Composition of financial statements under IFRS. Disclosure of information on financial results International standards of financial performance of an enterprise

Uvarova Yu.O.

Master student, Moscow State University of Technology and Management named after K.G. Razumovsky (First Cossack University)

FORMATION AND DISCLOSURE OF INFORMATION ON FINANCIAL RESULTS AND PROCEDURE FOR TAXATION OF PROFIT IN ACCORDANCE WITH IFRS AND PBU

annotation

The article considers the formation and disclosure of information on financial results and the procedure for taxing profits in accordance with IFRS and RAS.

Keywords: accounting, financial results, taxation, profit, International Standards financial reporting, accounting regulations.

Uvarova Y.O.

Master, 1 year, Moscow state University of technologies and management (The first Cossack University)

FORMATION AND DISCLOSURE ON FINANCIAL RESULTS AND THE PROCEDURE FOR TAXATION OF PROFITS IN ACCORDANCE WITH IFRS AND GAAP

Abstract

The article describes the formation and disclosure of financial results and the procedure for taxation of profits in accordance with IFRS and RAS.

keywords: accounting, financial results, taxes, profit, International financial reporting standards, accounting regulations.

Accounting financial results in the organization is necessary at any stage for its stable functioning. Profit is the most important indicator organizations. Profit is the main source of the organization and shows the final result of its activities, as well as forms its own capital. The main objectives of financial accounting in the organization are: control of financial results from the sale of goods; identification of profit from other activities; control of the correct distribution of profits.

To date, the International Accounting Standards Board has issued 41 standards relating to accounting and reporting. Let's consider some of them in comparison with PBU.

IFRS 8 “ operating segments” and PBU 12/2010, PBU 20/03 "Information on segments"

The purpose of the standard governing the presentation operating segments, is the disclosure of information that will enable users of an entity's financial statements to evaluate the nature and financial results of the entity's economic activity and the economic conditions in which it operates.

Segment Disclosure RAS aims to ensure interested users financial statements of the organization with information that allows them to assess the industry specifics of the organization's activities and its economic structure, however, they also provide for the need to disclose information on the distribution financial indicators in certain areas of activity, which differs from IFRS.

The requirements of RAP for disclosure of information by segments apply to commercial organizations, which are issuers of publicly placed valuable papers. Unlike IFRS, the application of these requirements to organizations that are in the process of registering their securities for the purpose of their public offering is not expressly provided for in RAS. Such entities may disclose segment information solely on their own initiative. Unlike IFRS, there is no direct requirement in RAP to disclose income information. non-current assets; the amount of non-current assets of the reporting segment is subject to disclosure if such an indicator is presented to authorized persons of the organization on a systematic basis.

Unlike IFRS, when segmenting, not only information analyzed by authorized persons of the organization is taken into account, but also information posted in the media.

IFRS 11 Construction Contracts IFRS 2/2008. Both standards - both RAS 2/2008 and IFRS 11 - regulate the accounting of contracts building contract. In terms of accounting objects, they are almost similar, but there are differences. PBU 2/2008 states that its provisions do not apply to budgetary and credit organizations. IFRS 11 does not have this limitation. Also, in IFRS 11, the contractor can be immediately reimbursed for the cost of services under the “cost plus” contract, while PBU 2/2008 provides only for the adjustment of revenue under the contract, based on directly incurred costs.

There are no significant differences in the regulation of the costs of concluding contracts. In RAS 2/2008, the procedure for accounting for the costs of concluding work contracts has not been changed, but is given in a different wording.

PBU 2/2008 such expenses, if not included in the expenses under the contract, they are included in other expenses of the company.

PBU 2/2008 recognizes income from ordinary activities as income under a construction contract. The amount of revenue under the contract is determined based on the cost of work specified in the contract and can be adjusted in the event of:

- change in the cost of work under the contract, arising in the course of the execution of the contract;

– presentation of claims by the organization;

Incentive payments to the contractor.

In accordance with IFRS 11, revenue includes the initial amount agreed upon in the contract, as well as deviations from the terms of the contract, claims and incentive payments.

The only difference in the regulation of cost accounting is that IFRS 11 gives an unambiguous classification of direct costs, PBU 2/2008 does not.

Accounting procedure indirect costs, regulated by paragraph 13 of PBU 2/2008, coincides with the rules established by IFRS 11.

There are minor differences between IFRS 11 and PBU 2/2008 regarding the definition of the degree of completion. PBU 2/2008 recognizes the method of the amount of work performed at the reporting date and by the share of expenses incurred at the reporting date.

However, unlike IFRS 11, PBU 2/2008 does not provide a clear definition of expected loss, leading to different interpretations:

1. Expected loss - the amount that may not be received by the organization if, as of the reporting date, there is uncertainty about the possibility of receipt of all deviations, claims, incentive payments assumed under the contract. Because the we are talking about the future, you can understand the "expected loss" as the amount of a decrease in future revenue. But if the contract as a whole remains profitable, then the recognition of a loss on it is unreasonable.

2. Expected loss - the expected amount of excess of the amount of expenses under the agreement over the amount of revenue under the agreement, if the documented expenses under the agreement are not reimbursed by the customer (clause 24 PBU 2/2008)”.

