MINISTRY OF EDUCATION AND SCIENCE OF THE RF

State educational institution of higher professional education

"Samara State University of Architecture and Civil Engineering"

Department of “Financial Management in Construction”

COURSE WORK

in the discipline "Accounting in construction"

Samara 2010

Introduction 2

Topic 16: Formation and accounting of financial results, their use 3

Conclusion 13

List of references 14

Practice problem 15

Turnover sheet for January 2010 34

BALANCE SHEET 36

Test tasks 39

Introduction

The most important place in the system accounting of a construction organization is occupied by the identification and accounting of financial results.

In market conditions, the financial result is the most significant indicator of the performance of a construction organization. The presence of profit creates a financial basis for the implementation and expansion of its production activities, satisfying the material and social needs of the owner and employees. In addition, through the tax system, the financial result of an individual construction organization influences the formation of budget revenues at different levels.

In modern conditions of the formation of market relations in the Russian Federation, the main task of a construction organization is to make a profit. Most of the profit of a construction organization is generated through the sale of construction products, which is calculated as the difference between the cost of construction work and the funds received from the customer for completed and commissioned work.

The concept of “organizational income” for accounting purposes is defined in PBU 9/99 “Organizational Income”, where, in particular, it is noted that the organization’s income is recognized as an increase in economic benefits as a result of the receipt of assets (cash, other property) and (or) repayment obligations leading to an increase in the capital of this organization, with the exception of contributions from participants (property owners). In other words, financial results represents the difference from comparing the amounts of income and expenses of a construction organization. An excess of income over expenses means an increase in the organization’s property, profit, and expenses over income means a decrease in property, a loss. The financial result obtained by the organization for the reporting year in the form of profit or loss, respectively, leads to an increase or decrease in the organization’s capital. It should be noted that the following income is not recognized as income of a construction organization:

value added tax amounts;

export duties and other similar mandatory payments.

Topic 16: Formation and accounting of financial results, their use

The procedure for the formation of financial results of the activities of a construction organization, their accounting records

Currently, the content and form of construction work are characterized by the terms of the construction contract. The subject of the contract may be the objects being put into operation, types, complexes of construction and installation work, as well as parts of the object being built or individual volumes of construction and installation work. Thus, the volume and properties of construction products, which are the object of a construction contract, are determined for the terms of settlements under the contract construction contract.

A significant point that affects the accounting scheme for the financial results of a construction organization for the reporting period is the content of construction contracts concluded between participants in the construction process (contractor, customer, developer, investor, etc.). In this case, the highest priority aspects are:

subject of the construction contract;

the moment of transfer of ownership of finished construction products;

timing of settlements under a construction contract.

The organization of a system for accounting for the financial results of a construction organization largely depends on the choice of the subject of the construction contract. At the same time, this significantly affects the total amount of taxes paid by the organization to budgets of different levels (VAT, corporate profit tax, property tax).

In accordance with Art. 740 of the Civil Code of the Russian Federation, under a construction contract, the contractor undertakes, within the period established by the contract, to build a specific object on the instructions of the customer or to perform other construction work, and the customer undertakes to create the necessary conditions for the contractor to carry out the work, accept their result and pay the agreed price. Thus, the customer (developer) accepts the work or construction project from the contractor on the basis of an acceptance certificate, with subsequent registration in the prescribed manner. The moment of transfer of ownership for completed construction work may be the moment:

acceptance of finished construction products by the customer;

payment, i.e. receipt of funds to the contractor.

If the moment of transfer of ownership is not specified in the construction contract, then it is assumed that it will be the moment of implementation, i.e. the moment of signing the corresponding act.

Since the terms of a construction contract may be different, accounting for the financial result of a construction organization must be organized based on the specific situation.

Here are the possible options:

an unfinished construction project can be accounted for production cost on the balance sheet of the contracting construction organization as part of work in progress until its complete completion, and ownership of it passes to the customer as all work is completed;

option of monthly delivery of structural elements and types of work, reflected in the credit of account 90 “Sales”, subaccount I “Revenue”, in correspondence with account 62 “Settlements with buyers and customers”, and the cost of work performed is written off from account 20 “Main production” in debit account 90, subaccount 2 “Cost of sales”;

the contractor writes off the cost of work performed from account 20 “Main production” to account 90, subaccount 2 “Cost of sales”, and reflects revenue on account 90, subaccount 1 “Revenue”, in correspondence with account 46 “Completed stages of work in progress” and forms financial result as launch complexes or queues are delivered to the customer. The accounting methodology for the financial results of a construction organization should be developed in accordance with the applicable options for the terms of construction contracts.

