Explanatory note to the balance sheet. Balance sheet: explanatory note to the balance sheet

– this is the accounting reporting that is mandatory for an enterprise, no matter what activity it carries out. It is important both in the general display of the results and processes of activity, and for the analytical assessment of this activity. Accountants who are involved in drawing up this balance sheet are often faced with the problem of drawing up related documents, one of which is explanatory note To balance sheet.

You can download a standard sample of a regular explanatory note to the balance sheet at.
You can download a sample of filling out an extended explanatory note at.

What is a note to the balance sheet?

This document can safely be called a separate one, which invariably accompanies the consideration of the balance sheet and is therefore mandatory for preparation.

It is in this document that explanations of the data indicated on the balance sheet are reflected. The information in the explanatory note is very often voluminous. Correct compilation and synthesis of information is necessary.

For each item, the data display should be as comprehensive as possible.

Materiality and comparability are the basic principles that must be taken into account and used when correctly drafting a document.

The principle of comparability implies comparisons of certain quantitative indicators, which are reflected in a number of items in the financial statements. These indicators are compared over a certain amount of time.
The principle of materiality can be understood as the presentation for comparison of only items that are essential for the organization and conduct of the activities of the enterprise. This principle is taken into account so that the financial statements have a rational structure that is easy to understand and carry out subsequent analysis.

An explanatory note must be attached to the package of documents when accounting reports are submitted. Failure to provide an explanatory note is in the nature of a violation in the submission of financial statements.

This document is compiled in sections, each of which should maximally display the information that is inappropriate to display in the balance sheet tables themselves. We will consider the sections of the explanations to the balance sheet below.

See also a large video about the explanatory note and the balance sheet in general:

Composition of sections of a standard explanatory note

First section. This part carries within itself necessary information about the organization whose balance sheet is submitted for consideration: o legal organization the company, its founders and their shares in the business, the addresses at which activities are carried out, the availability and validity of licenses. They also display the structure of the company, the number of employees who were employed in its activities during this reporting period, as well as the amount of taxes that the company paid for this period of activity.
Second section. Accounting policy of the enterprise. This section also shows the reasons for the changes and the changes themselves that it underwent during this period, as well as some nuances in the organization of the policy itself.
Third section. It is intended to provide information about the main assets, as well as the liabilities that the organization bears. Such information includes data on fixed assets, depreciation, loans, borrowed amounts, financial investments, inventories, etc. This section reflects all related information that affected the indicators in the balance sheet.
The fourth section serves to assess the balance sheet structure. It is in this section that the financial condition of the enterprise is assessed. Moreover, it is produced over both short and long periods. The assessment is made by calculating the main coefficients for the activity. For example, in terms of liquidity, ability to pay, etc. For long-term assessment, the enterprise's dependence on external creditors is taken into account.
The fifth section contains information about income and expenses according to various accounting items of a given enterprise.
The sixth section is the necessary explanations of the main reporting items, if they are not reflected in the balance sheet.
The seventh section serves to assess the organization’s business activity; this indicator is also influenced by the popularity of the organization’s clients, as well as the state of the market whose niche it occupies. Planned indicators are compiled and the percentage of their completion at a given time is displayed.
The eighth section shows the opening balances, as well as their changes, if any. This paragraph also describes the reasons for these changes.
The ninth section serves to display transactions carried out with affiliates.
The tenth section is devoted to conditional facts related to the organization. For example, a list of legal proceedings for a given company or full list guarantees it issues.
The eleventh section shows for what purposes this organization carries out joint activities with others.
Dr. sections.

So, an explanatory note to the balance sheet must be drawn up by the enterprise if the state does not exempt it from this obligation. The note is filled out according to the above, as well as additional sections, according to the structure that best suits the organization. That is, if she does not need some sections, then they can not be included in the structure of the note.

Drawing up an explanatory note is no less a painful task for an accountant than preparing the balance sheet itself.

An explanatory note is an independent form of accounting reporting, its most important, voluminous part.

Often, the text of an explanatory note can be located on 100 or more typewritten sheets. Regulated by clause 5 of PBU 4/99

What is an explanatory note?

This is a document that includes written explanation those figures contained in the balance sheet, as well as the profit and loss statement and their applications.

The basic principles when writing an organizational explanatory note include the principles of materiality and comparability.

If we talk about comparability, we mean a comparison of the quantitative values of a number of items in the accounting report over a period of time (a number of years).

We compare only essential items so as not to violate the principle of rationality when preparing reports

They have the opportunity not to attach an explanatory note to the balance sheet when submitting reports provided by the state to small enterprises.

The explanatory note to the balance sheet should consist of the following sections with disclosure of information for each of them:

1. Information about the organization

This section is informational and descriptive in nature.

The name, as well as the established organizational and legal form of the company, is indicated.

In addition, this section indicates the legal and actual addresses, information about the founders of the organization, and the size of the authorized capital.

Also indicated organizational structure organization, as well as the availability of licenses and permits available to the organization and their validity period.

