Admission of guaranteed estimated liabilities in accounting and their recognition on accounts under turnkey contracts

Tyumen State University Herald. Social, Economic, and Law Research

Release:

2015, Vol. 1. №2(2)

Title:

Admission of guaranteed estimated liabilities in accounting and their recognition on accounts under turnkey contracts

Authors: Elena G. Tokmakova, Evgenia L. Aprelkova

About the authors:

Elena G. Tokmakova, Cand. Sci. (Econ.), Associate Professor, Department of Economic Security, System Analysis and Control, University of Tyumen; e.g.tokmakova@utmn.ru; ORCID: 0000-0003-4109-5213

Evgenia L. Aprelkova ,

Head of Legal Department State-run enterprise "Severavtodor" in Yugra, Khanty-Mansi Autonomous Area

Full text download file

Abstract:

The article deals with a frequent question of admitting liabilities as indemnity bonds in accounting, in particular when dealing with certain liabilities defined by guarantee terms of turnkey contracts. The article submits arguments based on principles of law which allow to definitely qualify indemnity bonds in turnkey contracts as estimated liabilities. This involves considering the situation with indemnity bonds concerned by turnkey contracts of roads' maintenance. There is the method of repulsing economic facts (which are connected with appearance and redemption of indemnity bonds) involving traditional usage of account 96 "Provisions of impending expenses" but paying attention to different types of offsetting accounts, particularly account 28 "Defects while production". Within the accounting system the submitted method will enable to get sufficient and error-free information on indemnity bonds.

Keywords:

References:

1. Grazhdanskij kodeks Rossijskoj Federacii (chast' vtoraja) ot 26.01.1996 g. № 14-FZ [The Civil Code of the Russian Federation (part two) from 26.01.1996 № 14-Federal Law]. (in Russian).

2. GOST R 51256-2001. Tehnicheskie sredstva organizacii dorozhnogo dvizhenija. