Each company has current and non-current assets. Unlike current, i.e., the funds involved in the turnover, from which the company's products are made, non-current assets contribute to the release process, or completely provide it. For example, a product is produced on a machine with software, which is located in the workshop, which, in turn, is located in the building of the factory building. All of them - the program, and the machine, and the workshop, and the building of the plant - are non-current assets and make it possible to manufacture products. Let's talk about them in more detail.

The concept of non-current assets

So, non-current assets of an enterprise are property that ensures the production process for a long time, or is used to generate income. The service life of these assets is more than 1 year, and they are represented by a very diverse composition of property. All of them are grouped in the first section of the asset balance. Let us briefly characterize each category of assets, united by the definition of non-current and occupying a certain balance line.

Structure of non-current assets

Such property includes:

• Page 1110 Intangible assets (IA), i.e. intangible property (for example, software products, trademarks, company reputation, etc.);
• Page 1150 Fixed assets (OS) - buildings, premises, equipment, machine tools, vehicles, etc.;
• Page 1160 Profitable investments (IR) in valuables - fixed assets provided for rent, leasing, rented out for the purpose of generating income;
• Page 1170 Financial investments (FI) - investments in shares, securities, authorized capitals of third-party companies, involving the receipt of dividends in the future;
• Page 1180 Deferred tax assets (DTA) - the proportion of deferred income tax (ITT), which will subsequently reduce the NIT;
• Page 1190 Other assets with signs of non-current.

Classification of non-current assets

Assets are classified according to:

• functional accessories. For example, OS, as means of labor, are used repeatedly, gradually transferring their own value into the product produced;
• activities that use:
  • operating room, i.e. directly in the main production;
  • investment, i.e. formed as a result of the investment process;
  • non-production, i.e. used to meet the social needs of the staff;
• the nature of ownership - own or leased.

Features of operating non-current assets

Representing the greatest interest to economic entities, operating non-current assets in the production process are characterized by the following qualities:

• they are practically not subject to inflation, that is, they are protected from its influence;
• have minimal risk of commercial losses;
• consistently provide a profit;
• make it possible to expand the volume of production at the expense of the created reserves when the market situation rises.

Along with these properties, they also have disadvantages, expressed in such manifestations:

• managing non-current assets is a difficult process, since they do not change structurally, and a drop in demand for a manufactured product can provoke a decrease in the life of the fixed asset if production is not repurposed in time;
• subject to obsolescence, especially during the period of rapid development of new technologies;
• are considered low-liquid property, since it cannot be quickly sold to serve as a means of payment.

What are non-current assets in accounting

Accounting accurately reflects information about these assets, accumulating information in the financial statements. The accounting unit for fixed assets and intangible assets is an inventory object. For example, an OS object is recognized as a separate or complete item with the necessary devices, designed for certain functions or performance of work. The object of intangible assets is the right to own the subject of intellectual property.

To summarize accounting information about fixed assets, account 01 is used. Property acquired for rent or rental, that is, used as income-generating investments, is accounted for on account 03. Information about intangible assets is generated on account 04. An analytical accounting, which provides the possibility of obtaining operational information about the presence and movement of these assets.

All incoming fixed assets and intangible assets are accepted for accounting at their original cost, depending on the method of acquisition. Accounting entries:

Operations
Purchase
Purchased an asset from a supplier
VAT on the acquired asset
Bill payment
Commissioning
VAT credited
Production of OS in a household way
Combining the cost of manufacturing an object		10, 70, 69, 76, 02
Acceptance for accounting
Contribution to the authorized capital
Announced UK
The investment of fixed assets in the composition of the management company is reflected
Commissioning
Free receipt
Object received free of charge
Delivery costs are included in the price of the object
The object is taken into account

Fixed assets and intangible assets wear out during operation and transfer their value to the finished product by accruing depreciation. The company chooses the methods of its accrual on its own and fixes it in the accounting policy. Depreciation is not charged for nature management objects, land plots, museum collections and objects.

The amounts of accrued depreciation for fixed assets and intangible assets are accumulated on separate accounts:

• for fixed assets on account 02;
• intangible assets on account 05.

Postings: D / t 20, 23, 25, 26, 29 - K / t 02, 05

Accounting for non-current assets – the main base for analyzing the state of the enterprise. For example, an increase in non-current assets indicates an increase in production capacity and investment injections, which is considered a positive indicator that can generate income in the future. But the decrease in non-current assets speaks of the decline in business in the company and the decrease in liquidity. Therefore, the company does not yet have to count on profit, on the contrary, considerable investments may be required.

