Regulations on accounting of long-term investments 160. Regulations on accounting of long-term investments. Accounting for capital costs at the customer's site

Classification and analysis of the activities of an enterprise aimed at investing funds, both long-term and short-term, in order to obtain material or intangible benefits is carried out using accounting of real and financial investments. On the balance sheet, long-term investments in the form of capital contributions are shown as non-current assets.

Classification and basic concepts

The following capital investments are considered real long-term investments:

Financing of construction projects;
Reconstruction or modernization of production;
Buying a property;
Acquisition of land plots;
Improvement of equipment and technological lines;
Development of social facilities;
Promotion of inventions, know-how, works of science, art.

This group includes profitable investments for a period of 1 to 5 years.

Financial investment in the long term includes:

Purchasing certificates and securities on stock exchanges;
Purchase of an equity portion of the authorized capital of other organizations;
Providing credit to other businesses.

And it implies obtaining material benefits, receiving income for a period of more than 1 year.

Portfolio investments do not bring excessive profits, but are highly reliable, for example, bank deposits

Such transactions are recorded in the “Financial Investments” account. For convenience and clarity, the company opens additional sub-accounts that display each item of income separately.

It is worth considering that if the securities market tends to reduce the value of shares or bonds, it is necessary to create in advance a reserve for their depreciation in the amount of their full value.

When maintaining accounting and tax records of financial investments in parallel, in some cases differences in the amounts in the accounts may arise. For example, received irrevocable shares or bonds are credited by the enterprise at their average market value. In tax accounting, the cost of acquiring these securities will be zero (since they are absent).

Sources of financing

An enterprise can obtain resources to increase its capital, improve fixed assets, and other capital or financial investments from the following sources:

Internal reserves of the organization;
Help from sponsors - legal or private persons;
Government funds (budget financing) on a repayable basis;
Loans, advances or credits.

Planning an investment project begins with choosing a source of subsidies.

Internal financing opportunities

An organization can use the following realistic sources of long-term investment:

Net profit is the funds remaining after paying all taxes and other obligatory payments;
Depreciation write-offs, both fixed assets and intangible assets;
Non-refundable budgetary allocations;
Compensation for insured events.

Synthetic accounting is not used to control the use of profits as a source of long-term investment.

Detailed (analytical) accounting aimed at generating information on areas of use and monitoring the distribution of net profit for investment purposes (as a source of long-term investments) is carried out by the enterprise independently. In this case, balance account 84 is used (subaccounts are opened to it), and the following entries are made:

Based on the analysis of the balances in the depreciation accounts of fixed assets and intangible assets, it is possible to plan their use as long-term investments.

Depreciation charges are an integral part of the cost of products (services) and, as a result, are part of the proceeds from the sale of the final product.

Once in bank accounts or in the cash register of an enterprise, funds can be distributed for various business needs, including financing capital investments in fixed assets and intangible assets.

Free government transfers can serve an enterprise as a source of long-term investment. Such government appropriations for specific purposes are reflected in the organization’s accounting records as follows:

In bank accounts, targeted gratuitous budget allocations are displayed by the following entries:
As funds received from the state are used, the organization writes them off:

The use of gratuitous targeted budget funds for other purposes is prohibited. Such illegal transfers are subject to refund.

External funding opportunities

The organization can accept help (if there is a lack of its own resources) from the following sources:

Refundable budget allocations;
Bank loans;
Sponsorship credits;
Monetary resources received from equity participants in a capital construction project.

Loan funds, in the form of long-term investments, received from banks and other legal entities or individuals - sponsors, as well as from the budget, are listed on accounts 66 and 67 of the balance sheet.
Before the commissioning of the facility for the construction of which loan funds were issued, interest on loans is included in its real value. After commissioning, the monthly payment for the loan is included in the operating expenses of the enterprise.

The amount of equity participation of other organizations in the construction of the facility is indicated on targeted financing accounts or is considered settlements with debtors and creditors.

After completion of construction, the shareholders are returned the amount of funds due to them, according to their obligations under the contract. In accounting this is shown as follows:
Long-term deposits can be attracted for the global needs of the enterprise, such as:

Capital construction of industrial premises, structures, etc.;
Reconstruction or expansion of existing fixed assets;
Improving (or maintaining at the required level) existing production units and non-production facilities.

Long-term capital investments mean not only investments in the industrial and transport sectors, but also investments in the construction of housing, premises for hospitals, sanatoriums, agricultural needs, etc.

Goals and objectives of accounting

For correct and clear interaction between the investor, developer and contractor, all parties to contractual relations maintain accounting records of capital works, the objectives of which are:

Actual and timely display of costs in general, and for each object in particular;
Constant verification of the intended use of funds;
Fulfillment of planned indicators;
Monitoring the expenditure of funds according to estimates;
Calculation of the exact cost of a commissioned facility (or unfinished construction);
Compliance with the amounts of overhead costs specified in the estimate;
Correct display of the inventory value of new objects.

If the enterprise has chosen the contract method of construction, then the construction and installation work will be paid for through the general contractor; in the case of the economic form of organizing the project, financing occurs at the expense of the customer’s cost items.

Accounting for capital costs at the customer's site

The work done, in monetary terms, is posted to the balance sheet accounts only after the presentation of the act of its completion. And based on a certificate of the cost of expenses, the company pays for work already performed and includes it in non-current assets.

As payments are made for fulfilled obligations, according to the contract, the debt to the contractor is gradually written off from the account. . In this case the following wiring is done:
Contractor's capital expenditure accounting

Expenses for performing work by the general contractor are displayed on the following balance sheet items:
At the end of the work, the customer determines the financial result as the margin between estimated and actual costs. This result may also include the margin between the contractual cost of the project presented to the investor and the actual cost, taking into account the costs of the customer’s needs. The contractor makes the following entries:
If the contractor, according to the registration certificate, has capital construction as its main foreign trade activity, then income or expenses are displayed as “Sales”. If the work performed is a secondary foreign trade activity, then profit is recorded in the accounts of other income and expenses.

Special accounting cases

The developer can purchase equipment for installation and construction work. In accounting, this will be shown in the accounts:
According to the contract, payment of expenses for unfinished work can be carried out by advance payment:
The contractor can record the prepayment as revenue and record it in an account reflecting the work being carried out step by step (46). Further, as the work is completed, the amount paid by the developer is reset to zero (written off).

