home > Pumps > Business portal for success. FSB "inventories" - federal accounting standard PBU 5 01 material accounting

Business portal for success. FSB "inventories" - federal accounting standard PBU 5 01 material accounting

COMPARATIVE CHARACTERISTICS OF PBU 5/01 “ACCOUNTING FOR INVENTORIES” AND IFRS (IAS) 2 “RESTORES”

annotation
This article discusses the features of organizing accounting of inventories. The characteristics of Russian and international standards for inventory accounting are compared. The issues of similarities and differences between domestic and international practices of accounting for inventories are revealed.

COMPARATIVE CHARACTERISTICS OF PBU 5/01 "ACCOUNTING OF INVENTORIES" AND IFRS (IAS) 2 "INVENTORIES"

Fatikhova Gulfiya Nafisovna
Kazan Federal University
second-year student of a magistracy

Abstract
In this article features of the organization of accounting of material and production stocks are considered. Characteristics of the international and Russian standards according to the accounting of stocks are compared. Similarities and differences of domestic and international practice of accounting for material and production stocks are disclosed.

Bibliographic link to the article:
Fatikhova G.N. Comparative characteristics of PBU 5/01 “Accounting for inventories” and IFRS (IAS) 2 “Inventories” // Modern scientific research and innovation. 2017. No. 3 [Electronic resource]..03.2019).

An integral part of an organization's assets are working capital. In the composition of current assets, inventories have a significant share. In this regard, the financial position of the organization will depend on the condition and accounting of inventories.

One of the directions for improving the accounting system in the Russian Federation is its focus on International Financial Reporting Standards. The regulatory framework governing the recognition, accounting, valuation and revaluation of inventories in the Russian Federation is considered to be the Accounting Regulations “Accounting for Inventory Inventories” PBU 5/01. In international practice, these issues are regulated by IAS 2 “Inventories”. The regulation adopted in Russia differs from the international standard in several ways. Comparative characteristics of Russian and international standards for inventory accounting are given in Table 1.

Table 1. Comparative characteristics of PBU 5/01 and IFRS (IAS) 2 for inventory accounting

	Comparison element		IAS 2

1	Record keeping	regulates the accounting of only inventories	regulates inventory accounting in general
2	Composition of the MPZ	raw materials, materials, finished products, goods for resale	goods purchased and stored for resale; raw materials and supplies; finished products; unfinished production
3	Accounting unit MPZ	item number, batch, homogeneous group	not noted
4	MPH assessment upon admission	at actual cost	at the lower of two values: at cost or at possible net realizable price
5	Valuation of inventories upon disposal and release into production	at the cost of each unit, at the average cost, at the cost of the first inventory items acquired (FIFO method)	by specific identification of costs, by weighted average cost, by cost of the first inventory items acquired in time (FIFO method)
6	Disclosure of information in accounting (financial) statements	information on methods for assessing MPZ by their groups; about the consequences of changes in inventory valuation methods, about the value of reserves pledged as collateral; on the amount and movement of reserves for reducing the value of material assets	accounting policies relating to inventory valuation; book value of inventories; the circumstances and amount of any reversal of write-downs that were recognized as a decrease in inventories; the amount of any write-down of inventory and the amount of inventory recognized as an expense;

The data in Table 1 shows that there are differences in the approaches to inventory accounting in domestic and foreign practice, but they are basically similar.

In IFRS and PBU, the definitions of reserves are identical, with the exception of some differences. These discrepancies relate primarily to work in progress. PBU 5/01 is not used for work in progress, IFRS 2 does not apply to work in progress that arises during the execution of construction contracts. The next difference between IFRS and RAS is “breadth of horizons”. In accordance with IFRS, if the organization's activities are in the service sector, then inventories include the costs of providing services, the income from the provision of which has not yet been recognized, despite the fact that these costs also include personnel wages. PBU 5/01, in turn, considers only inventories.

One of the main tasks of accounting for inventories is their initial assessment. In accordance with Russian regulations, inventories are accepted for accounting at actual cost. If during the year their market value has decreased, or the inventories have become obsolete or have partially lost their quality, then at the end of the year they are revalued and reflected in accounting at the possible sale price, with the difference in prices being attributed to the financial results of the enterprise. IFRS 2, in contrast to PBU 5/01, provides the most precise definition of inventory valuation: “inventories should be valued at the lower of two values - cost or possible net sales price.” This order is observed in international practice because it makes it possible to better illuminate the state of affairs of the organization for its management.

