Reserve for depreciation of financial investments in accounting and tax accounting. Formation of a reserve for depreciation of financial investments

Financial investments are assets that bring an organization income in the form of interest, dividends, etc. (clause 2 of PBU 19/02). These include, in particular:

securities of third parties (shares, bonds, bills);
contributions to the authorized capital of other organizations;
loans issued;
receivables acquired under an assignment agreement (assignment of claims).

Financial investments are accounted for in account 58, to which subaccounts are opened for each type of investment. For example, subaccount 2 “Debt securities” accounts for bills and bonds.

In the case of the acquisition of financial investments, the debit of account 58 reflects their initial cost (acquisition costs) in correspondence with the accounts of valuables transferred as payment for these investments (clause 9 of PBU 19/02).

When disposing of financial investments, their value is written off from the credit of account 58 in correspondence with account 91 “Other income and expenses”, subaccount 2 “Other expenses”.

Example 1

Under the assignment agreement, the organization acquired from the original creditor the right of claim arising from the supply agreement at a price of RUB 500,000. The cost of the claim (accounts receivable) is RUB 800,000. The debtor repays his obligation within the period established by the supply agreement.

In the accounting of the organization (new creditor - assignee), the acquisition under the assignment agreement and the subsequent disposal of the debtor's monetary obligation should be reflected in entries (see table).


Contents of operations	Debit	Credit	Amount, rub.	Primary document

	58	76 “Settlements with the assignor”	500 000
Payment has been made to the assignor	76 “Settlements with the assignor”	51	500 000

	51	76 “Settlements with the debtor”	800 000	Bank account statement
	76 “Settlements with the debtor”	91-1	800 000
	91-2	68-VAT	45 762,72	Invoice
	91-2	58	500 000	Accounting information

Provision for impairment of financial investments

If a situation has arisen that has led to the depreciation of financial investments, the organization is obliged to analyze the circumstances that led to a sustainable decrease in the value of financial investments. To do this, all financial investments for which their current market value cannot be determined are checked if there are signs of impairment in their respect.

When the results of the audit confirm a sustained significant decrease in the value of financial investments, the organization should create a reserve for the impairment of financial investments in the amount of the difference between the accounting and estimated values of such investments (clauses 21, 38 of PBU 19/02).

A steady decline in the value of financial investments is characterized by the simultaneous presence of the following conditions:

at the reporting and previous reporting dates, the accounting value of financial investments significantly exceeds their estimated value; during the reporting year, the estimated value of investments changed significantly only downwards; at the reporting date there is no evidence that a significant increase in the estimated value of financial investments is possible in the future.

Note that the estimated value is defined as the difference between the value of financial investments at which they are reflected in accounting (accounting value) and the amount of their sustainable decline.

Creating a reserve

A commercial organization forms the specified reserve at the expense of financial results.

An entry is made for the amount of reserves created in the debit of account 91 and the credit of account 59 “Reserves for the depreciation of financial investments.”

The amount of the created reserve is included in the financial results of the organization as part of other expenses (clause 38 of PBU 19/02, Instructions for using the Chart of Accounts).

In the financial statements, the value of such financial investments is shown as the difference between their book value and the amount of the reserve formed for their depreciation.

A check for impairment of financial investments must be carried out at least once a year as of December 31 of the reporting year if there are signs of impairment. At the same time, organizations have the right to carry out this check at the reporting dates of interim financial statements.

The organization is obliged to ensure confirmation of the results of the said inspection (for example, by an appropriate act).

In the situation under consideration, you can also use a ready-made methodology, which is used for tax purposes when determining the estimated prices of securities that are not traded on the organized securities market (Order of the Federal Financial Markets Service of Russia dated November 9, 2010 No. 10-65/pz-n).

Using the reserve

Clause 39 of PBU 19/02 establishes that if, based on the results of a check for impairment of financial investments, a further decrease in their estimated value is revealed, then the amount of the previously created reserve for the impairment of financial investments is adjusted towards its increase. Accordingly, the financial result decreases due to an increase in other expenses.

