments as securities is insignificant compared to the amount paid in accordance with the agreement to the seller, the organization has the right to recognize such costs as other expenses of the organization, including the reporting period in which the specified securities were accepted for accounting.

(see text in the previous edition)

12. The initial cost of financial investments made as a contribution to the authorized (share) capital of an organization is recognized as their monetary value agreed upon by the founders (participants) of the organization, unless otherwise provided by the legislation of the Russian Federation.

13. The initial cost of financial investments received by an organization free of charge, such as securities, is recognized as:

the amount of funds that can be received as a result of the sale of received securities on the date of their acceptance for accounting - for securities for which the market price is not calculated by the organizer of trading on the securities market.

14. The initial cost of financial investments acquired under contracts providing for the fulfillment of obligations (payment) in non-monetary means is recognized as the value of assets transferred or to be transferred by the organization. The value of assets transferred or to be transferred by an organization is established based on the price at which, in comparable circumstances, the organization usually determines the value of similar assets.

If it is impossible to determine the value of assets transferred or to be transferred by an organization, the value of financial investments received by the organization under agreements providing for the fulfillment of obligations (payment) in non-monetary means is determined based on the cost at which similar financial investments are acquired in comparable circumstances.

15. The initial cost of financial investments contributed to the contribution of the partner organization under a simple partnership agreement is recognized as their monetary value, agreed upon by the partners in the simple partnership agreement.

(see text in the previous edition)

17. Securities that do not belong to the organization by right of ownership, economic management or operational management, but are in its use or disposal in accordance with the terms of the agreement, are accepted for accounting in the assessment provided for in the agreement.

Features of checking the impairment of financial investments

Under the conditions of PBU 19/02, the methodology for verifying transactions related to the impairment of financial investments has been significantly updated. We are talking not only about analyzing the correctness of the formation of a reserve for impairment of these assets, but also about confirming the fact of their impairment in principle. The latter is especially important, as it brings their valuation closer to fair value.

The auditor proceeds from the fact that a decrease in the value of financial investments is recognized as impairment if there is a sustained significant decrease in their value below the amount of economic benefits, which is recognized as sustainable when the following conditions are simultaneously met:

– at the reporting date and at the previous reporting date, the accounting value is significantly higher than their estimated value;
– during the reporting year, the estimated value of financial investments changed significantly only in the direction of its decrease;
– at the reporting date there is no evidence that a significant increase in the estimated value of these financial investments is possible in the future.

If these conditions are met, the organization independently makes an impairment calculation and determines the estimated value of financial investments, which will be the difference between their value at which they are reflected in accounting (accounting value) and the amount of such reduction (impairment).

The need to determine the estimated value of financial investments in connection with their depreciation may be indicated by signs of bankruptcy or the declaration of bankruptcy of the issuing organization whose securities are owned.

Signs of bankruptcy may also indicate depreciation of financial investments such as issued loans. Having determined that any financial investment has been impaired, the auditor must check for the existence of conditions for a sustainable decrease in the value of the financial investment.

An impairment test must be performed by the organization at least once a year as of December 31 of the reporting year if there are signs of impairment. The organization has the right to carry out such a check at the reporting dates of the interim financial statements. When confirming a decrease in the value of financial investments in an organization due to financial results (as part of operating expenses), a reserve must be created for the depreciation of financial investments. Information on reserves for depreciation of investments in securities is reflected in account 59 “Reserves for depreciation of investments.” Since the list of financial investments PBU 19/02 includes not only securities, but also other types of investments, when creating reserves for their impairment in permitted cases, account 59 should also be used.

In accordance with the requirements of paragraph 38 of PBU 19/02, in the financial statements, the value of financial investments for which an impairment reserve has been formed is shown at their book value minus the amount of the reserve. Consequently, the auditor must assess the compliance of the reporting indicators with the accounting data for accounts 58, 59. Particular attention should be paid to the presence of adjustments to the amounts of the previously created reserve in cases of a further decrease in their estimated value or its increase.

Checking the disclosure of information about financial investments in the financial statements

Taking into account the materiality requirement, it is necessary that the financial statements disclose at least the following information:

– methods for assessing financial investments upon their disposal by groups (types);
– consequences of changes in the methods of assessing financial investments upon their disposal;
– the value of financial investments for which the current market value is determined, and financial investments for which the current market value is not determined;
– the difference between the current market value as of the reporting date and the previous assessment of financial investments for which the current market value was determined;
– for debt securities for which the current market value has not been determined – the difference between the original cost and the nominal value during their circulation period;
– value and types of securities and other financial investments pledged;
– the amount of created reserves for the depreciation of financial investments, indicating: the type of financial investments; the amount of the reserve created in the reporting year; the amount of the reserve recognized as operating income of the reporting period; reserve amounts used in the reporting year;
– for debt securities and loans provided – data on their valuation at discounted value, on the value of their discounted value, on the discounting methods used (disclosed in the notes to the balance sheet and the income statement).

Since information on financial investments is presented in a limited form in the balance sheet, all other necessary information about them should be reflected in an explanatory note and dividing financial investments depending on the maturity period into short-term and long-term.

Checking income tax calculations

When checking income tax calculations, the auditor must take into account the specifics of determining the tax base for transactions with securities, which are established by Art. 280 Tax Code of the Russian Federation. Income from operations on the sale of securities is determined based on their sale price. The market price of securities traded on the organized securities market is recognized as the actual price of sale or other disposal of securities if this price is in the interval between the minimum and maximum prices of transactions (price interval) with the specified security registered by the trade organizer on the date of the relevant transaction . Moreover, in the case of the sale of securities traded on an organized market at a price below the minimum transaction price, the financial result is calculated from the minimum transaction price on the organized securities market.

The specifics of determining the tax base for income tax on transactions with securities not traded on the organized market are set out in clause 6 of Art. 280 Tax Code of the Russian Federation. For securities not traded on the organized securities market, the actual transaction price is accepted for tax purposes if this price is in the range between the minimum and maximum prices determined based on the estimated price of the security and the maximum price deviation.

The maximum deviation of prices for securities not traded on the organized securities market is set at 20% upward or downward from the estimated price of the security.

In the case of the sale (purchase) of securities that are not traded on the organized securities market at a price lower than the minimum (above the maximum) price determined based on the settlement price of the security and the maximum price deviation, when determining the financial result for tax purposes, the minimum (maximum) price is accepted ) price determined based on the estimated price of the security and the maximum price deviation.

An organization can independently choose and establish in its accounting policy for tax purposes one of the following methods of writing off the cost of retired securities as expenses (clause 9 of Article 280 of the Tax Code of the Russian Federation):

– at the cost of the first acquisition (FIFO);
– per unit cost.

Analytical procedures

To conduct a full audit, it is necessary to apply the following analytical procedures for verification based on financial statements:

– analysis of the dynamics of financial investment indicators;
– assessment of the composition and structure of financial investments, which will make the priorities and features of the financial activities of the audited organization more obvious;
– analysis of the liquidity of financial investments, especially short-term ones, since they are often classified as highly liquid assets, equating them to cash. This approach is legitimate if the auditor is confident that the securities are truly marketable and reliable, have a short circulation period, and have an insignificant risk of a decrease in market value;
– identifying sources of financing for long-term financial investments, especially on a large scale;
– analysis of the effectiveness of financial investment management;
– assessment of the profitability of financial investments.

In addition, it is advisable to evaluate the effectiveness of financial investments in general and individual financial instruments, which will require the use of differentiated methods. There are retrospective and forecast assessments of the effectiveness of financial investments. To obtain a retrospective assessment, the amount of income received from financial investments is compared with the average annual value of this type of asset. It is useful for the auditor to compare, for example, the yield of securities with an alternative (guaranteed) income, which is the refinancing rate or the interest rate on government bonds. Predictive assessment of the effectiveness of certain types of financial investments is carried out by calculating the current market price of a specific financial instrument using discounting methods.

To make it easier to study the material, we divide the article into topics:

Actual costs include amounts paid to the seller under the contract, amounts paid for information and consulting services, payment for intermediary services, and other costs directly related to the acquisition of assets as financial investments.

If the amount of costs for information and consulting services is insignificant relative to the amount paid to the seller of securities, such costs are recognized as other operating expenses of the organization in the reporting period in which the purchased securities were accepted for accounting.

General business and other similar expenses are not included in the cost of acquiring financial investments if they are not directly related to their acquisition.

When purchasing financial investments, actual costs are formed taking into account the amount differences that arise in cases where payment is made in rubles in an amount equivalent to the amount in foreign currency (conventional monetary units) before the assets are accepted as financial investments for accounting.

The initial cost of financial investments, the cost of which upon acquisition is established in foreign currency, is determined in rubles by converting foreign currency at the Bank of Russia exchange rate in effect on the date of acceptance of these assets for accounting. The initial cost of financial investments at which they are accepted for accounting may change in cases established by regulations. For the purposes of subsequent assessment, financial investments are divided into two groups: financial investments for which the current market value can be determined, and financial investments for which the market value cannot be determined.

When disposing of assets accepted for accounting as financial investments for which the current market value can be determined in the prescribed manner, they are reflected in the financial statements at the end of the reporting year at the current market value by adjusting the valuation as of the previous reporting date. Adjustments can be made monthly or quarterly. The difference between the valuation of financial investments at the current market value as of the reporting date and the previous valuation is included in other income or expenses in correspondence with the financial investment account. These assets include the most liquid financial investments.

When disposing of an asset accepted for accounting as a financial investment, for which the current market value is not determined, it is reflected in accounting and financial statements at its original cost. If the current value of a financial investment object previously valued at the current market value is not determined at the reporting date, such an object is reflected in the financial statements at the value of its last valuation.

An organization may calculate the valuation of debt securities and granted loans at present value and provide evidence of the validity of such calculation. The disposal of financial investments from the accounting records of an organization is recognized on the date of the one-time termination of the conditions for accepting these investments for accounting and occurs in cases of redemption, sale, gratuitous transfer, transfer in the form of a contribution to the authorized capital of other organizations, transfer on account of a contribution under a simple partnership agreement and etc.