Net realizable price is the estimated selling price in the normal course of business less possible selling and operating costs.

The methods for valuing inventories at disposal and release into production used in RAS are similar to those used in international practice.

The cost-per-unit method evaluates inventories that are used by the organization in a special manner (precious stones, explosives, etc.) and inventories that cannot be substituted for each other.

The average cost method assumes that inventory is valued at the average cost of goods available for sale. The average value, depending on the operating conditions of the organization, can be calculated over a period of time or as any additional supply is received. This method is used when an organization uses a periodic inventory system and if the organization uses fungible inventory.

According to the FIFO method, materials that were previously received at the warehouse are written off first. It follows from this that the balance will be valued at the cost of recent receipts.

If it is not practical to use other methods for estimating the cost of inventories in accordance with IFRS 2, it is possible to use: the retail price accounting method.

In retail trade, the retail price method is used to value inventory, which consists of a large number of rapidly changing products for which the profit margin is the same.

Another significant difference is that, according to the Russian accounting system, the cost of inventories is allowed to include the costs of paying interest on loans if they are related to the acquisition of inventories and were incurred before the date of their receipt in the organization’s warehouses. In international standards, accounting for borrowing costs is regulated by IFRS 23 “Borrowing Costs”.

In accordance with PBU 5/01, the cost of inventories includes costs that are directly related to the acquisition and production of inventories minus general and other similar costs that are not directly related to this process.

Another element of inventory accounting comparison is impairment. In PBU 5/01, the mechanism for determining the possible net sales value for creating a reserve for depreciation of inventories is not defined. IFRS 2 recommends using the prices at the time of accounting for impairment to determine the possible selling price, and also taking into account the material circumstances of the probable disposal of inventories.

An equally significant point when comparing PBU 5/01 and IFRS 2 is the disclosure of information about inventories in the financial statements.

PBU 5/01 and IFRS 2 contain approximately the same amount of requirements for the disclosure of information about transactions with inventories in financial statements. In reporting according to both standards, it is necessary to disclose: methods for valuing inventories, their book value, recent changes in accounting policies, the presence of inventories as collateral, as well as information about reserves for impairment of the value of tangible assets.

Dmitrieva I.M. Accounting with the basics of IFRS / Dmitrieva I.M. – M.: Yurayt, 2016. – 323 p.

International Financial Reporting Standard (IAS) 2 “Inventories” [Electronic resource]: introduction. into force on the territory of the Russian Federation by Order of the Ministry of Finance of Russia dated December 28, 2015 No. 217n. // Reference and legal system “Garant”. – Last updated 06/20/2016.

Number of views of the publication: Please wait

Accounting Regulations
Accounting for inventories
PBU 5/01

Approved
By order of the Ministry of Finance of the Russian Federation
dated 06/09/2001 No. 44n

(as amended by Orders of the Ministry of Finance of the Russian Federation dated November 27, 2006 No. 156n,
dated 26.03.2007 No. 26n, dated 25.10.2010 No. 132n)

I. General provisions

1. These Regulations establish the rules for the formation in accounting of information about the organization’s inventories. An organization is further understood as a legal entity under the laws of the Russian Federation (with the exception of credit organizations and state (municipal) institutions).

2. For the purposes of these Regulations, the following assets are accepted for accounting as inventories:

used as raw materials, materials, etc. in the production of products intended for sale (performance of work, provision of services);
intended for sale;
used for the management needs of the organization.

Finished products are part of inventories intended for sale (the final result of the production cycle, assets completed by processing (assembly), the technical and quality characteristics of which comply with the terms of the contract or the requirements of other documents, in cases established by law).

Goods are part of inventories purchased or received from other legal entities or individuals and intended for sale.

3. The accounting unit for inventories is selected by the organization independently in such a way as to ensure the formation of complete and reliable information about these inventories, as well as proper control over their availability and movement. Depending on the nature of inventories, the order of their acquisition and use, a unit of inventories can be an item number, batch, homogeneous group, etc.

4. This Regulation does not apply to assets characterized as work in progress.

II. Valuation of inventories

5. Inventories are accepted for accounting at actual cost.

6. The actual cost of inventories purchased for a fee is the amount of the organization’s actual costs for the acquisition, with the exception of value added tax and other refundable taxes (except for cases provided for by the legislation of the Russian Federation).