If, on the contrary, the results of the audit indicate an increase in the estimated value of financial investments, then the amount of the previously created reserve is adjusted towards its decrease, and the financial result increases due to an increase in the amount of other income.

Clause 40 of PBU 19/02 defines the procedure for writing off the created reserve for the depreciation of investments. If, based on available information, an entity can conclude that a financial investment no longer meets the criteria for sustained significant decline in value, the amount of the provision created for that investment is included in other income at the end of the year.

If the specified financial investment is sold, then the amount of the impairment reserve formed for it is also included in other income, and the financial result (profit) of the organization increases accordingly. The reserve amounts should be included in other income at the end of the reporting period in which the disposal of these financial investments occurred.

When the amount of created reserves decreases, as well as the disposal of financial investments for which corresponding reserves were previously created, the following entry is made: debit 59; credit 91.

Analytical accounting for account 59 is carried out for each reserve and each group of financial investments.

Financial statements

According to paragraph 42 of PBU 19/02, data on the reserve for impairment of financial investments is subject to disclosure in the financial statements, taking into account the requirement of materiality, indicating:

type of financial investment; the amount of the reserve created in the reporting year; the amount of the reserve recognized as other income of the reporting period; reserve amounts used in the reporting year.

In the financial statements, the value of financial investments is shown at their book value minus the amount of the reserve created for their depreciation.

Tax accounting

Corporate income tax

In accordance with tax legislation, the amount of the created reserve for the depreciation of securities is not taken into account as part of expenses for profit tax purposes, and the amount of the restored reserve for the depreciation of securities is not taken into account as part of income (clause 10 of article 270, clause 25 p. 1 Article 251 of the Tax Code of the Russian Federation).

Application of PBU 18/02

The amount of the reserve for depreciation of financial investments is recognized in accounting as an expense, but is not recognized in tax accounting. Therefore, when creating the specified reserve in accounting, a permanent difference (PR) and a corresponding permanent tax liability (PNO) arise (clauses 4, 7 of the Accounting Regulations “Accounting for calculations of corporate income tax” (PBU 18/02), approved by order Ministry of Finance of Russia dated November 19, 2002 No. 114n).

The occurrence of PNO is reflected by an entry in the debit of account 99 “Profits and losses” (sub-account “Fixed tax liabilities”) and the credit of account 68 “Calculations for taxes and fees”.

Example 2

The organization's financial investments included shares of the joint-stock company with a book value of 3,000 rubles. each (cost of acquisition and reflection in accounting). Number of shares - 10,000 pcs. The nominal value of the share is 1000 rubles. According to the issuer, the share price, calculated on the basis of net assets, as of December 31, 2015 was 1,400 rubles.

As we can see, the book value of the shares is significantly higher than the calculated value.

In this case, all the criteria for a sustainable decrease in value are present, therefore, there is a need to create a reserve for the depreciation of financial investments.

The reserve is created for the amount of the difference between the book value and estimated value of financial investments and amounts to 1,600 rubles. (3000 rub. - 1400 rub.).

The amount of the created reserve is 16,000,000 rubles. (RUB 1,600 x 10,000 pcs.).

The following entries are made in accounting:

Debit 91, Credit 59 - for the amount of the reserve; Debit 99, Credit 68 “PNO” - RUB 3,200,000. (RUB 16,000,000 x 20%) - recognized as PNO.

As noted, the value of financial investments for which a reserve has been created is shown in the financial statements at book value minus the amount of the reserve, i.e. in the reporting for 2015, shares were to be reflected in the amount of 14,000,000 rubles. (3000 rub. x 10,000 pcs. - 16,000,000 rub. = 14,000,000 rub.).

Balance sheet

Financial investments, depending on their maturity date, are reflected in the balance sheet as:

long-term (with a maturity date of more than 12 months after the reporting date) - in section I “Non-current assets” on line 1170; short-term (with a maturity of 12 months after the reporting date or less) - in section II “Current assets” on line 1240.