To pay the contractor, the customer can take out a loan from a bank if there are not enough own funds. Such transactions are reflected by the following transactions:
Interest on the received loan is charged to accounts receivable. The accrued payment for the loan after completion of the work (receipt of the goods) is classified as operating expenses.

When carrying out capital development (reconstruction), there are expenses that do not affect the change in the accounting value of fixed assets: expenses for personnel training, reimbursement of the cost of structures subject to demolition, additional, unaccounted payments for tranches, etc.

To account for long-term investments, the chart of accounts provides account 08 Investments in non-current assets. In accounting practice, the concepts of capital investments and long-term investments are synonymous: in both cases, they mean investments in any type of non-current assets.

Basic regulatory documents for accounting for long-term investments:

1. Accounting Regulations “Accounting for Construction Contracts” PBU 2/08: Approved. by order of the Ministry of Finance of the Russian Federation dated October 24, 2008.

2. Regulations on accounting of long-term investments: Approved. by letter of the Ministry of Finance of the Russian Federation dated December 30, 1993 No. 160.

3. Accounting Regulations “Accounting for Fixed Assets” PBU 6/01: Approved. by order of the Ministry of Finance of the Russian Federation dated March 30, 2001 No. 26n (taking into account subsequent amendments and additions).

4. 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 (taking into account subsequent amendments and additions).

5. Guidelines for accounting of fixed assets: Approved. by order of the Ministry of Finance of the Russian Federation dated October 13, 2003 No. 91n (taking into account subsequent amendments and additions).

6. Chart of accounts for accounting financial and economic activities of organizations and Instructions for its use: Approved. by order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n (taking into account subsequent amendments and additions).

7. Unified forms of primary accounting documentation for accounting of fixed assets: Approved. Resolution of the State Statistics Committee of Russia dated January 21, 2003 No. 7.

8. Tax Code of the Russian Federation. Part two dated 05.08.2000 No. 117-FZ (taking into account subsequent amendments and additions).

Account 08 Investments in non-current assets has the following sub-accounts:

1) acquisition of land plots;

2) acquisition of environmental management facilities;

3) construction of fixed assets;

4) acquisition of fixed assets;

5) acquisition of intangible assets;

6) transfer of young animals to the main herd;

7) acquisition of adult animals.

Organizations can carry out construction, installation and other work in an economic way or entrust these activities to construction, installation, design and other specialized organizations on a contract basis.

When performing construction and installation work by contract, account 08 takes into account the costs recorded according to the data of accepted or paid invoices of contractors, and when performing this work using an economic method, all costs actually incurred by the developer himself. The basis for acceptance and payment for work performed by the contractor are payment requests or payment orders issued on the basis of work acceptance certificates in forms No. 2, 2a or 3.

Work performed is paid for the object as a whole (at the end of construction) or after completing certain stages and types of work. The forms of payment between the contractor and the customer are stipulated in the contract.

The developer-customer carries out analytical accounting of costs in account 08 with the contract method of conducting work in statement No. 18 Costs of capital investments by type of work:

Construction work, including installation of metal structures;

Equipment installation work;

Cost of equipment handed over for installation;

The cost of equipment that does not require installation, tools and equipment provided for in the capital investment estimate;

Cost of equipment requiring installation that is in stock;

Design and survey work;

Other capital works and costs;

Losses included in the inventory value of an object.

Construction work is all construction work provided for in projects and estimates.

Equipment installation work includes the work provided for in the price tags for equipment installation. Equipment requiring installation means equipment that can be put into operation only after its parts have been assembled and attached to foundations or supports, floors, floors and other structures of buildings and structures.

Equipment that does not require pre-assembly or attachment to supports or foundations to be put into operation is classified as equipment that does not require installation.

Costs for design and survey work on construction projects are included in the volume of capital investments in amounts paid to design organizations.

Other capital costs include all other work and costs not listed above:

Costs for the allocation of land plots associated with the construction of certain facilities;

Costs of relocating residents (except for construction work related to relocation);

Expenses for maintaining the directorate of enterprises (organizations) under construction and technical supervision;

Costs of planting and growing perennial crops;

Costs for the purchase of working and productive livestock incurred by non-agricultural enterprises (organizations);

Costs for clarifying construction and technological design solutions in connection with the specifics of local construction conditions and the peculiarities of the work of a given enterprise (organization) or structure (except for work related to the construction of experimental installations and the acquisition of equipment);

All types of compensation paid to contractors in excess of the contractual, estimated cost of work in accordance with the contract;

Interest on a loan to pay for equipment;

Other work and costs not related to construction and installation work provided for in the consolidated construction cost estimate.

Other costs are reflected in account 08 by type of cost and are distributed between individual objects in proportion to the contractual (estimated) cost of the objects being built or reconstructed.

Losses included in the volume of capital investments are made up of the following expenses and losses: losses from the sale of equipment, material assets, services, write-off of accounts receivable, damage to material assets, from the liquidation and sale of fixed assets and from the destruction of unfinished objects as a result of natural disasters.

If these losses cannot be included in the inventory value of objects on a direct basis, they are distributed in proportion to the contractual (estimated) cost of the objects.

Costs related to completed capital works are summarized in statement No. 18 1 Costs for completed capital investments based on the data in statement 18 Costs of capital investments.

Objects of capital work are considered to be put into operation after the acceptance commission acts are completed in accordance with the established procedure.

The inventory value of completed and commissioned objects is written off to the debit of account 01 Fixed assets from the credit of account 08 Investments in non-current assets. The debit balance on account 08 shows the amount of costs for unfinished or not commissioned objects.

As part of capital investments, a large share is made up of equipment that requires and does not require installation. Equipment requiring installation is accounted for on account 07 Equipment for installation.

Equipment requiring installation is delivered by the developer (customer) to the construction site and is documented in a certificate of transfer of equipment for installation. The cost of equipment handed over for installation is written off to the debit of account 08 Investments in non-current assets from the credit of account 07 Equipment for installation. The cost of equipment handed over for installation, the installation of which has not yet begun, should be reversed when drawing up the balance sheet, and then reflected in the same accounts the following month. This will ensure the reliability of balance sheet data.

The contractor accounts for equipment accepted for installation in off-balance sheet account 005 Equipment accepted for installation.