Adjusted non-current assets: formula

Analyzing the state of the company, the economist calculates a number of values ​​for various indicators, including calculating adjusted non-current assets. To calculate the adjusted indicator, the values ​​​​as of the reporting date are summed up:

• Intangible assets minus the indicator of business reputation;
• fixed assets minus capital expenditures spent on leased fixed assets;
• Capital investments in work in progress (except for the cost of leased fixed assets);
• The value of the DV on the balance sheet;
• Long-term financial investments according to the balance sheet;
• Indicator of other assets equated to non-current assets.

If there are no leased objects in the company, then you can calculate the adjusted non-current assets in the balance sheet by adding the lines: line 1110 + line 1150 + line 1160 + line 1170 + line 1190.

The essence of the calculation is to isolate the value of assets operating in the enterprise, without taking into account the costs aimed at maintaining not own, but leased fixed assets and the value of business reputation.

Diagnostics aims to identify and highlight the most significant problems in the production, economic and financial activities of the organization, to establish the causes of their occurrence. To carry out the analysis, financial indicators calculated on the basis of the main forms of financial statements are used.

Most methods for diagnosing the financial condition of organizations are based on calculations and analysis of various financial and economic ratios.

1. The main indicators of the financial and economic activities of the debtor:

- total assets (liabilities)- balance of assets (liabilities);

- adjusted non-current assets- the sum of the value of intangible assets (excluding organizational expenses), fixed assets (excluding capital costs for leased fixed assets), capital investments in progress (without capital expenditures in progress for leased fixed assets), profitable investments in tangible assets, long-term financial investments, other non-current assets ;

- current assets- the sum of the cost of inventories (excluding the value of shipped goods), long-term receivables, liquid assets, value added tax on acquired valuables, founders' debts on contributions to the authorized capital, own shares bought back from shareholders;

- long-term receivables- accounts receivable, payments on which are expected more than 12 months after the reporting date;

- liquid assets- the sum of the cost of the most liquid current assets, short-term receivables, other current assets;

- short-term receivables- the amount of the value of the shipped goods, accounts receivable, payments for which are expected within 12 months after the reporting date (without the debt of the founders on contributions to the authorized capital);

- potential current assets to return- the amount of receivables written off at a loss and the amount of guarantees and guarantees issued;

- own funds- the amount of capital and reserves, deferred income, reserves for future expenses minus capital expenditures on leased property, debts of shareholders on contributions to the authorized capital and the value of own shares redeemed from shareholders;

- debtor's obligations- the amount of current and long-term obligations of the debtor;

- debtor's long-term obligations- the amount of loans and credits due to be repaid more than 12 months after the reporting date, and other long-term liabilities;

- debtor's current obligations- the amount of loans and credits to be repaid within 12 months after the reporting date, accounts payable, debts to the founders for the payment of income and other short-term liabilities;

- net revenue- proceeds from the sale of goods, works, services, net of VAT, excises and other similar obligatory payments;

- gross proceeds- proceeds from the sale of goods, works, services without deductions;

- average monthly revenue- the ratio of the amount of gross proceeds received for a certain period, both in cash and in the form of offsets, to the number of months in the period;

- Net income (loss)- net undistributed profit (loss) of the reporting period, remaining after paying income tax and other similar obligatory payments.

2. Coefficients characterizing the solvency of the debtor:

- absolute liquidity ratio- shows what part of short-term liabilities can be repaid immediately, and is calculated as the ratio of the most liquid current assets to the debtor's current liabilities;

- current ratio- characterizes the security of the organization with working capital for doing business and the timeliness of repayment of obligations and is defined as the ratio of liquid assets to the current obligations of the debtor;

- indicator of the security of the debtor's obligations with its assets- characterizes the value of the debtor's assets per unit of debt, and is defined as the ratio of the sum of liquid and adjusted non-current assets to the debtor's liabilities;

- degree of solvency on current obligations- determines the current solvency of the organization, the volume of its short-term borrowed funds and the period of possible repayment by the organization of the current debt to creditors at the expense of proceeds and is calculated as the ratio of the debtor's current liabilities to the average monthly proceeds.

3. Coefficients characterizing the financial stability of the debtor:

- coefficient of autonomy (financial independence)- shows the share of the debtor's assets, which are secured by own funds, and is defined as the ratio of own funds to total assets;

- working capital ratio(share of own working capital in current assets) - determines the degree of provision of the organization with own working capital necessary for its financial stability, and is calculated as the ratio of the difference between own funds and adjusted non-current assets to the value of current assets;

- share of overdue accounts payable in liabilities- characterizes the presence of overdue accounts payable and its share in the total liabilities of the organization and is determined as a percentage as the ratio of overdue accounts payable to total liabilities;

- ratio of receivables to total assets- is defined as the ratio of the amount of long-term receivables, short-term receivables and potential current assets subject to return to the total assets of the organization.

