What is capitalization of costs: the explanation by the human language on a simple example. The difference between capital investments from capitalized costs capitalization of construction costs that includes

Good afternoon, dear readers!

According to international financial statements, in assessing the assets of the organization, the concept of "Capitalization of Costs" is applied. There is no definition of this phenomenon in the legislation of the Russian Federation.

But each competent accountant must understand what expenses should be capitalized. Want another step to bring your knowledge to international standards? Then forward!

The main criterion of capitalization is to obtain an organization of economic benefits in the future. The costs that do not bring benefits in the future belong to current expenditures and are called non-capitalized.

What costs can be capitalized

According to IFRS, capitalize:

purchase OS;
oS production;
commissioning;
service and repair work.

The exact cost of costs must be known, and in the future they must increase economic benefit For the enterprise.

The capital costs differ from the operating

The expenses of the enterprise are divided into 2 types:

capitalized;
operational.

The main difference is that the first will bring benefits for more than 12 months (in fixed assets and non-current funds). The second is the current costs of the company (buying raw materials, materials, salary, etc.)

Capitalization of assets has a beneficial effect on the result of the company's activities, as it will be included in the balance of the balance.

Views

Expenses for material assets:

main funds (OS);
long-term financial investments (investments);
unfinished construction (construction of buildings, installation of new equipment).

Expenses for intangible assets (Purchase of patents, trademarks, know-how)

Capitalized Cost Accounting Features

Accounting expenses have a significant impact on financial statements, since if costs are subject to capitalization, they affect several reporting periods. If costs are recognized as operating, then they are reflected only in the current period.

A qualifiable asset (its preparation for sale or use requires a time for more than 12 months) during the service life gradually transfers its value to finished products and services. This part of the costs will be depreciation, they will be taken into account when calculating the cost of finished products.

In accounting documents, such costs will be reflected at the initial cost. Then their price will decrease on depreciation deductions and, ultimately, will be called residual.

Recognition in accounting leads to an increase in net profit in the current period (as capitalization occurs in the current period, and then depreciation is charged for several years), but at the same time the company will pay a large amount of income tax.

Conclusion

The decision on capitalization is made by the chief accountant or leader. It is advisable in a concrete case, it is possible to determine on the basis of the analysis of the financial condition of the company.

On the one hand, the performance indicators are improved, on the other, increasing income tax increases and need to constantly revaluate fixed assets. In practice, about 80% of cases, the company immediately determines how those or other costs are attributed to. Discussions arise about the remaining 20%.

I hope you have made certain conclusions for yourself, and will in practice make the right deals on capitalization. Subscribe to articles and share useful material on social networks. All you are good!

At the expense of funds federal budget In our country, a large number of programs and projects are being implemented. In order to save money, the state customer requires an artist to participate in financing. But the Contractor is often not profitable. Is there a way out?

The relevance of the problem

Events last 2014 - reduction of access to international credit resources, restricting international cooperation in connection with sanctions, the need for independent production of products previously purchased abroad - strengthened the relevance of effective use budget funds.

At the same time, the number of federal targeted programs (hereinafter - FDP), the needs for their financing and budget liabilities are constantly growing. The exit may be to attract third-party, business tools and implementation, therefore, mixed (budget and extrabudgetary) financing of programs and projects.

Executive works on FDP often commercial organizations are often advocated ( joint Stock Company, GUP, MUP), and for them the real benefit of activities is important. But the order of accounting attached to their own funds by the implementing enterprises is not worked out, so the result of their investment may be negative.

A special occasion of the state order is the state defense order. Note that the absolute majority of its performers are representatives of large business. This applies to both sectoral "organizers" - government corporations and direct performers.

Who benefits?

The legal basis of FTP is the legislation on the state (municipal) order in which the possibility of attracting extrabudgetary funds As a source of funds for such supplies (clause 1, Article 1 of the Federal Law of December 13, 1994 No. 60-FZ (as amended by 07/13/2015) "On the supply of products for federal state needs").

Currently, this provision is one of the fundamental fundamentals - under many concluded contracts provides for joint financing of the project by its executor and the state.

