PBU 4/99 "Accounting statements of the organization": composition, content, position and order

Enterprises in the status of a legal entity, in accordance with the legislation of the Russian Federation, are required to keep records. One of the main normative acts regulating this procedure is PBU 4/99. What are its main points? What should be the structure of the reporting documents in accordance with the norms, which are fixed in this normative act?

What is the normative act of PBU 4/99?

The considered source of law was put into circulation by the Order of the Ministry of Finance of the Russian Federation No. 43n, which was issued on July 6, 1999. This normative act is classified as Regulation. Its full name is the Regulations on Accounting "Accounting Statements of the Organization" (PBU 4/99).

Why do we need the appropriate source of law? This normative act determines the structure, as well as the methodological basis for the accounting records of enterprises .

Jurisdiction of the considered source of the right extends to all legal entities, except banks, as well as state and municipal structures. Also PBU 4/99 may not apply if the financial statements are formed by the enterprise for internal needs, for the purpose of providing statistical reporting and accounting documentation by business entities to interested parties in an order that is not directly regulated by the Ministry of Finance Order No. 43n.

The document in question should not be used when compiling:

• Reporting, formed by an economic entity for internal purposes, as well as compiled for statistical agencies;
• Information prepared by the banking organization in accordance with the established requirements, unless otherwise stipulated by separate rules.

It can be noted that the relevant source of norms can be directly used by the Ministry of Finance in order to:

• Defining standard reporting forms, as well as guidelines for them;
• Special reporting procedures for small businesses and NGOs;
• Establishing rules for creating consolidated reporting, as well as documentation when the status of an enterprise changes.

Thus, the norm in question is a universal source with a fairly wide jurisdiction.

The considered source of law establishes a number of definitions, which it is desirable for enterprises to adhere to when forming reports.

Definitions according to PBU 4/99

These are definitions of terms such as:

• financial statements;
• Reporting date, period;
• user.

Accounting statements, in accordance with the provisions of PBU 4/99, should be understood as a single intracorporate system of knowledge about the financial position of the company, as well as on the results of the economic activity of the firm, compiled on the basis of information that is reflected in accounting.

Under the accounting period in PBU 4/99 is understood the period within which the corresponding type of reporting should be formed in the organization. Under the reporting date is understood, in turn, the date on which the entity is required to report.

Another term that is disclosed in the considered source of law is the user. By that means an individual or an organization that is interested in obtaining information about an economic entity.

In PBU 4/99 "Accounting statements of the organization" is determined the composition of the relevant documentation of the enterprise, as well as the requirements for it. Consider them.

Reporting composition

In accordance with the provisions of PBU 4/99 "Accounting statements of the organization," the company's financial statements include:

• balance;
• A report that records profits and losses;
• Special annexes to the balance sheet and the report;
• Explanatory note;
• In cases provided by law - an audit report.

In turn, the source of law in question sets a wide range of requirements for the company's accounting statements. Let's study them.

Requirements for documents

In accordance with PBU 4/99 "Accounting statements of the organization," the documents that are formed by the enterprise must reflect reliably and in fullness the representation of the state of affairs in business, the results of the company's economic activities, and trends that characterize the company's economic performance.

The main criterion for the completeness and reliability of the reporting is its compliance with the rules fixed by regulatory enactments that are adopted by the competent authorities. In the event that the formation of the relevant documents reveals the inadequacy of certain data, the firm must report the necessary additional indicators and explanations.

In extreme cases, PBU 4/99 allows this scenario, an enterprise may deviate from the established norms, if it is not possible to obtain the necessary indicators for objective reasons.

Information that is collected in the course of work on the formation of reporting, should be neutral. Its application should not influence decisions made by competent persons in the course of evaluating financial results.

The most important requirement for the accounting reporting of a legal entity - it should include indicators reflecting the results of economic activities of all its departments, missions, as well as other structures, including those that have separate balances.

The enterprise needs to ensure the most important compliance with the Accounting Regulations of the "Accounting Reporting Organization" (PBU 4/99), which consists in the sequential formation of documents, taking into account the continuity of the structure of the form, which records the indicators for different reporting periods. The forms of documents used as a basis for drawing up a balance sheet, a report fixing profits and losses, as well as supplementary sources, must therefore be permanent. They are subject to change in exceptional cases. As an option - if the type of business activity changes. At the same time, the organization should be ready to justify the relevant changes by means of separate explanations to the balance sheet, as well as a report reflecting profits and losses.