Equipment that does not require installation (vehicles, tools, equipment, agricultural machinery, etc.), as it is received, is reflected in the debit of account 08 Investments in non-current assets from the credit of account 60 Settlements with suppliers and contractors. Its commissioning is formalized by an act of acceptance and transfer of fixed assets.

Analytical accounting for account 07 is carried out by equipment names or homogeneous groups and by storage locations.

If an overestimation of the cost of construction and installation work is detected on accepted and paid invoices of contractors, the customer and the contractor must make corrections to the accounting data. The correction is made by a reversal entry to the debit of account 08 and the credit of account 60. The return of funds is reflected by a regular entry to the debit of account 51.55, the credit of account 60 or through account 76 Settlements of claims. By the identified amount of overestimation of the cost of work on objects put into operation, the inventory value of fixed assets is also reduced: debit to account 08, credit to account 01.

When making capital investments in an economic way, generalization of costs in the context of capital work objects can be carried out by debiting account 08 or 23. Account 23 is used in those organizations where special construction divisions have been created that are subject to on-farm accounting. The costs of capital investments are taken into account by items: building materials and structures, equipment that requires installation and does not require installation, the basic wages of workers, the cost of maintaining construction machinery and mechanisms and overhead costs. Accounting for capital investments carried out in an economic way is in many ways similar to accounting for costs in construction and installation organizations, therefore, for analytical accounting, you can use the 10c order journal used in these organizations.

The inventory value of objects put into operation using the economic method of performing work is composed of all actual costs, including construction losses and the amount of taxes not reimbursed by the budget. In the accounting accounts, expenses are reflected in the debit of accounts 08 or 23 from the credit of accounts 10-8, 70, 69, 68, 07. 60, 25, 26, etc. Account 23 is closed by account 08, then the debit of account 01 and the credit of account 08 are included in fixed assets.

Costs that do not increase the cost of fixed assets include:

Expenses for training operational personnel to work in newly constructed organizations;

To preserve construction or transfer it free of charge to other organizations and individuals;

Costs of a prospective nature (geological exploration, survey, etc.) not related to specific construction projects;

To finance other organizations through equity participation;

Cost of equipment donated;

To train construction workers using the economic method of conducting work;

Losses from natural disasters for construction projects;

Expenses for the protection, demolition and dismantling of objects stopped under construction and allowed to be written off, and other similar expenses.

The listed expenses are collected in the debit of account 08 and written off from the appropriate sources of financing.

The costs of forming the main herd include: reimbursement of expenses for raising young animals transferred to the main herd, payment of expenses for the acquisition of adult livestock, including the costs of their delivery and the delivery of adult livestock received free of charge. To account for these costs, corresponding subaccounts are provided on account 08.

Analytical accounting is carried out by animal species in the context of the specified sub-accounts in the book (statement) of livestock movement. The cost of young animals transferred to the main herd is composed of their book value at the beginning of the year and the cost of rearing in the current year, calculated based on the actual gain in live weight. Since the actual cost of one centner of live weight is calculated at the end of the year, the assessment of young animals transferred to the main herd during the year is carried out from the book value of animals at the beginning of the year and the planned cost of growth during the year.

When transferring young horses, camels, donkeys, etc. to the main herd, the increase in live weight is not calculated. During the year, they are accounted for at a cost consisting of the book value at the beginning of the year and the planned cost of one feed day, multiplied by the number of days spent on the farm during the year.

At the end of the year, after determining the actual cost of one centner of live weight and one feed day, the planned costs for raising young animals are adjusted to the actual ones.

Costs associated with the acquisition of land plots, environmental management facilities and intangible assets are recorded on account 08 in the corresponding subaccounts in the same way as accounting for the formation of fixed assets.

Thus, accounting for long-term investments is carried out using account 08 “Investments in non-current assets”. Depending on the type of source, corresponding subaccounts are opened for account 08. The debit of account 08 “Investments in non-current assets” reflects the actual costs incurred for the construction (creation) and acquisition of the relevant assets, as well as the costs of forming the main herd.

The generated initial cost of fixed assets, intangible and other assets accepted for operation and registered in the prescribed manner is written off from account 08 “Investments in non-current assets” to the debit of accounts 01 “Fixed assets”, 03 “Income-generating investments in tangible assets”, 04 “Intangible assets”, etc.

Completed long-term investments are assessed based on the inventory value of completed construction projects and acquired individual types of fixed assets and other non-current assets.

Federal Law No. 129-FZ of November 21, 1996

3. PBU 2/2008 “Accounting for construction contracts”, order of the Ministry of Finance of the Russian Federation dated October 24, 2008 No. 116n

4. Federal Law “On investment activities in the Russian Federation, carried out in the form of capital investments” dated February 25, 1999. No. 39-FZ.

Question 1. The concept of long-term investment. Sources of financing.

Long-term investments – costs of creating, increasing the size and acquiring non-current durable assets not intended for sale.

Long-term investments are related to:

1. carrying out capital construction, reconstruction, expansion, technical. re-equipment of enterprises and non-production facilities;

2. acquisition of buildings, structures, equipment, vehicles, etc.;

3. acquisition of land plots, environmental management facilities;

4. acquisition, creation of intangible assets.

Sources of financing for long-term investments are:

1. profit of the organization

2. loans and credits

3. targeted revenues

4. accrued depreciation

Question 2. Features of accounting for long-term investments.

Accounting is carried out based on actual expenses:

In general for construction or for individual objects included in it;

For acquired fixed assets, intangible assets, land plots, environmental management facilities.

Accounting is maintained on the account 08 or 20. The choice of account depends on the purpose of creating the object:

The object is created for its own needs, own and borrowed funds are used, construction costs are formed on account 08 in separate subaccounts.
The object is created at the expense of investors with the aim of transferring it for their use. Accounting is carried out on account 08 in separate subaccounts.
The object is created using own or borrowed funds for the purpose of further implementation. Accounting for the costs of creating an object is carried out on account 20.

The work to create an object for one’s own needs is carried out by contract or on an economic basis.

Question 3. Accounting for work performed by contract.

These works are based on a construction contract.

Developer is a company that organizes the construction of an object, monitors the progress of construction and keeps track of construction costs.