Note!

The proposed mixed financing structure of projects makes it possible to minimize the risks of inefficient use of budgetary funds as a result of their scientific or technical negotiation.

We will add from yourself that another plus of such a financing structure is a significant savings, because in a number of contracts the sum of attracted funds amount to 100% of the amount of budget allocations.

The practice of joint (mixed) financing is widespread enough. Executors of work, repeat, often commercial organizations

The interest of the state in attracting business funds is clear, but what benefits will be those who "invest", co-financing the project? Obviously, in itself participation in the performance of state contracts, which promises obtaining budgetary funds on these conditions and in the future.

At the same time, the main question is how to make the performance of work favorable and cost-effective? - It remains open.

For your information

The involvement of business and reducing state participation in one form or another is referred to in relation to many areas of activity:

in the field of training of scientists, specialists and workers in the OPK - Order of the Ministry of Industry of Russia dated April 13, 2009 No. 256 "On approval of a strategy for creating a multi-level continuing system in the defense and industrial complex for the period up to 2015";

in the Chemical and Petrochemical Complex - the order of the Ministry of Industry of Russia No. 651, the Ministry of Energy of Russia No. 172 of 04/08/2014 "On Approval of the Strategy for the Development of the Chemical and Petrochemical Complex for the period up to 2030";

in the region of black and non-ferrous metallurgy - Order of the Ministry of Industry of Russia dated 05.05.2014 No. 839 "On approval of the development strategy of ferrous metallurgy of Russia for 2014-2020 and for the future until 2030 and the strategy for the development of non-ferrous metallurgy of Russia for 2014-2020 and to perspective to 2030 ";

in the field of the pharmaceutical and medical industry - the Decree of the Government of the Russian Federation of 02/17/2011 No. 91 "On the Federal Target Program" Development of the pharmaceutical and medical industry Russian Federation"For the period up to 2020 and the future perspective";

in the production of civil aviation equipment - the Decree of the Government of the Russian Federation of October 15, 2001 No. 728 "On the Federal Target Program" Development of civil aviation equipment of Russia for 2002-2010 and for the period up to 2015 ");

in industry industries - Decree of the Government of the Russian Federation of April 15, 2014 No. 328 "On approval of the State Program of the Russian Federation" Development of industry and an increase in its competitiveness ", and so on.

Accounting offers

Usually in state contracts indicate approximately the following: ".. when performing work, the Contractor undertakes to attract extrabudgetary funds to perform work and events... ". And what economic processes occur or will happen, how to consider them correctly? Clear instructions, except for the requirement of separate accounting of budget and own funds, no recommendations are missing.

The easiest option: the performer of work adds to the costs the necessary amounts of costs in order to fulfill that part of the work that is related to its own financing - the state transracycar condition is fulfilled, obtaining budgetary funds is provided. But now the receipt of profit by the Contractor is not guaranteed at this. And if the costs are actually incurred to fulfill work under the contract, reflected in accounting, it worsens the company's financial result, and the state order fulfilling becomes obviously unprofitable.

Nevertheless, there is a way out of this situation - it is only necessary to remember that almost any type of cost is not only an element of the cost of production costs and sales of products. The most rational, in our opinion, is the reflection of attracted own funds as investments in non-current assets with subsequent capitalization.

We offer the following accounting order (see Figure).

The procedure for taking into account the attracted own funds as investments in non-current assets followed by capitalization

How these proposals can be implemented in practice, consider in the example (options on the verge of offense are not considered).

Example

The company of the OPK under the contract with the state corporation performs an integral part of research work; The calendar plan for performing steps (fragment) is presented in Table. one.

The cost of work is 30,000 thousand rubles. Pricing Stage 1 implies a contract profit of 3,214.29 thousand rubles. (Table 2).

Work on stage 1 is paid from the state budget. The agreement also has a condition for co-financing works and provides for the fulfillment of work in the amount of 21,000 thousand rubles. at the expense of the artist.