A significant difference between IFRS 11 and PBU 2/2008 is that PBU does not provide for a reduction in the amount of revenue by the amount of penalties arising in the performance of the contract through the fault of the contractor. Reducing revenue in accordance with PBU 2/2008 (p. 8) is possible only in relation to the contractual value of the outstanding work provided for in the technical documentation.

However, despite a more thorough study of the concepts in IFRS, IFRS 11 and RAS 2/2008 in terms of determining the categories of revenue and income are completely similar.

After comparing PBU 2/2008 and IFRS 11, we see that the rules established by PBU 2/2008 “Accounting for Construction Contracts” are as close as possible to the provisions of IFRS 11 “Construction Contracts”. However, there are differences between the standards - they relate to several situations in which it is impossible precise definition financial result. Thus, in accordance with PBU 2/2008, if there is a possibility of reimbursement of expenses incurred in the performance of the contract, revenue from the contract is recognized in the income statement in an amount equal to the amount of expenses incurred. If it is not probable that expenses will be recovered, expenses are recognized as expenses for ordinary activities. If, on the reporting date, there is uncertainty about the possibility of receipt of deviations, claims, incentive payments assumed under the work contract, then the expected loss of the contractor is recognized as expenses for ordinary activities of the reporting period.

IFRS 18 Revenue and PBU 9/99. The purpose of this Standard is to prescribe the accounting treatment for revenue arising from certain types of transactions and events. This Standard applies to accounting for revenue from the following transactions and events: sales of goods; provision of services; the use by other parties of the assets of the enterprise that bring interest, royalties and dividends.

The amount of revenue is determined by an agreement between the company and the buyer or user of the asset and is measured at fair value, taking into account the amount of any trade discounts. In the event of a delay in admission Money, revenue is determined by discounting all future receipts using a notional interest rate.

If goods or services are exchanged for goods or services of a similar nature and quantity, the exchange is not treated as a revenue-generating transaction. If goods are exchanged for different goods or services, the exchange is treated as a revenue-generating transaction. Revenue is measured at the fair value of the goods or services received.

PBU 9/99. The entity has a right to these revenues arising from a specific contract or otherwise evidenced.

The amount of proceeds can be determined. There is confidence that as a result of a particular operation there will be an increase in the economic benefits of the organization. Costs can also be determined. Ownership of the product has passed from the organization to the customer, or the work has been accepted by the customer.

Revenue is estimated in monetary terms, equal to the amount of receipt of cash, other property, the amount of accounts receivable. The amount of revenue is determined based on the price established by the agreement between the organization and the buyer, taking into account all discounts provided. on the terms of deferred payment, the proceeds are accepted for accounting in full accounts receivable.Revenue from contracts that provide for payment in other than cash is valued at the value of valuables received or receivable by the entity.

In RAS 10/99 “Expenses of the organization” (approved by Order of the Ministry of Finance of Russia dated 06.05.1999 N 33n) expenses of an organization are recognized as a decrease in economic benefits as a result of the disposal of assets (cash, other property) or the emergence of liabilities, leading to a decrease in the capital of this organization, with the exception of a decrease in contributions by decision of participants (property owners).

IFRS 21 The Effects of Changes in Foreign Exchange Rates. Accounting Regulation “Accounting for assets and liabilities, the value of which is expressed in foreign currency”, approved by the Order of the Ministry of Finance of Russia dated 10.01.2000 N 2n (PBU 3/2000), largely corresponds to IAS 21 “The Effect of Changes in Foreign Exchange Rates”. However, there are differences between these standards, so companies that keep their accounts in accordance with the requirements of the IAS need to make some adjustments.

Any foreign currency transaction must be translated in the entity's reporting currency. According to the current Russian legislation in order to convert a transaction in a foreign currency into rubles, the exchange rate established on the date of the transaction is applied to the transaction amount. However, the requirements of IFRS 21 do not specify at what rate the this operation in the company's financial statements. The standard states that, in general, this may be the current exchange rate at the current foreign exchange market, however, the use of the average exchange rate for a certain period is allowed, if it has not been subject to significant fluctuations.

According to IFRS 21 when compiling financial statements At the end of the reporting period, foreign currency items must be presented using the final exchange rate in effect at the reporting date. This, in principle, does not contradict the requirements of PBU 3/2000, which establishes that monetary assets and liabilities calculated in foreign currency must be recalculated at the rate in force on the reporting date. It is worth noting that IFRS 21 does not give precise guidance on which exchange rate to consider in effect at the reporting date.

IFRS 12 Income Taxes. The difference between PBU 18/02 and IAS 12 is due to different reporting purposes. The objective of IAS 12 is consistent with common goals international standards: provide reliable information to interested users. Since income tax affects the outflow of funds and the value of the financial result, it must be accurately calculated and reflected in the financial statements. For users of financial information, not only current, but also future tax consequences transactions that the company has carried out during the reporting period, as well as the impact that the settlement of liabilities and the recovery of the value of assets in future periods will have on income tax.

The task of PBU 18/02 is to establish the relationship between profits received according to accounting and tax accounting. These fundamental differences in goals and lead to differences in methods and results.

IFRS is used to obtain information about the financial position and financial activities organizations. The use of international standards makes it possible to provide the market with more information about the company, makes the company more transparent from a financial point of view, and the company becomes more competitive in the fight for funding sources.