In the event that an option is used when an unfinished construction project is taken into account on the contractor’s balance sheet until it is fully completed, and ownership of it passes to the customer as all work is completed, the contractor’s costs are formed from all actual expenses associated with the implementation of construction work under a construction contract. Costs are formed for accounting objects from the beginning of the execution of a construction contract until its completion, i.e., until full payment for the completed construction project and its transfer to the customer. Thus, in accordance with PBU 2/94 “Accounting for agreements (contracts) for capital construction,” a contracting organization can use two methods for determining the financial result for the reporting period at cost:

the construction site as a whole;

individual completed works as they are ready.

It follows from this that the contracting organization carries out accounting of the financial result based on the terms of the construction contract. The contracting organization, which determines the financial result using the “Income based on the cost of the construction project” method, keeps accounting records of the costs incurred as part of work in progress on account 20 “Main production” until the construction project is delivered to the customer. The contractor keeps records in this way if the construction contract does not provide for the interim delivery of the volume of construction work to the customer.

The financial result of a contracting construction organization from the sale (delivery) of construction products (construction work) is identified in the synthetic accounting account 90 “Sales” and is calculated as the difference between the amount of revenue (excluding indirect taxes and payments - VAT, etc.) reflected in credit to account 90, and the amount of the actual cost of construction products (works) sold, reflected in the debit of the same account. In this case, other income and expenses from operations that constitute the subject of the organization’s activities are also taken into account. It should be noted that on account 90, subaccounts 1 “Revenue”, 2 “Cost of sales”, 3 “Value added tax” and others, accounting is kept on an accrual basis (cumulatively) during the reporting (tax) period.

The realized financial result from sales is determined at the end of each reporting period.

Accounting for profits and losses from ordinary activities

In construction, income from ordinary activities includes revenue from the sale of construction products and other income related to the performance of construction and installation work and the provision of services.

In accordance with PBU 9/99 “Income of the organization”, revenue is accepted for accounting in an amount calculated in monetary terms equal to the amount of receipt of cash and other property and (or) the amount of accounts receivable. If the amount of receipt covers only part of the revenue, then the revenue accepted for accounting is defined as the sum of receipts and receivables in the part not covered by receipts. In this case, the amount of receipts and (or) receivables is calculated based on the price established by the construction contract between the contracting construction organization and the customer organization.

The profit of a construction organization is formed mainly from two components:

the result obtained from the sale of construction products, i.e. from the main activities of the organization;

the result obtained from operating activities not related to the main activity of the construction organization, as well as non-operating income.

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Accounting for financial results at enterprises of the construction complex

Content
Introduction
1. Theoretical foundations of accounting and audit of financial results from core activities
1.1. The concept and composition of financial results, methods and sources of its analysis
1.2. Legal regulation of accounting and audit of financial results from core activities
1.3. Comparative characteristics of IFRS, PBU and ISA for accounting of financial results
2. Accounting and analysis of financial results from core activities using the example of the enterprise ZAO Mezhgorsvyazstroy (MGSS)
2.1. Technical and economic characteristics of Mezhgorsvyazstroy CJSC (MGSS)
2.2. Accounting for financial results from core activities and their reflection in financial statements
2.3. Analysis of financial results from core activities
3 . Audit of financial results and development of measures to improve them at CJSC Mezhgorsvyazstroy (MGSS)
3.1. Purpose, objectives, plan and program for auditing financial results
3.2. Conclusion and errors of the audit of financial results
3.3. Measures to improve the financial results of Mezhgorsvyazstroy CJSC (MGSS)
Conclusion
List of used literature
Applications