Table 1

Fragment of the calendar plan of work

Stage number	Stage name, stage work	Result (which is presented)	Terms of execution (taking into account the necessary time for the surrender of the stages and work as a whole) (beginning and end)	Price (thousand rubles)
	Works on the selection and determination of optimal characteristics, conditions (modes) of the operation of the KVD and TVD PD	Materials EP.
	Development of variants of nodes of the KND, TVD and TTD PD, options for the KBD node for PD with nodes with optimized characteristics, taking into account the technologies of the NIR "Fan-PI" and "Seal-PI"	Materials EP.	February 2014 - June 2014
	Refinement of FC and PR Projects, as well as KVD and TVD with optimized characteristics for conclusions of CIAM (if necessary)	Acts of refinement	February 2014 - June 2014
	Support of consideration of EP PD, refinement (if necessary) developed materials of EP PD		April 2014 - June 2014
The amount of funding from the funds of the State Contract (Stage 1)
Volume of financing from extrabudgetary funds (steps 2, 3, 4)

Total price of work is the sum of the prices of the stages according to the calendar plan and is 51,000 thousand rubles. Of these, financing from the Head Contractor of the NIR are covered only by the work of the stage 1 worth 30,000 thousand rubles.

The result of the execution of this contract in this version, taking into account the planned profit for the first stage - a loss of 17,785.71 thousand rubles. (21 000 - 3214.29).

Entries on accounting accounts (abbreviated):

Debit accounts 62 "Calculations with buyers and customers" CT 90-1 "Revenue" - 30,000 thousand rubles. - reflected revenue for the executed steps 1;

Debit account 90-2 "Cost cost" Credit account 43 "Finished products" (40 "Production (works, services)", 20 "Basic production") - 26,785.71 thousand RUB. - Spired planned cost Stage 1 works (the subtleties of identifying the deviation of the actual cost from the planned and account for simplicity);

Debit account 90-2 account credit 43 (40, 20) - 21,000 thousand rubles. - The scheduled expenses of the artist on the work of steps 2, 3 and 4 are written off.

Subsequently, at the end of the reporting period, with a comparison of debit and credit revolutions in account 90 "Sales", the final turnover will be debit, equal to 17,785.71 thousand rubles. - This is a loss.

It would seem that such a state contract performer is unprofitable. However, contracts with such conditions are executed. Why is that? How can it be implemented by knowingly losing and unprofitable transactions? Let's try to disassemble this example, taking into account the proposals expressed above.

The current accounting standards (PBU 5/01, 6/01, 14/2007, 17/02) provide for the inclusion of removal of the relevant employees in the cost of material and fixed assets, fixed assets, intangible assets, R & D for their own needs.

This must be used. The costs of work performed at the expense of their own funds must be attributed to the creation of intangible assets, and on the work that are funded from the state budget to the financial result. Having arranged a separate accounting of costs in stages that differ from sources of financing, the Contractor will be able to differentiate them on the attributable and investment in non-current assets.

As a result, on the one hand, the financial result and the reporting of the Contractor demonstrate profitability and profits, and on the other hand, the Contractor receives an asset that increases the capitalization (value) of the enterprise.

Let's return to the records in the accounts:

Debit account 62 Credit account 90-1 - 30 000 thousand rubles. - reflected revenue for the executed steps 1;

Debit account 90-2 account credit 43 - 26,785.71 thousand rubles. - The planned cost of step 1 is written off.

At the end of the reporting period, when comparing debit and loan revolutions on account 90, the final turnover will be a loan, equal to 3,214.29 thousand rubles, as planned in the calculation (Table 2), means profit in the specified amount.