Financial information indicates the amount of taxes that the organization paid in a given year and the average annual number of employees employed in the organization.

Information about the company’s auditor (name, legal address, etc.) is also indicated.

2. Enterprise accounting policy

Describes the content of the organization’s accounting policy, its main changes for the past year compared to the previous one, as well as the reason for the changes that occurred in accounting policy.

The organization also specifies separate rules for accounting for assets and liabilities.

3. Information about the main assets and liabilities of the organization

In this subsection, information is disclosed under the following headings:

by fixed assets (depreciation, movement of fixed assets,
information about real estate objects that are under state registration, etc.),
on credits and loans (availability of credits and loans, their repayment terms, as well as complete information on them, including information on weighted average values for loans and borrowings),
on inventories (methods of their assessment and consequences),
on financial investments (all information regarding securities is disclosed),
for assets and liabilities (the amount of exchange rate differences that are attributed to financial results, and also the value of the official exchange rate of the Bank of Russia as of the reporting date is indicated).

4. Assessing the structure of the organization’s balance sheet

The main purpose of compiling this section is to evaluate the enterprise and its financial condition within both the short-term and long-term periods.

To assess the financial condition of an enterprise in the short term, indicators such as:

liquidity ratio,
financial dependence,
profitability,
solvency.

For the long term, an indicator such as the organization’s dependence on external creditors and loans is calculated

5. Information about the organization’s income and expenses
Information is indicated under the relevant items of the enterprise's balance sheet.

6. Explanations required for the main reporting items
Information is indicated if the items are material and at the same time this disclosure is absent in the financial reporting forms.

7. The business activity of the organization is assessed
The market in which the company operates is assessed, as well as the organization’s business reputation, which is formed, among other things, by the fame of its clients.

Planned indicators and the degree of their implementation are also assessed.

8. Explanation of opening balances and their changes
The size of the change in opening balances and the reasons for this change are indicated (reorganization of the enterprise, introduction of new accounting requirements, etc.).

9.Information about affiliates
Information related to affiliated persons is disclosed in detail, namely:

a complete list of such persons,
the nature of the relationship with them,
types of transactions with affiliates

10. Conditional facts on organizational economic activity
Contingent liabilities include

warranty obligations of the organization,
her participation in court proceedings,
the amount of guarantees issued by the organization.

This paragraph discloses complete information on contingent facts, if any.

11. Joint activities of the organization

The goals for which the enterprise operates are indicated joint activities, as well as the amount of assets invested in this activity, complete information on jointly carried out operations.

12. Data on organization segments
The section is filled out only by organizations that have subsidiaries and dependent companies, as well as if associations and unions are entrusted with the preparation of consolidated general financial statements in accordance with the constituent documents.

13. Declaration of events that occurred after the reporting date
Describes the cause and nature of the event, as well as possible consequences from the event that occurred.

14. Government funding
If the organization received government assistance, then its amount, financing purposes, other forms of government support, as well as outstanding provision of budget funds as of the reporting date are disclosed.

15. Environmental factors
Reflected if fact exists negative impact on environment.

This paragraph contains an indication of the degree of impact on the environment, as well as measures taken by the organization to protect the environment.

16. Information in accordance with PBU 18\02
Contains a complete reflection of accounting calculations for corporate income tax.

17. Expandable joint stock companies information
The number of shares issued during the reporting period is indicated.

Indicates shares that have been issued and fully paid, and may also be unpaid or partially paid.

Information on additional issue of shares of the company is disclosed

18. Data on discontinued operations
Full information is provided on the reasons for the termination of a particular type of activity, the value of assets and liabilities disposed of or repaid as part of the termination of the activity and other information on this activity are indicated.

19. Other information
Information is indicated that was not previously disclosed in the explanatory note.

For example, it reflects the efficiency of the organization, the competitiveness of products, sales markets, etc.

Each company builds its own structure and composes it only from those sections that directly relate to the nature of the organization’s activities.

Explanatory note to the balance sheet sample

An explanatory note to the balance sheet is not always necessary, but its presence in a competent design will protect the enterprise from many claims from regulatory agencies and from problems during the audit, so its value is difficult to overestimate.

An explanatory note to the balance sheet is a full disclosure of the figures in the annual report, detailed description their origin, as well as data on the organization’s annual financial activities. The presence of this document fully ensures the transparency of the enterprise’s activities and protects its reputation.

In essence, this is a separate reporting document that contains explanations for the annual reporting.

This document is important not only for regulatory authorities, but also for investors who need to see the completeness of the financial condition.

The note indicates complete data on the balance sheet and the report - it is usually not compiled for one document.

Important: in 2017, an explanatory note is not required for an LLC that meets the criteria of a small business enterprise.

What forms of explanatory note should be used in accounting - see here:

Who draws up the document and when?

The document is drawn up by an accountant who was involved in the preparation of annual reports and balance sheets.

