Long-term debt obligations. Section IV “Long-term liabilities. Increase and decrease

To account for settlements on obligations. The chart of accounts provides for the following accounts: 50 "Long-term loans", 51 "Long-term promissory notes issued", 52 "Long-term obligations on bonds", 53 "Dov in the line of lease obligations", 55 "Other long-term obligations", 60 "Short-term loans", 61 "Current debt on long-term obligations"; 63 "Settlements with suppliers and contractors"; 64 "Calculations of taxes and payments"; 65 "Insurance settlements"; 66 "Calculations of employee benefits"; 67 "Settlements with participants"; 68 "Settlements for other operations; Rozrakhunki for vip payments to the principals"; 67 "Roses with participants"; 68 "Rosrakhunki for the first operations".

These accounts keep records of liabilities, which are understood as the company's debt, which arose as a result of past events and the repayment of which is expected to lead to a decrease in resources for the company embodying economic benefits.

What terms are used to define obligations?

The terms used to determine the methodological basis for the formation of information on liabilities in accounting and its disclosure in the financial statements have been defined. P (S). BU 11 "obligations" have such a value.

Collateral is a liability with an uncertain amount or maturity date at the balance sheet date

An unforeseen obligation is:

1) obligations that may arise as a result of past events and the existence of which will be confirmed only when one or more uncertain future events occurs or does not occur, over which the adoption does not have full control; ab

2) a present obligation arising from past events, but not recognized because it is unlikely that the settlement of the obligation would require the use of resources that embody economies. It’s not the benefit, or because the amount of the obligation cannot be reliably determined.

Onerous contract - a contract, the costs (which cannot be avoided) for the implementation of which exceed the expected economic benefits of that contract

Amount to be settled is the undiscounted amount of cash or cash equivalents expected to be paid to settle a liability in the normal course of business

Present value is the discounted amount of future payments (less the amount expected to be recovered) that is expected to be required to settle the liability in the ordinary course of business and businesses.

How are obligations subdivided?

For accounting purposes, liabilities are divided into: - long-term;

Current;

Security;

Contingent liabilities;

revenue of the future periods

What are long-term liabilities?

Long-term liabilities include:

Long-term bank loans;

Other long-term financial liabilities;

Deferred tax liabilities;

Other long-term liabilities

An interest bearing liability that is due to be settled within twelve months from the balance sheet date should be treated as a long-term liability if the original maturity date was more than twelve months and there is an agreement to reissue the liability as long-term before the financial statements are approved.

A long-term obligation under a loan agreement (if the agreement provides for the repayment of an obligation at the request of the lender (lender) in case of violation of certain conditions related to the financial condition of the borrower a), the terms of which are violated, is considered long-term if

The lender, prior to the approval of the financial statements, agreed not to demand settlement of the obligation as a result of a breach;

No further breaches of the loan agreement are expected to occur within twelve months from the date

Long-term liabilities, on which interest is accrued, are reflected in the balance sheet at their present value. Determination of the present value depends on the conditions and type of obligation

What are current liabilities?

Current liabilities include: - short-term bank loans; - current debt on long-term liabilities;

Short-term bills issued;

Accounts payable for goods, works, services;

Current debt on settlements on advances received, on settlements with the budget, on settlements on off-budget payments, on settlements on insurance, on settlements for wages, on settlements with participants, on settlements on internal settlements

Other current liabilities

Current liabilities are reflected in the balance sheet at the repayment amount

Collateral is created to recover the following (future) operating expenses. Characteristics and accounting will be discussed in Chapter 4. Part 3 "Equity accounting and collateral obliges Niyazan".

Contingent liabilities are reflected in off-balance sheet accounts and will be considered in section 6 of part 4 "Accounting on off-balance sheet ratios11

What types of estimates are used to determine the carrying amount of liabilities?

The following types of estimates are used to determine the carrying amount of liabilities:

Historical cost;

Current cost price;

Repayment (calculation, payment) cost

The historical cost of a liability is the amount of cash or cash equivalents expected to be paid to settle a debt in the ordinary course of business.

The current cost of liabilities is the undiscounted amount of cash or cash equivalents that is required to settle the liabilities at the current moment

Settlement value is the undiscounted amount of cash or cash equivalents expected to be paid to settle a liability in the ordinary course of business

What terms are used to define obligations?

Collateral is a liability with an uncertain amount or maturity date at the balance sheet date

An unforeseen obligation is:

Onerous contract - a contract, the costs (which cannot be avoided) for the implementation of which exceed the expected economic benefits of that contract

Amount to be settled is the undiscounted amount of cash or cash equivalents expected to be paid to settle a liability in the normal course of business

How are obligations subdivided?

