In this article the reassessment and reflection order in accounting is stated, to financial statements of reassessment of biological assets and agricultural products for balance date, that is 9 months.
At formation of indicators of financial statements in 9 months it is necessary to consider that operating P (C) BU is provided reassessment of assets of the enterprise for balance date. So, the assessment of biological assets (further – OH) is carried out according to P (C) BU 30 Biological assets, and agricultural products (further – SHP) – P (C) BU 9 "Stocks". Let’s tell in more detail about an order of carrying out such reassessment.
Reassessment OH
For balance date (both annual, and intermediate) expenses (by item 10 P (C) BU 30) are OH reflected at fair value, umenyyoshenny on sales expected on a place.
Those are subject to reassessment OH on which fair value changed or there was a possibility to define fair value OH, considered earlier at initial cost.
Exception of this rule are:
• long-term OH which fair value on date of balance authentically to define nevozmozhyono. They are reflected in balance according to P (C) BU 7 "Fixed assets" on initial stoimosti taking into account the sum of their wear and losses from a utility umensheyoniya (item 5.8 of Recommendations No. 1315 *, dayoly – Recommendations);
• unripe long-term OH (young long-term plantings till the fructification period). Such aktivy can be reflected in balance in the sum rasxodov, suffered on their bookmark and cultivation. The account them is kept on subaccount 166 Unripe dolgoyosrochny assets which are estimated at pervonayochalny cost (item 5.16 of Recommendations);
• flowing OH which fair value for balance date authentically it is impossible to define. Such are OH reflected according to item 24 P (C) BU 9 "Stocks" (see the section Reassessment of SHP and nezaveryoshenny production);
• a work in progress in plant growing if agricultural cultures didn’t reach a maturity and tekhnologiyochesky process on their cultivation isn’t complete.
The commission created at the enterprise ** is engaged in reassessment. Results of reassessment are made out by it the sootvetstvuyoyushchy act (see the annex to consultation).
* Methodical recommendations about accounting of the biological assets, approved by the order MFP from 29.12.06 of No. 1315.
** In more detail about creation of the commission read in consultation We define fair value of biological assets ("Agromir", 2007, No. 28).
Example 1
The agricultural enterprise credited in the current year young growth of grown-up pigs at spravedliyovy cost (minus expenses on sale). Cost of 1 c of their live weight (further -. century) made 500 UAH. For 30.09.07 the rest ukazanyony above a livestock according to the account – 100 heads is powerful 40 c for the sum of 20 000 UAH. Fair value of 1 c. changed century and makes 600 UAH.
Let’s make reassessment flowing OH animal husbandry as of 30.09.07. For this purpose:
1) we define fair value: 40 c x 600 UAH. = 24 000 UAH.;
2) we count the dootsenka sum: 24 000 UAH. – 20 000 UAH. = 4 000 UAH.;
3) we reflect results of change of fair value in the reassessment act.
SHP and work in progress reassessment
All SHP (grain, seeds, the stern, potatoes, vegetables, fruit, milk, wool, eggs, medical, etc.), and also additional OH (shanks, saplings, sprouts, priplod animals, etc.) which don’t participate in dalyyoneyshy in agricultural activity, after office from OH (or soils) cease to be assets and admit to SHP which is a part of stocks. The assessment of such stocks, their account and reflection in the reporting are carried out according to P (C) BU 9 (item 6.10 of Recommendations).
Besides, the income and expenses of change of estimates of a work in progress of plant growing, uchiyotyvayemy at production prime cost, otrazhayutsya in the account and the reporting also it agrees P (C) BU 9 (item 5.19 of Recommendations). Let’s note that the work in progress on which there is a possibility to define volume of SHP expected from such production is subject to reassessment.
For date of balance of SHP and a nezavershenka are reflected in accounting and financial statements on naiyomenshy of two estimates (item 24 P (C) BU 9):
• or at initial cost, on which SHP it was credited at initial priznayoniya, and for a work in progress – at proyoizvodstvenny prime cost;
• or on net value of realization (further – ChSR). Such cost is the expected price of realization of stocks minus expected rasxodov on completion of production and sale (item 4 P (C) BU 9). That is, in fact, fair value and ChSR – same.
Therefore, SHP and nezavershenka reassessment to level of ChSR is made, if expected benefits decreased by date of balance from an ispolzovayoniya of these stocks owing to decrease in their price, porchi, the storage expirations, etc.
If fair value of SHP increased, reassessment isn’t carried out, except the cases provided by item 28 P (C) BU 9.
Procedure of payments of ChSR of stocks and their markdown on a sostoyayoniya for 30.09.07 it is representable in the table.
(UAH.)
Accounting
The increase (reduction) at date of balance of cost current and long-term OH which are estimated at fair value, is reflected:
• or on subaccount 710 The income of initial recognition and of change of cost of assets, koyotory are considered at fair value;
• or on subaccount 940 Expenses from pervonachalnogo recognitions and from change of cost of assets which are considered at fair value.
The sum of a markdown of SHP and work in progress to ChSR for date of balance is reflected on the debit subscheta 946 Expenses from depreciation of stocks and on kreditu the corresponding accounts according to the accounting of stocks (27, 23).
The dootsenka and markdown sum for date of balance of cost long-term OH which are estimated at pervonayochalny cost, is reflected according to item 31, 32 P (C) BU 7 in subaccount 746 The other income of obychyony activity or on subaccount 975 A markdown of neyooborotny assets and financial investments odnoyovremenno with reduction (increase) in the sum iznosa, considered on subaccount 134 Saved-up amoryotizatsiya of long-term biological assets.
Example 2
The agricultural enterprise made reassessment OH, SHP and a work in progress of a sugar beet (factory) as of 30.09.07. On the basis of the reassessment act results are reflected in accounting.
(UAH.)
Reflection in financial statements
In the form of N 2 and No. The report about financial rezultatax the sums of a dootsenka (markdown) are reflected by the 2nd in a sleduyuyoshchy way:
• the income of cost change OH, considered at fair value (dootsenka):
- in p. 060 f. No. 2;
- in p. 040 f. No. the 2nd;
• expenses from cost change OH, considered at fair value, and also SHP and nezayovershenny production (markdown):
- in p. 090 f. No. 2;
- in p. 130 f. No. the 2nd.
Annex to consultation
SHK "Steppe"
(enterprise name)
Identification code EGRPOU 13579026
I ARGUE:
Director
Cossack I.S.
On October "01", 2007.
ACT
reassessments of biological assets, agricultural products and a work in progress for balance date
from 30.09.07.
page. Free
The commission as a part of vice-chairman V. Golovko, the main agriculturist I.Dubovik, livestock specialist M. Sklyar, accountant V.Tikhoy on the basis of the order No. 23 from 24.09.07 as a result of change of the fair prices and net value of realization for date of balance made reassessment biological aktivov agricultural products and a work in progress of a sugar beet. The commission defined the sum of a markdown (dootsenka) to what the following records testify:
(UAH.)
(On Balans-Agro newspaper materials).