Literature

1. Annexes to the Order of the Ministry of Finance Russian Federation dated 25.11.2011 N 160Н
2. Anoshina Yu.F., Gudieva L.R. PECULIARITIES OF FORMING THE SYSTEM OF ACCOUNTING AND AUDIT IN SMALL BUSINESS Economics and Entrepreneurship. 2014. No. 6. S. 795-797.
3. Anoshina Yu.F. INFLUENCE OF NATIONAL AND INTERNATIONAL FINANCIAL REPORTING STANDARDS ON ORGANIZATION OF INVENTORY RECORDING. Bulletin of the Russian State Agrarian Correspondence University. 2009. No. 7. P. 300.
4. Gorbatko E.S. IMPROVING THE SYSTEM OF INTERBANK COMPETITION IN THE MARKET OF CONSUMER LENDING International research journal. 2014. No. 4-3 (23). pp. 49-50.
5. Mirgorodskaya T.V. IMPROVEMENT OF FINANCIAL SUPPORT FOR SMALL BUSINESSES International research journal. 2014. No. 4-3 (23). pp. 40-42.
6. Mirgorodskaya T.V. DIRECTIONS OF THE TAX POLICY ON IMPROVEMENT OF THE TRANSPORT TAX Economy and entrepreneurship. 2014. No. 6. S. 722-725.
7. Mirgorodskaya M.G. ACCOUNTING AND ANALYTICAL INFORMATION IN THE ORGANIZATION MANAGEMENT SYSTEM Issues of economics and law. 2013. No. 57. P. 124-129.
8. Mirgorodskaya M.G. IMPROVEMENT OF FORMS AND METHODS OF TAXATION IN THE RUSSIAN FEDERATION Economics and Entrepreneurship . 2014. No. 6. pp. 726-728.

The most important performance indicators of the enterprise are the financial results of the organization. It is from the financial results that the financial condition of the organization, its financial stability and solvency.

Profit reflects the positive financial result of the organization. The main purpose of profit in modern conditions management - a reflection of the effectiveness of the production and marketing activities of the enterprise. With an increase in profits, equity capital increases, production expands, and the financial condition of the organization increases. At the expense of profit, external obligations to state budget, before off-budget funds, banks and other creditors. Profit is the indicator that most fully reflects the efficiency of production and the quality of products, the level of cost and labor productivity. Therefore, the analysis of profit formation is one of the most important components of economic analysis.

The main source of information for analysis is the income statement. Modern form statement of financial results, used by domestic enterprises, has a multi-stage structure with a sequential arrangement of articles, which provides the calculation of intermediate indicators ( gross profit(loss), profit (loss) from sales, profit (loss) before tax). The presence of intermediate results allows you to expand the analytical capabilities of informing users of accounting (financial) statements with estimated indicators by type of activity. All income and expenses of the reporting period, disclosed in the report, are grouped in the manner prescribed by PBU 9/99 "Income of the organization" and PBU 10/99 "Expenses of the organization", into ordinary, i.e. related to the performance of the main activities of the organization, and others. Such a grouping and the sequence of reflection of reporting indicators make it possible to give unambiguous content to intermediate results when calculating the financial result of the reporting period and thus characterize its structure. The system of minimum indicators disclosed in the statement of financial results is determined by clause 23 PBU 4/99 “Accounting statements of an organization”, as well as by order of the Ministry of Finance of the Russian Federation dated July 2, 2010 No. 66n “On the forms of financial statements of organizations” (as amended on April 6, 2015 ).

All the transformations of the statement of financial results that the Russian accountant is currently facing are caused by the transition of the Russian accounting and IFRS reporting. As a result, the content of the income statement used in Russia is substantially closer to the requirements of international accounting standards. In this regard, you should consider the formation of a statement of financial results in accordance with IFRS and compare with Russian form report.

According to IAS 1 Presentation of financial statements", which presents General requirements to the preparation of the statement of financial results (statement of comprehensive income), it is necessary to give an analytical description of income and expenses. The standard recommends two approaches to grouping report items into subclasses: resource (cost nature method) and functional (cost function method).

Resource classification, or the "nature of cost" method, assumes that costs are pooled according to their economic content(character) and are not redistributed depending on their designated purpose within the organization. This approach is based on the classification of expenses by economic elements and allows you to reveal the sources of their formation. Determining the financial result from the main activity using the “nature of costs” method involves comparing the proceeds from sales of products (goods, works, services) with the total amount of expenses of the reporting period, adjusted for changes in inventory balances (work in progress and finished products) .

The target classification, or "cost function" method (the "cost of sales" method), provides for the breakdown of expenses for ordinary activities into subclasses according to their purpose, as part of the cost of sales or administrative activities. The calculation of the financial result by the method of "cost functions" is based on a comparison of sales proceeds with the cost of products sold (goods, works, services). Thus, information in the statement of financial results can be presented in one of two ways, involving different formats for its construction. Both report formats allow you to get a completely identical financial result, but they reveal data about the structure of its formation in different ways. It should be noted that IAS 1 requires the selection of an expense classification method that most accurately represents the components of an entity's financial performance and provides reliable and more relevant information to interested users. The choice of method for grouping income statement items depends on historical and industry factors, as well as on the nature of the activity. economic entity.