Contributions to the authorized capital of other organizations (except for shares of joint-stock companies), loans provided to other organizations, deposits in credit institutions, receivables acquired on the basis of assignment of the right of claim are assessed upon disposal at the original cost of each of the above accounting units. Upon disposal, securities may be valued at the average initial cost, determined for each type of securities as the quotient of dividing the initial cost of this type of securities by their quantity, consisting respectively of the initial cost and quantity (remaining) at the beginning of the month and received within of a given month of securities. When disposing of financial investments valued at current market value, their value is determined based on the latest valuation. For each type of financial investment, only one valuation method can be used during the reporting year. This method of assessment must be enshrined in the accounting policies of the organization.

Financial investments on balance sheet

Line 1170 reflects the value of all long-term financial investments of the company, which was formed as of December 31. They are taken into account in account 58 “Financial investments”. In line 1170 enter the debit balance of account 58 (in terms of long-term financial investments). Short-term investments are not reflected on line 1170 of the balance sheet. For such property, line 1240 is provided in the balance sheet.

An additional breakdown of data on financial investments by their types and groups is provided in Section 2 of the Explanations to the Balance Sheet and Statement of Financial Results. Table 3.1 of this section is intended for this purpose.

Accounting for such property is regulated by the Accounting Regulations “Accounting for Financial Investments” (PBU 19/02) (approved by order of the Ministry of Finance of Russia No. 126n).

According to this document, financial investments include, in particular:

Securities (state, municipal, other companies) and debt securities (bonds, bills);
an exception is provided for own valuable and debt shares purchased from shareholders, commercial bills issued to ensure payment to suppliers, issued bonds;
contributions to the authorized capital of other companies;
the amount of loans provided to other companies at interest;
deposits in banks on which income is accrued;
receivables acquired under an agreement for the assignment of claims (assignment);
contributions of a partner organization under a simple partnership agreement (joint activity).

PBU 19/02 provides that assets that have a tangible form are not reflected as financial investments. For example, fixed assets and inventories (materials, goods).

Financial investments must meet all the requirements listed in paragraph 2 of PBU 19/02. There are three of them. First. The company must have documents that confirm its right to make a financial investment. For example, for loans provided - an agreement; for bills issued by third-party organizations - a bill of exchange, for shares or bonds - the shares themselves, bonds or a certificate for them (if they are received in documentary form), an extract from the register or securities account (if they are received in non-documentary form); for deposits in banks - agreement; for contributions to authorized capital - the charter of the company that received this contribution, etc.

Second. Transfer to the company of all financial risks associated with these investments (risk of price changes, debtor insolvency, liquidity, etc.). And third. Ability to generate income in the future. For example, in the form of interest, dividends, the difference between purchase and sale prices. If certain assets are not capable of generating income (for example, interest-free loans), they are not reflected as part of financial investments.

This amount is not indicated in line 1170 of the balance sheet. The amount of the loan not repaid is reflected either as part of other non-current assets on line 1190 (if the loan is long-term), or as part of accounts receivable on line 1230 of the balance sheet (if the loan is short-term). As we said above, line 1170 of the balance sheet is intended specifically for long-term financial investments. Short-term accounts are taken into account on line 1240 of the form. According to paragraph 19 of the Accounting Regulations “Accounting Reports of an Organization” (PBU 4/99) (approved by Order of the Ministry of Finance of Russia No. 43n), those assets and liabilities are considered short-term if their circulation or repayment period does not exceed 12 months. Otherwise, they are considered long-term (letters from the Ministry of Finance of Russia No. 07-02-18/01, No. 07-02-18/01).

At the same time, the company has the right to transfer certain financial investments from long-term assets to short-term ones (for example, if at the time of formation of the balance sheet the remaining period of their circulation (repayment) is less than 12 months) and vice versa. The right to make such a transfer must be established as part of the firm's accounting policies.

Financial investment account

Account 58 “Financial Investments” is intended to summarize information on the availability and movement of an organization’s investments in government securities, shares, bonds and other securities of other organizations, authorized (share) capital of other organizations, as well as loans granted to other organizations.

Sub-accounts can be opened for account 58 “Financial investments”:

58-1 "Units and shares",
58-2 "Debt securities",
58-3 "Loans provided",
58-4 “Deposits under a simple partnership agreement”, etc.

Subaccount 58-1 “Shares and shares” takes into account the presence and movement of investments in shares of joint-stock companies, authorized (share) capitals of other organizations, etc.

Subaccount 58-2 “Debt securities” takes into account the presence and movement of investments in government and private debt securities (bonds, etc.).

Financial investments made by the organization are reflected in the debit of account 58 “Financial investments” and the credit of accounts that record the values to be transferred on account of these investments. For example, an organization’s acquisition of securities of other organizations for a fee is carried out in the debit of account 58 “Financial investments” and the credit of account 51 “Currency accounts” or 52 “Currency accounts”.

When writing off the amount in excess of the purchase price of bonds and other debt securities purchased by the organization over their nominal value, entries are made in the debit of account 76 “Settlements with various debtors and creditors” (for the amount of income due on securities) and in the credit of account 58 “Financial investments " (for part of the difference between the purchase and nominal value) and 91 "Other income and expenses" (for the difference between the amounts allocated to accounts 76 "Settlements with various debtors and creditors" and 58 "Financial investments").

When additionally accruing the amount of excess of the nominal value of bonds and other debt securities acquired by the organization over their purchase price, entries are made in the debit of accounts 76 “Settlements with various debtors and creditors” (for the amount of income due on securities) and 58 “Financial investments” ( for part of the difference between the purchase and nominal value) and to the credit of account 91 “Other income and expenses” (for the total amount allocated to accounts 76 “Settlements with various debtors and creditors” and 58 “Financial investments”).

Redemption (redemption) and sale of securities accounted for on account 58 "Financial investments" are reflected in the debit of account 91 "Other income and expenses" and the credit of account 58 "Financial investments" (except for organizations that reflect these transactions on account 90 "Sales ").

Subaccount 58-3 “Loans provided” takes into account the movement of monetary and other loans provided by the organization to legal entities and individuals (except for employees of the organization). Loans provided by the organization to legal entities and individuals (except for employees of the organization) secured by bills of exchange are accounted for separately in this subaccount.

Loans provided are reflected in the debit of account 58 “Financial investments” in correspondence with account 51 “Current accounts” or other relevant accounts. The loan repayment is reflected in the debit of account 51 “Current accounts” or other relevant accounts and the credit of account 58 “Financial investments”.

In subaccount 58-4 “Deposits under a simple partnership agreement,” the partner organization takes into account the presence and movement of contributions to the common property under a simple partnership agreement.

The provision of a deposit is reflected in the debit of account 58 “Financial investments” in correspondence with account 51 “Current accounts” and other relevant accounts for accounting for allocated property.

Upon termination of a simple partnership agreement, the return of property is reflected in the credit of account 58 “Financial investments” in correspondence with the property accounts.

Analytical accounting for account 58 “Financial investments” is carried out by types of financial investments and objects in which these investments are made (organizations that sell securities; other organizations in which the organization is a participant; borrowing organizations, etc.). The construction of analytical accounting should provide the ability to obtain data on short-term and long-term assets. At the same time, accounting for financial investments within a group of interrelated organizations, about the activities of which consolidated financial statements are prepared, is kept separately in account 58 “Financial investments”.

Cost of financial investments

Over time, the initial value of financial investments may change. In this case, it is necessary to conduct a so-called subsequent assessment of financial investments, i.e. adjustment of their original cost.

For this purpose, clause 19 of PBU 19/02 provides for the division of financial investments into two groups:

O investments by which their current market value can be determined;
- o investments for which the current market value is not determined.

For the first group, financial investments (shares, bonds) listed on the stock exchange are reflected by the organization at the end of the year at the current market value by adjusting their valuation to the previous date. The organization can make this adjustment monthly or quarterly (the organization sets the timing of the adjustment independently in its accounting policies).

The difference between the assessment of financial investments at the current market value as of the reporting date and their previous assessment is attributed to the financial results of a commercial organization as part of other income (expenses) or an increase in income (expenses) of a non-profit organization in correspondence with the financial investment account.

In the second group, financial investments for which the current market value is not determined are reflected in accounting at their original cost (clause 21 of PBU 19/02).

The second group includes all other financial investments: shares in authorized (share) capital, loans issued, deposits in banks, receivables acquired under an assignment agreement, deposits under a simple partnership agreement, etc.

However, there are some features to consider here. For example, for debt securities (bills, bonds) that are not quoted on the stock exchange, the difference between the original and nominal value can be written off as other expenses (income) evenly over the period of their circulation.

For securities belonging to the first group, the method for determining the current market value is given in PBU 19/02, which states that this value for accounting purposes is understood as their market price calculated by the organizer of trading on the securities market (clause 13 of PBU 19 /02).

Currently, the procedure for determining the market price of securities and the maximum limit for fluctuations in their market price is established by the Federal Financial Markets Service of Russia only for securities traded on an organized market. This category includes shares of joint stock companies, government and corporate bonds, shares (mutual funds), American depositary funds (ADR).

Based on clause 20 of PBU 19/02, the organization is obliged to make adjustments to the current market value of securities at the end of the reporting year. In conditions of falling stock prices, information about the value of a company's assets is the most important criterion for assessing the viability of a business. In addition, in order to prepare financial statements that reflect the true value of assets, revaluation should now be carried out monthly.

Revaluation of securities is carried out as follows. First of all, the difference between the value of the security at the current moment and at the last reporting date is determined. The result obtained (income in the form of a positive difference or expense in the form of a negative difference) is taken into account in accounting in account 91 “Other income and expenses” as part of other income or expenses, respectively.

The initial cost of a financial investment. If an organization received securities free of charge, then their initial value is recognized as follows:

If securities are traded on the stock market, then their current market value at the time of acceptance for accounting is recorded;
- If the securities are not traded on the stock market, then the amount of funds that can be received as a result of the sale of the received securities at the time of their acceptance for accounting is recorded.