Formation occurs immediately after the preparation of annual documentation, since for organizations that are required to prepare it, it is necessary to submit the note along with the annual papers.

Form and details of the note

According to the current legislation, there is no approved form for the explanatory note; it is only necessary that when drawing up Form 5, all data and explanations are taken into account, which will fully give an idea to the shareholders and other owners of the enterprise about the financial condition.

According to PBU 4/99, the paper must contain the following:

Subject details;
Data about him;
Assessment of financial and economic activities;
Comparison of indicators for this year and the previous one;
Methods for assessing assets and liabilities;
Significant financial statements figures.

Important: if accounting was not carried out during the year for good reasons, then this should be mentioned in a note indicating the reasons for such behavior, otherwise the company will be responsible for evading its direct responsibilities.

The document also reflects upcoming changes in the company’s accounting policy next year.

Among other things, you must provide information important to the company:

Analysis of the dynamics of economic progress over the past few periods;
Take into account the numbers that have had significant influence on the activities of the enterprise;
Describe plans and forecasts for further events;
Planned financial investments;
Use of loans;
Other data.

Sample explanatory note to the balance sheet.

Step-by-step filling instructions

Each company develops its own form, but in general outline it consists of text and tables.

You should start creating the document by indicating information about the enterprise:

Company name;
Volume of product sales broken down by nomenclature units of goods, services or works;
Main items of material and production costs;
The size of the reserves formed for future spending; their dynamics in comparison with previous years;
Other expenses.

In this part, you can analyze in detail the factors on which current expenses depend.

Among them may be:

Cost optimization;
Increased sales;
Improvement of the production process;
Changes in storage and transportation conditions.

Solvency;
Liquidity;
Profitability.

Based on these data, draw conclusions about the economic activities of the enterprise.

In the next part of the note, you must provide a transcript of the accounting documentation:

When deciphering data on fixed assets, it is necessary to indicate the timing and methods of depreciation. How is depreciation calculated? in a linear way– read;
For MPP, it is necessary to indicate all essential details, including methods for their assessment;
Regarding financial investments, it is necessary to indicate their structure and methods for their evaluation.

Important: accounts payable are submitted separately, indicating the volume of loans and borrowings, the terms and dates of their receipt, as well as the forms of security. In what order is it carried out? expired limitation period You will find out in the publication at the link.

You cannot ignore the company's accounting policy; it also needs to be devoted to certain part explanatory document.

An example of filling out an explanatory note.

Here you should disclose data regarding depreciation, valuation of assets and liabilities, features of recognition of income and expenses. If there are changes in this direction, it is necessary to indicate this with justification for the appropriateness of such changes.

Also, a separate paragraph should indicate options for economic activity that were not taken into account in the previous sections, for example, information about the termination of activity, about affiliates, receipt and use of government assistance, facts of conditional management.

Thus, this document consists of several sections, the development of which is carried out by the enterprise independently, but basic information must be included in the document.

Errors in compilation

From everything it follows that the note must be prepared individually for each enterprise, since any given example will be tailored to the management certain company taking into account its characteristics.

However, when developing, in order to avoid mistakes, it is necessary to rely on the basic requirements for information disclosure.

It is important to consider the following nuances:

General information about the company itself and the results of annual activities;
Disclosure of the values of financial reporting indicators and accounting features;
Analysis of receivables and payables with a detailed indication of the company's credit funds;
Information about the accounting policy of the enterprise;
Other information must be added depending on the degree of its influence on the financial and economic application of the enterprise.

Example of an explanatory note

Explanatory note to the balance sheet

LLC "Industry" for 2017

General information

LLC "Industry" was registered by the Federal Tax Service No. 8 in St. Petersburg on August 25, 2001. Next, you should indicate the full details, registration number, INN, KPP, OGRN and others.

The balance sheet has been formed in accordance with the rules for preparing balance sheets and reporting in force in Russia.

Authorized capital – 1,200,000 rubles;
The number of shares is 1,200 with a par value of one 1,000 rubles;
The main activity is the production of metal parts indicating the OKVED code;

Composition of affiliates:

Adreev Alexander Alekseevich – member of the board of directors;
Ilyin Vladimir Aleksandrovich – member of the board of directors.

Basic provisions of the accounting policy

Approved by order of the director No. 256 dated October 30, 2001 - further, in a concise form, it is necessary to describe the provisions indicating other data.

Balance sheet structure - you must indicate for each line the % ratio of the change for the year. you will learn how to prepare a statement of changes in equity.
Cost estimate net assets it is necessary to indicate their size in relation to the authorized capital.
Analysis of basic financial information - financial ratios are indicated.
Composition of fixed assets.
Estimated liabilities and provisions:

As of December 31, 21017, an assessment reserve for vacations was formed in the amount of 500,000 rubles for 56 unpaid vacation days, execution was postponed to 2018;
For doubtful debts, a reserve in the amount of 1.5 million rubles resulted from overdue debts without collateral of PJSC Almaz.