The Russian format of the statement of financial results, based on the terminology of IFRS, is based on a functional approach to the classification of expenses. So everything Russian organizations generate their reports regardless of the specifics of doing business, type economic activity and other factors based on a unified approach.

If we talk about the indicators presented in the Russian format of the report and in the statement of financial results under IFRS, then Table 1 shows comparative characteristics articles of the domestic form of the income statement and line items regulated by IFRS 1.

Table 1

Comparative characteristics of articles of the domestic form of the income statement and line items regulated by IFRS 1

Table 1 shows that the titles of some of the items recommended by IFRS 1 differ from the titles of the items in the Russian income statement, but most of the indicators are the same. This does not apply only to the article "Minority share", which is not in the mentioned report. Thus, we can conclude that the recommendations of IFRS 1 are implemented to a certain extent in the domestic income statement.

In addition to IFRS 1 "Presentation of Financial Statements", when compiling a statement of financial results, one of the main regulatory documents is IFRS 18 "Revenue". Despite the similarity of the forms of financial statements prepared in accordance with IFRS and in accordance with Russian practice, they have differences in the very methodology for the formation of lines. As an example, you can analyze the moment of recognition of revenue in accounting. In accordance with IFRS, revenue is recognized if the entity has a high probability of receiving economic benefits from the transaction, and their amount can be accurately determined, that is, revenue is recognized when a number of recognition conditions are met, among which there is no transfer of ownership criterion.

Thus, comparing the Russian statement of financial results with international standards, it can be noted that the form of the report largely complies with IFRS, however, there are still significant methodological differences in the preparation and structuring of reporting information on financial results. For example, the disclosure of information on income received from investing in other organizations is fundamentally different in reporting prepared in accordance with Russian and international standards, which is due to the lack of domestic accounting standards relevant provisions and insufficient development of accounting for investment in other organizations. Based on the foregoing, it should be noted that it is necessary to have a unity of principles for the formation of indicators in the report on financial results in the Russian and international practice. This is possible through further harmonization of the Russian accounting model with IFRS and involves the development normative documents on accounting, which will eliminate existing gaps in legislation and will help improve the quality and usefulness of reporting information for interested users.

Scientific supervisor: Oksana Viktorovna Ksenofontova,
candidate economic sciences, Associate Professor of the Department of Economics, Management and Trade, Tula Branch of the PRUE. G. AT. Plekhanov, G. Tula, Russia

The objectives of this standard are to determine the methods for classifying, disclosing and accounting for certain items in the income statement. This standard also requires the classification and disclosure of typical and atypical (extraordinary) items for the company.

Extraordinary Articles are income or expenses arising from business events or transactions that differ significantly from the normal course of business of the company and are not expected to occur regularly.

Typical Articles associated with activities carried out by an enterprise as part of its ordinary economic activities. Net profit or loss for the reporting period consists of the following components to be disclosed in the financial statements:

• profit or loss from ordinary activities;
• emergency articles.

Direct currency quote– indication of the cost of a unit of foreign currency in national currency. The conversion of foreign currency into national currency is carried out by multiplying the amount in foreign currency by its exchange rate in national currency.

Indirect currency quote– unit expression national currency its foreign currency equivalent. The conversion of foreign currency into national currency is made by dividing the amount in foreign currency by its exchange rate in national currency.

exchange rate differences arise in connection with a change in the official quotation of a foreign currency against the ruble. Positive exchange rate differences (revenues) are formed when the value of the currency in rubles on different dates of currency transactions increases the ruble equivalent in the asset balance without increasing the liability. Negative exchange rate differences (losses) occur when, due to a change in the value of a currency in rubles on different dates, the ruble equivalent in the liabilities side of the balance sheet increases without a corresponding increase in the asset.

The financial statements must disclose the amounts exchange differences, reflected in the profit and loss account, as well as accumulated under the item "Capital", with a breakdown of their movement, as well as the amount of exchange differences included in the value of assets during the reporting period.

IFRS-23 Interest on Borrowings

Borrowing costs are interest or other costs that an entity incurs in connection with obtaining borrowed money. Fundamentally, borrowing costs should be recognized as an expense in the period in which they are incurred, regardless of how the borrowings are used.

According to IFRS-23, borrowing costs include:

• interest on a bank overdraft or on short-term and long-term loans;
• amortization of discounts and premiums relating to loans;
• amortization of secondary costs incurred in connection with the provision of loans;
• amortization of non-essential costs incurred in connection with the provision of loans;
• difference in exchange rates arising from foreign currency borrowings, provided they are treated as an adjustment to interest costs.

IAS 23 also provides an alternative approach whereby borrowing costs may be capitalized rather than expensed in the period in which they are incurred. The capitalization process involves the accumulation of costs up to a certain point (for example, until the complete or partial commissioning of an object) with their subsequent write-off to the cost of the asset. Borrowing costs eligible for capitalization are those borrowing costs incurred solely for the acquisition, construction or production of a qualifying asset and that should be capitalized as part of the cost of that asset. A qualifying asset is one that takes a significant period of time to get ready for its intended use or sale.