No. p / p	Name of the costs of expenses	Amount, thousand rubles.
	Materials
	Special equipment
	Foundation for labor
	Social Affairs
	Overheads
	Other direct expenses
	Travel expenses
	Cost of own costs
	Costs for work performed by third-party organizations

	Price without VAT

At the same time, as the intangible asset is being generated, the following entries will be made on the work of the steps 2, 3, 4 (detailed):

Debit of account 08 "Investments in non-current assets" Credit account 70 "Calculations with wage personnel" - 6425.16 thousand rubles. - accrued the salary of the staff engaged in creating an intangible asset (paragraph 2 of paragraph 9 of PBU 14/2007);

Debit account 08 Credit account 69 "Social insurance and security settlements" -2045.77 thousand rubles. - they reflect social accruals on the wages of personnel engaged in the creation of an intangible asset (paragraph 3 of paragraph 9 of PBU 14/2007);

Debit of account 08 Credit account 25 "Observational expenses", 26 "General expenses" - 12,529.07 thousand rubles. - overhead (general production and general) costs directly related to the creation of the object of intangible assets (paragraph 3 of paragraph 9, para. 2 p. 10 PBU 14/2007), taken into account as investments in non-current assets;

Debit account 04 "Intangible assets" account credit 08 - 21,000 thousand rubles. - formed intangible asset As a result of the execution of works in steps 2, 3 and 4.

It is important to remember that for the formation of an intangible asset it is necessary to perform the conditions listed in paragraph 3 of PBU 14/2007. Then, in accordance with paragraph 4 of the PBU, the intangible asset created can be represented as an invention or a useful model or recognize the result of the work of the production (know-how).

For your information

In PBU, these objects are listed in a row, but we will focus on the difference between them: if it is necessary to register it in the authorized body and execute legal protection to register it in the authorized body and execute legal protection, then the firm can recognize the invention by using the federal procedure. The Law of July 29, 2004 No. 98-FZ (as amended by 03/12/2014) "On Commercial Secret".

__________________

conclusions

Using the proposed scheme, enterprises - performers of state contracts containing a co-financing condition, as a result of attracting their own funds, have the opportunity not to worsen financial result from activities, but to increase the balance value due to capital investments. As a result, the production base of such enterprises is improved, a scientific and technological grinding is formed, their investment attractiveness increases.

At the same time, the interests of the state are complied with the interests of the state - the state contract is performed with a smaller amount of funding, the enterprises of the military-industrial complex have an incentive for the development of the production base and the developments of scientific and technical nestling.

6. In the event of directly debt money in order to create a qualifying asset of the amount of financial expenses to be included in the cost of a qualifying asset, are actual, recognized in the reporting period, financial expenses related to these borrowing (minus revenue from temporary financial investment of borrowed funds ).

7. If borrowings are not directly related to the creation of a qualifying asset, the amount of financial expenses to be included in the cost of a qualifying asset is a product of the capitalization rate and weighted expenditures on the creation of a qualifying asset (with accounting for the creation of such a qualifying ACTIVAL Start of the reporting period, including previously capitalized financial expenses).

8. In the presence of borrowings directly related to the creation of a qualifying asset, and other borrowings that are not directly related to the creation of a qualifying asset, the amount of financial expenses to be included in the cost of the qualification asset is determined in the following order:

8.1. The amount of financial inclines is determined in the manner prescribed by clause 6 of this Regulation (Standard).

8.2. The work of the capital's capitalization rate is determined (which are determined by the deduction of outstanding borrowings directly related to the creation of a qualifying asset) and weighted expenditures directly related to the creation of a qualifying asset (minus the outstanding borrowings directly related to the creation of a qualifying asset).

8.3. The amounts of financial expenses defined by calculations according to subparagraphs 8.1 and 8.2 of paragraph 8 of this Regulation (standard) establishes the total amount of financial expenses to be included in the cost of the qualification asset.

9. The amount of financial expenses to be included in the reporting period into the cost of a qualified asset cannot exceed the total amount of financial expenses of this reporting period.

Examples of determining the amount of financial expenses to be included in the cost of the qualifying asset are given in Appendix 2 to the insignation (standard).

10. Capitalization of financial spending Begins the presence of the following conditions:

10.1. Recognition of expenses related to the creation of aquatic asset.

10.2. Recognition of financial expenses related to the creation of a qualifying asset.

10.3. Performance of work on the creation of a qualifying asset, including technical and administrative consistentness, which are performed before the start of the intentable asset.

eleven . Capitalization of financial spending is suspended for a period in which the performance of work on the creation of a qualifying asset is a significant time. In the period of stopping the work of work, financial expenses related to the holding of partially completed qualification assets are recognized by the financial expenditures of the reporting period for which they are accrued.