Wherein unfinished construction The developer's costs for the construction of the facility from the beginning of construction to commissioning are considered.

Completed construction– these are the developer’s costs for a commissioned construction project.

All operations for accounting for work performed by contract can be divided into 3 groups:

Reflection of operations related to the maintenance of the developer’s apparatus.

These costs should be included in the construction estimate and increase the initial cost of the project. They can be accounted for in a separate subaccount of account 08 or previously reflected in account 26 with subsequent write-off to account 08.

Dt 08 Kt 02, 10, 69, 70, etc. – costs of maintaining the developer’s apparatus

Dt 26 Kt 02, 10, 69, 70, 71, etc.

Postings for the formation of construction costs

Dt 08 Kt 60 - for the amount of invoices accepted (recognized) by contractors, (KS-3)

Dt 19 Kt 60 – VAT allocated

Dt 08 Kt 07 – cost of equipment transferred for installation

Dt 08 Kt 51, 52, 76 - bank services

Dt 08 Kt 76 - for the amount of unfinished construction received from a subsidiary

Dt 08 Kt 66, 67 – accrued %% under loan and credit agreements

Dt 08 Kt 60 (76) – services of third parties during construction

Formation of inventory value

Inventory value– these are the developer’s costs for the construction of the facility in accordance with the construction contract from its beginning to its commissioning.

Inventory value includes the cost of construction work and other capital costs.

When constructing several objects, other capital costs are included in the inventory value in proportion to the contractual cost of the objects.

When constructing one object, they are charged at its cost for its intended purpose.

Dt 01 Kt 08 – for the inventory value of completed construction projects

Dt 94 Kt 08 – amount of shortages

Dt 76 Kt 08 – amount of claims

Dt 91 Kt 08 - write-off of expenses not included in the inventory value

Question 4. Accounting for equipment requiring installation.

Equipment that requires installation includes technological, energy, and production equipment that is installed in workshops, laboratories, facilities under construction, etc. This equipment also includes instrumentation and measurement instruments intended for installation as part of the equipment.

This equipment is put into operation only after its parts have been assembled, attached to the foundation, floor, supports, etc.

Accounting for equipment requiring installation is carried out by the developer at account 07 By the amount of actual expenses.

Dt 07 Kt 60, 71, 69, 70, 23

The cost of equipment transferred for installation

The Contractor accepts the equipment delivered to the construction site into the off-balance sheet account Dt 005, where it is registered until installation. After installation of the equipment, the account is closed: Kt 005.

Question 5. Accounting for work performed in an economic way.

To carry out work in an economic way, the enterprise forms construction teams, OKS, economic construction departments and other divisions. Expenses are accounted for on account 08 or using intermediate account 23. Reflection in accounting of operations when performing household work. in a manner similar to the procedure for accounting for work performed by contract. The difference is in the load on accounting accounts: The revolutions on accounts 69, 70, 02, 10, 71 increase.

Dt 08 Kt 02, 05, 10, 69, 70, 66, 67, 71, 60 – actual costs of creating the facility

Dt 01 Kt 08 – acceptance of the object for accounting

Dt 23 Kt 02, 05, 10, 69, 70, 66, 67, 71, 60 – cost formation

Basic regulatory documents for accounting for long-term investments:

1. Accounting Regulations “Accounting for Construction Contracts” PBU 2/08: Approved. by order of the Ministry of Finance of the Russian Federation dated October 24, 2008.
2. Regulations on accounting of long-term investments: Approved. by letter of the Ministry of Finance of the Russian Federation dated December 30, 1993 No. 160.
3. Accounting Regulations “Accounting for Fixed Assets” PBU 6/01: Approved. by order of the Ministry of Finance of the Russian Federation dated March 30, 2001 No. 26n (taking into account subsequent amendments and additions).
4. 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 (taking into account subsequent amendments and additions).
5. Guidelines for accounting of fixed assets: Approved. by order of the Ministry of Finance of the Russian Federation dated October 13, 2003 No. 91n (taking into account subsequent amendments and additions).
6. Chart of accounts for accounting financial and economic activities of organizations and Instructions for its use: Approved. by order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n (taking into account subsequent amendments and additions).
7. Unified forms of primary accounting documentation for accounting of fixed assets: Approved. Resolution of the State Statistics Committee of Russia dated January 21, 2003 No. 7.
8. Tax Code of the Russian Federation. Part two dated 05.08.2000 No. 117-FZ (taking into account subsequent amendments and additions).

Account 08 Investments in non-current assets has the following sub-accounts:

1) acquisition of land plots;
2) acquisition of environmental management facilities;
3) construction of fixed assets;
4) acquisition of fixed assets;
5) acquisition of intangible assets;
6) transfer of young animals to the main herd;
7) acquisition of adult animals.

The developer-customer carries out analytical accounting of costs in account 08 with the contract method of conducting work in statement No. 18 Costs of capital investments by type of work:

- construction work, including installation of metal structures;
- equipment installation work;
- cost of equipment handed over for installation;
- the cost of equipment that does not require installation, tools and equipment provided for in the capital investment estimate;
- the cost of equipment that requires installation and is in stock;
- design and survey work;
- other capital works and costs;
- losses included in the inventory value of the object.

Construction work is all construction work provided for in projects and estimates.

Equipment that does not require pre-assembly or attachment to supports or foundations to be put into operation is classified as equipment that does not require installation.

Costs for design and survey work on construction projects are included in the volume of capital investments in amounts paid to design organizations.

Other capital costs include all other work and costs not listed above:

- costs for the allocation of land plots associated with the construction of certain facilities;
- costs of relocating residents (except for construction work related to relocation);
- expenses for maintaining the directorate of enterprises (organizations) under construction and technical supervision;
- costs of planting and growing perennial plants;
- costs of purchasing working and productive livestock carried out by non-agricultural enterprises (organizations);
- expenses for clarifying construction and technological design solutions in connection with the specifics of local construction conditions and the peculiarities of the work of a given enterprise (organization) or structure (except for work related to the construction of experimental installations and the acquisition of equipment);
- all types of compensation paid to contractors in excess of the contractual, estimated cost of work in accordance with the contract;
- interest on a loan to pay for equipment;
- other work and costs not related to construction and installation work, provided for in the consolidated construction cost estimate.