If an asset is accepted for accounting as a financial investment, but the current market value is not determined for it, then upon disposal of this asset its value is determined:

At the initial cost of each unit of financial investment;
- at the average initial cost;
- FIFO method - at the original cost of the first financial investments acquired.

The following information is subject to disclosure in the financial statements:

Methods for assessing financial investments upon disposal in accordance with generalization by groups and the consequences of changes in the methods of this assessment;
- the cost of financial investments for which the current market value is determined and not determined;
- the difference between the market value as of the reporting date and the previous assessment of financial investments;
- if there are debt securities for which the current market value has not been determined, then the difference between their original and nominal value during their circulation period is subject to disclosure;
- the cost of securities and other financial investments encumbered with collateral;
- the cost of securities and other financial investments transferred without sale to other organizations;
- the amount of the reserve for depreciation of financial investments, indicating their type of reserve. At the same time, the amount of the reserve created in the reporting year, the amount of the reserve recognized as other income of the reporting period and the amount of the reserve used in the reporting year are disclosed;
- if there are debt securities or loans provided, then data on their valuation at discounted value, the amount of their discounted value and discounting methods are disclosed. These data are disclosed in the notes to the balance sheet and income statement.

Types of financial investments

Temporary placement of an enterprise's free funds in financial assets in the form of investments in securities, in profitable types of monetary instruments, in the authorized capital of other enterprises and organizations is called financial investments.

Investments of funds in financial assets for the purpose of generating income are considered in accounting as financial investments.

Depending on the period for which financial investments were made, they are divided into:

Long-term, when the established maturity period exceeds one year, or investments made with the intention of receiving income from them for more than one year;
- short-term, when the established repayment period does not exceed one year or investments were made without the intention of receiving income from them for more than one year.

The procedure for maintaining accounting records of financial investments is regulated by the Accounting Regulations “Accounting for Financial Investments” (PBU 19/02), approved by Order of the Ministry of Finance of Russia No. 126n.

To accept financial investments for accounting, the following conditions must be simultaneously met:

1. Availability of documents confirming the organization’s right to financial investments and the right to receive funds and other assets arising from this right.
2. Transfer of financial risks associated with this investment (risk of price changes, insolvency of the debtor, liquidity, etc.).
3. Economic benefits, that is, the ability to generate income in the future in the form of interest, dividends or in the form of appreciation (differences in sales prices and book value).

The organization’s financial investments in accordance with clause 3 of PBU 19/02 include:

State and municipal securities.
Securities of other organizations.
Contributions to the authorized (share) capital of other organizations.
Providing loans to other organizations.
Deposits in credit institutions.
Accounts receivable acquired on the basis of assignment of the right of claim.

Financial investments include securities that an organization owns in order to increase its own capital by generating income through the distribution of profits (in the form of interest, dividends) or for the investing organization to receive profit from the sale or other disposal of these assets.

Evaluation of financial investments

In accounting, different estimates of the value of financial investments are used depending on the purpose of measurement.

The nominal value of a financial investment is the value specified in the financial instrument itself, accepted in the contract, recorded in the register or printed on the security. The nominal value of equity instruments shows the amount of the share capital that they represent, and the nominal value of debt instruments shows the amount of the borrower's obligations that he undertakes to repay. The purchase and sale of financial investments do not change the nominal value; it remains constant throughout the entire period for which the investment is registered.

The price announced by the issuer (organization) at which securities are offered during the initial placement on the market is the placement cost, or the cost that may be higher or lower than the nominal value of financial investments. If the issue price exceeds the nominal price, this means that the security is placed at a premium, resulting in the generation of issue income; otherwise, if the par value exceeds the placement cost, the issuer incurs a loss.

The value at which a financial instrument subsequently circulates on the market (sold and bought) is the market, or current, value of financial investments, which is determined at a particular moment by the nominal value, liquidity of investments and the amount of income generated.

When determining the market value, it is necessary to be guided by the resolution of the Federal Commission for the Securities Market No. 03–52/ps “On approval of the Procedure for calculating the market price of issue-grade securities and investment units of mutual funds admitted for circulation through trade organizers, and establishing the maximum limit for market price fluctuations "

Financial investments are accepted for accounting at their original cost. The initial cost of financial investments acquired for a fee is the amount of actual acquisition costs, excluding VAT and other refundable taxes. The initial cost includes the purchase price (issue or market) and direct costs of acquiring financial investments (financial broker's remuneration, interest on borrowed funds used to purchase investments, other direct acquisition costs).

The actual expenses that form the initial cost of financial investments are recognized as:

Investments for contributions to the authorized capital of an organization - a monetary valuation of investments agreed upon by the founders (participants) of the organization;
investments made on account of the contribution of the organization - a partner under a simple partnership agreement - at the cost of their reflection in the balance sheet on the date the partnership agreement entered into force;
investments received free of charge - their market value as of the date the investments were accepted for accounting;
investments acquired under agreements providing for non-monetary funds - at the cost of assets transferred or to be transferred by the organization to fulfill the terms of the agreement.

Actual expenses for the acquisition of financial investments are determined taking into account exchange rate differences that arise when paying in rubles in an amount equivalent to the amount in foreign currency (conventional monetary units).

If for acquired financial investments the main part of the expenses consists of expenses paid under the agreement to the seller, then the remaining expenses for the acquisition of these investments can be recognized by the organization as other expenses, i.e. can be accounted for on account 91 “Other income and expenses”, and not on account 58 “Financial investments”.

After financial investments are accepted for accounting, their value is subject to periodic adjustment, which is carried out directly for investments that have a market value, and indirectly for investments for which the market value is not determined. In the first case, the organization is obliged to reflect financial investments in the balance sheet at market prices. To do this, they are revalued and the difference between the market value and the previous balance sheet valuation (market or initial, when acquiring objects in the reporting period) is charged to the accounts of other income and expenses. In the second case, instead of revaluation, a reserve is accrued for the depreciation of financial investments if the value or profitability of these investments falls. If the value or profitability increases, the previously accrued reserve is reduced until the original value is completely restored.

According to paragraph 38 of PBU 19/02 in the financial statements, the value of financial investments for which an impairment reserve has been formed is shown at their book value minus the amount of the reserve.

The assessment of financial investments upon their disposal (redemption, sale, gratuitous transfer, transfer as a contribution to the authorized capital of another organization, etc.) is carried out immediately at the time of disposal. Financial investments for which the current market price is determined are valued based on their latest valuation.

Financial investments for which the current market price is not determined are valued at the time of disposal in one of the following ways:

1) at the initial cost of each financial investment;
2) at the average initial cost;
3) at the original cost of the first financial investments acquired (FIFO).

Financial investment reserve

The reserve for impairment of financial investments is regulated by PBU 19/02, which was approved by Order of the Ministry of Finance of Russia No. 126n. In the Chart of Accounts for this reserve there is account 59.

Let me remind you that, according to PBU 19/02, financial investments mean investments in the authorized capital of other organizations, loans issued, deposits in banks, debt securities.

It is debatable what the nature of interest-free loans is: whether they are financial investments or simply receivables. But I believe that account 58 “Financial Investments” can still be used.

The ability to generate income is a concept that many people do not understand as widely as it should. What it means to generate income in the form of interest on a loan issued is clear to everyone. But many people consider interest-free loans as receivables. If you give a loan without interest to a subsidiary that the company created to transfer part of its functions, then financial support at the formation stage is also a benefit. Not income in the full sense of the word, but still an economic benefit.

Account 58 also takes into account acquired rights of claim. The company has sold its products, is waiting for money, but the buyer does not pay. The seller decides to assign the debt to another company. For someone who has acquired debt, this will be a financial investment. Acquired debt is reflected at actual costs.

Traditionally, account 55 accounts for another type of financial investment - deposits placed by the company in the bank.

All types of financial investments that I have listed may lose value. Section VI of PBU 19/02 provides information from which you can understand for which financial investments reserves are not created. Thus, there is no need to create a reserve for financial investments that circulate on the organized market. Most often these are securities traded on the market. They are revalued. At least as of December 31st. Even earlier is not forbidden. The best option is at the end of each quarter.

What is a sustainable decrease in the value of financial investments is explained in paragraph 37 of PBU 19/02. Such a reduction is expected, for example, if at the current and previous reporting dates the accounting value is significantly higher than the estimated value.

Let's return to the signs of a significant decline in the value of financial investments. It is present if the estimated value has decreased significantly during the year. It fell all the time, never increasing. Or if at the reporting date there is no evidence that a significant increase in the estimated value of these financial investments is possible in the future.

These are such vague formulations that examples of situations of the materiality of the reduction were added to PBU 19/02. They can be found in paragraph 37. For example, this is the absence or significant decrease in income from financial investments in the form of interest or dividends with a high probability of a further decrease in these income in the future. Let's say there are no dividends for a year or two and there are serious reasons to doubt whether there will be a profit as such.

Analysis of financial investments

From the appendix to the balance sheet (Form No. 5) you can obtain additional information for conducting analytical research. It consists of seven sections, which reflect data on the movement of borrowed funds, accounts payable and receivable, depreciable property, sources of funds for investment, expenses for ordinary activities, and social indicators. This information is useful for adjusting indicators during implementation.

In f. N 1 "Balance Sheet" long-term accounts receivable are reflected in section II "Current assets". The high share of intangible assets in the composition of non-current assets and the high share of their growth in the change in the total value of non-current assets for the reporting period indicate the innovative nature of the enterprise's strategy. High rates of long-term financial investments reflect the financial and investment development strategy.

A more detailed analysis of intangible assets, fixed assets and financial investments is carried out on the basis of the relevant sections of f. N 5 "Appendix to the Balance Sheet".

The value of the transferred assets is established based on the price at which the organization receiving financial investments as payment, in comparable circumstances, usually determines the value of similar assets (clause 14 of PBU 19/02). If it is impossible to determine the value of the transferred assets, the value of the financial investments received by the organization is established based on the price at which similar ones could be acquired in comparable circumstances.