The actual costs of purchasing inventories include:

amounts paid in accordance with the agreement to the supplier (seller);
amounts paid to organizations for information and consulting services related to the acquisition of inventories;
customs duties;
non-refundable taxes paid in connection with the acquisition of a unit of inventory;
remunerations paid to the intermediary organization through which inventories were acquired;
costs for the procurement and delivery of inventories to the place of their use, including insurance costs. These costs include, in particular, costs for the procurement and delivery of inventories; costs of maintaining the procurement and warehouse division of the organization, costs of transport services for the delivery of inventories to the place of their use, if they are not included in the price of inventories established by the contract; accrued interest on loans provided by suppliers (commercial loan); interest on borrowed funds accrued before the inventory was accepted for accounting, if it was raised for the acquisition of these inventories;
costs of bringing inventories to a state in which they are suitable for use for the intended purposes. These costs include the organization’s costs of processing, sorting, packaging and improving the technical characteristics of received stocks, not related to the production of products, performance of work and provision of services;
other costs directly related to the acquisition of inventories.

General and other similar expenses are not included in the actual costs of purchasing inventories, except when they are directly related to the acquisition of inventories.

The paragraph has been deleted. - Order of the Ministry of Finance of the Russian Federation dated November 27, 2006 No. 156n.

7. The actual cost of inventories during their production by the organization itself is determined based on the actual costs associated with the production of these inventories. Accounting and formation of costs for the production of inventories is carried out by the organization in the manner established for determining the cost of relevant types of products.

8. The actual cost of inventories contributed as a contribution to the authorized (share) capital of the organization is determined based on their monetary value agreed upon by the founders (participants) of the organization, unless otherwise provided by the legislation of the Russian Federation.

For the purposes of this Regulation, current market value means the amount of money that can be received as a result of the sale of these assets.

10. The actual cost of inventories received under contracts providing for the fulfillment of obligations (payment) in non-monetary means is recognized as the cost of assets transferred or to be transferred by the organization. The value of assets transferred or to be transferred by an organization is established based on the price at which, in comparable circumstances, the organization usually determines the value of similar assets.

If it is impossible to determine the value of assets transferred or to be transferred by an organization, the value of inventories received by the organization under agreements providing for the fulfillment of obligations (payment) in non-monetary means is determined based on the price at which similar inventories are purchased in comparable circumstances.

11. The actual cost of inventories, determined in accordance with paragraphs 8, 9 and 10 of these Regulations, also includes the actual costs of the organization for the delivery of inventories and bringing them into a condition suitable for use, listed in paragraph 6 of these Regulations .

12. The actual cost of inventories, in which they are accepted for accounting, is not subject to change, except in cases established by the legislation of the Russian Federation.

13. An organization engaged in trading activities may include the costs of procuring and delivering goods to central warehouses (bases), incurred before they are transferred for sale, as part of sales costs.

Goods purchased by an organization for sale are valued at their cost of acquisition. An organization engaged in retail trade is allowed to evaluate purchased goods at their selling price with separate consideration of markups (discounts).

14. Inventories that do not belong to the organization, but are in its use or disposal in accordance with the terms of the contract, are taken into account in the assessment provided for in the contract.

15. Excluded. - Order of the Ministry of Finance of the Russian Federation dated November 27, 2006 No. 156n.

III. Release of inventories

16. When releasing inventories (except for goods accounted for at sales value) into production and otherwise disposing of them, they are assessed in one of the following ways:

at the cost of each unit;
at average cost;
at the cost of the first acquisition of inventories (FIFO method);
paragraph deleted as of January 1, 2008. - Order of the Ministry of Finance of the Russian Federation dated March 26, 2007 No. 26n.

The application of one of the specified methods for a group (type) of inventories is based on the assumption of consistency in the application of accounting policies.

17. Inventories used by the organization in a special manner (precious metals, precious stones, etc.), or inventories that cannot normally replace each other, can be valued at the cost of each unit of such inventories.

18. The assessment of inventories at average cost is carried out for each group (type) of inventories by dividing the total cost of the group (type) of inventories by their quantity, consisting respectively of the cost price and the amount of balance at the beginning of the month and the inventory received during the given month.

19. Estimation at cost of the first acquisition of inventories (FIFO method) is based on the assumption that inventories are used within a month or another period in the sequence of their acquisition (receipt), i.e. inventories that are the first to enter production (sale) must be valued at the cost of the first acquisitions, taking into account the cost of inventories listed at the beginning of the month. When applying this method, the assessment of inventories in stock (in warehouse) at the end of the month is made at the actual cost of the latest acquisitions, and the cost of goods, products, works, services sold takes into account the cost of earlier acquisitions.