4. Coefficients characterizing the business activity of the debtor:

- return on assets- shows the degree of efficiency in the use of the organization's property, the professional qualifications of the enterprise's management and is determined as a percentage as the ratio of net profit (loss) to the total assets of the organization;

- net profit margin- characterizes the level of profitability of the economic activity of the organization and is determined as a percentage as the ratio of net profit to revenue (net).

Depending on the rate at which assets are converted into cash, they are divided into the following 4 groups.

1. The most liquid assets(A1) includes cash and short-term financial investments in securities on the stock exchange, deposits.

2. Marketable assets (A2) are defined as the sum of Accounts Receivable (payments on which are expected within 12 months) + Goods shipped + Loans provided to other enterprises.

3. Slow selling assets (A3) are determined by the formula:

Inventory - Goods shipped + Accounts receivable (payments due in more than 12 months) + Other current assets + Long-term financial investments.

4. Difficult-to-sell assets(A4) are determined by the formula:

The result for the non-current assets section (A4) - Long-term financial investments + Value added tax on acquired valuables.

The assets of the organization consist of two heterogeneous parts: current and non-current. Non-current assets are assets with a useful life of more than one year. In the practice of financial analysis of an economic entity, the concept of adjusted non-current assets (ACHA) is used. The adjustment takes place for a number of indicators of non-current assets by excluding them from the total amount. Adjusted non-current assets are used in the calculation of key relative indicators of the firm's economic stability.

What are Adjusted Non-Current Assets

Non-current assets operated for economic benefit in the organization for more than a year include:

• research and development, according to the final result of the latter;
• financial investments with the expected economic effect within a period of more than a year;
• other assets that have signs of non-current assets.

SVNA is:

• Intangible assets without business reputation and organizational costs;
• OS without capital investments for OS rental;
• other assets with a long-term period of use.

Based on the given data, the key differences in the calculation of the two indicators and the data excluded from non-current assets when calculating the CBHA are easily determined.

The methodology for determining CBNA, based on the balance sheet of the organization, uses the following values:

• intangible assets as of the reporting date, less the value of goodwill;
• fixed assets, minus capital expenditures made on the leased part of these funds;
• capital investments in progress, net of amounts related to the lease of fixed assets;
• the amount of profitable investments in material assets, as indicated in the balance sheet;
• the amount of financial investments of a long-term nature, as indicated in the balance sheet;
• the amount of other non-current assets, as shown in the balance sheet.

It is enshrined in government Decree No. 367 dated June 25, 03. This is a document intended for arbitration managers, it is a detailed set of rules according to which responsible persons are required to conduct a financial analysis of an economic entity.

It is convenient to represent the composition of CBHA in the form of a formula, according to the lines of the balance sheet: CBHA = With. 1110 + p. 1150 + p. 1160 + p. 1170 + p. 1190.

Data for:

• capital expenditures for lease of fixed assets;
• unfinished cap. investments;
• unfinished capital expenditures for the lease of fixed assets;
• business reputation of the firm;
• organizational expenses

can be found in the income statement and in the explanatory notes to the balance sheet - forms as part of the financial statements.

On a note. At present, explanations to the balance sheet are not mandatory, but only a reporting form recommended for filling. Rented in the form of a table, according to pr. 66 of 02-07-10, published by the Ministry of Finance.

How adjusted non-current assets are calculated

Suppose conditionally in the financial statements there are the following data at the reporting date of the end of the year:

NMA (p. 1110) - 55,000 rubles, OS (p. 1150) - 930,000 rubles;

• profitable investments in the MC (p. 1160) - 42,000 rubles;
• fin. investments (p. 1170) - 88,000 rubles;
• other VNA (equipment requiring installation, p. 1190) - 110,000 rubles.

In addition, it is known from the profit and loss statement that:

• business reputation of the company - 31,000 rubles;
• costs for leased fixed assets - 15,000 rubles;
• incomplete investments of a capital nature - 77,500 rubles;
• similar unfinished investments in the lease of fixed assets - 5200 rubles.

Calculation of CBHA indicators:

• NMA. 55000 - 31000 \u003d 24000 rubles;
• OS. 930000 - 15000 = 78000 rubles;
• Unfinished investments. 77500 - 5200 = 72300 rubles;
• Profitable investments in the MC, in full. 42,000 rubles;
• Financial investments are long-term, completely. 88,000 rubles;
• Equipment as other VNA, completely. 110000 rub.

CBNA \u003d 24000 + 78000 + 72300 + 42000 + 88000 + 110000 \u003d 414300 rubles.

When conducting an analysis of the financial condition, as a rule, indicators are calculated for the previous 3 years, and, if necessary, for a longer period.

On a note. Regulatory documents provide for an analysis not less than 2 years before the bankruptcy of an economic entity. The rules (order 367) recommend the calculation of quarterly indicators of the financial and economic condition and for the period of bankruptcy proceedings, in dynamics.