The amount of borrowing costs eligible for capitalization should be determined based on the income capitalization rate, which is the weighted average cost of borrowing costs that are outstanding during the reporting period.

Capitalization of borrowing costs as part of the value of the qualifying asset should start, when:

• investments have been made in assets;
• incurred borrowing costs;
• Necessary work continues to prepare the asset for its intended use or sale.

Cost capitalization on loans should be suspended in the event that the development of an asset is interrupted for a long time.

Complete cessation of capitalization(charge-off) occurs when the major part of the activity necessary to prepare the qualifying asset for use or sale has been completed. Capitalization is also terminated in case of completion of work on one of the parts of the asset, if this part can be used while the construction of other parts continues.

AT financial statements should disclose:

earnings per ordinary share, which is used to compare the performance of the company in different reporting periods, or various companies in the same reporting period, IFRS-33 "Earnings per share" establishes common rules for calculating this indicator, especially the denominator of the formula "profit divided by the number of shares." According to the standard, it must be used by companies whose ordinary shares are traded on the open securities market.

Basic earnings per share must be calculated by division net profit(loss) for the reporting period by the weighted average number ordinary shares in this period. Net profit is reduced by the amount of dividends on preferred shares. The net loss increases by the amount of these dividends.

Base number of shares for the reporting period should be equal to the weighted average number of ordinary shares outstanding during the reporting period. The weighted average number of shares in circulation is determined by their number at the beginning of the reporting period plus the number of outstanding shares for the period minus the number of repurchased shares during the period. These figures are multiplied by weighted time factor, which is calculated by dividing the number of days during which the shares are in circulation by the total number of days in the reporting period.

diluting effect arises in all cases when ordinary shares are issued and placed at a price that is lower than the fair value of these shares. When 250 ordinary shares are sold today at 90 rubles. per share with its fair market value of 125 rubles, then the loss of capital on sale is 250 x (125 - 90) = 8,750 rubles. This means that 70 shares (8,750:125) are transferred to future shareholders free of charge. They create a dilutive effect, since dividends will be paid on them, like on other shares, but the company has not received capital that can create profit for paying dividends. The dilutive effect causes earnings per share to decrease.

Calculation of the number of dilutive shares is determined by the terms of options, warrants, bond and other contracts that involve their conversion into ordinary shares. To calculate diluted earnings per ordinary share, the weighted average number of ordinary shares outstanding is added to the weighted average number of ordinary shares that will be issued when dilutive contracts are converted into shares.

Information about basic and diluted earnings per share is presented in the income statement for each class of ordinary shares if they differ in relation to net earnings per share. Information is provided for all reporting periods shown in the reporting.

The financial statements must disclose the numerator and denominator of the earnings per share formula. Basic and diluted income should be based on reconciliation of these figures with net income (loss) for the reporting period. The weighted average number of ordinary shares in the denominator of the formula must also be justified, and the base and diluted denominators should be linked to each other by means of mutual reconciliation of indicators.

international accounting financial reporting

The objective of this Standard is to prescribe the basis for the presentation of general purpose financial statements so as to achieve comparability both with an entity's prior period financial statements and with the financial statements of other entities. To achieve this objective, this Standard sets out general requirements for the presentation of financial statements, guidance on their structure and minimum requirements to its content. Recognition, measurement and disclosure of specific transactions and other events are covered in other standards and interpretations.

This Standard applies to all general purpose financial statements prepared and presented in accordance with International Financial Reporting Standards (IFRS).

Financial statements (1) is a structured presentation financial position and financial results of the enterprise. The purpose of general purpose financial statements is to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions. Financial statements also show the results of the management of resources entrusted to the management of the company. To achieve this objective, financial statements provide information about the following indicators enterprises:

• (a) assets;
• (b) obligations;
• (c) equity;
• (d) income and expenses, including other income and losses;
• (e) other changes in equity; and
• (f) cash flow.

This information, along with other information in the notes, helps users of financial statements predict future cash flows and, in particular, their timing and certainty.

A complete set of financial statements includes:

• (a) the balance sheet;
• (b) income statement;
• (c) a statement of changes in equity showing either
• (i) all changes in equity, or
• (ii) changes in equity, other than those arising from transactions with equity instrument holders acting in their capacity as equity instrument holders;
• (d) cash flow statement; and
• (e) notes containing a summary of significant accounting policies and other explanatory notes.

The form of the financial statements must be clearly defined and distinguished from other information in the same published document.

Each component of the financial statements must be clearly defined. In addition, the following information should be clearly shown, and should also be repeated if necessary for a correct understanding of the information presented:

• (a) the name of the reporting entity or other identifying features, and any changes to that information since the date of the previous balance sheet;
• (b) an indication of whether the financial statements cover an individual entity or a group of entities;
• (c) the balance sheet date or the period covered by the financial statements, whichever is more appropriate for that component of the financial statements;
• (e) the degree of rounding used in presenting the amounts in the financial statements.

Financial statements are submitted at least annually.

Balance. The difference between short-term and long-term items

The entity represents current and long-term assets and short-term and long term duties how separate classifications in the balance sheet itself, unless the liquidity-based presentation provides reliable and more relevant information. When this exception applies, all assets and liabilities are presented freely, in order of liquidity.

