The provision of the commented article establishes a requirement for the mandatory monetary valuation of property and liabilities by an organization. Under the assessment refers to the determination of the value of property values. The purpose of this assessment is their reflection in the accounting and financial statements in monetary terms.
In addition, in the commented paragraph defines the methods of property valuation.
Assessment of the property of an organization can be carried out as follows:
Property acquired by an organization for a fee is estimated by summing the actual expenses incurred for its purchase;
The property received by the organization free of charge is valued at the market value on the date of posting;
Property produced in the organization itself is valued at the cost of its manufacture.
According to paragraph. 8 of the Regulations on accountingwhen approving accounting policies, organizations are approved including the methods for evaluating certain types of property and liabilities. The specified regulatory act specifies the methods of property valuation in monetary terms for reflection in the accounting records and financial statements. Paragraph 23 of the accounting regulation states that the costs actually incurred include, inter alia, the cost of acquiring the property itself, interest paid on the commercial loan provided for the acquisition, markups (premiums), commissions (cost of services) paid procurement, foreign trade and other organizations, customs duties and other payments, the costs of transportation, storage and delivery, carried out by third parties.
The formation of the current market value is made on the basis of the price valid on the date of the posting of the property received free of charge for this or a similar type of property. Data on the current price must be documented or by expert.
Under the cost of manufacture are actually incurred costs associated with the use in the process of manufacturing the property of fixed assets, raw materials, materials, fuel, energy, labor and other costs for the manufacture of the property.
Thus, the commented provision of the Law provides for three ways to evaluate property, while indicating the possibility of using other methods (including by means of reservation) in cases provided for by the legislation of the Russian Federation.
The procedure for assessing certain types of property is regulated in separate regulatory acts.
The rules for the formation in the accounting of information about the organization’s fixed assets (including their valuation) are set out in PBU 6/01.
The rules for the formation in accounting and financial statements of information on intangible assets of organizations that are legal entities under the laws of the Russian Federation are set out in PBU 14/2007.
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The rules for evaluating financial investments, as well as the procedure for generating information on financial investments of an organization in accounting and financial statements, are fixed in PBU 19/02.
PBU 5/01 establishes the requirements and rules for the formation in the accounting information about the inventories of the organization. Section 2 “Assessment of inventories” PBU 5/01 provides for the regulation of the procedure for evaluating and reflecting in inventories accounting records.
In addition, it should be borne in mind that there is a specific property valuation for accounting purposes with respect to organizations engaged in certain professional activities. For example, such features of valuation (revaluation) of assets and liabilities are provided for in the annex to the Regulations on the Rules of Accounting in Credit Institutions located in the territory of the Russian Federation.
In accordance with the requirements of the commented clause of the Federal Law “On Accounting”, depreciation of fixed assets and intangible assets is not affected by the results of the organization’s economic activities in the reporting period.
For example, the procedure for depreciation of items related to fixed assets is provided for in Accounting Regulation 6/01. According to clause 17 of PBU 6/01, the value of fixed assets is redeemed through depreciation (unless otherwise specified in PBU 6/01). The depreciation of fixed assets is calculated in one of the following ways:
Diminishing residue method;
Method of writing off the cost of the sum of the numbers of years of useful life;
Method of writing off the cost in proportion to the volume of production (works).
The use of one of the methods of depreciation for a group of homogeneous objects of fixed assets is made during the whole useful life of objects included in this group.