The results are presented in the form of tables for ease of perception and subsequent calculations of the coefficients characterizing the economy of the object of study.

Application of the indicator when calculating coefficients

Decree No. 367, mentioned above, is a practical guide to action for arbitration managers. The manager, one of whose duties is to carry out analytical work aimed at assessing the real financial condition of the bankrupt, the prospects for repayment of his debts, uses the CBHA indicator by itself, as well as as part of the calculations.

According to the Rules, several economic coefficients are calculated on the basis of CBNA:

1. An indicator of the provision of an economic entity with its assets. It is included in the group of coefficients characterizing the level of solvency of the organization.
   This is the amount of assets per unit of debt, determined by the ratio of the amount of liquid assets and CBNA to liabilities.
2. The indicator of the provision of an economic entity with its own working capital, or the share of these funds in the sum of all current assets. It is included in the group of coefficients that determine the financial stability of the organization. This is the result of the difference between own funds and CBHA, in relation to the volume of current assets.

The main thing

1. Adjusted Non-Current Assets (ACHA) are non-current assets from which some amounts have been excluded.
2. The data for calculating the CBHA are taken from the balance sheet, as well as a number of account data decoding it.
3. Calculation of SVNA is necessary during the process of bankruptcy of the organization. The data is used by arbitration managers for the purpose of an objective assessment of the debtor's solvency.
4. The obtained data are used by themselves and as part of a number of economic coefficients.

In order for the financial analysis ratios to accurately reflect the state of the company, it may be necessary to adjust the financial statements. This applies primarily to companies that take into account the property received under a leasing agreement on an off-balance sheet account or have long-term receivables. We will review the purpose and nature of the required adjustments. The material will be useful to those who are interested in international financial reporting standards.

Ratio analysis makes it possible to obtain important characteristics of the company's financial condition, including:

• performance efficiency - the result of activity in the form of net profit is compared with the assets involved in obtaining this result:

Return on Assets = Net Income / Total Assets;

• the company's ability to meet short-term obligations. To do this, the amount of short-term liabilities is compared with the amount of resources that can be used to pay them off:

Total liquidity ratio = ;

• endowment with own funds - the share of assets financed from equity:

Financial Strength Ratio = Equity / Total Assets.

In order for financial ratios to reflect the real state of affairs, it is necessary:

• know the value of all assets involved in the business;
• to have correct information about their structure, in particular, to understand what part of the assets is capable of bringing economic benefits in the short term, that is, it represents current assets.

Russian accounting rules make it possible to reflect objects received under a financial lease (leasing) agreement off the balance sheet, to include in the composition of current assets some elements that are not such in economic essence - they do not provide economic benefits in the short term. This concerns, first of all, receivables with a maturity of more than 12 months, software, the exclusive rights to which do not belong to the organization, and some other expenses reflected in the deferred expense account. The coefficients calculated according to the data of such a balance are distorted.

Major adjustments

To assess the value of the total assets involved in the business, and an objective assessment of the company's profitability, it makes sense:

1. Include in non-current assets property received under financial lease agreements (financial leasing) and accounted for on an off-balance sheet account. An adjustment to liabilities and financial results (profits) associated with these contracts will also be required.

The procedure for the necessary calculations is presented below (see also Tables 3 and 6).

This adjustment is in line with economic logic and the requirements of International Financial Reporting Standards. IFRS (IAS) 17 "Lease" obliges to recognize property received under financial lease agreements (financial leasing) on ​​the lessee's (lessee's) balance sheet along with its own fixed assets.

The lessor is required to recognize the disposal of property transferred under a finance lease. The position of the standard on this issue is unambiguous and cannot be changed by agreement or otherwise; recognition of property in an off-balance account is not allowed.

The fact that the lessee does not have ownership of the asset during the term of the finance lease cannot prevent it from being recognized on the balance sheet. The basic principles of IFRS stipulate that a company recognizes in its balance sheet assets that it controls and uses to obtain economic benefits, regardless of ownership.

It makes sense to classify assets into non-current or current, focusing on the definitions accepted in international practice: an asset is short-term (current) if it is realized, sold, used within 12 months from the reporting date or the company's normal operating cycle.

2. To determine the amount of assets that in the short term are able to bring economic benefits to the company, and to obtain the correct value of the liquidity ratio, — exclude from current assets and transfer to non-current assets:

• receivables with a maturity of more than 12 months. from the reporting date;
• the cost of the software, the exclusive rights to which remained with the seller, the costs under the construction contract associated with the forthcoming work, and similar costs recognized on account 97 “Deferred expenses”.

Detailed comments are presented in Table. one.

IFRS obliges to reflect accounts receivable with a maturity of more than 12 months. included in non-current assets. We will see such a line in the statements of large Russian issuers, compiled according to international standards and posted on the official websites of companies (for example, OAO Gazprom).

The software, the rights to which remain with the seller, includes accounting programs, electronic services, regulatory frameworks, anti-virus protection programs and similar software. It is logical to recognize any software products, as well as rights and licenses for certain types of activities, as part of intangible assets - they ensure the operation of the company, but are not directly involved in the production process. This requirement is established in IAS 38 (IAS) “Intangible Assets”, which introduces neither legal nor cost restrictions for classifying software products, rights and licenses as intangible assets.

3. Exclude from the composition of assets illiquid reserves (which in the foreseeable future will not be used in the company's activities or will not be sold), bad or doubtful receivables, that is, "clear" the balance of illiquid assets. This will affect all financial indicators.

The amount by which the assets of the balance sheet will decrease must be deducted from the capital in liabilities.

A decrease in capital (section "Capital and reserves", equity) due to the exclusion of illiquid assets will balance the balance - it will ensure the equality of assets and liabilities. Its economic meaning is lost income.

Table 1

Information for adjusting current assets of the balance sheet

Adjustment element	The source of information	Balance line from which values ​​are excluded	Balance line in which values ​​are included
	Appendix to the balance sheet 5.1 "The presence and movement of receivables"		Enter a separate line in section I "Non-current assets"
The cost of the software, the exclusive rights to which remained with the seller, the costs under the construction contract associated with the forthcoming work, and similar costs recognized on account 97 “Deferred expenses”.	Appendix to the balance sheet "Explanation of individual indicators of the balance sheet, line 1260", account information 97 "Deferred expenses"	Line 1260 "Other current assets" (PO), line 1210 "Stocks (other)"	Enter a separate line in section I or add to line 1190 "Other non-current assets". The cost of software can be added to intangible assets.
Illiquid stocks. Uncollectible receivables	Expert assessment of the company's specialists, management information	Line 1210 "Stocks". Line 1230 "Accounts receivable"	Reduce "Capital and reserves" in line 1370 "Retained earnings" or show in a separate line with negative values
Adjust totals by balance sheet sections

Amendments to reporting or calculation formulas

You can prepare adjusted reports, but you can make adjustments directly to the calculation formulas, for example:

General liquidity ratio \u003d (Current assets - DZ 12 - RBP extra - Nel OA) / Short-term liabilities,

where DZ 12 - receivables with a maturity of more than 12 months. from the reporting date, den. units .;

RBP vneob - the amount of deferred expenses that it is advisable to transfer to non-current assets, including the cost of software, the exclusive rights to which remained with the seller, etc., den. units;

Nel OA - the cost of illiquid current assets, den. units

Note

The amendments make sense if the components under discussion (accounts receivable with a maturity of 12 months, illiquid assets) are material in magnitude. Each company sets its own criteria for materiality. For example, it can be equal to 10% (or more) of the asset value.

An example of making the adjustments listed above is presented in Table 6.

Amendments related to the off-balance sheet accounting of property received under financial lease agreements (financial leasing) also make sense if their value is significant in relation to the total amount of the company's assets. Information on the value of the leased property can be found in the contracts, as well as in the appendix to the balance sheet 2.4 “Other use of fixed assets”. In the example (Table 2), the value of the leased and off-balance-sheet facilities is significant - comparable to the value of the total assets of the balance sheet. Thus, the amount of assets involved in the work of the company is noticeably higher than shown in the balance sheet. The figures calculated without adjusting the financial statements would be materially distorted.

table 2

Extract from the financial statements of OJSC AK Transaero (reporting in the public domain)

Algorithm for adjusting the reporting of the lessee (lessee), taking into account fixed assets received under financial lease (financial leasing) agreements, off the balance sheet

Consider a methodology that meets the requirements of IFRS 17 “Leases”, as well as the economic essence of a financial lease transaction (financial leasing) - the acquisition of an asset at market value with full financing of the purchase through a loan from the lessor. In terms of economic content, leasing payments are the payment of a loan and interest on it.

Calculations require information on the schedule of lease payments (taking into account the cost of the asset upon redemption), more precisely, on the amounts recognized as expenses in accounting, since in certain periods, lease payments differ from the amounts recognized as expenses in the income statement. The advance payment under the contract is included in the costs (credited) not at a time when paying, but throughout the entire duration of the contract.

For example, under a leasing agreement for a period of 36 months. the lessee pays an advance payment of 800 thousand rubles, while the costs are not recognized in his income statement. Further, regular payments are paid under the contract, for example, 60 thousand rubles each. per month, but expenses in the amount of 82 thousand rubles are recognized in the income statement. (60 + 80 / 36). This amount will be indicated in the invoices issued by the lessor, which are the basis for the recognition of expenses in the financial statements.