PBU 19/02 also affected such an important verification procedure as the correctness of the assessment during the period of ownership and disposal of financial investments. During the inspection of objects for which the current market value can be determined, it is necessary to establish whether they were periodically revalued at the current market value. According to clause 20 of PBU 19/02, an organization can make such a revaluation monthly or quarterly, and the difference between the assessment of such financial investments as of the reporting date and the previous assessment is attributed to financial results as part of operating income (expenses).

An inventory of financial investments should be preceded by an inventory of cash and settlements.

1. The inventory (working) commission receives inventory lists (hereinafter referred to as the inventory), two copies for each type of financial investment:

For inventory of securities - form INV-16;
- for other financial investments - the recommended form RINV-1.

2. The composition of financial investments is checked.

Financial investments include:

State and municipal securities;
- securities of other organizations, including debt securities in which the date and cost of repayment are determined (bonds, bills);
- loans provided to other organizations;
- deposits in credit institutions;

3. The legality of classifying assets as financial investments is checked.

To accept assets for accounting as financial investments, the following conditions must be simultaneously met:

Availability of properly executed documents confirming the existence of the organization’s right to financial investments and to receive funds or other assets arising from this right;
- the ability to bring economic benefits (income) to the organization in the future in the form of interest, dividends or an increase in their value (the difference between the sale (redemption) price of a financial investment and its purchase value, as a result of its exchange, use in repaying the organization’s obligations, an increase in the current market value and so on.).

4. Each type of inventoryable financial investment is sequentially analyzed and the amount listed in the corresponding accounting account is determined. In most cases, organizations purchase securities of other organizations for an indefinite period.

When purchasing securities, the following purposes are pursued:

Receiving profit from investments made;
- establishing control over the organization whose securities were acquired, etc.

When purchasing securities of other organizations, the stability of buyers, the sales market, the scope of activity, and the duration of operation are taken into account. Organizations make financial investments in other organizations through the purchase of shares or bonds. These investments can be short term or long term.

Financial investments in securities are accepted for accounting in the amount of actual costs for the investor.

The actual costs of purchasing securities may be the following amounts:

Paid in accordance with the contract to the seller;
- paid to specialized organizations and other persons for information and consulting services related to the acquisition of securities;
- remunerations paid to intermediary organizations with the participation of which securities were purchased;
- expenses for paying interest on borrowed funds used to purchase securities before they are accepted for accounting;
- other expenses directly related to the acquisition of securities.

At the end of each reporting period, both the cost and market value of the securities must also be determined.

The yield of securities is also compared with a guaranteed income, which is taken as the Bank of Russia rate or interest on government bonds or treasury bills.

Assessment and forecasting of the economic efficiency of acquired or acquired securities can be made using both absolute and relative indicators, that is, by determining the current market price (at which acquisition is possible) and intrinsic value (based on the subjective assessment of each investor) or by calculating regarding profitability. In this case, the difference between price and value of a financial asset is that price is an objective measure, while intrinsic value is an estimate (the result of the investor's own approach). The calculation of current intrinsic value can be made by dividing the expected cash flow for a certain period by the expected or required rate of return on the financial instrument, taking into account the number of periods of earnings.

If the amount of investment costs, that is, the market value of the security, is higher than the current value of the security, it is profitable for the holder of this security to sell it, but in this case there is no benefit for the investor to purchase it due to the fact that he will receive a profit less than expected.

Based on the above, the current value of a security depends on:

Expected cash receipts;
- the duration of the projected period of income generation;
- required rate of return.

Long-term financial investments

Long-term financial investments are investments of the investor’s capital into an enterprise or financial asset for a period of more than a year. An investment for a period of less than a year is classified as a short-term financial investment. Long-term financial investments can be classified in various ways.

Classification of long-term financial investments by investment object

An investment object is something in which an investor invests money. The investor (person) himself is considered to be the subject of the investment. Let's consider the classification of long-term financial investments or investments according to the object of capital investment.

Securities of various types - this type of capital investment is usually called portfolio investment. In the case we are considering, securities (stocks or bonds) are purchased for a period of more than one year. Typically, when investing long-term in securities, the investor does not pursue the goal of making money on speculation.

Based on the purpose of investing in a portfolio of securities, this type of long-term capital investment is usually divided into two groups:

Investing capital in the Central Bank (here - securities) for the purpose of partial redemption of a joint-stock company - this gives the investor the right to take part in the management of the joint-stock company.
- Investing capital in the Central Bank for the purpose of preserving funds is quite rare, since securities are a highly liquid asset, but investors still use it, buying shares of stable joint stock companies, the impact of market fluctuations on which is minimal.

Based on the type of securities, they are also divided into state securities (issued, as a rule, by the Central Bank of the Russian Federation) and private ones, which are issued by private joint-stock companies.

Debt securities are usually promissory notes. A bill allows you to receive capital transferred to the holder of the bill for a specified period; usually large sums in bills are taken for at least a year so that the debtor has time to collect the necessary funds or bring his enterprise to a decent economic level.

Contributions to the authorized capital of other organizations allow the investor to receive part of the profits of these organizations after their development. This is also a long-term investment of capital, because only a very small group of enterprises can fully recoup the costs of their creation in less than one year.

Loans provided to other people or organizations are almost the same as providing a person with a bill of exchange, but in this option the bill is not written, the debt obligation is formed by a simple agreement or.

Deposits in businesses that issue loans - you give money that will be issued to other people as a loan. For this you will receive part of the percentage of the payment. Typically, such investments are made for several years.

Contributions to partnerships. A partnership is a special organizational and legal form that allows, by summing up the funds contributed by the co-founders, to obtain sufficient capital to start the operation of the enterprise.

Profits are distributed according to the amount of capital contributed by each individual participant. A partnership also gives the right to jointly manage the business. Even if the created partnership pays back all expenses in one year, then profits, in any case, will have to wait more than one year, that’s for sure.

Similar investments. It is possible to describe some other objects for long-term investment of capital, which we did not indicate in this classification, but we have listed and described the main objects.

Let's now learn to distinguish objects that will not be long-term financial investments, but which some investors mistake for them:

Securities that were purchased for resale are mere financial speculation and not long-term financial investments. We have already touched on this point in the previous paragraphs.
- a bill of exchange that was issued not as a document certifying the receipt of funds, but in exchange for some material assets that have already been acquired by a person. In other words, the bill here is simply a means of payment, and not a debt obligation between the parties.
- investments in real estate for the purpose of its temporary use to obtain material benefits. Payments in this case are made by rent. This type of investment cannot be called long-term.
- the acquisition of expensive things not for the purpose of obtaining material gain, but for the purpose of preserving capital or satisfying aesthetic needs. For example, if you purchased an expensive painting because you appreciate and admire art, in this case your investment will not be called a long-term investment.

Accounting statements of long-term financial investments

Even if investments are made from an individual and not a legal organization, you should still have an understanding of the forms of legal reporting on long-term financial investments. Let's indicate what information needs to be included in reports when making the investments described.

Evaluation of financial investments. On what basis did you evaluate the property when making an investment or purchase, and why did you pay a different price for it? If the object of your investment is real estate (but it may not always be - see the previous classification), you need to indicate the data of the expert who assessed it; if you are buying shares - the value of the share at the moment.

How might a change in current estimates affect an investment? These two points must be discussed with a financial specialist, because there is practically no point in understanding all the details on your own. Imagine a situation where there is a sharp fluctuation in the market. How will this affect the value of the assets you acquired, how much money can you lose, how can you insure yourself against this? To avoid unnecessary questions, all these points must be written down in the reports.

The difference between the market price of the asset at the time the report was created and the value indicated during the appraisal work. Naturally, in most cases, this difference will occur for long-term investments, because the market does not stand still, in addition, there is a certain percentage of inflation every year, which will also increase or decrease the value of the asset you purchased. If you purchased a share for which the current market value cannot be determined, the difference between the original cost of the security and its par value is indicated. All data must also be included in the financial statements.

If, when purchasing assets for a long-term financial investment, you took out a loan or money as collateral, the cost, size of the loan, and interest on it must be included in the report without fail, since in any case they will cause additional costs for the company in the future.

If you have established a joint stock company, you must indicate the value and volume of securities that were taken out of the joint stock company. Disposal may be due to various reasons: transfer to third party shareholders or something else.

You must have capital reserves to cover inflationary costs. The money you put into the business will depreciate in value depending on the current rate of inflation and the industry of your business. In order to have enough money for the normal functioning of a business, reserves are needed. The amount of capital in these reserves must be recorded.

If there are bills or bonds, an estimate of their discount value and a description of discounting methods.

These are basic materials about long-term financial investments, their classification, as well as the necessary accounting reports. If you do not understand them yourself, seek the services of an accountant who will help you deal with difficulties. Long-term financial investments must be carefully planned, taking into account all possible risks and possible profits. This work cannot be done without various financial professionals, so it is worth spending the money on decent financial advice.

Audit of financial investments

The purpose of the audit of financial investments is to form an opinion on the reliability of the financial statements under the items “Long-term financial investments” and “Short-term financial investments” and the compliance of the applied accounting methodology for financial investments with the regulatory documents in force in the Russian Federation.

In accordance with the Accounting Regulations “Accounting for Financial Investments” PBU 19/02, an organization’s financial investments include:

State and municipal securities, securities of other organizations, including debt securities in which the date and cost of repayment are determined (bonds, bills);
- contributions to the authorized (share) capital of other organizations (including subsidiaries and dependent business companies);
- loans provided to other organizations, deposits in credit institutions;
- accounts receivable acquired on the basis of assignment of the right of claim, etc.

The information base used by the auditor when checking financial investments includes:

Documents regulating accounting and taxation of financial investments;
financial statements;
order on the accounting policy of the organization;
registers of synthetic and analytical accounting of financial investments;
primary documents for reflecting financial investments.

By order on the accounting policy of the organization, the auditor can familiarize himself with the following information:

The procedure for recognizing income from participation in the authorized capitals of other organizations as income from ordinary activities or operating income;
working chart of accounts used to reflect financial investments;
forms of primary documents developed and approved by the organization to account for financial investments.

