Many Russian enterprises have an obligation to submit accounting reports to the Federal Tax Service. Thus, the interaction of government and business in the Russian Federation, as well as in many other countries, does not end with simple calculations on fees provided for by law. What are the specifics of financial statements that must be submitted to the FTS business? In what cases are companies exempted from the need to send relevant documents to government agencies?
The essence of financial statements
Accounting reporting is a procedure (in some interpretations an obligation), which involves the submission by commercial enterprises to the relevant state bodies of information on activities according to the established forms within the required periodicity. It has a direct connection with accounting (the main indicators of commercial activities are taken from the relevant accounts).
In some cases, the procedure is referred to as “financial reporting”. This term is unofficial. But despite this, the phrase "accounting (financial) reporting" is common. Perhaps this is due to the great importance of relevant documents for business development. They are not a formal statistical representation of numbers. This is information that can be fundamental in terms of assessing the sustainability of a business and the effectiveness of an organization’s management. Data that can reflect the accounting (financial) statements, can be useful not only the FTS. Potential partners of the company, creditors, investors may be interested in acquaintance with them.
In the Russian Federation there are several sources of law that regulate the interaction of businesses and the state in the aspect of the provision of recent financial documents. So, among the key regulatory acts in accordance with which the enterprises of the Russian Federation should provide financial statements - the Regulation adopted by the Order of the Ministry of Finance of the Russian Federation N 43n of July 6, 1999.
The considered obligation is performed, of course, not only by Russian enterprises. Firms from Western countries also provide data to the state bodies of this type, such as financial statements. The Russian Federation is a state in which, at the same time, there is a certain specificity in the attitude of the authorities to sources reflecting the commercial activities of enterprises. In our country, as some economists note, it may be of interest to the checking structures not so much the final figures contained in the reports, as the specifics of their origin. At the same time, Western government agencies to a greater extent check how well the deadlines for the financial statements are met, and also whether the organization has correctly approached the calculation of the required indicators. Of course, the policies of individual territorial structures of the Federal Tax Service may vary in different regions.
Deadlines for reporting
At the same time, financial statements are, first of all, an obligation prescribed by law. The relevant documents should be submitted by the organization to the FTS in general 4 times a year. As of April 1, data is provided for the 1st quarter of the current reporting year, as of July 1 - for the 1st half year, for October 1 - for 9 months. Data reflecting the results of the company for the entire reporting year are compiled as of January 1 of the following year.
Accounting statements are most often represented by a combination of the following key documents:
- reports - on profits and losses, on changes in capital, on movements of funds, as well as on their intended use.
These sources can be supplemented by applications related to the balance sheet, as well as various explanatory notes. In some cases, enterprises also need to prepare audit reports.
The content of the financial statements (as well as the frequency of its submission to the FTS) is affected by the tax regime of the enterprise. Under DOS, when it is assumed that all compulsory fees are paid to the treasury, the firm must maintain full accounting. It is also necessary to provide reports 4 times a year, according to the frequency indicated above.
If the company works on USN, UTII or UAT, then the composition of financial statements will be somewhat simpler. In this case, it is necessary to submit to the FTS only the first document from the list indicated above, as well as a report on profits and losses. It is necessary to send these sources to the department until April 1 of the year that follows the reporting year.
Who does not need to submit accounting reports
Keeping financial statements, as well as accounting, is not necessary for individual entrepreneurs, as well as for small businesses that operate under the simplified tax system and other special tax regimes. However, the relevant organizations are not exempt from some procedures for informing the FTS about their activities - for example, they must issue books of income and expenses that the agency may in some cases request. Based on the respective source of IP, a small business must pay taxes on a quarterly basis.
Practical tips for successful reporting
Accounting reporting is a serious procedure, during which the company is extremely undesirable to make mistakes. You can pay attention to a number of recommendations of experts, reflecting some of the nuances of the practice of submitting relevant documents to the FTS.
So, a rather useful source of information for firms with little experience in the formation of financial statements, experts believe the Accounting Regulations 4/99. With this source you can learn how to correctly fill out the necessary forms, calculate numbers and other information for the submission of documents, which will subsequently be provided to the FTS.