Note

The amounts of the advance payment are not necessarily distributed evenly - it is necessary to study the schedule of lease payments under the contract.

Let's consider the adjustment algorithm using an example, combining methodological explanations with specific calculations.

Example

In October 2013, the company entered into a financial leasing (financial lease) agreement for equipment for a period of 36 months.

The total amount of payments under the agreement is 240,720 thousand rubles. with VAT (204,000 thousand rubles without VAT). At the end of the contract, the company transfers ownership of the leased object.

The cost of acquiring equipment by the lessor (the market value of acquiring assets) is 186,440 thousand rubles. with VAT (158,000 thousand rubles without VAT).

The actual transfer of assets to the lessee occurred in January 2014.

Prior to the actual receipt of assets, an advance payment of 55,342 thousand rubles was paid to the lessor. with VAT (46,900 thousand rubles without VAT).

The terms of the contract are presented in Table. 3.

The reporting of a lessee that recognizes property received under a financial leasing agreement (hereinafter referred to as leasing) on ​​an off-balance sheet account is adjusted as follows:

Step 1. We recognize the asset and liabilities under the lease agreement.

At the time of actual receipt of the object, the lessee must recognize in its balance sheet an asset and a liability of the same amount, equal to the cost of acquiring this asset by the lessor (excluding VAT) . The cost of acquiring the asset by the lessor can be found in the lease agreement or its appendices.

This gives rise to the cost of the asset and the liability under the contract. The resulting liability represents the principal debt on a loan taken from the lessor.

Calculation

The cost of acquiring assets by the lessor is 158,000 thousand rubles. excluding VAT - the initial cost of assets and liabilities under the leasing agreement (pages 4 and 8 of Table 3, date - 01/01/2014).

The total lease payments under the agreement (204,000 thousand rubles) consist of:

1) the main loan debt - 158,000 thousand rubles;

2) interest expenses - 46,000 thousand rubles. (204,000 thousand rubles - 158,000 thousand rubles).

Note!

The value of an asset is recognized not as equal to the amount of lease payments under the agreement (as is often the case in Russian practice when accounting for a leased asset on the balance sheet of the lessee), but to its initial purchase price (market price). This approach is economically justified: financial leasing, in fact, is the purchase of an asset on credit from the lessor, and when an asset is purchased on credit, its value is recognized in the balance sheet at the market price of the acquisition, excluding interest.

Step 2. Calculate depreciation.

From the date of commissioning, the leased asset is depreciated over its useful life. The useful life is determined by the company, for example, using the classifier of fixed assets.

In each reporting period, depreciation is included in the income statement expenses, and the residual value of the asset in the balance sheet is also reduced by its amount.

Calculation

The remaining life of the assets is 5 years. This corresponds to a depreciation rate of 20%.

Annual depreciation — 31,600 thousand rubles. (158,000 × 20%) - must be included in the income statement and reduce the residual value of assets in the balance sheet (pp. 5, 123 and 4 of Table 3).

Step 3. We determine the cost of the loan implied in the lease (leasing) agreement.

The cost of a loan is calculated as the internal rate of return ( IRR) at which the discounted lease expense under the contract is equal to the cost of the asset recognized in step 1. This task is easily solved using Excel, manual calculation is difficult.

Note

You can download the calculation file thanks to our Form Service service.

Calculation

Cost of credit implied in the contract = 15.998%. We check:

87 100 / (1 + 0,15998) 1 + 78 200 / (1+0,15998) 2 + 38 700 / (1 + 0,1599) 3 = 158 000,

where the values ​​in the numerator are the data from page 3 of the table. 3;

degree 1, 2, 3 - number of the year from the beginning of the contract

Step 4 We divide the lease payments of each period into economic components - interest expenses and the repayable principal on the loan.

The interest expense of each period is determined as the product of the liability under the lease agreement at the previous reporting date and the cost of the loan determined in the previous step. The repayable principal of each period is calculated as the lease payment minus interest expense.

In each reporting period, interest expenses are included in the income statement, and the repayable principal is deducted from the balance of the liability in the balance sheet. With a correct calculation, at the end of the contract, the balance of the obligation should become equal to zero.

Calculation(lines 6, 7, 8 of Table 3)

1 year from the start of the contract

Leasing payments RUB 87,100 thousand include:

• interest expenses: 158,000 × 15.998% = 25,277 thousand rubles;
• repayable principal debt: 87,100 - 25,277 = 61,823 thousand rubles.

The balance of the obligation at the end of 1 year: 158,000 - 61,823 = 96,177 thousand rubles.