Audit of acceptance of financial investments for accounting

Operations (transactions) on financial investments are carried out on the basis of: a constituent agreement (for investments in the authorized capitals of other organizations), a securities purchase and sale agreement, a loan agreement, a deposit agreement, a securities pledge agreement, a simple partnership agreement (an agreement on joint activities), etc. The auditor must check whether these agreements comply with the requirements of other regulatory legal acts governing transactions with securities.

The initial task of the auditor is to verify the correct classification of the acquisition of an asset as a financial investment.

To accept assets for accounting as financial investments in accordance with PBU 19/02, the following conditions must be simultaneously met:

Availability of properly executed documents confirming the existence of the organization’s right to financial investments and to receive funds or other assets arising from this right;
transition to organizing financial risks associated with financial investments (risk of price changes, risk of debtor insolvency, liquidity risk, etc.);
the ability of financial investments to bring economic benefits (income) to the organization in the future in the form of interest, dividends or an increase in their value (in the form of the difference between the sale (redemption) price of a financial investment and its purchase value, as a result of its exchange, use in repaying the organization’s obligations, increase current market value, etc.).

The primary documents on the basis of which financial investments are taken into account include:

Certificate of acceptance and transfer of securities;
- act of acceptance and transfer of contribution to joint activities;
- a memo on the posting of property by a friend conducting common business;
- bank statements and payment orders for the transfer of deposits in cash (for non-cash payments) or an outgoing cash order and a receipt for a cash receipt order (for cash payments);
- invoices for the transfer of property (assets) in payment for securities;
- inventory list of securities and forms of strict reporting documents (form No. INV-16) and other documents.

When checking the correctness of classifying objects as financial investments, it is necessary to find out whether the organization has rights to the security and whether it complies with the procedure for transferring rights to securities.

According to the form of fixation of rights expressed by a security, rights are divided into documentary and non-documentary.

In the documentary form, the owner is established on the basis of presentation of a properly executed security certificate or, in the case of deposit, on the basis of an entry in the securities account. The auditor must be presented with share certificates or a securities account statement.

In the non-documentary form, the owner is identified on the basis of an entry in the system for maintaining the register of securities owners or, in the case of deposit of securities, on the basis of an entry in the securities account. The auditor must be provided with a register or statement of the securities account.

The accounting unit for financial investments is selected by the organization independently in such a way as to ensure the formation of complete and reliable information about these investments, as well as proper control over their availability and movement. Depending on the nature of the financial investments, the order of their acquisition and use, the unit of financial investments can be a series, batch, etc., i.e. homogeneous set of financial investments.

Typical mistakes are:

1) when paying for a contribution to the authorized capital of a limited liability company, the amount of the contribution is written off immediately to the organization’s expenses, although it should be reflected as part of financial investments;
2) when paying membership fees or paying a founding contribution to a non-profit organization, the amount of the contribution is reflected as part of financial investments, although according to the law the organization has no rights to these amounts and such amounts are not financial investments;
3) the rights of claim acquired under an assignment agreement are not reflected as part of financial investments, but are listed on account 76 “Settlements with debtors and creditors”.

When checking the execution of primary documents, it should be taken into account that a security is a strictly formal document, its form and mandatory details must comply with the requirements established by law for certain types of securities. The absence of mandatory details of a security or the non-compliance of a security with the form established for it entails its nullity (Article 144 of the Civil Code of the Russian Federation). Therefore, the auditor must conduct both a formal check of securities forms and an arithmetic check of the source documents used in processing transactions.

Checking the primary documents for accounting for financial investments is especially important, since these documents determine the special procedure for transferring ownership of securities.

The documents on the basis of which financial investment objects are accepted for accounting must indicate the purpose of the acquisition and the period during which the object is expected to be used.

Next, the auditor must check the correctness of the assessment of financial investments. In accordance with the requirements of PBU 19/02, when purchasing securities under a purchase and sale agreement, financial investments are taken into account in the amount of actual costs for the investor.

Amounts paid in accordance with the contract to the seller;
amounts paid to organizations and other persons for information and advisory services related to the acquisition of these assets. If an organization is provided with information and advisory services related to making a decision on the acquisition of financial investments, and the organization does not make a decision on such acquisition, the cost of these services is included in the financial results of a commercial organization (as part of operating expenses) or in an increase in the expenses of a non-profit organization of that reporting period when the decision was made not to purchase financial investments;
remuneration paid to an intermediary organization or other person through which assets were acquired as financial investments;
other costs directly related to the acquisition of assets as financial investments.

When purchasing financial investments using borrowed funds, the costs of loans and borrowings received are taken into account in accordance with the Accounting Regulations “Accounting for loans and credits and the costs of servicing them.” General and other similar expenses are not included in the actual costs of acquiring financial investments, except when they are directly related to the acquisition of financial investments.

If the amount of costs (except for the amounts paid in accordance with the agreement to the seller) for the acquisition of such financial investments as securities is insignificant compared to the amount paid in accordance with the agreement to the seller, the organization has the right to recognize such costs as other operating expenses in that reporting period , in which the specified securities were accepted for accounting.

When receiving securities under a gift agreement (free of charge), they are valued at market prices on the date of acquisition.

If financial investments are made in foreign currency, it is necessary to check these transactions for compliance with currency regulation regulations.

Financial investments, the value of which is expressed in foreign currency, are valued in ruble equivalent at the rate established by the Central Bank of the Russian Federation on the date of the transactions.

The auditor checks whether securities with a maturity of more than one year are overvalued, since revaluation and reflection of exchange rate differences are carried out only for securities accounted for as part of short-term financial investments, as well as for funds on deposits placed by the organization in the prescribed manner (p 7 PBU 3/2000).

Expenses associated with servicing the financial investments of an organization, such as payment for bank and/or depository services for storing financial investments, providing an extract from a securities account, etc., in accordance with PBU 19/02, should be classified as operating expenses of the organization.

Audit of subsequent assessment of financial investments

The initial cost of financial investments at which they are accepted for accounting may change in cases established by law and PBU 19/02.

For the purposes of subsequent assessment, financial investments are divided into two groups by which the current market value can be determined and by which their current market value cannot be determined.

Financial investments for which the current market value can be determined in the prescribed manner are reflected in the financial statements at the end of the reporting year at the current market value by adjusting their valuation as of the previous reporting date. The organization can make this adjustment monthly or quarterly.

The auditor is obliged to check the correctness of the classification of financial investments into these groups, as well as the procedure for determining the market quotation of investments in the first group as of the reporting date.

The difference between the assessment of financial investments at the current market value as of the reporting date and the previous assessment of financial investments should be attributed to the financial results of a commercial organization (as part of operating income or expenses) or an increase in income or expenses of a non-profit organization in correspondence with the financial investment account.

Financial investments for which the current market value is not determined are subject to reflection in accounting and financial statements as of the reporting date at their original cost (taking into account the requirements for reflecting the depreciation of financial investments).

For debt securities for which the current market value is not determined, the organization is allowed to attribute the difference between the initial value and the nominal value during the circulation period of the securities evenly as the income due on them (in accordance with the terms of issue) to the financial results of the commercial organization (in operating income or expenses) or to reduce or increase the expenses of a non-profit organization. In this case, the auditor checks the correctness of the calculations made and the reliability of the valuation of debt securities as of the reporting date.

For debt securities and loans provided, an organization can calculate their valuation at present value. In this case, no accounting entries are made. The auditor must check the validity of such a calculation if data on the discounted value are given in the notes to the financial statements.

Audit of disposal of financial investments

In accordance with PBU 19/02, the disposal of financial investments in the accounting records of an organization is recognized on the date of the one-time termination of the conditions for their acceptance for accounting.

When disposing of an asset accepted for accounting as a financial investment for which the current market value is not determined, the value of the asset is determined based on the assessment in one of the following ways:

At the initial cost of each accounting unit of financial investments;
at the average initial cost;
at the original cost of the first financial investments acquired (FIFO method).

The assessment at the historical cost of the first financial investments acquired is based on the assumption that securities are written off within a month or another period in the sequence of their acquisition (receipt), i.e. the first securities written off must be valued at the original cost of the first securities at the time of acquisition, taking into account the original cost of the securities listed at the beginning of the month. When applying this method, the valuation of securities in balance at the end of the month is carried out at the original cost of the most recent acquisitions, and the cost of sold securities takes into account the cost of earlier acquisitions.

The application of one of the specified methods for a group (type) of financial investments is based on the assumption of consistency in the application of accounting policies. The auditor must study the provisions of the accounting policy, which indicate the valuation method chosen by the organization, and, by recalculation, check its compliance when reflecting transactions on the disposal of investments.

Audit of balance sheet data

To confirm the reliability of financial statements and accounting data, the auditor checks the correctness of the inventory of financial investments.

During the check, he determines:

Are the deadlines for conducting an inventory of financial investments established in the order on accounting policies and are these deadlines observed;
the correctness of execution of inventory documents (does the organization use unified forms of inventory records, is the completeness and accuracy of the data on the actual availability of securities when stored in the organization’s cash desk, etc.) ensured?

If securities are stored in an organization, their inventory is carried out simultaneously with the inventory of cash. When storing securities in special organizations (banks, depositories, specialized storage facilities), inventory consists of reconciling the balances of the amounts listed in the relevant accounting accounts of the organization with data from statements of these special organizations.

Inventory records must indicate issuers, security name, series, number, nominal and actual value, maturity dates and total amount. The auditor uses inventory materials when checking the timeliness and completeness of reflection in the accounting records of income received from securities. Income received by the organization from financial investments is recorded in account 91 “Other income and expenses” and, in accordance with the Accounting Regulations “Income of the Organization” (PBU 9/99), is classified as operating income. A typical mistake is the reflection of income that is not actually received, but is subject to accrual. For example, uncollected interest on loans issued.

The assessment of financial investments at the end of the reporting period is carried out depending on the accepted method for assessing financial investments upon their disposal, i.e. at the current market value, at the original cost of each accounting unit of financial investments, at the average original cost, at the original cost of the first financial investments acquired (FIFO method).