Labor and its payment

Payables from wages and salaries amount to 2,000,000 rubles for December 2017, due January 5, 2018. Personnel turnover in the past period was 36.76%, the payroll number was 256 people. The average monthly salary is 36,000 rubles.

Issued and received security and payments - a complete list.
Other information.

Director of LLC "Industry" Nikonov I.I. 02/26/2018

Conclusion

This document is mandatory for all enterprises with the exception of small businesses, budgetary and non-profit companies; a responsible approach to its preparation ensures submission complete information for regulatory authorities and the board of directors.

What is a balance sheet and how to draw up all the necessary documents for it you will learn in this video:

Explanatory note - an appendix to the annual financial statements, which must contain essential information about the organization, its financial situation, comparability of data for the reporting and preceding periods, valuation methods and significant items of financial statements and other information. Essentially, the explanatory note summarizes the information contained in the organization’s reporting, explains and comments on it, and also supplements it with other necessary information not reflected in the organization’s financial reporting forms.

The explanatory note must fulfill the following main tasks:

disclose material information contained in the financial statements;

disclose material information not reflected in the financial statements;

provide users additional information, revealing the main aspects of his activities.

Compilers of reports (including explanatory notes) in accordance with Federal Law dated November 21, 1996 N 129-FZ “On Accounting” are all organizations, with the exception of budgetary institutions, as well as public organizations (associations) and their structural divisions that do not carry out entrepreneurial activities and, apart from disposed property, not having any turnover in the sale of goods (works, services).

Users of the explanatory note are users of the organization's reporting - legal entities and individuals interested in information about it.

Requirements for the content of the explanatory note include:

mandatory General requirements, established by law;

mandatory requirements established by law, the reflection of which depends on the presence of certain facts of economic activity;

additional requirements related to the organization’s industry, its specifics, etc.;

additional requirements aimed at meeting the needs of one or another category of users of financial statements.

The process of drawing up an explanatory note can be divided into three main stages:

the first stage is an analysis of the requirements for the content of the note established by the current regulations, and other requirements;

the second stage is the selection of the necessary sections (information blocks) of the note; collecting, processing and editing information for inclusion in relevant sections; choosing a form for presenting information, preparing graphic material;

the third stage - drawing up and signing the final version of the note;

its approval as part of the annual reporting by the highest management body of the organization. Below are the mandatory legal requirements for the content of the explanatory note in general view

by sections in the classification we have chosen.