It is recommended to submit reports much earlier than the deadlines - at least a week (if the specificity of the relevant documents allows you to do this - for example, it is quite possible when generating sources that reflect data as of half year or year). Otherwise, you will have to deal with large queues in the FTS from entrepreneurs who have decided to report to the state "on the flag". This recommendation, of course, will not be relevant for firms submitting documents to the FTS electronically. But not all businesses are comfortable using online channels.
Simplified reporting form
Above, we noted that financial statements are a liability that some types of enterprises may not fulfill at all. However, there is another remarkable scheme of interaction between businesses and the state, which is something of an intermediate version between the obligation to provide reports in its entirety and the absence of this necessity by virtue of the law. We are talking about the use of simplified forms, through which information about the company is sent to the FTS. They were introduced relatively recently - in October 2012. But many businesses, for which the preparation of financial statements in the traditional format was for some reason or another tangibly laborious process, with great enthusiasm took the opportunity to interact with the state in a simplified way. What is the specificity of this mechanism?
The essence of the considered state initiative is the approval of simplified forms of the balance sheet, as well as a report reflecting the financial results of the company. Only small enterprises can use them - those that meet the criteria specified in the Federal Law No. 209 of July 24, 2007, as well as in Government Decree No. 556 of July 22, 2008. Firms that are allowed to prepare financial statements for simplified forms, therefore, should have the following characteristics:
- The maximum share of legal entities in the authorized capital is 25%;
- The company employs no more than 100 people (average, for the reporting period);
- Annual revenue - not more than 400 million rubles.
Let us now examine what requirements must be met by the reporting under consideration at the FTS.
Basic reporting requirements
The main source of data for us in this case is PBU 4/99, we have already mentioned it above. We will explore some of its key points.
In accordance with clause 8 of the document in question, the organization’s financial statements must contain indicators of the commercial activities of all its business units.
Apart from the reports that are compiled by the company for the first time, the relevant documents should reflect the information for 2 years - the reporting and the one that precedes it. It may well be that the figures for the previous period will be incomparable with those that include the accounting statements of the organization at the time of drawing up the document. In this case, in accordance with paragraph 10 of the Rules, the first indicators can be adjusted.
Reporting is considered completed as soon as it is signed by the head of the organization. Accounting must, therefore, keep the appropriate copy of the document.
It is useful to consider such an aspect as the permissible degree of detail of reporting. The fact is that in some cases the detailed presentation of all figures in the corresponding documents reflecting business operations is a very laborious process. Therefore, many firms have objective difficulties in observing a strict accounting procedure in terms of the reflection of figures in statutory forms. The legislation of the Russian Federation provides for a number of norms aimed at reducing the complexity of drafting the documents in question.
How can the data granularity in the documents in question be legally reduced (for example, if they are formed by a small business enterprise)? Very simple. For example, such firms can record indicators reflecting the accounting of expenses on only one account - 20. While with a full reporting format, it may be necessary to use data from accounts such as 20, 23, 25, and some others.
Filling out forms: nuances
It will be useful to consider some expert advice relating directly to fill forms of financial statements. Due to the fact that the standard format of providing the relevant data can be very large and not very convenient to display in our article, we will examine the key principles of any figures in certain paragraphs of the documents on the example of simplified reporting forms.
So, the procedure in question involves the submission to the FTS of the following key documents:
- Profit and loss account.
Regarding the first source - it is necessary to reflect the financial position of the company on the state as per the statutory date. Since in a simplified format it is enough to hand over the relevant documents once a year, it is December 31. If the accounting statement for the year is submitted to the company not for the first time, then it is also necessary to record the figures for previous periods. Similarly, as of December 31.
As we noted above, with a simplified format for providing information to the FTS, the detailing of numbers may be less than with the standard scheme. So, in particular, in the “Asset” section of the balance sheet it is supposed to fill in only 5 lines. Since there are not many of them, consider the features of working with each of them.
Simplified form of balance: asset
The first line is “Tangible non-current assets”. Here it is necessary to fix the value of fixed assets (from which depreciation indicators have been deducted), as well as incomplete investments in them.