Accounting in an organization for the acquisition under an assignment agreement and the subsequent disposal of the debtor’s monetary obligation
Contents of operations	Debit	Credit	Amount, rub.	Primary document
Acquisition of a monetary claim
Cash claim accepted for accounting	58	76 “Settlements with the assignor”	500 000	Assignment agreement, document acceptance and transfer certificate
Payment has been made to the assignor	76 “Settlements with the assignor”	51	500 000	Bank account statement
Receiving execution from the debtor
Receipt of execution from the debtor	51	76 “Settlements with the debtor”	800 000	Bank account statement
Other income is recognized in the amount of payment received from the debtor	76 “Settlements with the debtor”	91-1	800 000	Assignment agreement, accounting statement-calculation
VAT charged (RUB 800,000 – RUB 500,000) x 18 / 118)	91-2	68-VAT	45 762,72	Invoice
The original value of the disposed monetary claim is written off	91-2	58	500 000	Accounting information

A sustained significant decrease in the value of financial investments for which their current market value is not determined, below the amount of economic benefits that the organization expects to receive from these financial investments under normal conditions of its activities, is recognized as impairment of financial investments. In this case, based on the organization’s calculations, the estimated value of financial investments is determined, equal to the difference between their value at which they are reflected in accounting (accounting value) and the amount of such reduction.

A steady decline in the value of financial investments is characterized by the simultaneous presence of the following conditions:

at the reporting date and at the previous reporting date, the accounting value is significantly higher than their estimated value;

during the reporting year, the estimated value of financial investments changed significantly only in the direction of its decrease;

As of the reporting date, there is no evidence that a significant increase in the estimated value of these financial investments is possible in the future.

Examples of situations in which impairment of financial investments may occur are:

the issuing organization of securities owned by the organization or its debtor under a loan agreement has signs of bankruptcy or is declared bankrupt;

execution of a significant number of transactions in the securities market with similar securities at a price significantly lower than their book value;

absence or significant decrease in income from financial investments in the form of interest or dividends with a high probability of a further decrease in these income in the future, etc.

When observing signs of impairment, the organization must review these conditions, and if the impairment test confirms a sustained significant decline in the value of financial investments, the organization creates a provision for impairment of financial investments in the amount of the difference between the carrying amount and the estimated value of such financial investments. The audit is carried out at least once a year as of December 31 of the reporting year if there are signs of impairment. Also, the organization has the right to carry out the specified check on the reporting dates of the interim financial statements. The organization must provide confirmation of the results of this inspection.

A commercial organization forms the specified reserve at the expense of the organization’s financial results (as part of operating expenses), and a non-profit organization - due to an increase in expenses.

When a reserve is formed, the value of these investments in the financial statements is shown minus the amount of the formed reserve. Moreover, if during the next inspection a further decrease in the value of assets was observed, the reserve is adjusted upward, and downward if, based on the results of the inspection, the value of financial investments increased.

When disposing of financial investments for which a reserve was created, the amount of the provision for impairment of these financial investments is applied to the financial results at the end of the reporting period when the disposal of these financial investments occurred.

Reserves for the depreciation of financial investments are created by organizations that have securities in their assets in order to clarify their current value. You will learn about which transactions should reflect the formation and write-off of the reserve in our article.

Depreciation of financial investments is understood as a stable and significant decrease in their value. In order for investments to be considered impaired, their current market value must be lower than the benefits that the organization plans to receive from these investments.

Paragraph 45 of the PBU provides that at the end of the reporting period, an organization that owns securities (shares, bonds, etc.) must analyze their accounting and market value. If the results of the analysis revealed a decrease in market value compared to accounting indicators, then their assessment in accounting must be adjusted.