2 years from the start of the contract

Leasing payments RUB 78,200 thousand include:

• interest expenses: 96,177 × 15.998% = 15,386 thousand rubles;
• repayable principal debt: 78,200 - 15,386 = 62,814 thousand rubles.

The balance of the obligation at the end of 2 years: 96,177 - 62,814 = 33,363 thousand rubles.

3 years from the start of the contract

Leasing payments 38,700 thousand rubles. include:

• interest expenses: 33,363 × 15.998% = 5,337 thousand rubles;
• repayable principal debt: 38,700 - 5,337 = 33,363 thousand rubles.

The balance of the obligation at the end of 3 years: 33,363 - 33,363 = 0 thousand rubles.

Step 5 We divide the liability into short-term and long-term components.

The leasing contract is concluded, as a rule, for a period of more than a year. At the same time, in each reporting period, a part of the obligation is repaid at the expense of leasing payments. The total liability to the lessor should be reflected in the balance sheet with a division into short-term and long-term components. The division is not difficult to make: the short-term component is equal to the sum of the repayable principal debt in lease payments for the next 12 months. from the reporting date.

Calculation

As of January 1, 2014, the total liability is 158,000 thousand rubles. We include it in the balance of two components:

• short-term liability (repayable principal as part of lease payments for the upcoming 2014) — RUB 61,823 thousand;
• long-term liability: 158,000 - 61,823 = 96,177 thousand rubles.

As of December 31, 2014, the balance of the total liability is 96,177 thousand rubles. We include it in the balance sheet:

• short-term liability (repayable principal as part of lease payments for the upcoming 2015) - 62,814 thousand rubles;
• long-term liability: 96,177 - 62,814 = 33,363 thousand rubles.

Step 6. We exclude from the statement of financial results leasing expenses recognized in accordance with RAS.

Calculation

As a result of the exclusion of leasing expenses from the report (line 14 of Table 3), a cumulative adjustment of net profit occurs (line 15 of Table 3).

Step 7. We adjust equity.

The inclusion of an asset and a liability under a lease agreement in the balance sheet will lead to a violation of the equality of assets and liabilities. To restore the balance at each reporting date, it is necessary to adjust equity by an amount equal to (the value of the asset included in the balance sheet - the balance of the total liability).

Calculation

The result of the calculation is in page 11 of the table. 3.

If the calculation is correct, the adjustments to equity will match the cumulative adjustments to net income accumulated from contract inception to the reporting date in question.

In our example, at the end of 2014, the equity adjustment of 30,223 is the same as the cumulative net income adjustment for the previous year. As of the end of 2015, the capital adjustment was RUB 61,437 thousand. coincides with the amount of adjustments to net profit for the past two years (30,223 thousand rubles + 31,214 thousand rubles). At the end of 2016, the equity adjustment is equal to the sum of net income adjustments for all three years, which confirms the correctness of the calculations made.

Table 3

Initial data and calculations under the financial leasing agreement required to adjust the lessee's reporting

No. p / p	Indicators, thousand rubles	Reporting dates					Total
		31.12.2013	01.01.2014	31.12.2014	31.12.2015	31.12.2016
	Pay period
	Leasing payments under the agreement without VAT
	Lease payments recognized as expenses under RAS
	Asset Accounting
	The value of assets to include in the balance sheet
	Depreciation of assets
	Accounting for the total liability to the lessor
	Interest expense as part of the lease payment
	Repayable principal debt as part of the lease payment (line 3 - line 7)
	Balance of the total liability in the balance sheet (data as of the previous date - page 7)
	Separation of the balance of the total liability to the lessor into short-term and long-term for recognition in the balance sheet
	Short term liability
	Long term commitment (page 8 - page 9)
	Equity adjustments on the balance sheet
	Retained earnings (line 4 - line 8)
	Adjustments to the income statement (+) exclusion of expenses (-) recognition of expenses
	Recognize depreciation (p. 5)						etc. within 5 years
	Recognize interest expense (p. 6)
	Exclude lease expenses under RAS (p. 3)
	Cumulative net income adjustment (para. 12 + paragraph 13 + paragraph 14)

It makes sense to reflect the asset, long-term and short-term liabilities under a leasing agreement in the balance sheet in separate lines. In accordance with IFRS, assets received under a finance lease are recognized in the balance sheet in the line “Property, plant and equipment” along with the company's own assets, but can be allocated to a separate line of non-current assets (at the request of the company). The same applies to liabilities: they can be shown together with other long-term and short-term liabilities, but it is more convenient to separate them into separate liability lines.

Adjustments to the income statement can be made in a simplified way - to adjust the value of net profit, since for management purposes the final value is more important than its distribution over individual lines of the report. If desired, the components of the cumulative adjustment can be entered in the corresponding lines of the income statement:

• recognize the depreciation of the asset as expenses for ordinary activities;
• add interest expenses to the line "Interest payable";
• exclude lease payments from other expenses.