1) Legislative requirements for the formation of an explanatory note		Section name	Regulations
Notes
1) Mandatory general requirements (legally established)	1. General information Legal address of the organization. Main activities. Average annual number of employees for the reporting period or as of the reporting date.	Composition (names and positions) of members of executive and control bodies. Name of the legal entity (full and abbreviated).	PBU 4/99, clause 31 The organizational and legal form of the organization, information about the founders, the size specified in constituent documents
authorized (share) capital. Information about the auditor, appraiser, trademark or service mark, telephone numbers, etc. is provided.	2. Accounting policies Information that the financial statements have been prepared based on the rules in force in the Russian Federation accounting Consequences of changes in accounting policies compared to the previous reporting period. Announcement of changes in accounting policies for the year following the reporting year.	In accordance with PBU, separate rules for accounting for assets and liabilities adopted by the accounting policies are disclosed. PBU 4/99, clause 6 PBU 1/98, clause 19, 20, 21, 22 PBU 1/98, paragraph 23 PBU 6/01, PBU 5/01,	PBU 14/2000, PBU 19/02, PBU 9/99, PBU 10/99, PBU 15/01, PBU 17/02 Accounting statements are considered reliable and complete if they are formed on the basis of the rules established by Russian accounting regulations. Therefore, this must be stated in the notes to the balance sheet and profit and loss account.
If deviations from the general rules are made, the organization is obliged to disclose in an explanatory note all cases of such deviations indicating their reasons.	3. Analysis and assessment of the balance sheet structure and profit dynamics Brief description of the organization's activities ( common species activities, current, investment and financial activities). Key performance indicators and factors that influenced financial results in the reporting year.	Assessment of financial condition for the short and long term.	Law No. 129-FZ, paragraph 4 of Art. 13 PBU 4/99, clause 31 By Order of the Ministry of Finance of Russia dated July 22, 2003 N 67n (hereinafter referred to as the Directives), clause 19 The main performance indicators and factors that influenced the financial results of the organization in the reporting year are reflected. Since there are many different ways to calculate the same coefficients, it seems appropriate to disclose in the text the calculation procedure used. One of the calculation methods may be the Rules for the Arbitration Manager financial analysis , approved. Government Decree Russian Federation
dated June 25, 2003 N 367	4. Explanations for significant items of accounting statements Information is disclosed if it is material and if it is not disclosed in the financial statements.	Disclosure procedure - in accordance with the requirements of the relevant sections of the PBU ("Disclosure of information in reporting")	Explanations and explanations of not only significant balance sheet indicators, but also the Profit and Loss Statement can be provided. For example, for inventories, at least the following information is subject to disclosure, taking into account materiality: on methods for assessing inventories by their groups (types); about the consequences of changes in methods of valuing inventories; on the cost of inventories pledged; on the amount and movement of reserves for reducing the value of material assets. Non-material reporting items may not be disclosed.
2) Mandatory requirements established by law, the reflection of which depends on the presence of certain facts of economic activity.
5. Change in opening balances	Data as of the end of the previous reporting period. Data at the beginning of the reporting period.	PBU 4/99, clause 9	By general rule The opening balances of the accounting accounts at the beginning of the reporting year must correspond to the data that were reflected in last year’s balance sheet in the column “At the end of the reporting period.” If for some reason the opening balances of the reporting period do not correspond to the data at the end of the previous period, then explanations are given for this.
			The reason for changes in opening balances may be changes in the content of reporting and its form, the introduction of new accounting regulations, reorganization of the organization (in the form of affiliation, merger, separation and division)
6. Conventional facts of economic activity	The following information is disclosed for each contingent liability: a brief description of the nature of the obligation and the expected period of its fulfillment; brief description of the uncertainties that exist regarding the deadline for fulfillment and the amount of the obligation. For each provision created in connection with the consequences of a contingent fact, the following information is additionally disclosed: the amount of the reserve at the beginning and end of the reporting period; the amount of the reserve written off in the reporting period in connection with the recognition by the organization of a liability previously recognized as conditional in accordance with clause 11 of PBU 4/99; *unused (excessively accrued) amount of the reserve allocated to other income of the organization in the reporting period.	PBU 8/01, section. 4	Information about contingent facts and reserves formed in connection with the consequences of a contingent fact may be disclosed for groups of homogeneous contingent liabilities or reserves formed in connection with homogeneous contingent facts of economic activity, for example, in connection with issued guarantee obligations of the organization, legal proceedings. Information on the presence and amount of guarantees issued by the organization, obligations arising from bills of exchange discounted (discounted) by the organization, and other similar obligations assumed by the organization, as a rule, is disclosed in the explanatory note to the organization’s financial statements for the reporting period, regardless of the degree of probability of consequences occurring. such facts of economic activity. Information about contingent assets is disclosed in the explanatory note to the organization's financial statements for the reporting period if there is a high or very high probability that the organization will receive them; at the same time, contingent assets are not reflected in the balance sheet for the reporting period, and no entries are made in the synthetic and analytical accounting of the reporting period.
7. Joint activities	The purpose of the joint activity (production of products, performance of work, provision of services, etc.) and contribution to it. A method of obtaining economic benefit or income (joint operations, jointly used assets, joint activities). The value of assets and liabilities related to the joint venture. The amounts of income, expenses, profit or loss attributable to the joint venture. Disclosure of information on jointly used assets. Disclosure of information on joint operations.	PBU 20/03, paragraphs 8, 11, 16, 22, 23, 24	When disclosing information, it is prescribed to use the rules for its isolation established by PBU 12/2000 “Information by segments”. This means that in order to determine whether information is subject to disclosure or not, it is advisable to adhere to the provisions of paragraph 9 of PBU 12/2000. The disclosure of information in the explanatory note on joint activities depends on the form in which it is carried out.
8. Explanations for discontinued activities	Description of the discontinued activity, the value of the assets and liabilities of the organization expected to be disposed of or repaid as part of the discontinued activity. The amounts of income, expenses, gains or losses before taxes, as well as the amount of accrued income taxes attributable to discontinued operations. Movement Money related to discontinued operations, in the context of current, investment and financial activities during the current reporting period.		The amounts of income and expenses, gains or losses, and cash flows related to discontinued operations can be reflected in the Income Statement and the Cash Flow Statement, respectively.
9. Information on segments	As part of the primary information for the reporting segment, the financial statements disclose the following indicators related to the reporting segment: total revenue, including that received from sales to external customers and from transactions with other segments; financial result (profit or loss);		The list of segments for which information is disclosed in the financial statements is established by the organization independently based on its organizational and management structure. The list of reportable segments in the consolidated financial statements is established by the organization entrusted with the preparation of the consolidated financial statements
	total balance sheet amount of assets; total amount of liabilities; total amount of capital investments in fixed assets and intangible assets; total amount of depreciation charges for fixed assets and intangible assets; *cumulative share in the net profit (loss) of dependent and subsidiary companies, joint activities, as well as the total amount of investments in these dependent companies and joint activities
10. Explanations of events after the reporting date	A brief description of the nature of the event after the reporting date. Assessment of the consequences of an event after the reporting date in monetary terms.	PBU 7/98, clause 11	If it is impossible to assess the event, then an explanatory note must explain the reason. An event after the reporting date is considered significant if, without knowledge of it by users of financial statements, it is impossible to reliably assess the financial condition, cash flow or performance of the organization. The significance of an event after the reporting date is determined by the organization independently based on the requirements of the provisions of regulatory acts on accounting.
11. Information on transactions with affiliates	The nature of the relationship with each affiliate. Types of transactions with each affiliate. The volume of each type of transaction in absolute and relative terms for the reporting period and the period preceding the reporting period. Cost indicators for transactions with each affiliate that were not completed at the beginning and end of the reporting period. The methods used to determine prices for each type of transaction with each affiliate.		The list of affiliated entities, information about which is disclosed in the financial statements of the organization, is established independently by the organization preparing the financial statements, based on PBU 11/2000, based on the content of the relationship between the organization and the affiliate, taking into account compliance with the requirement of priority of content over form. Information about affiliates must be presented clearly and completely so that interested users of financial statements understand the nature and content of relationships and transactions with affiliates.
			If an organization or individual controls another organization or the organization is controlled (directly or through third organizations) by the same legal entity or the same individual (the same group of persons), then the nature of the relationship between them is subject to description in the financial statements, regardless of whether place in the reporting period of the transaction between them.
12. Explanations on state aid	The nature and amount of budget funds recognized in accounting in the reporting year. Purpose and amount of budget loans. The nature of other forms of government assistance from which the organization directly receives economic benefits. Conditions for the provision of budget funds and associated contingent liabilities and contingent assets that were not fulfilled as of the reporting date	PBU 13/2000, clause 22
13. Other explanations	Information disclosed: on extraordinary facts of economic activity and their consequences for the reporting period and the period preceding the reporting period about any issued security for the organization’s obligations and payments for the reporting period and the period preceding the reporting period about any received security for the organization’s obligations and payments for the reporting period and the period preceding the reporting one on decisions based on the results of consideration of the annual financial statements and distribution of net profit.	PBU 4/99, clauses 10, 27, Instructions, clause 19