The next line is “Intangible Assets”. Here you also need to specify their cost (and deduct, as in the first case, depreciation), reflect the incomplete investments in them. Long-term investments, deferred assets, research results, etc. can also be recorded here. Note that small businesses can take into account investments based on their initial value. Deferred assets of this type of enterprise may not be considered.
In the line "Stocks" you need to reflect the corresponding reserves for raw materials, materials used, as well as finished products.
The most important item that includes the annual financial statements in the structure of the corresponding balance sheet, including the one that is provided in a simplified form - “Cash and Equivalents”. Here not only capital is fixed, but also highly liquid reserves not subject to price volatility, which can be converted into standard currency.
The line “Financial and other assets” should contain short-term investments (which are in circulation not more than 12 months after the date of the report or a specific operating cycle), “receivables” and other current assets that are not presented in other sections of the balance sheet. The Ministry of Finance of the Russian Federation recommends deducting VAT from the “receivables”, which can be issued as a deduction - if the company pays for goods and services in advance.
We now examine how the annual financial statements are filled in the form of an appropriate balance in terms of liabilities.
Simplified form of balance: liability
The structure of this part of the document, as in the case of an asset, does not imply a pronounced detail of numbers. Consider the lines provided by the form in question.
The first line is “Capital and Reserves”. Here it is necessary to fix the figures for the authorized, additional, or, respectively, reserve capital. The same line reflects the indicators for retained earnings (in some cases - uncovered loss).
The next line of the simplified form is “Long-term borrowed funds”. It should be noted that the relevant data should be shown together with interest (with a maturity of more than 12 months as of the reporting date).
The line “Other long-term liabilities” records numbers reflecting legal relations that are not in the category of credit. Moreover, their term must also be more than 12 months.
In the “Short-term borrowed funds” line, indicators on loans are recorded - also with interest that the firm must repay in less than 12 months (as of the reporting date).
The line “Accounts payable” reflects the figures for short-term debts to the company's partners, employees, and the state. The data is recorded if the maturity of the relevant obligations does not exceed 12 months as of the reporting date, and if it fits into the structure of the operating cycle, which, in turn, may be longer than 12 months.
In the next line, it is necessary to note other short-term liabilities not classified under other sections of the liabilities side of the balance sheet. The key criterion is the same - the repayment period does not exceed 12 months - adjusted for the specifics of the operating cycle. It is recommended to reflect accounts payable minus VAT, which must be paid to the state - provided that the firm received an advance payment for the supply of goods or services.
These are the recommendations of experts regarding the filling of the balance sheet. But that is not all. Another important source that includes financial statements is a document reflecting the financial performance of the organization. Consider the specifics of its preparation.
As in the case of the balance sheet, the document in question is fixed for the year. Sometimes it is also referred to as a profit and loss statement. It is recommended, however, to call it differently when it comes to providing financial statements for the year.
Its simplified form consists of 7 lines. Consider the specifics of their filling.
The “Revenue” line records revenues that the company received as a result of its core business - net of VAT, as well as excise payments. It should not, however, reduce the corresponding figure by the amount of export duties transferred to the state at customs.
The line “Expenses for ordinary activities” implies the inclusion of all costs related to the key activities of the company. There is no need to subdivide them into those that reflect cost, commercial transactions, management expenses.
The line “Interest payable” should reflect the data on the relevant parameters of loans, not including those that should be included in the structure of investment assets. Note that small enterprises (except for those issuing public stocks) may classify expenses related to loans to the category of others.
The line “Other incomes” records revenue, which can be obtained, for example, at the expense of rent.
The line “Other expenses” may reflect figures related, in particular, to the write-off of fixed assets.
The “Taxes on Profit” line records the amount of the current collection of the corresponding type.
The indicator “net profit” (or loss) is entered including the deduction of necessary taxes.
So, we have studied the main nuances concerning such a procedure as the provision of accounting statements by Russian enterprises. The legislation of the Russian Federation establishes, on the one hand, sufficiently strict criteria that imply the obligations of firms to form the relevant documents. On the other hand, accounting (accounting) accounting is not necessary for a number of organizations. There is, however, a compromise version of the provision of relevant documents to the FTS under simplified forms.