21. For each group (type) of inventories during the reporting year, one valuation method is used.

22. Valuation of inventories at the end of the reporting period (except for goods accounted for at sales value) is carried out depending on the accepted method for valuing inventories upon disposal, i.e. at the cost of each unit of inventory, the average cost, the cost of the first acquisitions.

IV. Disclosure of information in financial statements

23. Inventories are reflected in the financial statements in accordance with their classification (distribution into groups (types)) based on the method of use in the production of products, performance of work, provision of services, or for the management needs of the organization.

24. At the end of the reporting year, inventories are reflected in the balance sheet at a cost determined on the basis of the inventory valuation methods used.

25. Inventories that are obsolete, have completely or partially lost their original quality, or the current market value, the selling price of which has decreased, are reflected in the balance sheet at the end of the reporting year minus a reserve for a decrease in the value of material assets. A reserve for reducing the value of material assets is formed at the expense of the organization’s financial results by the amount of the difference between the current market value and the actual cost of inventories, if the latter is higher than the current market value.

26. Inventories owned by the organization, but in transit or transferred to the buyer as collateral, are taken into account in accounting in the assessment provided for in the contract, with subsequent clarification of the actual cost.

27. In the financial statements, at least the following information is subject to disclosure, taking into account materiality:

on methods for assessing inventories by their groups (types);
about the consequences of changes in methods of valuing inventories;
on the cost of inventories pledged;
on the amount and movement of reserves for reducing the value of material assets.

Detailed information on the accounting of inventories of an enterprise, the composition of accounting accounts and their correspondence can be obtained from the following links:

PBU 5/01 “Accounting for inventories” is one of the most important documents regulating the accounting of materials of enterprises and organizations. In accordance with paragraph 2 of this document, inventories include raw materials, supplies, manufactured products and other property used by the organization to produce goods or provide services, as well as for its management needs.

The accounting unit of inventories is chosen independently by each organization and is fixed in the existing accounting policies. Depending on the characteristics of the materials, the order of their acquisition and use, units of accounting can be nomenclature marks, batches, homogeneous groups, etc. Materials accounting must provide reliable information about available stocks, as well as control of their availability and movement.

The main operations for accounting for inventories, which are regulated by PBU 05/01, are the assessment of materials during capitalization and upon their disposal. Next, we will consider the features of these operations.

Accounting for the capitalization of inventories

Capitalization of inventories involves accepting materials for accounting at their actual cost, which consists of the organization’s costs for the purchase or production of inventories, minus VAT and other refundable taxes.

The organization's costs include:

purchase of raw materials or materials necessary for the production of goods, performance of work or provision of services;
purchasing materials used for packaging manufactured and sold goods, conducting tests and performing other tasks;
purchase of tools, equipment, work clothes and other property that is not depreciable;
purchase of fuel, energy resources spent on technological purposes, space heating, etc.;
payment for production work and services performed by third parties.

In addition, the costs may include customs duties, registration fees, transportation costs, insurance costs and other costs associated with the production or acquisition of goods.

If an organization maintains accounting according to a simplified scheme, the assessment of purchased inventories can be carried out at the supplier’s price. If the materials and materials do not belong to the organization, it disposes of them in accordance with the agreement, the materials are accepted for accounting at the price specified in the agreement.

It is reasonable to use the assessment of materials at accounting prices (contractual prices, actual costs, planned and average prices) for organizations that have a large range of materials used, and documents for the formation of the cost of inventories can be received by the accounting department with a time gap. To account for inventories at accounting prices, accounts 15 and 16 are used.

Accounting for inventory upon disposal

In accordance with PBU 05/01, the assessment of inventories upon disposal can be made by three methods.

The assessment can be made:

based on the cost of each unit of inventories;
based on the average cost of inventory;
based on the cost of the first purchased inventories (FIFO method).

The first method is used by organizations with small amounts of inventory in cases where only a few units of inventories are taken into account, and there is no warehouse or a very small one. In addition, this method is applicable to accounting for materials that are used by the organization in a special manner (precious metals, stones, etc.) - their assessment can also be made based on the cost of each unit of inventory.

The materials of each inventory group can be valued at average cost. The average price is calculated by dividing the total cost of a group of inventories by their number in a certain period of time. Thus, with each movement of materials, the average cost of inventory may change.

Please note that if the accounting policy of the organization defines any specific method of accounting for inventories for the reporting period, then it is this method that should be used for the specified time.