For accounting purposes, liabilities are divided into: - long-term;

Current;

Security;

Contingent liabilities;

revenue of the future periods

What are long-term liabilities?

Long-term liabilities include:

Long-term bank loans;

Other long-term financial liabilities;

Deferred tax liabilities;

Other long-term liabilities

The lender, prior to the approval of the financial statements, agreed not to demand settlement of the obligation as a result of a breach;

No further breaches of the loan agreement are expected to occur within twelve months from the date

Long-term liabilities, on which interest is accrued, are reflected in the balance sheet at their present value. Determination of the present value depends on the conditions and type of obligation

What are current liabilities?

Current liabilities include: - short-term bank loans; - current debt on long-term liabilities;

Short-term bills issued;

Accounts payable for goods, works, services;

Other current liabilities

Current liabilities are reflected in the balance sheet at the repayment amount

Collateral is created to recover the following (future) operating expenses. Characteristics and accounting will be discussed in Chapter 4. Part 3 "Equity accounting and collateral obliges Niyazan".

Contingent liabilities are reflected in off-balance sheet accounts and will be considered in section 6 of part 4 "Accounting on off-balance sheet ratios11

What types of estimates are used to determine the carrying amount of liabilities?

The following types of estimates are used to determine the carrying amount of liabilities:

Historical cost;

Current cost price;

Repayment (calculation, payment) cost

The historical cost of a liability is the amount of cash or cash equivalents expected to be paid to settle a debt in the ordinary course of business.

The current cost of liabilities is the undiscounted amount of cash or cash equivalents that is required to settle the liabilities at the current moment

Settlement value is the undiscounted amount of cash or cash equivalents expected to be paid to settle a liability in the ordinary course of business

Liabilities in the balance sheet mean own and borrowed sources of property formation... The latter consist of long-term and short-term liabilities, which are reflected in the fourth and fifth sections respectively.

What it is

Long-term are those liabilities of the company that are subject to their full repayment within more than one year. It follows from this that the period in which short-term liabilities are repaid is less than 12 months.

Long-term debt consists of several types:

from borrowed capital, which includes the total loan and loan amount of the company, interest, as well as certain additional costs associated with lending;
of deferred tax liabilities, that is, from the amount of deferred tax imposed on the firm's profits (it usually leads to a subsequent increase in this tax in other reporting periods);
of some estimated liabilities mandatory for execution according to the plan for more than one year;
from other obligations falling under this category.

Short-term debt, in turn, also consists of different types of funds:

From borrowed capital, which are loans and credits for a relatively short period, as well as interest and additional costs for their implementation and security.
Of payables, reflecting the total amount that the firm must pay to the servicing bank within twelve months.
From income in future periods, that is, the profit that was received during the reporting period, but refers to the next. This includes capital expenditures, operating expenses and lease payments.
From appraised debts, which reflect the amounts, the use and distribution of which is planned for not more than one year.
Of other obligations falling under this category, for example, financing received for a specific purpose, the amount of VAT that is deducted at the time of the advance payment.

The borrowed capital of the company consists of liabilities in the balance sheet, which differ in maturity. Thus, long-term debts are indicated in the fourth section of the balance sheet, and short-term - in the fifth.

Section 4 includes five lines... There is a certain order that must be followed when filling them out.

On line 1410 all is indicated. This reflects long-term credit loans that the organization received for several years. It is important to bear in mind that this line records the entire amount of loans that can be received both in the form of money, and in, as bills of exchange and loans. In order to fill out this line, the accountant must refer to the information contained in account 67. It is imperative to check the data on the maturity dates, they must correspond to long-term loans.
On line 1420 tax liabilities (IT) are prescribed. This line must be filled in only by organizations applying PBU 18/02. In order to fill in the line, you must refer to account 77. It is important to note that this line is displayed only if the amount in the first specified account is greater than the amount in debit account 09. In this case, their difference is indicated.
On line 1430 all appraisal loans are listed. It is important here to reflect the entire amount of reserves created in accordance with PBU 8/2010. It is important to reflect in this line only those loans that fall under the category of long-term, while the information is taken from account 96, which has not yet been written off in the current reporting year.
On line 1450 all other obligations are indicated. It reflects all those debts that do not fall under the other above categories, but are long-term. This line may indicate the balance received in account 60 associated with suppliers, in account 62 associated with customers, in account 68, that is, from taxes and various earmarked fees, in account 69, that is, social security and security, in account 76, which is associated with various lenders, and account 86, which serves targeted financing.
On line 1400 the total amount for all previous lines is indicated.

The balance sheet liability with short-term loans is described in the fifth section, which consists of six lines.

On line 1510 borrowed funds are indicated. Information about them is entered from the credit balance in account 66, which reflects the calculations of short-term loans and borrowings, and from the amount from the credit in account 67 (settlements with long-term loans and borrowings within the next 12 months).