Accounting statements, its composition and content (Regulations on Accounting PBU 4/99 contains the relevant norms) should be formed taking into account the continuity of the indicators for different reporting periods. In case of discrepancies between the relevant data, the accountant can make the necessary adjustments for certain indicators. In this case, information about it should be reflected in additions to the balance sheet and a report reflecting the profits and losses of the enterprise.

Reporting of economic indicators in the reporting: nuances

There are a number of nuances that characterize the fixation in key accounts of key indicators - they also include the document "Accounting statements of the organization" PBU 4/99. Briefly about them, we can note the following. Indicators about the assets, liabilities, revenues and expenses of the firm should be reflected separately, if they are very important for a reliable assessment of the situation in the firm. In turn, these indicators can be reflected in additions to the balance sheet and the report, if they are not of particular importance for assessing the state of the business.

Reporting date and year

In accordance with the normative source in question, when forming accounting documents, an enterprise should keep in mind that the reporting date must be considered the last calendar day of the corresponding period. The reporting year corresponds to the period from January 1 to December 31. The first reporting year for the new organization is the period from the date of registration of the company until December 31. If the firm is established after October 1, the first reporting year for it corresponds to the period from the date of registration in state bodies until December 31, thus next year.

Accounting statements: other requirements

Let's consider other significant requirements to the formation of the accounting reporting on PBU 4/99. So, it should be noted that each of its components - balance sheet, report, addenda to them, auditor's report - should contain:

• name;
• The reporting date or the period for which reporting is provided;
• The name of the firm that provides the documents;
• Information on the organizational and legal form of business;
• Format for reporting indicators.

Order on approval of the Accounting Regulation "Accounting Reporting Organization" PBU 4/99 requires accountants to prepare documentation:

• in Russian;
• Indicate indicators in rubles.

The relevant reporting should be certified:

• The head of the firm;
• Chief accountant or other employee exercising authority to maintain accounting records.

Balance sheet structure

It will be useful to study the structure of two key accounting documents - the balance sheet, as well as the report, which reflects the company's profits and losses. Let's start with the first source.

The balance sheet contains assets and liabilities. Corresponding indicators characterize the economic position of the firm at the reporting date. As for the assets and liabilities of the firm, they should be classified into short-term and long-term. The first include those whose duration does not exceed 12 months. By the second - on the contrary, those that can be repaid by the obligated party 12 months after the conclusion of the contract and later.

Report structure

The next most important document is a report, which reflects the profit and loss indicators. Using this source, in particular, classification of income based on PBU 4/99 "Accounting statements of the organization" can be implemented. The document in question should reflect the results of the firm's economic activities for the reporting period. The main indicators in it correlate, therefore, with incomes and expenditures, which are classified into ordinary and other.

Explanations to the balance sheet and the report

Another important type of sources included in the company's financial statements is an explanation to the balance sheet and a report reflecting the company's profits and losses. Corresponding additions are designed to disclose information that relates to the accounting policy of the firm and is necessary for exhibiting by stakeholders a reliable estimate of the company's financial performance.

If the explanations require reflections of deviations from the rules that are allowed by the competent specialist of the company in the preparation of the accounts, the reason for the admission of this deviation is fixed. In addition, the firm should reflect the financial consequences of assuming a non-compliance with the law, regulating the compilation of financial statements in enterprises.

Additions to accounting sources of accounting must reflect information that relates directly to the economic activities of the organization and disclose them in the context of that information, which is confirmed by the accounting data. Thus, the person who is interested in obtaining the sources under consideration counts, first of all, on increasing the reliability of information on the economic situation in the enterprise.

The obligatory criterion of the corresponding additions to PBU 4/99 "Accounting statements of the organization" are their compliance with the norms of legislation, as well as internal regulations, if this is required based on the corporate management policy. If the financiers had to refuse from any norms, this should be fixed in the addenda in question. Thus, the relevant documents assume to be transparent to any interested persons.

It can be noted that the legal act under consideration can correspond with others that regulate accounting at the enterprise. In this case, the financier must have prompt access to the relevant sources of norms in the most recent version, as well as comments, explanations and, if necessary, judicial practice on the use of the provisions of these sources of law.