12. Capitalization of financial spending is not suspended for the period:

12.1. The implementation of technical and administrative work.

12.2. Temporary detention of works on the creation of a qualifying asset, which is the necessary component of its creation process.

13. Capitalization of financial spending is terminated if the development of a qualifying asset is completed.

14. If the development of a qualifying asset is carried out by parts, each of which can be separately used on the intended purpose until the completion of the creation of other parts, the capitalization of financial expenses regarding parts that can be used is stopped in the period following the period, which will create all work on the creation of such patient parts The asset is completed.

Disclosure of information on financial expenses in notes to financial statements

15. The notes to the financial statements provide the following information:

15.1. The accounting policy of the enterprise regarding financial expenses.

15.2. The amount of financial expenses, capitalized in the reporting period.

15.3. Annual (or average annual) norm (norm) of capitalization.

Head of Department

accounting methodologies

V. Parkhomenko

Approved by order of the Ministry of Finance of Ukraine dated 02.07.2007 No. 779 Regulations (standard) of accounting 32 "Investment Real Estate" Registered in the Ministry of Justice of Ukraine on July 16, 2007 under No. 823/14090

(assets) for the reason that income expected as the result of expenses made will take place in subsequent periods.

In other words, the capitalization of expenses is that expenses directly related to the acquisition, construction, production, etc. Asset, fully included in the cost of the asset, and the costs that are not directly related to the acquisition, construction, etc., increase the cost of the asset only in the part permitted by the relevant regulatory act.

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Even found about capitalization of expenses