The main purpose of drawing up an explanatory note is to decipher the financial statements. A well-written explanatory note will place inspectors in favor of your company, make it much easier to submit your balance sheet, and reduce the likelihood of an extraordinary tax audit.

Explanations to the balance sheet and financial results statement may consist of two parts - tabular and text. To reflect quantitative data, it is more convenient to use the tabular form given in Appendix No. 3 to Order No. 66n of the Ministry of Finance of Russia dated July 2, 2010.

The numbers of explanations are indicated in column 1 (“Explanations”) of the balance sheet.

If the information presented in tabular form is not enough to fully reveal the picture of the organization’s financial condition (and this is what most often happens), additional explanations are provided in text form.

In the application it is advisable to disclose:

Fixed assets

Section 2 of the notes to the balance sheet and income statement consists of four tables.

2.1. Availability and movement of fixed assets.

2.2. Unfinished capital investments.

2.3. Changes in the value of fixed assets as a result of completion, additional equipment, reconstruction and partial liquidation.

2.4. Other use of fixed assets.

Table 2.1 contains information about availability and company. The data in the columns of the table is reflected separately for fixed assets, separately for profitable investments in material values. The information is provided broken down into groups of fixed assets and income-generating investments, respectively. The data is for the reporting and previous years.

The presence of groups of fixed assets and income-generating investments is reflected in the columns “At the beginning of the year” and “At the end of the period.” The amount of accumulated depreciation must also be entered here.

In the “Changes for the period” column you should enter information about the receipt, disposal, revaluation of groups of objects, as well as the amount of depreciation accrued on them.

Please note: in case of revaluation of objects in the columns “Original cost” the current market price or current (replacement) cost.

EXAMPLE. REFLECTION OF OS AND INCOME INVESTMENTS

Fixed assets

At the beginning of the reporting year, a building and a car used by the administration were listed on the balance sheet of JSC Aktiv.

Their initial cost was respectively 1,000,000 rubles. and 180,000 rubles, and accrued depreciation – 240,000 rubles. and 36,000 rub.

In addition, in the reporting year, Aktiv built a warehouse with an initial cost of RUB 1,300,000.

The amounts of depreciation accrued on existing and acquired assets in the reporting year were:

For a car – 24,000 rubles;

For buildings – 64,000 rubles.

Profitable investments

Let’s assume that the main activity of JSC Aktiv is car rental. At the beginning of the reporting year, the company had 10 rental cars with a total initial cost of 1,000,000 rubles.

The amount of depreciation accrued on them was 250,000 rubles. During the reporting year, it increased by another 200,000 rubles.

In June of the reporting year, Aktiv bought another car worth 180,000 rubles. (excluding VAT). For the year, depreciation was accrued on it in the amount of 18,000 rubles.

The total amount of depreciation accrued for the reporting period was RUB 218,000. (200,000 + 18,000).

Thus, depreciation is accrued in the amount of:

At the beginning of the reporting year - 250,000 rubles;

At the end of the reporting year - 468,000 rubles. (250,000 + 200,000 + 18,000).

The accountant will fill out Table 2.1 as shown on page 34 (to simplify the example, data for last year are not given).