On line 1520 the accounts payable of the company is indicated. It reflects the entire amount of short-term debts that need to be repaid to other organizations and individuals during the year. This also includes government and off-budget loans. Information for this line is taken from the following accounts for short-term obligations:

score 60, which reflects the data associated with, as well as contractors;
score 62, which reflects information related to settlements with customers (only advances and prepayments);
score 68 where taxes and fees are reflected;
score 69 where social insurance and security is reflected;
score 70, which reflects the settlement with employees, that is, the payment of wages;
score 71 where accountable settlements are reflected;
score 73 where settlements are made with employees for all other operations;
score 75 where the founders' calculations are reflected;
score 76 where accounts receivable and payable are reflected.

All companies have the right to independently regulate the number of indicators from which reporting is prepared. Hence the conclusion that this or that organization can expand or vice versa shorten the list of lines in order to detail the indicator in line 1520.

Line 1530 not all companies are filled in, but only those whose accounting provides for the indication of planned income in future reporting periods. So, all commercial organizations must reflect information on the credit balance from account 98, which indicates future income, and from account 86, which describes targeted financing.

On line 1540 the estimated liabilities are indicated, information about which is taken from account 96 (the exception is those amounts that are long-term liabilities).

On line 1550 all other liabilities are indicated that were not previously reflected, but fall under the category of short-term debt.

On line 1500 the total amount for all short-term liabilities is indicated, which is found out by adding up all the previous lines in section five.

Increase and decrease

A situation may arise when the number of short-term or long-term liabilities increases or, on the contrary, decreases. What does this indicate?

In most cases, this does not say and does not indicate that the ratio of own and attracted sources of financing and the organization's capital has changed. This situation may arise due to the fact that the company's managers began to actively attract sources of funds that issue loans for more than a year.

Considering other things being equal, we can say that this trend will have a positive effect on the financial condition of the company, since the increase in the volume of personal sources of capital indicates the reinvestment of borrowed funds.

When the volume of long-term obligations grows, we can talk about the credibility of the organization on the part of investors who consider the given firm to be reliable, stable and profitable.

If the number of short-term liabilities decreases, the financial risks associated with investing in volatile activities also decrease. In addition, it is important to understand that the volume of short-term lending is directly related to the formation of a certain dependence on them. Therefore, the smaller the given volume, the less, respectively, and the high risks that always arise using constantly changing sources to raise capital.

Section IV of the balance sheet consists of five lines. In this section, it is necessary to reflect information about the obligations of the organization with a maturity of more than 12 months after the reporting date. The lines in Section IV, in particular, reflect the amount of borrowed funds attracted for a long term, the amount of deferred tax and estimated liabilities of the company, the amount of other long-term liabilities.

Let's consider the order of filling each of these lines in more detail.

Line 1410 "Borrowed funds"

On line 1410, you need to provide data on all long-term loans and borrowings attracted by the organization for a period of more than 12 months. It reflects the amount of loans received both in cash and in kind, bank loans, the company's obligations under issued financial bills. It takes into account both the principal amount of the loan (loan) and the amount of interest accrued on it under the terms of the agreement.

Attention!

Line 1410 does not indicate the amount of obligations under commodity bills (that is, securities issued as collateral for previously delivered material assets). Such liabilities are reflected in the organization's accounts payable (lines 1450 or 1520 of the balance sheet).

In line 1410, the credit balance of account 67 "Calculations on long-term loans and borrowings" is entered. Moreover, this is done only in terms of debt, the maturity of which exceeds 12 months after December 31.

Line 1420 "Deferred tax liabilities"

The procedure for filling in line 1420 is similar to the procedure for filling out line 1180 of the balance sheet asset. So, line 1420 is filled in by companies applying PBU 18/02. That is, small businesses that have refused to use this document may not fill out this line.

To complete line 1420, take the credit balance of account 77 Deferred Tax Liabilities. This rule applies if the company reflects the amount of deferred tax liabilities on a gross basis. At the same time, you have the ability to reflect deferred assets and liabilities on a net basis. That is, depending on what difference arose between the debit of account 09 "Deferred tax assets" and the credit of account 77. If this difference is positive (debit 09 is more than credit 77), fill in only line 1180 of the balance sheet asset. Put a dash on line 1420. If the indicator on the credit of account 77 turned out to be more than the indicator on the debit of account 09, fill in only line 1420 of the balance. And on line 1180, put a dash.

Line 1430 "Provisions"

Line 1430 reflects the amount of reserves that are formed in accordance with PBU 8/2010. For example, for warranty repairs or payment of upcoming costs for land reclamation and other environmental protection measures. This line should reflect information only on long-term estimated liabilities.