LIST OF REFERENCES USED

1. Civil Code of the Russian Federation, part two of January 26, 1996 // SZ RF, 1996, No. 5, Art. 410
Accounting Regulations “Income of the Organization” PBU 9/99 (approved by order of the Ministry of Finance of the Russian Federation dated May 6, 1999 No. 32n) (as amended on March 30, 2001)
2. Accounting regulations “Expenses of the organization” PBU 10/99 (approved by order of the Ministry of Finance of the Russian Federation dated May 6, 1999 No. 33n) (as amended on March 30, 2001)
3. Analysis of economic activity in industry / Ed. IN AND. Strazheva. - Minsk: Higher School, 2002. - 275 p.
4. Bakanov M.I., Sheremet A.D. Theory of economic analysis. - M.: Finance and Statistics, 2004. - 304 p.
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6.Blank I.A. Management profit making. - K.: Nika-Center, 2002. - 287 p.
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8. Gilyarovskaya L.T. Economic analysis. M.: UNITY-DANA, 2002. - 289 p.
9.Grachev A.V. Analysis and management of the financial stability of the enterprise. - M.: Business and Service, 2002.
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22. Raitsky K. Economics of Enterprise. - M.: Finance and Statistics, 2008. - 364 p.
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This work examined the procedure for forming and accounting for the financial results of the organization Kalina LLC. This organization is engaged in construction.

Accounting in the organization in question is carried out in accordance with the regulatory and legislative acts of the Russian Federation. The legislation of the Russian Federation on accounting as a whole consists of the Federal Law “On Accounting”, which establishes uniform legal and methodological foundations for organizing and maintaining accounting records in the Russian Federation, other federal laws, decrees of the President of the Russian Federation, decrees of the Government of the Russian Federation, Accounting Regulations accounting approved by the Ministry of Finance.

Since this organization is engaged in construction, accounting is carried out taking into account the specifics of the activity. The parties to the construction contract are construction contractors, construction customer organizations and investors. The specifics of business transactions, as well as the specifics of the cash flow process, determine the specifics of the formation of financial results for each of the parties to this agreement. At different stages of its development, Kalina LLC acted both as a contracting construction organization and as a construction customer organization.

The final financial result (balance sheet profit or loss) of the activities of a construction contracting organization consists of the financial result from the delivery to the customer of objects, works and services provided for in contracts, the sale to the side of fixed assets and other property of the construction organization, products and services of auxiliary and auxiliary production facilities located on balance sheet of a construction organization, as well as income from non-operating operations, reduced by the amount of expenses for these operations (other income, reduced by the amount of other expenses).

In accordance with PBU 2/2008, the financial result of a developer for construction-related activities is defined as the difference between the amount (limit) of funds for its maintenance included in the estimates for objects under construction in a given reporting period, and the actual costs of its maintenance

A significant part of the work is devoted to the analysis of financial indicators. At first glance, the organization cannot be given a positive assessment of solvency, market stability, profitability and financial stability. Most of the calculated indicators either have values ​​below the norm or show negative dynamics for 2012-2014. However, when analyzing financial indicators, it is necessary to take into account the specifics of the organization’s activities and only after that make a final conclusion.

Kalina LLC is currently engaged in the construction of a large facility (a residential complex consisting of several houses) and acts as a developer, not a contractor, and construction has not yet been completed, therefore, the financial result has not yet been received. This analysis would be more correct to do after the completion of construction and sale of apartments. In 2014, there was practically no revenue, the company’s accounts contained a very small amount of cash, the organization’s accounts contained a large amount of debt, both long-term and short-term, therefore, the calculated solvency indicators were below normal.

Most indicators of market stability of Kalina LLC have values ​​below the norm, the reason for this is the unfinished process of construction of a large residential complex. At the end of 2014, the organization had a large amount of other non-current assets and a relatively small amount of retained earnings, as a result of which the organization's non-current assets exceeded capital and reserves by more than four times.

When analyzing the dynamics of profitability indicators for 2014, either a sharp increase in values ​​or their reduction is observed. The reason for this is a sharp reduction in revenue and cost of sales, and as a consequence a reduction in sales profit and net profit.

The solution to existing problems in the organization can be the completion of the first stage of construction and the beginning of the sale of apartments. The organization will begin to receive revenue, the amount of funds in its bank accounts will begin to grow and obligations to both banks and investors will decrease. And as a result, against the backdrop of these positive changes, most of the calculated solvency indicators will have values ​​within the normal range.

An analysis of absolute indicators of financial stability and the construction of a three-component indicator clearly showed that the company Kalina LLC had impaired financial stability and solvency at the time of the analysis, but the organization has all the prerequisites for restoring financial well-being. As mentioned above, to achieve this goal, the company should complete the construction of a large residential complex, begin selling apartments, and, as a result, receive cash, revenue, profit, reduce the size of non-current assets and accounts payable.

List of sources used.