Other costs are reflected in account 08 by type of cost and are distributed between individual objects in proportion to the contractual (estimated) cost of the objects being built or reconstructed.

If these losses cannot be included in the inventory value of objects on a direct basis, they are distributed in proportion to the contractual (estimated) cost of the objects.

Costs related to completed capital works are summarized in statement No. 18 1 Costs for completed capital investments based on the data in statement 18 Costs of capital investments.

Objects of capital work are considered to be put into operation after the acceptance commission acts are completed in accordance with the established procedure.

The contractor accounts for equipment accepted for installation in off-balance sheet account 005 Equipment accepted for installation.

Analytical accounting for account 07 is carried out by equipment names or homogeneous groups and by storage locations.

Costs that do not increase the cost of fixed assets include:

- expenses for training operational personnel to work in newly constructed organizations;
- to preserve construction or transfer it free of charge to other organizations and individuals;
- prospective expenses (geological exploration, survey, etc.) not related to specific construction projects;
- to finance other organizations through equity participation;
- the cost of equipment donated free of charge;
- for training construction workers using the economic method of conducting work;
- losses from natural disasters on construction projects;
- costs for the protection, demolition and dismantling of objects that have been stopped under construction and allowed to be written off, and other similar costs.

The listed expenses are collected in the debit of account 08 and written off from the appropriate sources of financing.

At the end of the year, after determining the actual cost of one centner of live weight and one feed day, the planned costs for raising young animals are adjusted to the actual ones.

Completed long-term investments are assessed based on the inventory value of completed construction projects and acquired individual types of fixed assets and other non-current assets.

Investment activities- investing funds and carrying out practical actions in order to obtain economic benefits and other types of useful results. According to the investment period, investments are divided into short-term (for a period of up to one year) and long-term (for a period of more than one year)

In a broad sense, long-term investments mean long-term investments by organizations in any type of non-current assets, including financial investments in securities, authorized capital of other organizations, etc. This chapter discusses accounting issues for long-term investments in the form of capital investments; Ch. is devoted to accounting for financial investments. 11 of this textbook

Long-term investments in the form of capital investments mean the costs of creating, increasing the size, as well as acquiring non-current durable assets that are not intended for sale.

Long-term investments in the form of capital investments are associated with:

carrying out capital construction, as well as reconstruction, expansion and technical re-equipment of existing enterprises and non-productive facilities;
acquisition of buildings, structures, equipment, vehicles and other individual fixed assets;
acquisition of land plots and environmental management facilities;
acquisition and creation of intangible assets, including the implementation of research, development and technological work. Long-term investments can be classified according to a number of characteristics, for example, by form, by degree of readiness, by structure, by purpose, by industry, and by sources of financing.

By form, long-term investments are divided into: new construction, reconstruction, expansion, technical re-equipment, maintaining the capacity of existing production facilities and non-production facilities.

According to the degree of readiness, long-term capital investments are divided into completed and unfinished (incomplete). By structure, long-term investments in the form of capital investments are divided into: construction and creation of fixed assets, acquisition of fixed assets, acquisition of natural objects, creation and acquisition of intangible assets.

By purpose, all long-term investments are divided into investments in production and non-production facilities, objects intended for rent, leasing, rental.

By industry, long-term capital investments are divided into: investments in industry, transport, housing construction, healthcare, agriculture and other industries.

Based on sources of financing, long-term investments are divided into investments from investors’ own funds and from borrowed funds.

Regulatory regulation of accounting for long-term investments in the form of capital investments is regulated by the Regulations on Accounting for Long-Term Investments, approved by the Ministry of Finance of the Russian Federation on December 30, 1993 No. 160. The objectives of accounting for long-term capital investments are as follows:

ϲʙᴏtimely, complete and reliable reflection of all expenses incurred during the construction of objects by their types and objects taken into account;
control over the progress of construction, commissioning of production facilities and fixed assets;
correct determination and reflection of the inventory value of commissioned and acquired fixed assets, land plots, environmental management facilities and intangible assets;
control over the availability and use of sources of financing for long-term investments.

As is known, the subjects of investment activities carried out in the form of investments related to capital construction will be investors, customers (developers), contractors and other persons. Relations between developer organizations and other participants in the investment process are regulated by agreement.

Investor- a legal or natural person investing its own, borrowed and borrowed funds in the creation and reproduction of fixed assets.

Developer- investor, as well as other legal entities and individuals authorized by the investor to implement investment projects for capital construction. Developers are granted the rights of ownership, use and disposal of capital investments for the period and within the powers established by law.

Contractor- a legal entity performing contract work (construction, installation, repair of buildings and structures, etc.) for the developer under a construction contract (contractor agreement)

Construction object- a separate building or structure, type or complex of work, for the construction of which a separate project and estimate must be drawn up.

Sources of financing for long-term investments

Before starting any investment project, it is extremely important to determine the sources of its financing. Sources of financing for long-term investments can be both the organization’s own and borrowed funds.

The organization's own funds include:

profit remaining at the disposal of the organization after paying all taxes and obligatory payments;
depreciation charges for fixed assets and intangible assets;
budget funds provided by various levels of government on a non-refundable basis;
insurance compensation received to cover losses and damages from insured events.

The current accounting methodology does not provide for synthetic accounting of the use of the organization's net profit as a source of long-term investment. But the organization can independently conduct analytical accounting and control over the use of profits for these purposes. It is worth saying that for this purpose it is extremely important to open separate sub-accounts for synthetic account 84 “Retained profit (uncovered loss)”: “Profit in circulation” and “Profit used”. When using profit as a source of long-term investment, the following entry can be made in these accounts:

D-84 “Retained earnings (uncovered loss)”, subaccount “Profit in circulation”
Kt 84 “Retained earnings (uncovered loss)”, subaccount “Used profit”.

The next source of financing for long-term investments may be depreciation charges. Depreciation charges are included in the cost of products (works, services) and will therefore be part of the proceeds from the sale of final products. Proceeds in the form of cash go either to the organization’s cash desk or to its accounts at bank institutions. These funds can be used to finance capital investments in fixed assets and intangible assets. Systematic accounting does not provide records of the use of depreciation as a source of financing long-term investments. But when analyzing the sufficiency of funds for planned investments, it is extremely important to compare the amounts that are required with the balances in accounts 02 “Depreciation of fixed assets” and 05 “Depreciation of intangible assets”.