Regardless of which method of presentation is adopted, for each item of assets and liabilities that combines amounts that are expected to be settled or recovered within a period (a) not exceeding twelve months after the balance sheet date and (b) exceeding twelve months after the balance sheet date, an entity discloses amounts expected to be settled or recovered after more than twelve months.

Short-term (current) assets (2)

An asset is classified as current when it meets any of the following criteria:

• (a) it is expected to be realized or intended to be sold or used in the normal operating cycle of the entity;
• (b) it is held principally for the purposes of trading;
• (c) expected to be realized within twelve months after the balance sheet date; or
• (d) it is cash or a cash equivalent (as defined in IAS 7 Statements of Cash Flows) unless there is a restriction on its exchange or use to settle liabilities for at least twelve months after the date balance.

All other assets are classified as non-current.

Current liabilities (3)

A liability is classified as current when it meets any of the following criteria:

• (a) expected to be settled in the entity's normal operating cycle;
• (b) it is held principally for the purposes of trading;
• (c) it must be settled within twelve months after the balance sheet date; or
• (d) the entity does not have an unconditional right to defer settlement of that liability for at least twelve months after the balance sheet date.

All other liabilities are classified as non-current.

Information to be presented on the balance sheet itself

At a minimum, the balance sheet itself should include separate items that represent:

• (a) real estate, buildings and equipment;
• (b) investment property;
• (c) intangible assets;
• (d)financial assets (excluding the amounts referred to in paragraphs (e), (h) and (i));
• (e)investments accounted for under the equity participation;
• (f) biological assets;
• (g) stocks;
• (h)trade and other receivables;
• (i) cash and cash equivalents;
• (j) trade and other payables;
• (k) estimated liabilities;
• (l) financial liabilities (excluding amounts referred to in paragraphs (j) and (k));
• (m) liabilities and assets under current taxes, as defined in IAS 12 Income Taxes;
• (n) deferred tax liabilities and deferred tax assets, as defined in IAS 12;
• (o) the minority interest represented in the equity; and
• (p)issued capital and reserves attributable to equity holders of the parent company.

Additional line items, headings and subtotals should be presented on the face of the balance sheet when such presentation is relevant to understanding the entity's financial position.

When an entity presents current and non-current assets and current and non-current liabilities as separate classifications on the balance sheet itself, it shall not classify deferred tax assets (liabilities) as current assets(Short-term liabilities).

Report about incomes and material losses

Profit or loss for the period

All items of income and expense recognized in a period must be included in profit or loss, unless otherwise required by a standard or interpretation.

Information to be presented on the income statement itself

At a minimum, the income statement itself must include items that represent the following amounts for the period:

• (a) income;
• (b) financing costs;
• (c) the share of profit or loss of associates and joint ventures accounted for using the equity method;
• (d) profit or loss before taxes recognized on the disposal of assets or the settlement of liabilities relating to discontinued operations.
• (e) tax expenses;
• (f) profit or loss.

The following items must be disclosed in the income statement itself as an allocation of profit or loss for the period:

• (a) profit or loss attributable to minority interests; and
• (b) the profit or loss attributable to the equity holders of the parent.

Additional line items, headings and subtotals should be presented on the income statement itself when such presentation is relevant to an understanding of the entity's financial performance.

Statement of changes in equity

An entity must present a statement of changes in equity showing on the statement itself:

• (a) profit or loss for the period;
• (b) each item of income and expense for the period that is required by other standards or interpretations to be recognized directly in equity, and the total amount of those items;
• (c) the total amount of income and expenses for the period (calculated by adding (a) and (b)) with a separate statement of the total amounts attributable to the holders of the parent's equity instruments and to the minority interest;
• (d)for each component of equity, the effect of changes in accounting policies and adjustments for errors recognized in accordance with IAS 8.

An entity must also present, either on the face of the statement of changes in equity or in the notes, the following information:

• (a) the amount of transactions with equity instrument holders acting as equity instrument holders, with a separate indication of the distribution of funds among them;
• (b) balance retained earnings(ie cumulative profit or loss) at the beginning of the period and at the balance sheet date and changes during the period;
• (c) reconciliation between book value each class of equity contributed and each provision at the beginning and end of the period, with separate disclosure of each change.

IFRS No. 7 Statements of Cash Flows

Cash flow information provides users of financial statements with a basis for assessing an entity's ability to generate cash and cash equivalents, given its need to use those cash flows.

The information presented by the company in the statement of cash flows must be classified according to the areas of activity: operating, investment, financial.

Operational activity (4) is the main activity of the company, bringing positive cash flow, as well as other activities that, by definition, cannot be classified as investment and financial.

The investment activity (5) of the company involves the acquisition and sale of non-current assets and other non-cash investments.

Financial activity (6) of the company involves changes in the size and composition of equity or debt capital as a result of attracting financial resources.

The amount of cash inflows and outflows from operating activities is a key indicator of the extent to which a company's core business generates sufficient cash to meet liabilities and make new investments without recourse to external sources funding volume.