Corporate fraud: Analysis of the schemes for assigning assets and ways to manipulate the reporting unreasonable emergence of new assets by capitalization of the cost of fictitious sales of products Conclusion of losses in specially created organizations Special Purpose Entities
Accounting (financial) reporting: the problems of identifying information distortion in order to carry out such an operation without going beyond the existing accounting standards of the company seek to reflect income in their own accounting and part of the costs to produce at the expense of the companies controlled capitalization of expenses often companies resort to illegal capitalization of expenses them for the cost of non-current assets
Technological innovations, accounting of expenses for R & D and the assessment of the cost of NMA at industrial enterprises Thus, the capitalization of R & D expenses in the RAS occurs at earlier stages compared with IFRS
Manipulating financial statements: schemes and ways to identify the rise in costs and, accordingly, an increase in operating and net profit by reflecting the costs of the cost of the sale of services in the cost of the service costs and thus incorporate the negative effect of this flow rate incorrect capitalization of expenses by reflecting them on the balance sheet Assets, for example, may capitalize interest on
Income Capitalization Method Next Capitalization Capitalization Profit Capitalization Coefficient Profit Capitalization of income Capitalization of expenses Market capitalization Capitalization rate Capitalization rate Decitalization Page was useful
Economic added value: accounting of amendments when calculating profit and capital O 2. Conversion of accounting on the basis of the method of accrualing in the cash payment method of accounting Exception of reserves 3 Capitalization of expenses for the creation of a market incurred in the past 4. The exception of the amount of unusual damages or profits ... Nopat and capital is necessary and it is possible to take into account deferred taxation Education Reserve for hopeless debts R & D costs Marketing research Education reserve for future expenses and payments Revenues from passive species
The following possible disorders in the audit of financial statements in the audit take place the following possible violations - the share of margin income in the revenue decreased T e there is signs of financial statements fraud - the growth of non-current assets is not an increase in the number of fixed assets may indicate unreasonable capitalization of expenses - a sharp change depreciation deductions testifies to probable fraud in financial statements -
Evaluation of the results of research and development of R & D on the possibility of capitalization of all expenses related to the implementation of R & D testifies to the requirement for their reflection in accounting
Problems of incorporating intangible assets and to reflect them in accounting, their assessment to write off costs in the current period or capitalization of them as intangible assets to the definition of their term
Comprehensive analysis of the company's financial stability: coefficient, expert, factor and indicative borrowing funds is connected with financial expenses fee for the use of credit resources for financial lease costs that must at least be covered by the current income of the main coefficients of financial ... the main coefficients of financial sustainability of the first capitalization group are the following autonomy coefficient to auto - it is defined as the ratio of the amount of own funds
Analysis of financial performance of units These adjustments such as capitalization of research and development or advertising costs are an attempt to submit an economic income 2.
Formation of a multifactor criterion for assessing the organization's investment attractiveness of the organization. The activity of the Organization's Protection Organization Above the cost of intellectual property objects is broader than its products above the value of the ratio of liquidity turnover indicators More expenses for R & D Examination of public roads. wages Universities nearby will be the above ... OCD The length of the roads of general use The level of wages of universities nearby is the higher the capitalization of the company, which means that it will be an inverse relationship for investors is observed between
Intangible assets in Russian and international practice in international accounting standards emphasis is on the impossibility of capitalization of intangible assets if they were originally attributed to cost recognition in
Model of the automatic financial statements of the enterprise UC I 100 due to the capitalization of Dividends UC at the rate of I and cash S - R Due to the revenue ... s from the movement of attracted and attached tools and expenses R on the means of extended reproduction and on the means of servicing capital W T K
Financial Results: Empirical Study In Russia, for example, by choosing a method of debiting interest on loans on other operating expenses, it is possible to increase the gross profit rate compared to the use of a method of capitalization of loans
Key Aspects of the Company's Profit Management In accordance with the first approach, profit is done according to the market, for example, profit - this is the difference in the company's market capitalization at the end and the beginning of the period according to the second approach - this is the difference between ... In essence, it is a profit of the remaining service costs Capital including own this indicator acts as a measure of increasing the cost of investment
The features of the financial policy of companies in the context of the crisis, in particular, these are the following measures inventory of assets and expenses Exit the implementation of renting or liquidation from ineffective assets An increase in equity for ... In particular, these are the following measures inventory of assets and expenses Exit the implementation of rental or liquidation from inefficient assets increase their own capital due to capitalization profits reduction of the need for short-term borrowed capital optimization of product nomenclature reduction of expenses in contrast
Features of the analysis of consolidated reporting (on the example of an analysis of financial leverage indicators) It should be noted that the above calculation of the value of the borrowed capital is not fully correct in particular due to the capitalization of interest related to lending to the acquisition of non-current assets, however more accurate interest expense information
The collateral value is based on the base of the object that brings life income is the attitude of the possible annual income from the object to the appropriate accounting rate of the capitalization rates. Possible income is a normal income that can be obtained when using an assessment object for ... Possible income is a normal income that can be obtained when The use of an appointment assessment facility after taxes and other possible costs that are obliged to carry the recipient of income in accordance with the current legislation and contracts related to the use of the object
The analytical capabilities of the consolidated reporting to characterize the financial stability in this group include indicators calculated by the correlation profit before the deduction of interest and taxes with the magnitude of the permanent financial expenses of the costs of carrying out that the company is obliged regardless of whether it has a profit or no formula of the calculation ... Capitalization factors. Financial coefficients autonomy of financial independence of own capital concentrations own capital assets of the EU

Calculation of capitalized costs, i.e. The amounts of interest included in the value of the asset are not complicated in the case when they received their credit for each project and the borrowed funds were not spent on anything other than this particular project. In this situation, all interest accrued under a loan agreement relate to an increase in the cost of a qualified asset.

However, if the projects are several or borrowed funds used to other purposes, including the operational, the calculation of capitalized interest is carried out by applying the interest rate to the amount of capitalized for the cost of each qualified asset. At the same time, it is important to know that the amount of capitalized percentage costs of the National Assembly may be more than the total amount of the accrued interest costs for the period. In large companies, it is often impossible to relate a specific loan with a specific project, as funding is carried out centrally on all objects.