The procedure for creating a reserve for the impairment of securities implies the implementation of operations to reflect adjustments to the accounting price of shares in accordance with their market value. It should be noted that the reserve is created for unquoted shares, as well as for those securities that are quoted on the stock exchange, and their market value is confirmed by the publication of quotes. Depending on the conditions stipulated by the accounting policy, the analysis of the market value of securities and, as a result, the formation of a reserve for their impairment, can be carried out both at the end of the year and in interim reporting periods (month, quarter).

To reflect reserve formation operations, the following conditions must be present:

Based on the results of the last 2 reporting periods, the value of securities is reflected in accounting significantly lower than their market value. The threshold of materiality is determined by the organization itself, fixing this indicator in its accounting policies.
At the end of the reporting year, the market value of shares changed exclusively in the direction of decline.
There is no information about a possible increase in the market value of securities.

Accounting for the provision for impairment of securities

To reflect generalized information about the reserves that an organization forms for the depreciation of financial investments in securities, they are used. Analytical accounting for this account is carried out in the context of each formed reserve.

The operation to create a reserve for the depreciation of investments is reflected by the entry Dt 91/2 Kt.

The created reserve can be dissolved (written off) when the rate of registered securities increases, as well as in the event of their sale. The write-off of the reserve should be reflected in the posting Dt Kt 91/1. With this posting, the organization confirms that financial investments no longer satisfy the criterion of a sustainable and significant decrease in their value. In the event of disposal of financial investments, the estimated value of which was taken into account when calculating the reserve, the amount of the reserve is reflected in the accounting of financial results.

Formation of reserve

JSC Pharaoh has 1,200 bonds in its assets, the book price of each of them is 312 rubles. During January 2016, Pharaoh JSC received information about the quotes of these shares. At the same time, the average price for the promotion was 275 rubles. According to the accounting policy, the materiality threshold is 5%.

Since the price of bonds under transactions (275 rubles) is more than 5% lower than their book value (312 rubles), the accountant of Pharaoh JSC made entries to create a reserve for depreciation of bonds:

Write-off of reserve due to sale of shares

JSC Gigant owns 1,420 shares, the initial cost of each of which is 1,200 rubles. At the end of 2015, the market value of each share was 900 rubles, and therefore a reserve was formed for their depreciation in the amount of 426,000 rubles. ((1420 pieces * (1200 rubles - 900 rubles). In February 2016, the shares were sold to Favorit LLC at a price of 980 rubles per share, the reserve for impairment of shares was written off based on the purchase and sale agreement.

If an enterprise faces a risk of depreciation of financial investments, its management must organize a check for the presence of conditions that contribute to a reduction in their value. Verification activities are carried out for all company investments. How does this happen, and how is the process regulated?

Eat several conditions, subject to which a reduction in the value of financial assets is acceptable:

the value of the assets is significantly lower than the estimated value;
the cost during the reporting period changed strictly downwards;
on the reporting day there are no prerequisites for a likely increase in the estimated value.

If they are followed, the value of assets may decrease. If at least one of the criteria is ignored, cost reduction is impossible.

Principles of creation and accrual

If, during the verification activities, a persistent reduction in the value of financial assets was confirmed, the company should form corresponding reserve for price differences. This aspect is spelled out in clause 21 of PBU 19/02. An important role is played by the inclusion of the amount of the reserve in the structure of total costs.

An accounting entry is made for the amount of reserves that are accrued:

Analytical accounting is carried out for each reserve.

What amount is the reserve formed for?

Eat several options for reserve sizes:

The entire value of the book value of investments - if there is complete confidence in the impossibility of selling these investments due to the initiation of bankruptcy proceedings or other causal factors.
The entire amount of the book value, from which the estimated value is subtracted, if there is information about the bankruptcy of the issuer or the lack of a license permit.

The reserve can be created for other amounts, but these amounts are the main ones.

Use of allowance for impairment of securities and other assets

If during the organization of the inspection a subsequent decrease in the estimated value is discovered, the amount of the reserve that was previously formed is subject to upward adjustment.