1. Civil Code of the Russian Federation (part one) dated December 18, 2006. No. 230-FZ.

2. Tax Code of the Russian Federation.

3. Federal Law “On Accounting” dated November 21, 1996 No. 129-FZ.

4. Regulations on the composition of costs for the production and sale of products (works, services), included in the cost of products (works, services), and on the procedure for generating financial results taken into account when taxing profits. Approved by Decree of the Government of the Russian Federation dated 05.08.92 No. 552.

5. Order of the Ministry of Finance of the Russian Federation “On approval of the chart of accounts for accounting of financial and economic activities of organizations and instructions for its application” dated October 31, 200 No. 94n.

The financial result represents profit or loss. According to clause 79 of the Regulations on accounting and reporting in the Russian Federation, accounting profit (loss) is the final financial result identified for the reporting period on the basis of accounting of all business transactions of the organization and assessment of balance sheet items according to the rules in force in accordance with regulatory documents . The financial result in accounting is identified and reflected monthly.

The final financial result is net profit (net loss), which is defined as the difference between the amount of profit (loss) of the current reporting period and the amount of income tax, as well as the amount of tax penalties due.

The amount of profit (loss) of the current reporting period is composed of the financial result from ordinary activities and the financial result from other income and expenses Androsov A. M., Vzhulova E. V. Accounting: Textbook. allowance. M.: Androsov. 2007.s. 232..

To summarize information on the formation of the final financial result of the organization’s activities in the reporting year, account 99 “Profits and losses” is used. The credit of this account reflects income and profits, and the debit shows expenses and losses. A comparison of credit and debit turnover determines the final financial result for the reporting period. The excess of credit turnover over debit is reflected as a credit balance of account 99 “Profit and Loss” and characterizes the amount of the organization’s net profit, and the excess of debit turnover over credit is recorded as a debit balance of account 99 “Profit and Loss” and characterizes the amount of the organization’s net loss.

The final financial result of the organization’s activities for the reporting period (net profit or net loss) is formed by the following indicators:

• · financial result from ordinary activities;
• · other income and expenses;
• · accrued payments of income tax and due tax penalties.

Organizations receive the bulk of their profits from the sale of products, goods, works and services (financial result from ordinary activities). Profit (loss) from the sale of products (works, services) is determined as the difference between the proceeds from the sale of products, goods (works, services) in current prices without VAT and excise taxes, export duties and other deductions provided for by the legislation of the Russian Federation, and the costs of production and sale of products and goods, performance of work, provision of services Khabarova L. P. Formation of financial results in accounting and tax accounting: Practical. allowance. M.: Accounting Bulletin. 2008. p. 170..

The financial result from the sale of products (works, services) is formed on account 90 “Sales.” This account is intended to summarize information about income and expenses associated with the organization’s normal activities, as well as to determine the financial result for them. This account reflects, in particular, revenue and cost:

• · for finished products, semi-finished products of own production and goods;
• · works and services of an industrial and non-industrial nature;
• · purchased products (purchased for completion);
• · construction, installation, design and survey, geological exploration, research, etc. work;
• · communication services and transportation of goods and passengers;
• · forwarding and loading and unloading operations;
• · provision for a fee for temporary use (temporary possession and use) of one’s assets under a lease agreement, provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property, participation in the authorized capital of other organizations (when this is the subject of activities of the organization), etc.

The credit of account 90 “Sales” reflects the amount of revenue (income from the sale), and the debit shows the amount of expenses associated with the sale. By comparing the amounts of debit and credit turnover of an account, the amount of the financial result is determined - profit or loss from sales Khabarova L. P. Formation of financial results in accounting and tax accounting: Practical. allowance. M.: Accounting Bulletin. 2008. 171 p..

To detail the income and expenses associated with the sale, the following subaccounts are opened for account 90 “Sales”:

• 90-1 “Revenue”;
• 90-2 “Cost of sales”;
• 90-3 “Value added tax”;
• 90-4 “Excise duties”;
• 90-9 “Profit/loss from sales.”

In accounting, transactions for the sale of products, performance of work and provision of services are reflected in the following entries:

Dt sch. 62 “Settlements with buyers and customers”

K-t sch. 90-1 “Revenue” - for the amount of revenue from sales;

K-t sch. 41 “Goods” - for cost of goods sold:

Dt sch. 90-2 “Cost of sales”

K-t sch. 43 “Finished products” - for the cost of products sold;

Dt sch. 90-2 “Cost of sales”

K-t sch. 20 “Main production” - for the cost of work performed, services provided;

Dt sch. 90-3 “Value added tax”

K-t sch. 68 “Calculations for taxes and fees”, subaccount “Calculations for VAT” - for the amount of value added tax accrued on sold products, goods, works, services:

Dt sch. 90-4 “Excise taxes”

K-t sch. 68 “Calculations for taxes and fees”, subaccount “Calculations for excise taxes” - for the amount of excise taxes included in the price of products (goods) sold.