The auditor must study the provisions of the accounting policy, which indicate the valuation method chosen by the organization, and, by recalculation, check its compliance when reflecting the balance of the financial investment account.

When checking the correctness of the assessment of the value of financial investments at the reporting date, the auditor takes into account the requirements for accounting for their impairment.

Impairment is recognized as a sustained significant decrease in the value of financial investments for which their current market value is determined below the economic benefit that the organization expects to receive from these financial investments under normal conditions of its activities. In the event of impairment, based on the organization's calculation, the estimated value of financial investments is determined, equal to the difference between their value at which they are reflected in accounting (accounting value) and the amount of such reduction.

A sustainable decline in the value of financial investments is determined by the simultaneous presence of the following conditions:

At the reporting date and at the previous reporting date, the book value of financial investments is significantly higher than their estimated value;
during the reporting year, the estimated value of financial investments changed significantly downwards;
As of the reporting date, there is no evidence that the estimated value of these financial investments may increase in the future.

The issuing organization exhibits signs of securities owned by the organization or its debtor under the loan agreement or declares it bankrupt;
execution of a significant number of transactions in the securities market with similar securities at a price significantly lower than their book value;
absence or significant decrease in income from financial investments in the form of interest or dividends with a high probability of a further decrease in these income in the future, etc.

If a situation arises in which impairment of financial investments is possible, the auditor must check the conditions for a sustainable decline in the value of financial investments.

If the impairment test confirms a significant decrease in the value of financial investments, the auditor checks the creation of a reserve for impairment of financial investments by the amount of the difference between the book value and the estimated value of such financial investments.

If such a reserve is created, the auditor checks the correctness of the reflection of financial investments in the balance sheet; their value must be indicated minus the reserve amounts. The auditor also checks the completeness of disclosure in the information about the reserve for impairment of financial investments, which should indicate: the type of financial investments; the amount of the reserve created in the reporting year; the amount of the reserve recognized as operating income of the reporting period; the amount of the reserve used in the reporting year.

If there is no such reserve, the auditor suggests that the organization make corrections to the accounting and make an entry about the creation of the reserve. If an organization refuses to make corrections to the accounting, if the amount of impairment is significant, the auditor has the right to issue an audit report with a caveat that the value of financial investments is incorrectly assessed.

In financial statements, financial investments must be presented with a division by maturity (maturity): short-term and long-term. The auditor checks the correct classification of financial investments. Since the classification depends on the organization’s intention to hold or sell financial investments (transfer or otherwise dispose of), the auditor must examine the organization’s internal documents confirming these intentions, or make a special request on this matter to the management of the audited entity.

The auditor checks the completeness of disclosure of information about financial investments in the notes to the financial statements, which, in accordance with the requirements of PBU 19, must at least disclose the following information:

Methods for assessing financial investments upon their disposal by groups (types);
the consequences of changes in the methods of assessing financial investments upon their disposal;
the value of financial investments for which the current market value can be determined and for which the current market value cannot be determined;
the difference between the current market value as of the reporting date and the previous assessment of financial investments by which the current market value was determined;
debt securities for which the current market value has not been determined;
the difference between the original cost and the nominal value during their circulation period;
value and types of securities and other financial investments encumbered with collateral;
the value and types of retired securities and other financial investments transferred to other organizations or persons (except for sale).

The following data is considered for debt securities and loans provided: their valuation at discounted value; the value of their discounted value; applied discounting methods (disclosed in the notes to the balance sheet and profit and loss statement).

PBU financial investments

I. General provisions

1. These Regulations establish the rules for the formation in accounting and financial reporting of information about the organization’s financial investments. An organization is further understood as a legal entity under the laws of the Russian Federation (with the exception of credit organizations and state (municipal) institutions).

This Regulation is applied when establishing the specifics of accounting for financial investments for professional participants in the securities market, insurance organizations, and non-state pension funds.

2. For the purposes of these Regulations, in order to accept assets for accounting as financial investments, the following conditions must be simultaneously met:

Availability of properly executed documents confirming the existence of the organization’s right to financial investments and to receive funds or other assets arising from this right;
- transition to the organization of financial risks associated with financial investments (risk of price changes, risk of debtor insolvency, liquidity risk, etc.);
- the ability to bring economic benefits (income) to the organization in the future in the form of interest, dividends or an increase in their value (in the form of the difference between the sale (redemption) price of a financial investment and its purchase value as a result of its exchange, use in repaying the organization’s obligations, an increase in the current market cost, etc.).

3. Financial investments of an organization include: state and municipal securities, securities of other organizations, including debt securities in which the date and cost of repayment are determined (bonds, bills); contributions to the authorized (share) capital of other organizations (including subsidiaries and dependent business companies); loans provided to other organizations, deposits in credit institutions, receivables acquired on the basis of assignment of claims, etc.

For the purposes of these Regulations, contributions from a partner organization under a simple partnership agreement are also taken into account as part of financial investments.

The organization's financial investments do not include:

Own shares purchased by a joint stock company from shareholders for subsequent resale or cancellation;
- bills of exchange issued by the organization-issuer of the bill to the organization-seller when paying for goods sold, products, work performed, services rendered;
- investments of the organization in real estate and other property that has a tangible form, provided by the organization for a fee for temporary use (temporary possession and use) for the purpose of generating income;
- precious metals, jewelry, works of art and other similar valuables acquired for purposes other than ordinary activities.

4. Assets that have a tangible form, such as fixed assets, inventories, as well as intangible assets are not financial investments.

5. The accounting unit for financial investments is selected by the organization independently in such a way as to ensure the formation of complete and reliable information about these investments, as well as proper control over their availability and movement. Depending on the nature of the financial investments, the order of their acquisition and use, the unit of financial investments can be a series, batch, etc. homogeneous set of financial investments.

6. The organization maintains analytical accounting of financial investments in such a way as to provide information on the accounting units of financial investments and the organizations in which these investments are made (issuers of securities, other organizations in which the organization is a participant, borrowing organizations, etc.) .

For government securities and securities of other organizations accepted for accounting, analytical accounting must contain at least the following information: name of the issuer and name of the security, number, series, etc., nominal price, purchase price, expenses associated with acquisition of securities, total quantity, date of purchase, date of sale or other disposal, place of storage.

An organization can generate in analytical accounting additional information about the organization’s financial investments, including by their groups (types).

7. Features of the assessment and additional rules for disclosing information on financial investments in dependent business companies in financial statements are established by a separate regulatory act on accounting.

II. Initial assessment of financial investments

8. Financial investments are accepted for accounting at their original cost.

The actual costs of acquiring assets as financial investments are:

Amounts paid in accordance with the contract to the seller;
- amounts paid to organizations and other persons for information and consulting services related to the acquisition of these assets. If an organization is provided with information and consulting services related to making a decision on the acquisition of financial investments, and the organization does not make a decision on such acquisition, the cost of these services is included in the financial results of a commercial organization (as part of other expenses) or an increase in the expenses of a non-profit organization of that reporting period when the decision was made not to purchase financial investments;
- remunerations paid to an intermediary organization or other person through which assets were acquired as financial investments;
- other costs directly related to the acquisition of assets as financial investments.

When purchasing financial investments using borrowed funds, the costs of received loans and borrowings are taken into account in accordance with the Accounting Regulations "Expenses of the Organization" PBU 10/99, approved by Order of the Ministry of Finance of the Russian Federation N 33n (registered with the Ministry of Justice of the Russian Federation registration N 1790) , and the Accounting Regulations “Accounting for loans and credits and the costs of servicing them” PBU 15/01, approved by Order of the Ministry of Finance of the Russian Federation N 60n (according to the letter of the Ministry of Justice of the Russian Federation N 07/8985-UD The Order does not require state registration) .

General and other similar expenses are not included in the actual costs of acquiring financial investments, except when they are directly related to the acquisition of financial investments.

10. Excluded. - Order of the Ministry of Finance of the Russian Federation N 156n.

13. The initial cost of financial investments received by an organization free of charge, such as securities, is recognized as:

Their current market value as of the date of acceptance for accounting. For the purposes of these Regulations, the current market value of securities means their market price, calculated in accordance with the established procedure by the organizer of trading on the securities market;
- the amount of funds that can be received as a result of the sale of received securities on the date of their acceptance for accounting - for securities for which the market price is not calculated by the organizer of trading on the securities market.

16. Excluded. - Order of the Ministry of Finance of the Russian Federation N 156n.

III. Subsequent assessment of financial investments

18. The initial cost of financial investments at which they are accepted for accounting may change in cases established by law and these Regulations.

19. For the purposes of subsequent assessment, financial investments are divided into two groups:

Financial investments for which the current market value can be determined in the manner prescribed by these Regulations, and financial investments for which their current market value is not determined.
- Small businesses, with the exception of issuers of publicly placed securities, have the right to carry out a subsequent assessment of all financial investments in the manner established by these Regulations for financial investments for which their current market value is not determined.

20. Financial investments for which the current market value can be determined in the prescribed manner are reflected in the financial statements at the end of the reporting year at the current market value by adjusting their valuation as of the previous reporting date.

The organization can make this adjustment monthly or quarterly.

The difference between the assessment of financial investments at the current market value as of the reporting date and the previous assessment of financial investments is attributed to the financial results of a commercial organization (as part of other income or expenses) or an increase in income or expenses of a non-profit organization in correspondence with the financial investment account.

21. Financial investments for which the current market value is not determined are subject to reflection in accounting and financial statements as of the reporting date at their original cost.

22. For debt securities for which the current market value is not determined, the organization is allowed to attribute the difference between the initial cost and the nominal value during their circulation period evenly, as income is due on them in accordance with the terms of issue, to the financial results of the commercial organization ( as part of other income or expenses) or a decrease or increase in expenses of a non-profit organization.

23. For debt securities and granted loans, an organization can calculate their valuation at a discounted value. In this case, no accounting entries are made.

The organization must provide evidence that the calculation is reasonable.

24. Financial investments are reflected in the balance sheet as of the reporting date at a cost determined based on the requirements of these Regulations.