In some cases, when the costs included in the asset price increase evenly during the year or when they increase often into small amounts, it is allowed to apply a simplified approach to the calculation of capitalized interest. It is calculated for this the average capitalized cost of a qualified asset And it applies to a negotiable interest rate. The average capitalized cost of a qualified asset is divided by two sum of the book value of the asset at the beginning and at the end of the reporting period. To calculate the capitalized interest in the average capitalized value of a qualified asset, a percentage rate under a loan agreement was applied, which was issued in connection with this asset.

When capitalizing, the costs of loans should be distinguished by two cases shown in Table. 5.7.

Table 5.7.

Capitalization of loan costs

The company can finance the project, at the same time attracting various loans that are distinguished by interest rates and maturity. In addition, loans in foreign currency can attract certain difficulties in the correlation of the project and interest costs. In such cases, the average capitalization rate is calculated, based on the entire complex of debt instruments used by the company. To calculate the amount of capitalized percent, the specified rate applies to the amount of the cost of the project.

The average capitalization rate is calculated as the ratio of the total percentage costs for the period, but all loans to the sum of the average balance value of all loans for the period.

Example 5.7.

The company began the construction of a power plant. The planned cost of construction is $ 300 million. For construction, a long-term loan has been attracted under 10% per annum in the amount of $ 200 million. The costs of attracting a loan amounted to 2%. At the financing of the remaining part of the cost of construction in the amount of $ 100 million, the intragroup loan was allocated, the company provided for three years under 5% per annum in the amount of $ 150 million. According to the accounting policy, the Company applies an alternative method for accounting for loans.

Calculate capitalized loan costs and average interest rate on loans on the construction of a power plant.

1. Capitalized costs, but loans will amount to $ 29 million (200 million x x 10: 100%) + (200 million x 2: 100%) + (100 million x 5: 100%).
2. The average interest rate but loans will be 9.6% (29 million: 300 million x 100%).

Disclosure on loan costs in financial statements. In the explanatory note to the financial statements when using the main method, it is enough to disclose only accounting policies To reflect the costs of loans.

When using an alternative method, reveal:

1) accounting policies adopted for loan costs;
2) the amount of the costs of loans, capitalized during the period;
3) the capitalization rate used to determine the value of the costs of loans permitted for capitalization.

Comparison of IAS ( IAS) 23 "Loan costs" with Russian NBU 5/2008 "Accounting for expenditures but loans and loans." From January 1, 2009, the situation was entered into force accounting "Accounting for loans and loans" of PBU 15/2008 (approved by the order of the Ministry of Finance of Russia from October 2008 No. 107n).

PBU 15/2008, as the international standard, regulates not only the accounting of loan costs, but also keeping the principal amount of loan debt, which is taken into account separately from interest as payables. In turn, the repayment of a loan or loan is reflected as a reduction in payables.

The amount of interest on loans is distributed between other expenses in the income statement (main method) and the balance sheet value of the investment asset (alternative method). In PBU 15/2008, as in its international analogue, contains the conditions for the application of an alternative method, similar to the conditions established in the International Standard: the costs of creating an asset; There were expenses on loans related to its creation; The work on the creation of an asset was started. However, unlike IAS ( IAS. ) 23 According to the rules of the Russian standard, assets acquired for resale are excluded from the category "Investment Active". This is due to the fact that the Russian compliance with the concept of "investment asset" is different from an international approach. From the point of view of IAS (IAS) 23, the concept of "investment asset" is similar to a qualifiable asset, which is an interim state of an object of investment for an investment facility. After the estimation process is completed, the investment object goes into a state in which it can be used or sold, and qualifies as one of the types of asset of the enterprise: the main means, intangible asset, stock (product) or investment property. In turn, the definition of the investment asset given in PBU 15/2008 is not transitional and applies only to long-term assets, excluding the possibility of reflecting an investment asset in stocks (goods).

On the one hand, the new Russian standard approached the international rules in the matter of termination of the inclusion of interest in the cost of the investment asset during the downtime in the work on the creation of an investment asset, in which case interest is written off on other expenses. On the other hand, in contrast to the International Standard, the PBU 15/2008 establishes a standard for downtime: simple should last more than three months.

At the same time, it is possible to summarize: there is no significant differences between the two analyzed standards.