Table 2.2 reflects the cost of unfinished capital investments.

Unfinished capital investments include:

unfinished transactions for acquisition, modernization and other similar actions with fixed assets. The information is provided broken down into groups of fixed assets. Data is entered for the reporting and previous years.

Capital investments are reflected in columns with the breakdown “At the beginning of the year,” “Changes during the period,” and “At the end of the period.”

Let us remind you that in the balance sheet form there is no line to reflect information on unfinished capital investments. Therefore, such information is reflected in line 1170 “Other non-current assets”.

On line 1140, costs for unfinished capital investments cannot be indicated, since they do not meet the requirements according to which the asset is taken into account as an item of fixed assets (clause 4 of PBU 6/01).

Table 2.3 should contain data on changes as a result of completion, additional equipment, reconstruction and partial liquidation.

The rows of the table separately indicate the increase and decrease in the value of fixed assets. An increase can occur as a result of completion, additional equipment and reconstruction, and a decrease can occur due to partial liquidation.

Information about an increase or decrease in value is indicated for each value of which has changed.

The data in the columns of Table 2.3 are for the reporting and previous periods.

Table 2.4 reflects information about other uses of the company's fixed assets. Here, in particular, information about the cost is indicated:

fixed assets that are leased or leased and are listed both on the company’s balance sheet and behind it;
fixed assets transferred for conservation;
real estate that has been put into operation and is actually used, but is under state registration;
others (for example, transferred or received as collateral, but used by the company).

The columns of Table 2.4 indicate their cost:

at the reporting date (column 2);

Accounts receivable and payable

This section details the firm's accounts receivable and accounts payable. It consists of four tables.

5.1. Availability and movement of accounts receivable.

5.2. Overdue accounts receivable.

5.3. Availability and movement of accounts payable.

To fill out the tables, use the data on the settlement accounts:

60 “Settlements with suppliers and contractors”;
62 “Settlements with buyers and customers”;
63 “Provisions for doubtful debts”;
66 “Settlements for short-term loans and borrowings”;
67 “Settlements for long-term loans and borrowings”;
68 “Calculations for taxes and fees”;
69 “Calculations according to social insurance and provision";
70 “Settlements with personnel for wages”;
71 “Settlements with accountable persons”;
73 “Settlements with personnel for other operations”;
75 “Settlements with founders”;
76 “Settlements with various debtors and creditors.”

First, divide all debts according to their repayment periods into short-term (must be paid within the 12 months following the reporting date) and long-term (with a repayment period of more than a year).

When filling out this section of the explanations to the balance sheet and the income statement, in the column “At the beginning of the year”, reflect the balance of the relevant accounts as of January 1 of the reporting year: – debit, for accounts payable – credit.

In the “At the end of the period” column, indicate the balances of receivables and payables as of the end of the reporting year. The column “Changes for the period” reflects the receipt and disposal of debts, as well as the transfer of debt from long-term to short-term.

EXAMPLE. REFLECTION OF INFORMATION ABOUT DEBT

Last year, Aktiv JSC issued an interest-free loan to an employee in the amount of 50,000 rubles. for a period of two years with the condition of lump sum repayment. This operation was reflected in accounting by posting:

Debit 73, subaccount “Long-term accounts receivable” Credit 50
- 50,000 rub. – an interest-free loan was provided.

At the beginning of the reporting year, these receivables were reflected as part of outside current assets balance sheet, and at the end of the reporting year (reporting date) the accountant transferred it to current assets. In analytical accounting, this operation is reflected by the entry:

Debit 73, subaccount “Short-term receivables” Credit 73, subaccount “Long-term receivables”
- 50,000 rub. – transfer from long-term to short-term debt.

In this case, the corresponding fragment of table 5.1 “Assets” will look like this.

The Russian Ministry of Finance recommends not reflecting in Table 5.1 debts received and repaid (written off) in the reporting year. Therefore, include in this table only those receivables and payables that are not repaid at the end of the reporting year. For example, it is not necessary to reflect debit and credit turnover on account 70 “Settlements with personnel for wages”. Therefore, the accountant should focus on the balances as of January 1, 2016, tracking their disposal, and also reflect the receipt of debts that you have as of December 31, 2016.

Table 5.2 reflects information on overdue receivables. Data on debt is indicated by its type. The columns indicate the amount of debt accounted for under the terms of the agreement and the book value.

The book value is the value under the terms of the contract, reduced by the amount created for it.

at the reporting date (column 2);
December 31 of the previous year (column 3);
December 31 of the year preceding the previous one, i.e. the year before last (column 4).

Table 5.3 is intended to reflect data on the availability and movement of accounts payable. It is filled out in the same way as Table 5.1.

Table 5.4 reflects information on overdue accounts payable.

The columns contain the following data:

at the reporting date (column 2);
December 31 of the previous year (column 3);
December 31 of the year preceding the previous one, i.e. the year before last (column 4).