Each component of the statement of cash flows must be presented in expanded form, taking into account the types and directions of cash flows. In industrial poultry companies, the following areas of cash flows should be distinguished: cash receipts from the sale of agricultural products of own production; proceeds from the sale of other products, goods, performance of work, provision of services; receipts for the repayment of receivables; cash receipts from rent, fees, commissions and other revenues; cash payments to employees of the organization; for the payment of dividends, interest; cash payments to suppliers and other counterparties; for personnel training, etc. The main indicator characterizing the efficiency of the organization's operating activities is net cash flow. That is why the allocation of cash received from operations is important for understanding the activities of the organization.

IFRS No. 7 Statements of Cash Flows provides for the presentation of information by direct and indirect methods. The main criterion when choosing a method is the relevance and reliability of the information.

Financial results are understood as the result of economic activity, which has received monetary expression in the relevant documents (reportings).

A task IFRS 8 “Accounting policy. Errors and changes in calculations” consists in establishing criteria for choosing and changing accounting policies, as well as in determining the requirements for disclosure of information about the impact of accounting estimates and errors on reporting data.

The scope of IFRS 8 covers:

1. Choosing an accounting policy or changing it.
2. Changes in accounting estimates.
3. Correction of errors made in previous reporting periods.

The reporting of taxes associated with errors/adjustments is within the scope of IFRS 12 Income Taxes.

According to the standard, accounting policies are the specific principles, bases, conditions, rules and practices adopted by the company for the preparation and presentation of financial statements.

Changes in accounting policies may be made retrospectively or prospectively.

retrospective application (basic approach) is the application of a new accounting policy to transactions, other events and circumstances as if it had always been used. As a result, the balance of retained earnings at the beginning of the period will be restated, as well as comparative data for the previous period.

Perspective The approach to changing accounting policies assumes that the new accounting policy applies only to transactions, other events and circumstances that occur after the date of the change in accounting policy.

In the 2004 edition of IFRS, the disclosure requirements were expanded - disclosure of assumptions, disclosure of the classification and valuation of items, disclosure of uncertainty.

IFRS-18"Revenue". This standard defines income and discloses the recognition of income arising from the implementation of various kinds activities.

IFRS-18 defines the rules for recognizing income arising from: the sale of goods; provision of services; use of other assets of the organization that bring interest and dividends.

The company's financial statements must show: accounting policy accepted for income recognition; methods adopted to determine the stage of completion of the transaction in the provision of services; the amount of each significant category of income recognized in the financial statements; the amount of income received from the exchange of goods or services.

In Russian practice, IFRS-18 corresponds to PBU 9/99 “Income of an organization”, which does not separately consider cases of the exchange of goods (services) with an additional payment and does not establish special rules for income when exchanging similar goods (services).

The accounting procedure, reflection in reporting and disclosure of income and expenses under work contracts are determined by IFRS-11 "Contracts". This standard is applied to reflect relevant information in the financial statements of contractors construction organizations and others performing work to order under contract agreements.

Income from a work contract includes primarily the initial amount of income agreed in the contract with the customer.

In the notes to the financial statements, the contracting entity must disclose the amount of contract income that is recognized in the reporting period and recognized as income in the income statement. It is also necessary to disclose the method used to determine the income that is recognized in the reporting period, and the method used to determine the stage of completion of contracts in progress.

IFRS-21"The Impact of Changes in Exchange Rates". General rules the impact of changes in exchange rates on the results of financial and economic activities of organizations are determined by IFRS-21 "The impact of changes in exchange rates".

The standard establishes rules for choosing exchange rates for reporting transactions denominated in a foreign currency, which is any currency other than that in which the financial statements are prepared.

As a general rule, financial statements are prepared in the currency of the country in which the company is registered. this organization and in which it performs its operations.

The financial statements must disclose the amounts of exchange differences recorded in the profit and loss account, as well as accumulated under the item “Capital”, with a breakdown of their movement, as well as the amounts of exchange differences included in the cost of assets during the reporting period.

IFRS-23"Interest on loans". Borrowing costs are interest or other costs incurred by an entity in connection with borrowing funds. Fundamentally, borrowing costs should be recognized as an expense in the period in which they are incurred, regardless of how the borrowings are used.

According to IFRS-23, borrowing costs include: interest on a bank overdraft or on short-term and long-term borrowings; amortization of discounts and premiums relating to loans; amortization of secondary costs incurred in connection with the provision of loans; amortization of non-essential costs incurred in connection with the provision of loans; the difference in exchange rates arising from borrowing in foreign currencies, provided that they are treated as an adjustment to interest costs.

The financial statements should disclose: the accounting policies adopted to account for borrowing costs; the amount of borrowing costs capitalized in the reporting period; capitalization rate.

IFRS-33"Earnings per share". According to the standard, it must be applied by companies whose ordinary shares are traded on open market valuable papers.

Information about basic and diluted earnings per share is presented in the income statement for each class of ordinary shares if they differ in relation to net earnings per share. Information is provided for all reporting periods shown in the reporting.

The financial statements must disclose the numerator and denominator of the earnings per share formula.

In the report on the financial results, the income of the organization for the reporting period is reflected with a division into revenue and other income.

Revenue, other income (revenue from the sale of products (goods), revenue from the performance of work (rendering services), etc.), amounting to five or more percent of the total income of the organization for the reporting period, are shown for each type separately.

Other income may be shown in the income statement net of expenses relating to these incomes when:

a) the relevant accounting rules provide for or do not prohibit such recognition of income;

b) income and related expenses arising from the same or similar fact of economic activity (for example, the provision of temporary use (temporary possession and use) of its assets) are not significant for characterizing the financial position of the organization.