If the current market value is not determined for an object of financial investment previously valued at the current market value, such object of financial investment is reflected in the financial statements at the value of its last valuation.

IV. Disposal of financial investments

25. The disposal of financial investments is recognized in the accounting records of the organization on the date of the one-time termination of the conditions for their acceptance for accounting given in paragraph 2 of these Regulations.

Disposal of financial investments takes place in cases of redemption, sale, gratuitous transfer, transfer in the form of a contribution to the authorized (share) capital of other organizations, transfer on account of a contribution under a simple partnership agreement, etc.

26. When disposing of an asset accepted for accounting as a financial investment for which the current market value is not determined, its value is determined based on an assessment determined in one of the following ways:

At the initial cost of each accounting unit of financial investments; at the average initial cost;
- at the original cost of the first financial investments acquired (FIFO method).

The application of one of the specified methods for a group (type) of financial investments is based on the assumption of consistency in the application of accounting policies.

Advertisement accounting of financial investments.

28. Securities may be valued by the organization upon disposal at the average initial cost, which is determined for each type of securities as the quotient of dividing the initial cost of the type of securities by their quantity, consisting respectively of the initial cost and the amount of balance at the beginning of the month and the securities received in during a given month.

29. Valuation at the historical cost of the first financial investments acquired (FIFO method) is based on the assumption that securities are written off within a month or another period in the sequence of their acquisition (receipt), i.e. the first securities to be written off must be valued at the original cost of the securities of the first acquisitions, taking into account the original cost of the securities listed at the beginning of the month. When applying this method, the valuation of securities in balance at the end of the month is made at the original cost of the latest acquisitions, and the cost of the securities sold takes into account the cost of the earlier acquisitions.

30. When disposing of assets accepted for accounting as financial investments for which the current market value is determined, their value is determined by the organization based on the latest assessment.

31. For each group (type) of financial investments during the reporting year, one assessment method is used.

32. The assessment of financial investments at the end of the reporting period is carried out depending on the accepted method for assessing financial investments upon their disposal, i.e. at the current market value, at the original cost of each accounting unit of financial investments, at the average original cost, at the original cost of the first financial investments acquired (FIFO method).

33. Examples of the use of valuation methods when disposing of financial investments are given in the appendix to these Regulations.

V. Income and expenses on financial investments

34. Income from financial investments is recognized as income from ordinary activities or other income in accordance with the Accounting Regulations “Income of the Organization” PBU 9/99, approved by Order of the Ministry of Finance of the Russian Federation N 32n (registered with the Ministry of Justice of the Russian Federation registration number 1791) .

35. Expenses associated with the provision of loans by an organization to other organizations are recognized as other expenses of the organization.

36. Expenses associated with servicing the financial investments of an organization, such as payment for bank and/or depository services for storing financial investments, providing an extract from a securities account, etc., are recognized as other expenses of the organization.

VI. Impairment of financial investments

37. A sustained significant decrease in the value of financial investments for which their current market value is not determined, below the amount of economic benefits that the organization expects to receive from these financial investments under normal conditions of its activities, is recognized as depreciation of financial investments. In this case, based on the organization’s calculations, the estimated value of financial investments is determined, equal to the difference between their value at which they are reflected in accounting (accounting value) and the amount of such reduction.

A steady decline in the value of financial investments is characterized by the simultaneous presence of the following conditions:

At the reporting date and at the previous reporting date, the accounting value is significantly higher than their estimated value;
- during the reporting year, the estimated value of financial investments changed significantly only in the direction of its decrease;
- at the reporting date there is no evidence that a significant increase in the estimated value of these financial investments is possible in the future.

Examples of situations in which impairment of financial investments may occur are:

The issuing organization of securities owned by the organization, or its debtor under the loan agreement, shows signs of bankruptcy or is declared bankrupt;
- making a significant number of transactions in the securities market with similar securities at a price significantly lower than their book value;
- absence or significant decrease in income from financial investments in the form of interest or dividends with a high probability of a further decrease in these income in the future, etc.

38. If a situation arises in which depreciation of financial investments may occur, the organization must check the existence of conditions for a sustainable decrease in the value of financial investments.

This check is carried out for all financial investments of the organization specified in paragraph 37 of these Regulations, for which there are signs of impairment.

If the impairment test confirms a sustained significant decline in the value of financial investments, the organization creates a reserve for impairment of financial investments in the amount of the difference between the book value and the estimated value of such financial investments.

A commercial organization forms the specified reserve at the expense of the organization’s financial results (as part of other expenses), and a non-profit organization - through an increase in expenses.

In the financial statements, the value of such financial investments is shown at book value minus the amount of the formed reserve for their depreciation.

A check for impairment of financial investments is carried out at least once a year as of December 31 of the reporting year if there are signs of impairment. The organization has the right to carry out this check on the reporting dates of the interim financial statements.

The organization must provide confirmation of the results of this inspection.

39. If, based on the results of an audit for impairment of financial investments, a further decrease in their estimated value is revealed, then the amount of the previously created reserve for impairment of financial investments is adjusted towards its increase and decrease in the financial result of a commercial organization (as part of other expenses) or an increase in expenses for a non-profit organization .

If, as a result of checking for impairment of financial investments, an increase in their estimated value is revealed, then the amount of the previously created reserve for impairment of financial investments is adjusted towards its decrease and increase in the financial result of a commercial organization (as part of other income) or decrease in expenses for a non-profit organization.

40. If, based on available information, the organization concludes that a financial investment no longer meets the criteria for a sustainable significant decline in value, as well as upon disposal of financial investments, the estimated value of which was included in the calculation of the reserve for impairment of financial investments, the amount of the previously created reserve for impairment for the specified financial investments is included in the financial results of a commercial organization (as part of other income) or a decrease in expenses in a non-profit organization at the end of the year or the reporting period when the disposal of the specified financial investments occurred.

VII. Disclosure of information in financial statements

41. In financial statements, financial investments must be presented with a division depending on the maturity period (maturity) into short-term and long-term.

42. In the financial statements, at least the following information is subject to disclosure, taking into account the materiality requirement:

Methods for assessing financial investments upon their disposal by groups (types);
- consequences of changes in the methods of assessing financial investments upon their disposal;
- the value of financial investments for which the current market value can be determined, and financial investments for which the current market value cannot be determined;
- the difference between the current market value as of the reporting date and the previous assessment of financial investments by which the current market value was determined;
- for debt securities for which the current market value has not been determined - the difference between the initial value and the nominal value during their circulation period, accrued in accordance with the procedure established by paragraph 22 of these Regulations;
- value and types of securities and other financial investments encumbered with collateral;
- value and types of retired securities and other financial investments transferred to other organizations or persons (except for sale);
- data on the reserve for depreciation of financial investments, indicating: the type of financial investments, the amount of the reserve created in the reporting year, the amount of the reserve recognized as other income of the reporting period; reserve amounts used in the reporting year;
- for debt securities and loans provided - data on their valuation at discounted value, on the value of their discounted value, on the discounting methods used (disclosed in the notes to the balance sheet and profit and loss statement).

Current financial investments

Before revealing the essence of investments in a practical aspect, you should pay attention to their classification according to the target attribute:

1. financial investments (divided, in turn, into current and long-term);
2. capital investments;
3. investment in turnover.

Financial and capital investments are represented by three groups of accounts for long-term investments:

1. account 14 “Long-term financial investments” with three sub-accounts;
2. account 35 “Current financial investments” with two sub-accounts;
3. account 15 “Capital investments”, with five sub-accounts.

Long-term financial investments are the following types of investments:

1. acquisition of long-term debt securities,
2. investments in the authorized capitals of other enterprises, including the acquisition of equity securities - shares,
3. providing long-term loans to other enterprises.

Current financial investments represent the following types of investments:

1. acquisition of short-term debt securities;
2. acquisition of equity securities (shares) for the purpose of further sale;
3. providing short-term loans to other enterprises.

In the investment accounting methodology, the difference is clearly visible between accounting for capital investments as internal investments and accounting for financial investments as investments in the activities of other entities.

The capital investment account (15) represents expenses for the acquisition of non-current assets, the initial cost of future fixed assets or intangible assets is formed on it, and the financial investment account (14, 35) represents the already established amount of investments that are quite ready for to bring investment income to the company.

Investments in turnover are represented on the balance sheet by current assets. Accordingly, the balance of all current asset accounts taken together represents the amount of working capital (own and borrowed) that the company currently has. The methodology for accounting for current assets has been outlined in other sections of this book.

Since long-term and current financial investments differ only in the urgency of the investment, we will consider them as one group.

Both long-term and current financial investments reflect different types of participation of one enterprise in the activities of another enterprise. Documents evidencing this participation are called financial instruments. Financial instruments can be primary and secondary (derivatives). For example, shares are primary financial instruments, and stock options are secondary or derivatives. Derivative financial instruments are more commonly referred to as derivatives.

Long-term financial investments represent long-term investments in the authorized capital of other enterprises and the provision of long-term loans to enterprises in order to obtain investment income.

By investing his assets in other enterprises, the investor stops counting them among the resources intended for internal consumption or exploitation, and begins to count them as an impersonal set of assets, united under the name “investment”. That is, from the moment of investment, they are no longer for the investing enterprise its buildings, structures, equipment, cash or reserves, but, regardless of their form, they represent shares, shares (shares), granted loans. From this moment on, these are buildings, structures, equipment, cash and reserves of another enterprise - an investment object, where, as they are consumed (used, exploited), these assets are gradually transformed into other forms, making a certain circuit.

Resources invested (invested) in another enterprise represent the investor’s financial assets, and documents that evidence investments are financial instruments. On the other hand, on the balance sheet of the enterprise - the investment object, these resources, taken into account as completely defined types of assets, in their total value are the investment property of the investor enterprise.

Current financial investments represent short-term investments in the activities of other enterprises and the provision of short-term loans to enterprises in order to obtain investment income (for a period not exceeding 12 months) or for the purpose of further resale of financial instruments.