If budget funds can be used on an irrevocable basis to finance long-term investments, their movement is recorded in account 86 “Targeted financing”. Targeted financing received as a source of long-term investment is reflected:

Dt 76 “Settlements with various debtors and creditors”
Kit 86 “Targeted financing”.

It is worth saying that receiving budget funds on a non-refundable basis is demonstrated:

Kit 76 “Settlements with various debtors and creditors.”

Budget funds are written off from account 86 “Targeted financing” systematically. When using these funds, the following entries are made in the accounting accounts:

Dt 86 “Targeted financing”
K-t 98 “Future income”, sub-account “Gratuitous receipts”.

After the facility is put into operation, the amounts reflected in the “Gratuit Receipts” subaccount are written off during the useful life of non-current assets in the amount of depreciation accrued on them as non-operating income:

Dt 98 “Future income”, subaccount “Gratuitous receipts”
Kt 91 “Other income and expenses”, subaccount “Other income”.

If the funds received are misused, the organization is obliged to return them.

But in addition to our own sources of financing long-term investments, there are also attracted ones. The sources of financing involved include: bank loans; loans to legal entities and individuals; budget funds provided on a repayable basis; funds received from other organizations as equity participation in the construction of facilities.

Loans and borrowings attracted by the investor as a source of financing long-term investments in the form of capital investments are reflected in accounts 66 “Settlements for short-term loans and borrowings” or 67 “Settlements for long-term loans and borrowings”. The receipt of a loan from a bank or lender is demonstrated:

D-51 “Current accounts”, 55 “Special accounts in banks”

The receipt of funds from budgets of various levels on a repayable basis (budget loans) is similarly demonstrated.

Interest paid to credit institutions and other legal entities and individuals for loans and borrowings received, to treasury authorities on budget loans received, are included in the actual cost of long-term investment objects under which they were received until they are put into operation. After their commissioning, interest is paid from the operating expenses of the organization.

Funds received from other organizations in the order of their equity participation in long-term investments are recorded either in account 76 “Settlements with various debtors and creditors”, or in account 86 “Targeted financing”. After completion of the investment, obligations to the participating shareholders are repaid by transferring their shares:

D-76 “Settlements with various debtors and creditors”, 86 “Targeted financing”

Construction and installation work is financed through the contractor or directly through the costs of the developer, depending on the method of construction (contract or commercial)

Accounting for long-term investments in the form of capital investments

Capital investments represent investments in non-current assets, incl. costs for new construction, expansion, reconstruction and technical re-equipment of existing organizations, purchase of machinery, equipment, tools, inventory, design and survey work, etc. Capital investments are an economic process. Like any other business process, it is demonstrated in accounting as a set of costs and results. Accounting primarily reflects costs incurred in the process of capital investment, i.e. costs for design, construction and reconstruction of facilities, purchase and installation of equipment, machinery, instruments, costs for the purchase of finished facilities, etc. The result of the capital investment process will be new or reconstructed non-current assets.

Accounting for long-term investments is carried out on an independent synthetic account 08 “Investments in non-current assets”. This account is intended to summarize information about the organization’s costs for objects that will subsequently be accepted for accounting as non-current. Separate sub-accounts can be opened to this account for the types of these assets: “Purchase of land plots”, “Purchase of natural resources”, “Construction of fixed assets”, “Purchase of fixed assets”, “Purchase of intangible assets”, etc. By debit Account 08 “Investments in non-current assets” reflects the actual costs of the acquisition, construction and installation of individual objects of the ϶ᴛᴏth category of assets on an accrual basis. The balance (debit) of the account demonstrates the cost of unfinished investments (construction). On account 08 “Investments in non-current assets”, analytical accounting is carried out for each construction or acquisition object and cost items.

Capital investments are grouped in accounting according to the technological structure of expenses, which is why the following grouping is usually accepted:

construction works;
equipment installation work;
purchase of equipment requiring installation;
purchase of equipment that does not require installation;
other capital expenditures;
expenses that do not increase the cost of fixed assets.

Construction work is carried out in the presence of title lists, design estimates and sources of financing. Title lists - ϶ᴛᴏ list of objects planned for construction or reconstruction. They provide for the start and completion dates of work, estimated costs, volumes of capital investments by year, etc. The design and estimate documentation includes a project, drawings, a set of technical documents, and a complete estimate calculation , explanatory notes and other materials necessary for the planned construction or reconstruction of a building, structure or enterprise. Design and estimate documentation is developed on the basis of feasibility studies and technical and economic calculations.

When carrying out contract construction, the customer enters into a contract traditionally with the main contractor (general contractor). It is worth noting that he is responsible to the customer for the performance of all general construction, special construction and installation work. The general contractor may involve other construction or installation organizations to perform work, which are called subcontractors. Subcontractors enter into contracts with the general contractor and are responsible to him for the performance of certain types of work, their timing and quality. Customers pay for work completed by contractors depending on the payment methods chosen by the parties.

Organizing the construction of facilities, monitoring its progress and maintaining accounting records of costs incurred during ϶ᴛᴏm is carried out by developers. At the same time, the accounting procedure is regulated. It is worth mentioning - the accounting regulations “Accounting for agreements (contracts) for capital construction” (PBU 2/94) .

Construction refers to the individual type of production. The construction process begins with planning, which is carried out according to existing estimates for construction work, and determining the sources of their financing, and ends with the commissioning of constructed facilities. In the accounting of the developer and contractor, payments for construction projects are reflected based on their contractual value specified in the construction contract. Therefore, in construction, the custom method of accounting for costs incurred is usually used. The developer keeps track of costs on an accrual basis from the start of work until the facility is put into operation. In this case, the costs of capital construction take the form of the initial cost of the introduced fixed assets. Until the completion of construction work, the costs of their construction, recorded on account 08 “Investments in non-current assets”, constitute unfinished capital investments.

Construction work is carried out either by contract, i.e. by specialized construction and installation organizations (contractors) on a contractual basis, or in an economic way, i.e. by the developer himself.