Explanations in text form

It is advisable to include essential information in the text part of the explanations:

about your company;
about her financial situation;
on the comparability of data for the reporting and preceding years;
on valuation methods and significant items of financial statements;
about deviations from the accounting rules, if following them did not allow you to reliably reflect the property status and financial results of your company (clauses 6 and 37 of PBU 4/99);
about changes in the company’s accounting policies for the next reporting year;
about financial activities, for example about the purchase of shares in other enterprises;
about the investment activities of the company, for example, about the development of the material and technical base;
on subsidiaries and dependent companies (Articles 105 and 106 of the Civil Code of the Russian Federation);
about the reorganization of the company;
about events after the reporting date.

Information about the company's activities

In this section you can give:

a brief description of the size and structure of the company;
a brief description of its usual activities;
sales volumes of products, goods, works, services by type and geographic markets;
data on emergency facts of economic activity and their consequences;
information about the organization’s business activity;
resource efficiency indicators, etc.

If possible, present the information over time (over several years). In this case, indicate the factors that influenced the financial results of the company in the reporting year.

The size of a company (scale of business) can be partly judged by the size of its number of employees, the size of its production space and other resources.

Briefly describe the production structure of the organization: its production, workshops, services, as well as branches and representative offices.

When characterizing the company's activities by type, do not skimp on details. Provide information:

on the range and volumes of products produced (work performed, services provided) for the reporting and previous years;
about the directions of its investments;
about plans to expand or change the industry and type structure of the company’s activities.

When disclosing information on sales volumes of products (goods, works and services) by type, provide not only general data, but also information broken down by the main geographic sales areas.

If extraordinary events occurred in the past year, describe them in the explanations. This could be a fire, flood, technological accident, theft of property and other similar situations.

Reflect also economic consequences of these incidents: the amount of direct damage and liquidation costs, the amount of compensation received from the guilty citizens and organizations or from insurance companies, etc.

The business activity of the company is evidenced by the following data:

the presence of contracts for export supplies, indirectly confirming the quality of products (works, services) and the breadth of sales markets;
the presence of well-known clients purchasing the company’s products, works and services;
participation of the company in research and development work, the effectiveness of such activities;
carrying out environmental and other similar activities.

Beneficial Ownership Information

Since the end of last year, the company has had a new responsibility. According to Federal Law No. 215-FZ dated June 23, 2016, all companies are required to keep information about their companies and document the accuracy of this data.

So, in the federal law dated 07.08.2001 No. 115-FZ (hereinafter referred to as Law No. 115-FZ) “On combating the legalization (laundering) of proceeds from crime and the financing of terrorism” added Article 6.1 “Obligations of a legal entity to disclose information about its beneficial owners” , according to which physical and legal entities new rights and responsibilities appeared.

Clause 7 new article It has been established that information about the beneficial owners of a company is disclosed in its financial statements. Therefore, in the financial statements for 2016 you should pay attention to Special attention to disclose information about their beneficial owners.

A beneficial owner is an individual who ultimately directly or indirectly (through third parties) owns (has a predominant participation of more than 25% in the capital) a client - a legal entity or has the ability to control the actions of the client (Article 3 of Law No. 115-FZ) . Unlike Law No. 115-FZ tax code uses the term " interdependent persons».

EXAMPLE. REFLECTION OF INFORMATION ABOUT BENEFICIARIES

I. P. Sidorov owns 51% of shares in Alfa JSC. In turn, Alpha is the owner of 60% of the shares in Gamma JSC. Since I.P. Sidorov does not directly own shares of JSC Gamma, his participation in the capital of this company should be considered indirect. The share of Sidorov’s indirect participation in Gamma JSC will be: 0.51 × 0.6 = 0.306 or 30.6%. Consequently, Sidorov has a predominant participation in the capital (more than 25%) and meets the characteristics of the beneficial owner of Gamma JSC.

1) have information about their beneficial owners and take reasonable and accessible measures in the current circumstances to establish the following information in relation to their beneficial owners:

Full Name;
citizenship;
Date of Birth;
details of the identity document;
data migration card, a document confirming the right of a foreign citizen or stateless person to stay (reside) in the Russian Federation;
address of place of residence (registration) or place of stay;
Taxpayer Identification Number (if available).

If it is impossible to easily determine the beneficiary, then to be on the safe side you need to have evidence confirming that the company has taken measures to identify him.

According to the explanations of Rosfinmonitoring of the Russian Federation, documents confirming the adoption of such measures may be copies of requests to the founders and responses to them:

2) regularly, but at least once a year, update information about their beneficial owners and document the information received;

3) store information about their beneficial owners and about the measures taken to establish them for at least five years from the date of receipt of such information;

4) provide available documented information about their beneficial owners or about measures taken to establish information regarding their beneficial owners at the request of the authorized body, tax authorities or other federal executive body authorized by the Government of the Russian Federation.

For failure to comply with the listed requirements, an administrative fine is established (Article 14.25.1 of the Code of Administrative Offenses of the Russian Federation):