Capital investments are the following types of investments:

1. expenses for the acquisition of fixed assets: buildings, equipment, vehicles, land, working and productive livestock;
2. expenses for the acquisition of other durable material objects with the conduct of capital construction, design, survey and geological exploration work;
3. expenses for the acquisition of intangible assets.

Capital investment accounts, on the one hand, reflect the totality of expenses for the acquisition of capital assets, thus forming their initial cost, on the other hand, tangible (or intangible) objects that have not yet been put into operation, which can be sold or transferred even in an unfinished state free of charge.

Analytical accounting of capital investments is carried out according to cost items associated with the construction and acquisition of fixed assets - for each object under construction or acquired. At the same time, the construction of analytical accounting should provide the opportunity to obtain data on the costs of: construction work, reconstruction and modernization of fixed assets, drilling work, installation of equipment, design and survey work, other costs of capital investments in non-current tangible assets, as well as the costs of acquisition and creation of intangible assets - for each acquired object. Analytical accounting for the acquisition of working and productive livestock should provide the opportunity to obtain data on the costs associated with the formation of the main herd - by type of animal: cattle, pigs, sheep, horses, etc.

Risk of financial investments

Risk and income in financial management are considered as two interrelated categories. There are different definitions of the concept “risk”.

In its most general form, risk is understood as the probability of losses or loss of income compared to the predicted option.

In particular, risk can be defined as the level of a certain financial loss. The loss can be expressed as follows:

A) the possibility of not achieving the goal;
b) uncertainty of the predicted result;
c) the subjectivity of assessing the predicted result.

A security that is associated with a larger loss is considered riskier. It is believed that government securities (assuming a stable economy) have little risk, since the variation in income on them is practically zero.

An ordinary share of any company is a riskier asset because... their income can vary significantly.

In this regard, there is another definition of the concept of “risk”: risk is the degree of variability of income that can be obtained by owning a given security.

The income that is provided by any security can consist of two elements:

Income from changes in the value of a security (share premium);
income from dividends received (interest).

Yield is the ratio of income to the original cost of an asset, expressed as a percentage (rate of return).

For example, an entrepreneur purchased shares a year ago at a price of 15 thousand. The current market price of the shares was 16.7 thousand, dividends received for the year amounted to 1 thousand.

Then the profitability will be equal to:

Dx =: 15.0 = 18%.

Managers need to consider risk when dealing with securities. The key idea that a manager should be guided by is: the required return and risk change in the same direction, i.e. proportional to each other.

It is clear that risk is a probabilistic assessment, so its quantitative measurement cannot be accurate. Depending on which technique is used, the level of risk may vary.

There are two main methods for assessing the risk of securities:

Sensitivity analysis;

The essence of the first method is to calculate the range of variation in the yield of securities based on:

Pessimistic profitability forecast;
most likely;
optimistic.

This range of variation is considered as a measure of the risk associated with a given security:

R = Do – Dp

The greater the range of variation in return (R), the greater the level of risk.

The essence of the second method is to construct a probability distribution of return values, calculate the standard deviation from the average return and the coefficient of variation, which is considered as the risk level of a given security.

Thus, the higher the coefficient of variation, the riskier this type of security is.

Main stages of calculations:

1. predictive estimates of profitability values and the probabilities of their implementation are made;
2. the most probable profitability is calculated;
3. standard deviation is calculated;
4. The coefficient of variation is calculated.

The risk of securities must be considered over time: the longer the planning horizon, the more difficult it is to predict the profitability of securities, i.e. the range of variation in profitability and the coefficient of variation increases. This means that the risk increases over time.

The main conclusion is this: the more long-term the type of security, the more risky it is, the greater the variation in profitability. For example, stocks are considered riskier than bonds because stocks have a perpetual lifespan.

The risk of an individual security cannot be considered in isolation.

Any new investment (security) must be analyzed from the point of view of its impact on changes in the profitability and risk of the investment portfolio as a whole.

Since all financial investments differ in the level of profitability and risk, their combination in a portfolio averages these quantitative characteristics, and in the case of their optimal combination, a significant reduction in the risk of a securities portfolio can be achieved.

To assess the risk of a securities portfolio, the same methods are used as for a separate type of securities, namely:

Market sensitivity analysis;
analysis of probability distribution of profitability.

But the peculiarity is that the initial data for calculations are based on a weighted arithmetic average.

The most effective investments are investments in knowledge. Improve your spoken English or learn it from scratch by enrolling in English courses. This will help you get a prestigious job, make a career, and achieve success.

Back | |

Topic 7. Accounting for financial investments

1. Procedure for assessing financial investments

2. The procedure for subsequent evaluation of financial investments

3. The procedure for assessing financial investments upon their disposal

In accordance with paragraph 9 of the Accounting Regulations “Accounting for Financial Investments” PBU 19/02, approved by Order of the Ministry of Finance of Russia dated December 10, 2002 No. 126 n, the initial cost of financial investments acquired for a fee is recognized as the amount of the organization’s actual costs for their acquisition, excluding VAT and other refundable taxes.

In this case, the actual costs of acquiring assets as financial investments are recognized as:

Amounts paid in accordance with the contract to the seller;

Amounts paid to organizations and other persons for information and consulting services related to the acquisition of specified assets. If the organization is provided with information and consulting services related to making a decision on the acquisition of financial investments, and the organization does not make a decision on such acquisition, the cost of these services is included in the financial results of the commercial organization (as part of operating expenses) or an increase in the expenses of the non-profit organization of that reporting the period when the decision was made not to purchase financial investments;

Remunerations paid to an intermediary organization or other person through which assets were acquired as financial investments;

Other costs directly related to the acquisition of assets as financial investments.

Thus, the initial cost of financial investments is determined as the sum of costs incurred in accordance with the purchase and sale agreement for financial investments, and other costs directly related to their acquisition.

At the same time, paragraph 11 of PBU 19/02 establishes a special procedure for assessing financial investments acquired for a fee. If the amount of costs (except for the amounts paid in accordance with the agreement to the seller) for the acquisition of securities is insignificant compared to the amount paid in accordance with the agreement to the seller, the organization has the right to recognize such costs as other operating expenses of the organization. Such costs are recognized in the reporting period in which the specified securities were accepted for accounting.

Due to this circumstance, the organization should reflect in its accounting policies the applied procedure for assessing financial investments in the form of securities purchased for a fee:

The general procedure in which all expenses associated with the acquisition of securities form the initial cost of these securities;

A special procedure in which the initial cost of securities is formed only in the amount of costs under the agreement for the purchase and sale of securities (in the event that the amount of other costs associated with the acquisition of these securities is insignificant).

In accordance with paragraph 13 of PBU 19/02, the initial value of securities received by an organization free of charge is recognized as:

Their current market value as of the date of acceptance for accounting. In this case, the current market value of securities is understood as their market price, calculated in the prescribed manner by the organizer of trading on the securities market;

The amount of funds that can be received as a result of the sale of received securities on the date of their acceptance for accounting - for securities for which the market price is not calculated by the organizer of trading on the securities market.

In relation to securities that are not traded on the organized securities market, in our opinion, it is permissible to apply the valuation method established by paragraph 29 of the Methodological Guidelines for the Accounting of Fixed Assets. That is, to evaluate such securities on the basis of information on the value of securities received from the issuer, other persons trading in these securities, expert opinions (for example, appraisers) on the value of securities, etc.

In addition, in our opinion, when assessing the initial cost of securities received free of charge, it is permissible to use the method for determining the estimated price of a security established by paragraph 6 of Article 280 of the Tax Code of the Russian Federation.

According to the provisions of this norm, from January 1, 2006, to determine the estimated price of a share independently or with the involvement of an appraiser, valuation methods provided for by the legislation of the Russian Federation must be used; to determine the estimated price of a debt security, the refinancing rate of the Bank of Russia can be used. In the case of independent determination of the estimated share price, the valuation method used is fixed in the accounting policy.

The accounting policy must establish a procedure for determining the value of securities received free of charge, indicating:

The person (service of the organization) who is responsible for providing the organization’s accounting department with information on the basis of which the assessment is made (either information on securities quotations, or information on the amount of funds that can be received as a result of the sale of securities);

A document that formalizes the decision to determine the value of securities received free of charge (on the basis of which the initial cost of the financial investment will be formed).

The procedure for determining the initial cost of financial investments acquired under contracts providing for the fulfillment of obligations (payment) in non-monetary means is established by paragraph 14 of PBU 19/02. According to this norm, the initial cost of such financial investments is the value of assets transferred or to be transferred by the organization. In turn, the value of assets transferred or to be transferred by the organization is established based on the price at which, in comparable circumstances, the organization usually determines the value of similar assets.

Consequently, in order to reasonably determine the initial cost of the specified financial investments, the organization should have available documents confirming the value of assets transferred as payment for the acquired financial investments, or documents confirming the price at which similar financial investments were purchased in comparable circumstances.

In our opinion, the second option for determining the value of financial investments is used only in the case when the organization for a long period of time does not have operations to sell assets transferred as payment for the acquired financial investments. This option is also applicable in cases where the conditions of usually concluded transactions for the sale of the assets in question differ significantly from the conditions of the transaction for the acquisition of financial investments.

When establishing in the accounting policy the procedure for evaluating financial investments acquired under agreements providing for the fulfillment of obligations in non-monetary means, we recommend establishing the following:

The procedure for calculating the value of assets transferred to pay for financial investments (based on the average cost of goods for a certain period, the cost of goods recorded in the price list on the date of transfer of goods, etc.), the document with which this calculation is drawn up (on the basis of which it will be the initial cost of the financial investment is formed), and the person (organization service) responsible for drawing up the calculation;

Form of conclusion on the impossibility of establishing the value of assets transferred or to be transferred as payment for financial investments, and the person (organization service) responsible for drawing up this conclusion and submitting it to the organization’s accounting department;

A person (organizational service) who is responsible for providing the organization’s accounting department with information on the basis of which financial investments are assessed if it is impossible to determine the value of assets transferred as payment for financial investments;

A document that formalizes the decision to determine the price at which, in comparable circumstances, financial investments similar to those acquired by the organization are purchased (on the basis of which the initial cost of the financial investment will be formed).