However, if an organization receives a new inventory group that was not previously included in the inventory inventory inventory, or is part of another inventory group, the organization can supplement the existing accounting policy and choose a method for valuing these materials.

According to the FIFO method, resources that are the first to enter production or sale are valued at the cost of the first acquisitions, taking into account the cost of inventories listed at the beginning of the month.

Valuation of inventories that are not related to goods, which are accounted for at sales value, is carried out using the method that is used when disposing of the corresponding inventories.

Basic methods of accounting for inventories

Each organization must establish the method of accounting for materials in its accounting policy. From the point of view of distribution of accounting and warehouse accounting, two main methods can be used.

The methods are as follows:

balance (in warehouses, quantitative accounting is carried out by type of value, while the accounting department keeps total accounting in monetary terms);
quantitative and total (quantitative and total accounting are organized simultaneously in warehouses and in the accounting department).

The first method is used to reduce the labor intensity of accounting processes and increase the efficiency of their implementation in the presence of a large number of inventories. The second method is more acceptable if there is a need to strengthen control over the safety and movement of valuables and materials.

Accounting for materials can be carried out using continuous or periodic accounting systems.

The continuous accounting system provides for the reflection of all operations on the receipt and movement of inventories at the time of their execution. The periodic accounting system involves identifying the amount of used and disposed materials at the end of each reporting period (usually one month is taken as the reporting period, but a shorter period can be taken), as well as the monthly determination of material balances based on the results of the inventory.

In practice, periodic accounting is chosen by organizations for certain types of valuables, the continuous accounting of which is difficult or impractical (self-service stores, construction warehouses, etc.).

In some organizations, there is a so-called combined method of writing off inventories, when, when using a continuous accounting system, a simple rather than a “rolling” assessment of materials is chosen. As a rule, this happens during manual accounting.

13.1, 13.2, 13.3 clause 25

Documents and comments

By Order of the Ministry of Finance of the Russian Federation dated May 16, 2016 N 64n, changes were made to PBU 5/01 concerning organizations that have the right to use simplified methods of accounting and reporting and other organizations. In particular, the PBU was supplemented with clauses 13.1, 13.2, 13.3, which establish the specifics of assessing acquired inventories and writing off other costs directly related to the acquisition of fixed assets. In addition, paragraph 25 of the PBU has been supplemented with a new paragraph, which establishes that organizations that have the right to use simplified reporting methods may not create a reserve for a decrease in the value of material assets and not take them into account when calculating the corresponding balance sheet indicators at the end of the reporting year, net.

The requirements of PBU 5/01 do not apply to credit organizations, as well as to state (municipal) institutions.

Registered with the Ministry of Justice of Russia on July 19, 2001

Ministry of Finance of the Russian Federation

On approval of the accounting regulations "Accounting for inventories" PBU 5/01

As amended: November 27, 2006 N 156n; 03/26/2007 N 26n;
10/25/2010 N 132n, 05/16/2016 N 64n.

In pursuance of the Program for reforming accounting in accordance with international financial reporting standards, approved by Decree of the Government of the Russian Federation of March 6, 1998 N 283 (Collected Legislation of the Russian Federation, 1998, N 11, Art. 1290), I order:

1. Approve the attached accounting document “Accounting for inventories” PBU 5/01.

2. Declare invalid:

Order of the Ministry of Finance of the Russian Federation dated June 15, 1998 N 25n “On approval of the Regulations on accounting of inventories” PBU 5/98” (Order registered with the Ministry of Justice of the Russian Federation on July 23, 1998, registration number 1570);

paragraph 1 of the List of amendments and additions to the regulatory legal acts of the Ministry of Finance of the Russian Federation, approved by Order of the Ministry of Finance of the Russian Federation dated December 30, 1999 N 107n (Order registered with the Ministry of Justice of the Russian Federation on January 28, 2000, registration number 2064);

paragraph 2 of Amendments to regulatory legal acts on accounting, attached to Order of the Ministry of Finance of the Russian Federation dated March 24, 2000 N 31n “On amendments to regulatory legal acts on accounting” (Order registered with the Ministry of Justice of the Russian Federation on April 26, 2000 ., registration number 2209).

3. Put this Order into effect starting with the 2002 financial statements.

Minister
A.L. Kudrin

Approved
by order of the Ministry of Finance
Russian Federation
dated 06/09/2001 N 44n

Accounting Regulations

"Accounting for inventories"