With regard to revenue received as a result of the performance of contracts that provide for the fulfillment of obligations (payment) in other than cash, at least the following information is subject to disclosure:

a) the total number of organizations with which these contracts are carried out, indicating the organizations that account for the bulk of such revenue;

b) the share of revenue received from said treaties with related organizations;

c) a method for determining the cost of products (goods) transferred by the organization.

Other income of the organization for the reporting period, which, in accordance with the accounting rules, are not credited to the profit and loss account, are subject to disclosure in the financial statements separately.

IASFR: In line with International Financial Reporting Standard (IAS) 1 Presentation of Financial Statements (as amended)

The statement of profit or loss and other comprehensive income (statement of comprehensive income) must present, in addition to the profit or loss and other comprehensive income sections, the following: (a) profit or loss; (b) total other comprehensive income; (c) comprehensive income for the period, reflecting the total of profit or loss and other comprehensive income.

The profit or loss section or statement of profit or loss must include items that represent the following amounts for the period: (a) revenue; (aa) gains and losses arising from the derecognition of financial assets measured at amortized cost; (b) financing costs;

(c) the entity's share of the profit or loss of associates and joint ventures accounted for using the equity method;

(sa) if financial asset is reclassified so that it is measured at fair value, any gain or loss arising from the difference between the previous carrying amount and its fair value at the reclassification date (as defined in IFRS 9);

(d) tax expenses;

(ea) total amount of discontinued operations

Revenue accounting under IFRS

Under the proceeds only gross inflows of economic benefits received and receivable by the enterprise to its account are meant. Amounts received on behalf of a third party, such as sales tax, taxes on goods and services and value added tax, are not economic benefits received by the enterprise and do not lead to an increase in capital. Therefore, they are excluded from revenue.

The amount of revenue arising from a transaction is usually determined by an agreement between the entity and the buyer or user of the asset. It is measured at the fair value of the consideration received or receivable, taking into account the amount of any trade or volume discounts granted by the entity.

In most cases, consideration is provided in the form of cash or cash equivalents, and the amount of revenue is the amount of cash or cash equivalents received or receivable. However, if the receipt of cash or cash equivalents is delayed, fair value consideration may be less than the nominal amount of money received or receivable.

Revenue from the sale of goods should be recognized if all of the following conditions are satisfied:

the entity has transferred to the buyer the significant risks and rewards of ownership of the goods;

· the entity no longer participates in management to the extent normally associated with ownership and no longer controls the goods sold;

· the amount of revenue can be measured reliably;

· it is probable that the economic benefits associated with the transaction will flow to the entity;

· the incurred or expected costs associated with the operation can be measured reliably

Revenue is recognized only when it is probable that the economic benefits associated with the transaction will flow to the entity. In some cases, such a possibility may not exist until reimbursement is received or the uncertainty is resolved.

However, when an uncertainty arises about the ability to collect an amount already included in revenue, the amount not received, or the amount that has become unlikely to be received, is recognized as an expense and not as an adjustment to the amount of revenue originally recognized.

Revenue and expenses relating to the same transaction or event are recognized simultaneously; this process is commonly referred to as income-expenditure linkage. Expenses, including warranties and other costs incurred after the goods have been shipped, can usually be measured reliably if the other conditions necessary for revenue recognition are met. However, revenue cannot be recognized when the costs cannot be measured reliably. In such situations, any consideration already received for the sale of the goods is recognized as a liability.

Revenue recognition by stage of completion is often referred to as the percentage of completion method. Under this method, revenue is recognized in the same reporting period that the services are provided. Revenue recognition on this basis ensures useful information on the volume of services provided and the results of such activities for the period. IAS 11 also requires revenue to be recognized on the same basis. The requirements of that standard are generally applicable to the recognition of revenue and related expenses in a transaction involving the provision of services.

Revenue is recognized only when it is probable that the economic benefits associated with the transaction will flow to the entity. However, when an uncertainty arises about the ability to collect an amount already included in revenue, the amount not received, or the amount that has become unlikely to be received, is recognized as an expense and not as an adjustment to the amount of revenue originally recognized.

The enterprise, as a rule, must also have an effective internal system financial planning and reporting. As services are provided, the entity reviews and, if necessary, revises the contract revenue estimates. The need for such revisions does not mean that the outcome of the operation cannot be estimated reliably.

The stage of completion of the transaction can be determined by various methods. The enterprise uses the one that provides a reliable measurement of the work performed. Depending on the nature of the transaction, these methods may include:

reports on the work performed;

services provided as of the reporting date, as a percentage of the total volume of services;

Proportionate ratio of costs incurred for this moment, to the estimated value of the total costs of the transaction.

Costs incurred up to the reporting date include only those costs that reflect services provided up to that date. Estimated total transaction costs include only costs that reflect services provided or to be provided.

Progress payments and advances received from customers often do not reflect the services provided.

For practical reasons, if services are provided an indefinite number of times during certain period time, revenue is recognized based on linear method over a specified period, unless there is evidence that some other method better reflects the stage of completion. If one action is much more significant than the others, then revenue recognition is deferred until that action is taken.