With the contract method, completed and executed construction and installation work is reflected by the developer on account 08 “Investments in non-current assets” at the agreed value. The cost of construction work in the developer's accounting is demonstrated on the basis of the act of acceptance of work performed (in form No. KS-2), which is signed by the developer and the contractor. It is appropriate to note that the specified work is paid for by the developer based on a certificate of the cost of work performed and expenses (according to form No. KS-3). Based on this certificate, the developer includes the cost of work performed as part of investments in non-current assets. In the accounting accounts, this operation is demonstrated by the following entry:

D-08 “Investments in non-current assets”, 19 “Value added tax on acquired assets”
Kit 60 “Settlements with suppliers and contractors.”

A decrease in debt as bills are paid is demonstrated by:

Dt 60 “Settlements with suppliers and contractors”
Book 51 “Current accounts”, 52 “Do not forget that foreign currency accounts”, 55 “Special accounts in banks”.

For the contractor, all costs for performing construction work will be the main activity and are taken into account on account 20 “Main production”, i.e. Based on documents for the release of materials and spare parts, payroll statements, etc., accounting entries are made:

Dt 20 “Main production”

According to PBU 2/94, the developer identifies the financial result from the performance of their functions by determining the difference between the amount of funds included in the estimate for objects under construction in a given reporting period and the actual costs. In the case of settlements between the developer and the investor for the delivered object at the contract price, the financial result also includes the difference between the cost and the actual costs of constructing the object, taking into account the costs of maintaining the developer. Based on all of the above, we come to the conclusion that after the completion of construction and delivery of the object according to the act to the customer, the following entries are made in the contractor’s accounting accounts:

When writing off the actual cost of work performed by the contractor and the value added tax on the work and services of the contractor:

Kit 20 “Main production”, 68 “Calculations for taxes and fees”.

Based on all of the above, we come to the conclusion that on account 90 “Sales” the contractor traditionally determines the profit or loss from the construction of a specific facility. If the construction activity for the customer is not a normal activity, then the financial result will appear on account 91 “Other income and expenses”.

In connection with a construction contract, settlements between the developer and the contractor can be carried out: after completion of all work at the construction site; in the form of advances (interim payments) for work performed by the contractor on structural elements or stages.

As already noted, the procedure for payment for work performed by construction and installation organizations is regulated by a contract, which may provide for advance payment of costs for unfinished work. In this case, the funds transferred by the customer are reflected as advances issued, i.e. a note is made:

Book 51 “Current accounts”, 55 “Special accounts in banks”.

If there are insufficient own funds, the developer can obtain a loan from a bank to pay the contractor’s bills. The receipt of the loan is demonstrated:

D-51 “Current accounts”, 55 “Special accounts in banks”
K-t 66 “Calculations for short-term loans and borrowings”, 67 “Calculations for long-term loans and borrowings”.

According to the accounting regulations “Accounting for loans and credits and the costs of servicing them” (PBU 15/01), when using a loan for prepayment of received property or services, interest accrued from the moment of its receipt until the receipt of the acquired property (consumption of services) , ᴏᴛʜᴏϲᴙincrease in accounts receivable formed in connection with the transfer of the advance. Interest accrued after receipt of property (services) is recognized as operating expenses

Interest on the loan accrued before receipt of the property (service) is reflected -

D-60 “Settlements with suppliers and contractors”, subaccount “Settlements for advances issued”
K-t 66 “Calculations for short-term loans and borrowings”, 67 “Calculations for long-term loans and borrowings”.

Attributing accrued interest to the debit of the account for settlements with the contractor is quite understandable. If, before receiving the property, the transaction is terminated due to the fault of the contractor, then the developer, in accordance with civil law, will have the right to demand from the counterparty compensation not only for the advance amount, but also for all costs incurred, incl. and accrued interest on the loan during the period of time. After receiving the property (service) and before putting the facility into operation, the accrual of interest will be reflected -

K-t 66 “Calculations for short-term loans and borrowings”, 67 “Calculations for long-term loans and borrowings”.

The contracting organization may record advances received as revenue for stages of construction in progress. It is worth saying that for these purposes the contractor uses account 46 “Completed stages for work in progress.” This account summarizes information about completed stages of work that have independent significance in connection with concluded contracts. This account, if necessary, is used by organizations performing long-term work, the initial and final deadlines for which are usually assigned to different reporting periods. The contractor shows the cost of the stages of work paid by the customer:

D-46 “Completed stages of unfinished work”
Account 90 “Sales”, subaccount “Revenue”.

It is important to note that at the same time the amount of costs for already completed and accepted stages of work is written off.

Dt 90 “Sales”, subaccount “Cost of sales”
Kit 20 “Main production”.

Amounts of funds received from customers in payment for accepted stages are reflected:

D-51 “Current accounts”, 55 “Special accounts in banks”
Kit 62 “Settlements with buyers and customers.”

Upon completion of all stages of work, the total cost of stages paid by the customer is written off:

Dt 62 “Settlements with buyers and customers”
Kit 46 “Completed stages of unfinished work”

The cost of fully completed work, recorded on account 62 “Settlements with buyers and customers”, is repaid from previously received advances and amounts received from the customer in the final settlement.

The customer, upon ϶ᴛᴏm, accepts (agrees to pay) the contractors’ invoices for the completed stages of construction work in accordance with the acceptance certificate for the work performed:

D-08 “Investments in non-current assets”, sub-account “Construction of fixed assets”
K-t 60 “Settlements with suppliers and contractors”, subaccount “Settlements for advances issued”.

Under the terms of the contract, the customer can supply the contractor with equipment that is to be installed at facilities under construction, i.e. requires installation. It is worth mentioning that to account for incoming equipment, an independent synthetic account 07 “Equipment for installation” is opened in the customer’s accounting records. The debit of the ϶ᴛᴏ account reflects the costs of equipment that arrived at the organization's warehouse and requires installation. These costs consist of the cost of equipment on suppliers' accounts (according to purchase prices), transportation costs for the delivery of equipment, procurement costs (including commissions to intermediary firms), cost of services commodity exchanges, customs duties, etc.

The purchase of equipment for installation in the customer’s accounting accounts is demonstrated by the following entry:

Dt 07 “Equipment for installation”
Kit 60 “Settlements with suppliers and contractors”

But the acquisition of equipment and its receipt in the warehouse does not yet mean capital investments in the full sense of the word. During installation, the equipment is transferred to the contractor according to the equipment acceptance certificate for installation. Only after its actual transfer to the contractor for installation is an accounting entry made in the accounts:

Dt 08 “Investments in non-current assets”
Kit 07 “Equipment for installation”.