Entries in subaccounts 90-1 “Revenue”, 90-2 “Cost of sales”, 90-3 “Value added tax”, 90-4 “Excise taxes” are made cumulatively during the reporting year. By monthly comparison of the total debit turnover in subaccounts 90-2 “Cost of sales”, 90-3 “Value added tax”, 90-4 “Excise duties” and credit turnover in subaccount 90-1 “Revenue”, the financial result from sales for the reporting month is determined . The identified profit or loss is written off monthly with final entries from subaccount 90-9 “Profit/loss from sales” to account 99 “Profits and losses”:

Dt sch. 90-9 “Profit/loss from sales”

K-t sch. 99 “Profits and losses” - the amount of profit from sales;

Dt sch. 99 "Profits and losses"

K-t sch. 90-9 “Profit/loss from sales” - the amount of loss from sales.

Thus, synthetic account 90 “Sales” is closed monthly and has no balance at the reporting date.

At the end of the reporting year, all subaccounts opened to account 90 “Sales” (except for subaccount 90-9 “Profit/loss from sales”) are closed with internal entries to subaccount 90-9 “Profit/loss from sales”.

Analytical accounting for account 90 “Sales” is maintained for each type of product sold, goods, work performed and services rendered, and, if necessary, in other areas (by sales region, etc.).

Financial result from other operations, not related to the sales process, is formed on account 91 “Other income and expenses”. This account is intended to summarize information about other income and expenses. The functions of account 91 “Other income and expenses” are similar to the functions of account 90 “Sales”. It serves solely to identify the amount of financial result from other income and expenses.

The following sub-accounts are opened for this account:

• 91-1 “Other income” - to account for the receipt of assets recognized as other income (except for emergency);
• 91-2 “Other expenses” - for accounting for other expenses (except for extraordinary ones);
• 91-9 “Balance of other income and expenses” - to identify the balance of other income and expenses for the reporting month.

Entries for subaccounts 91-1 “Other income” and 91-2 “Other expenses” are incurred cumulatively during the reporting year. Every month, by comparing the debit turnover in subaccount 91-2 “Other expenses” and the credit turnover in subaccount 91-1 “Other income”, the balance of other income and expenses for the reporting month is determined. This balance is written off monthly (with final turnover) from subaccount 91-9 “Balance of other income and expenses” to account 99 “Profits and losses”. Thus, as of the reporting date, account 91 “Other income and expenses” does not have a balance.

At the end of the reporting year, subaccounts 91-1 “Other income” and 91-2 “Other expenses” are closed with internal entries to subaccount 91-9 “Balance of other income and expenses”.

Extraordinary income and expenses are immediately credited to account 99 “Profits and Losses” without prior entry to intermediate accounts in correspondence with the accounts of material assets, settlements with personnel for wages, cash, etc.

In addition, the debit of account 99 “Profits and losses” reflects accrued payments of income tax and the amount of tax penalties due in correspondence with account 68 “Calculations for taxes and fees” Nechitailo A. I. Accounting for financial results and use of profits: Textbook allowance. SPb.: IVESEP. .

Thus, the final financial result of the organization’s activities (net profit/loss) is formed on account 99 “Profits and losses” as a result of reflecting on this account profit (loss) from sales, profit (loss) from other operations (balance of other income and expenses) , extraordinary income and expenses, accrued tax/income payments and tax penalties due. The final financial result on this account is formed cumulatively from the beginning of the reporting year.

Analytical accounting for account 99 “Profits and losses” should ensure the generation of data necessary for drawing up a profit and loss statement Nechitailo A.I. Accounting for financial results and the use of profit: Textbook. allowance. SPb.: IVESEP. Knowledge. 2008. p. 67..

At the end of the reporting year, account 99 “Profits and losses” is closed with the final entry in December. This account is closed with the following entries:

Dt sch. 99 "Profits and losses"

K-t sch. 84 “Retained earnings (uncovered loss)” - for the amount of net profit of the reporting year:

Dt sch. 84 “Retained earnings (uncovered loss)”