In view of the foregoing, the company's financial statements should be adjusted as follows (Table 4).

Table 4

Accounting statements of the company and financial ratios determined on its basis

Balance (statement of financial position), thousand rubles	Row codes	31.12.2014	01.01.2014
Total non-current assets
Total current assets
Balance (asset)
Total capital and reserves (equity)
Balance (passive)
		For 2014
Net profit
Financial ratios:
Total liquidity ratio: Current assets / Current liabilities
Return on assets: Net income / Total assets

For changes in reporting in connection with a financial lease agreement, table data are used. 3 on 01/01/2014 and 12/31/2014.

The disclosure of notes to the balance sheet showed that current assets include long-term debt with a maturity of more than 12 months. It also revealed the presence of illiquid assets - buyers' debt, assessed as bad. Data about it are presented in table. 5.

Table 5

Additional data on receivables as part of current assets

No. p / p	Elements, thousand rubles	Notes	31.12.2014	01.01.2014
	Accounts receivable with a maturity of more than 12 months. from the reporting date	Factual data
	Estimation of the amount of illiquid assets:
	Long-term receivables assessed as uncollectible (approximately 3%)	Company valuation
	Short-term receivables assessed as uncollectible
	Change in the amount of uncollectible receivables for the period

The corrected reporting of the company and the financial ratios determined on its basis are presented in Table. 6.

Table 6

Adjusted company reportingand financial ratios determined on its basis

Balance, thousand rubles	Notes	31.12.2014	01.01.2014
Non-current assets in the balance sheet
Assets received under a financial lease agreement	Page 4 tab. 3
Long-term accounts receivable less bad debts	Page 1, 2 tab. 5
Total non-current assets
Current assets in the balance sheet
Transfer of long-term receivables to non-current assets	Page 1 tab. 5
Exclusion of illiquid current assets: bad short-term receivables	Page 3 tab. 5
Total current assets
Balance (asset)
Equity and reserves on the balance sheet
	Page 11 tab. 3
Adjustments for excluded illiquid assets	Page 2, 3 tab. 5
Total capital and reserves
Long-term liabilities on the balance sheet
Long-term liability under a finance lease	Page 10 tab. 3
Total non-current liabilities
Short-term liabilities on the balance sheet
Current liability under a finance lease	Page 9 tab. 3
Total current liabilities
Balance (passive)
Statement of financial results, million rubles		For 2014
Net income in the income statement
Adjustment in connection with the lease agreement	Page 15 tab. 3
Adjustment for changes in the value of illiquid assets: growth (-), reduction (+)	Page 4 tab. 5
Adjusted net income
Financial ratios:
Total liquidity ratio Current assets / Current liabilities
Financial Independence Ratio: Capital and reserves / Total assets
Return on assets: Adjusted Net Income / Total Assets

For adjustments to reporting for 2015, the data in Table. 3 as of December 31, 2014 and December 31, 2015, as well as data on the amount of long-term debts and illiquid assets.

Management balance, presented in table. 6 is formed on the basis of the available financial statements.

__________________________

Note!

In international accounting standards, leasing payments are divided directly into interest expenses and repayable principal debt. At the same time, it is considered that the advance payment does not contain interest and in full is the repayment of the principal debt. Nothing has to be excluded from the income statement (there is no recognition of expenses based on invoices), any finance lease agreement is initially recognized according to the methodology discussed above.

Since the balance sheet is adjusted for management purposes, finance leases can be settled directly from the lease payment schedule information, sacrificing some accuracy for the sake of convenience.

In order to get an idea of ​​the real situation of the company on the basis of financial statements, one more nuance should be borne in mind: the reporting of a separate company of the group that performs work mainly for the companies of the group may be indicative

Many Russian companies at one time were separated into separate legal entities. For example, transport and marketing services of companies turned into separate transport enterprises and sales houses, repair services of mining companies became independent enterprises.

It is not uncommon for enterprises created in this way to continue to work only (or predominantly) for their parent company. A possible consequence of this is non-market pricing. As a result, the income of the company providing the services becomes understated and the costs of the company receiving these services are overstated (or vice versa, depending on the objectives, including tax administration). It makes sense to make a financial analysis of such companies on the basis of consolidated financial statements, but not on the basis of data from individual enterprises, which are, in fact, part of a single technological process.

conclusions

Making adjustments to the asset structure and excluding illiquid assets is not difficult. The algorithm for accounting for assets received under a financial lease agreement on the balance sheet of the lessee may seem difficult to understand and apply, but two arguments can be made in favor of studying it:

1) it allows you to fairly reflect the financial consequences of the decision to lease assets;

2) upon transition to IFRS, the application of the above accounting approaches will become mandatory.