The contractor, who received equipment from the customer for use in the construction of the facility, accounts for such equipment in off-balance sheet account 005 “Equipment accepted for installation.” When receiving equipment that requires installation, the contractor makes a simple entry: D-t 005 “Equipment accepted for installation”, and when installing equipment in a facility under construction: K-t 005 “Equipment accepted for installation”. The customer accepts the installed equipment according to the work completion certificate. The act shows only the cost of installation and commissioning work performed, without the cost of equipment.

If the contractor provides the construction with the necessary equipment, then its cost is demonstrated to the customer on account 08 “Investments in non-current assets” along with the cost of installation and other work (according to the invoice)

When carrying out construction and installation work on an economic basis, costs are accounted for in account 08 “Investments in non-current assets”. This account reflects the actual costs incurred by the developer:

Dt 08 “Investments in non-current assets”
Kit 10 “Materials”, 70 “Settlements with personnel for wages”, 69 “Calculations for social insurance and security”, etc.

If organizations have independent structural divisions that carry out construction and installation work, then they take into account the costs on account 23 “Auxiliary production”:

Dt 23 “Auxiliary production”
Kit 10 “Materials”, 70 “Settlements with personnel for wages”, 69 “Calculations for social insurance and security”, etc.

Upon completion of this work, the costs are written off:

Dt 08 “Investments in non-current assets”
Kit 23 “Auxiliary production”.

The commissioning of fixed assets is demonstrated in the accounting accounts:

Dt 01 “Fixed assets”
Kit 08 “Investments in non-current assets”.

The acquisition of fixed assets and intangible assets is considered in Accounting for the receipt of fixed assets and Accounting for the receipt of intangible assets ϲᴏᴏᴛʙᴇᴛϲᴛʙenno.

It is important to note that one of the main tasks of accounting for capital investments is to determine the entire set of costs associated with the constructed construction project, its reconstruction or acquisition. These costs upon completion of the work will determine the inventory (initial) cost of the objects put into operation - buildings, structures, equipment, etc.

The inventory cost of commissioned facilities consists of the costs of construction and other capital work. It is appropriate to note that the inventory value is determined based on completed construction, reconstruction, and acquisition. It is worth saying that special commissions are created to check the suitability of the facility for operation. It is worth saying that full readiness for operation is confirmed by the acceptance certificate of the object. It indicates the volume, production capacity, area, parameters characterizing the object, its readiness for operation, the quality of the work performed, the presence of deficiencies, and the timing of their elimination. It is worth saying that a fully executed and signed act is transferred to the customer-developer and will be the basis for determining the inventory value of the capital investment object.

When carrying out capital construction, the organization incurs costs that are not directly related to the construction of the facility, but without them it cannot be built. They are defined as costs that do not increase the inventory value of objects. Costs that do not increase the value of fixed assets are recorded on account 08 “Investments in non-current assets” separately from construction costs. It must be remembered that such costs can be divided into costs provided for in estimates and calculations, and costs not provided for by them.

The first group includes: costs for training operational personnel for the main activities of enterprises under construction; costs of reimbursing the cost of buildings and plantings demolished during the allocation of land for construction; funds transferred for the construction of objects in the form of shared participation during the subsequent transfer of constructed objects, etc.

The second group includes costs: to pay interest on bank loans in excess of the discount rates established by the Central Bank of the Russian Federation; for conservation of construction; for demolition, dismantling and protection of objects stopped by construction, etc.

Disclosure of information about long-term investments in financial statements

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

about the amount of unfinished construction;
on the volume of acquired non-current assets;
on sources of financing long-term investments in the form of capital investments.

The creation of non-current assets, especially their construction, is extended over time, often lasting several reporting periods, during which capital expenditures are in a transitional form - expenses have been incurred, and the objects of these assets have not yet been taken into account. Therefore, there is a need to take into account capital costs in unfinished non-current assets. The balance sheet (Form No. 1) reflects the balances of construction in progress at the beginning of the year and at the end of the reporting period.

As for information about non-current assets received by the organization (fixed assets, profitable investments in tangible assets and intangible assets), in total it is contained in the balance sheet, as well as in other reporting forms, which represent a transcript of the balance sheet. For example, the appendix to the balance sheet (Form No. 5) shows the receipt of intangible assets, fixed assets and objects of profitable investment in tangible assets by their type for the reporting period. Excluding the above, this form reflects all expenses for research, development and technological work, as well as those that are unfinished and have not yielded positive results.

Information about sources of financing long-term investments in the form of capital investments is contained in several forms of financial statements. For example, the balance sheet shows the amount of the organization's retained earnings, and the profit and loss statement shows the organization's net profit for the reporting period. In the report on changes in capital (Form No. 3), in the “Certificates” section, the amounts received during the reporting year from the budget and extra-budgetary funds of targeted revenues to finance capital investments in non-current assets are indicated. The appendix to the balance sheet (Form No. 5) reflects two indicators: the total amount of budget funds received, incl. by their types for the reporting period and for the same period of the previous year, and the amount of received types of budget loans as of the beginning and end of the reporting period, as well as the amounts received and returned during the reporting period.

Control questions

What is a long-term investment?
How do long-term investments differ from short-term ones?
What does the term "capital investment" mean?
What are the main features of the classification of long-term investments in the form of capital investments?
Name the main sources of financing capital investments.
Describe your own sources of long-term investment.
How can you show and control the use of your own sources of long-term investments in your accounts?
Describe the attracted sources of long-term investment.
Provide basic accounting records that reflect the use of external sources to finance long-term investments.
How are capital investments for construction carried out by contract reflected in the accounting accounts?
Who carries out construction and installation work using the economic method of carrying it out?
How are capital investments made in an economic way reflected in the accounting accounts?
In what account are the actual costs of capital investments made?
Who organizes construction, monitors its progress and keeps accounting records of costs incurred?
What does the term "new construction" mean?
What does the term “unfinished capital construction” mean?
What do the terms “modernization”, “reconstruction”, “expansion” and “technical re-equipment of an economic entity” mean?
How are equipment requiring installation shown in accounting?
What does the inventory value of a completed non-current asset consist of?
What costs are included in the costs that do not increase the value of non-current assets?

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