If an increase in the estimated cost is detected, the value is reduced in favor of an increase in the financial result. If this happens, an accounting entry is created:

Financial statements

In the accounting documentation created, the final cost of such financial investments is displayed as the difference between the accounting value and the amount of the created collateral reserve. In this case, an important role is played reserve disclosure.

Need to specify the following elements:

type of financial investment;
reserve amount formed in the reporting year;
reserve value, which is other income;
the amount that was used within the reporting period.

In the explanations presented to the financial statements, in order to reflect the specified information, it is used special table, characterizing the presence and movement of financial investments. This is Appendix No. 3 to Order No. 66n of the Ministry of Finance of the Russian Federation. Column information is revealed:

Parameter name. At this point, the composition of financial investments is disclosed in accordance with the groups. This implies a breakdown into short-term and long-term assets.
Period. The period of time is displayed, in particular the reporting and previous year for which the reserve was formed. It is represented by two dates within the range of which the event occurred.
For the beginning of the year. Indicate the starting accounting price of financial assets and investments. An adjustment is also provided for investments for which a determination of their current market value is not made.
Changes over the period. In this case, indicate the value of the investments that were received, as well as the formation of the initial price of the retired investments.
At the end of the period. Information is provided about the starting accounting value, which had already been formed at the end of the period. Information is also provided on the amount of the reserve for impairment of financial investments, taking into account changes that have occurred over the past year.

Reflection of received data in tax accounting

Financial investments are generally understood as depositing funds or other types of property into the accounts of organizations for the purpose of subsequently generating income. Such assets include following:

purchase of securities;
acquisition of receivables in accordance with the assignment agreement;
investment in the authorized capital of other organizations;
issuing loans at interest.

The accounting algorithm in this area is prescribed in PBU 19/02.

Application of PBU 19/02 in practice: procedure and rules

The procedure by which the reserve is formed can be conveniently studied using the example of securities. They can be the following types:

In circulation - their assessment is made on the basis of market value, subject to revaluation carried out annually (clause 20 of PBU 19/02).
Not in circulation - the valuation is determined by the investor independently or using the services of an appraiser.

Cost assessments should be made annually or at the end of each quarter. The organization itself resolves this issue. If, as a result of this event, a significant reduction in the value of financial investments was discovered, the organization needs to form a reserve for depreciation. This happens mainly in following situations:

bankruptcy of an enterprise;
presence of signs of financial insolvency;
non-payment of dividends;
reduction in interest provision;
presence on the market of similar securities at a lower cost.

Postings to various accounts in accounting

Plays an important role rational reflection transactions carried out in accordance with accounting standards. Must take part in these operations score 59. The wiring looks like this:

Dt 91/2 Kt 59 – formation of an appropriate reserve for the depreciation of financial investments;
Dt 76 Kt 91 – reflection in accounting for the sale of securities by the company;
Dt 91 Kt 58 – write-off of sold shares from the balance sheet of the enterprise;
Dt 59 Kt 91 – write-off of the reserve that was created for the depreciation of shares earlier;
Dt 51 Kt 76 – crediting of funds by the buyer as payment for the acquired shares.

Thus, the creation of a reserve occurs if, over time, there is a steady decrease in their value. In this case, the movement is accounted for using account 59. An important role is played by its display in the analytics by subaccounts within the framework of terms (up to or from 12 months), as well as by types of reserves formed.

A video lesson on the composition of financial investments is presented below.

Rules for creating a reserve for the depreciation of financial investments, account 59 in the accounting system for tax accounting and the right to reduce taxable profit by this amount. In which section (on which line) of the income tax return is this amount reflected?

The rules for creating a reserve for the depreciation of financial investments in accounting are presented in the answer file using the example of an investment in the authorized capital.

In tax accounting, a reserve for depreciation of financial investments is not created. Therefore, the accounting must reflect the difference in accordance with PBU 18/02 (if the company applies it.) By its economic essence, the difference that arises is temporary. The fact is that in accounting, an expense in the form of a reserve arises temporarily, until it is repaid.