Line 1430 reflects the credit balance of account 96 "Provisions for future expenses" (in terms of liabilities with a maturity of more than 12 months) not written off as of December 31 of the reporting year.

Line 1450 "Other liabilities"

On line 1450, show details of other long-term liabilities that were not reflected above in the lines in section IV. In particular, in line 1450, you can reflect information about accounts payable to suppliers and contractors with a maturity of more than 12 months. Or data on target financing (account 86 credit "Target financing") provided for a period exceeding 12 months after the reporting date.

A short-term liability is a debt that must be repaid within a period of up to 1 year. The payment is made at the expense of the current assets of the firm. Let us consider this debt in detail below.

general characteristics

When solving secondary problems, many firms are forced to use internal and external sources of funding. In the latter case, long-term / short-term liabilities of the enterprise may arise. In this case, one of the key tasks of the management is the timely repayment of debts. From the moment it is credited, the money does not belong to the company. She only uses finance for a limited period - until the due date of the debt.

Specificity

Acting as one of the forms of credit funds, debt has the following features:

Share calculation

The debt under consideration is expressed by a coefficient. It shows the share of liabilities in relation to total debt. To calculate the coefficient, the formula is used:

Ккз = Ko: (Ko + Do), where:
Ккз - the required coefficient;
Ko - short-term and long-term liabilities.

The resulting indicator reflects the dependence of the company on debts accepted for a period of up to 12 months. The higher the ratio, the more solvency and stability the company will have.

Components of short-term liabilities

Debt accounting is a key task in the formation of financial statements. All borrowed funds of the company are subject to reflection. Current liabilities include:

Dividends payable to founders (shareholders).
Debts on promissory notes (short-term).
Announcements.
Accounts payable.
Tax payments.
Refundable deposits issued for a period of up to 12 months.
Conditional payment.
Demand debts.
Unearned income.
Portions of long-term liabilities that are due to be settled in a short period of time.
Other debts, the maturity of which is less than 12 months.

Classification

Short-term liabilities can be divided into several groups:

Operating rooms. These include rent, taxes, advances received by the company, arrears on accepted raw materials, goods, etc., current mandatory contributions to the budget, salaries to employees and the manager.
Short-term liabilities due within one year from the date of the report. This group includes debts on non-current assets, for example.
Funds required to cover costs over the next year. These include compensation to employees for vacations, bonuses and other expenses.

Contingent debt

Such short-term liabilities arise due to a number of factors that contribute to the emergence of uncertainty about the forthcoming income or losses of the enterprise. For example, there is always the possibility of a natural or man-made disaster in the territory where the company operates. Accordingly, this threat affects the production cycle. Assumed uncertainties are conventionally divided into types: the probability of an emergency can be large, small or medium.

Accounts payable

It is usually called invoice payable or merchant account. Accounts payable, in fact, is a standard form of payment for goods or services received by a firm, as well as raw materials acquired in the course of its current activities. This type of obligation is used to pay for trade transactions that serve the key functions of the company. The repayment period is usually stipulated in the contract between the firm and the supplier. The term can also be determined by the counterparty.

Promissory notes

Such securities are used to solve the same problems as accounts payable. At its core, a bill acts as a means of payment for a firm when receiving services and products that are not used in its main activities. Short-term securities can be secured or unsecured. It depends on the terms of the agreement. Security can be the right to seizure of material assets or a mortgage on the real estate of the company. If the company has short-term liabilities in the form of such promissory notes, it is necessary to accurately indicate in the reporting the assets that guarantee their repayment. Securities can also be interest-free or interest-bearing. In the latter case, the rate is indicated on the bill. Interest-free securities, respectively, do not have this mark, however, additional interest is paid.

Advances and deposits

Payments of this type are gaining more and more popularity lately. They are due to the presence of entrepreneurial risk in the implementation of economic activities, the conclusion of transactions. For example, a business entity may request an advance payment, which, if the counterparty fails to fulfill the terms of the contract, will go to at least partial repayment of losses.

Other debts

Accrued payments include payments that relate to the salaries of personnel, including management, repayment of interest on a loan, etc. Taxes form a special expense item. It is invariably included in the structure of short-term debt. It includes all funds transferred to the budgets of all levels. Part of the long-term liabilities to be settled within a specified period are taken into account when calculating the payments indicated above.

After evaluating the results of the company's work and submitting the reporting documentation, the calculation of dividends to be paid to holders of shares and bonds is carried out. These payments are also referred to as short-term liabilities. The liabilities of the firm's balance sheet also include transfers on creditors' claims. An enterprise may have another category of short-term liabilities. It represents wage arrears. If the company has not settled with employees, the unpaid funds are referred to as short-term liabilities.