Based on this, at the date of creation of the reserve, a deferred tax asset is reflected.

Oleg the Good, Head of the Department of Profit Taxation of Organizations of the Department of Tax and Customs Tariff Policy of the Ministry of Finance of Russia

Consider a contribution to the authorized capital of another organization as part of financial investments. In accounting, reflect it at its original cost based on the monetary value agreed upon by the founders.

As a general rule, financial investments must be checked for impairment. In the event of a sustained significant decline in the value of such an asset, it is necessary to create a reserve for it. Determine the amount of the reserve as the difference between the accounting and estimated value of the financial investment.

Did the audit reveal contributions to the authorized capital with signs of sustainable impairment? Then for each of them you need to determine the estimated cost.

2. Estimated cost

The estimated value of the contribution to the authorized capital is an estimated value. The company's methodology for determining the estimated value must be enshrined in the accounting policy for accounting purposes.

For example, the value of a share in net assets can be taken as a basis. To do this, the company whose shares (shares) your company owns as of the last reporting date.

To determine the estimated cost, use the formula:

3. Formation of a reserve

Define the reserve as the difference between the book value and estimated value of the contribution to the authorized capital:

This procedure is provided for in paragraphs and PBU 19/02.

In accounting, the reserve for impairment of financial investments is another expense. When creating a reserve, make the following entry:

Debit 91-2 Credit 59
– a reserve has been created for the depreciation of financial investments.

In tax accounting, a reserve for depreciation of financial investments is not created. Therefore, the difference must be reflected in accounting in accordance with PBU 18/02. By its economic essence, the resulting difference is temporary. The fact is that in accounting, an expense in the form of a reserve arises temporarily, until it is repaid. For example, due to an increase in the value of an investment or its disposal.

Based on this, on the date the reserve was created, reflect the deferred tax asset:

– a deferred tax asset is reflected.

If there is a further steady decline in the value of the financial investment, increase the amount of the reserve.

If, based on the results of further verification of the financial investment, an increase in its estimated value is revealed, then reduce the amount of the reserve and assign the difference to other income.

Debit 59 Credit 91-1
– the reserve for impairment of financial investments was reduced.

If subsequent audits reveal that the financial investment does not contain signs of a sustainable decline in value, assign the entire amount of the created reserve to other income.

The temporary difference must be paid off:

Debit 68 subaccount “Calculations for income tax” Credit 09
– the deferred tax asset is repaid.

In the balance sheet, reflect the total indicators of financial investments minus the reserve for their depreciation.

Such rules are provided for in paragraphs and PBU 19/02.

An example of determining the reserve for impairment of a contribution to the authorized capital

In 2016, Alpha LLC made a contribution to the authorized capital of Hermes LLC in the amount of 600,000 rubles. The contribution share is 30 percent. At the end of 2016 and the reporting periods of 2017, Hermes did not receive a net profit. Accordingly, Alpha did not receive dividends from its contribution to the authorized capital of Hermes.

The accountant analyzed the financial statements of Hermes and found out that the net assets of Hermes decreased and as of September 30, 2017 amounted to 1,100,000 rubles. Based on this, the commission determined a steady decline in the value of the contribution to the authorized capital and decided to create a reserve for depreciation of the contribution.

RUB 1,100,000 ? 0.30 = 330,000 rub.

The amount of the reserve for impairment of financial investments is equal to:

600,000 rub. – 330,000 rub. = 270,000 rub.

In accounting, the accountant made the following entry:

Debit 91-2 Credit 59
– 270,000 rub. – a reserve has been created for the depreciation of the contribution to the authorized capital;

Debit 09 Credit 68 subaccount “Calculations for income tax”
– 54,000 rub. (RUB 270,000 ? 20%) – a deferred tax asset is reflected.

Answer approved by Natalia Kolosova,
Head of VIP support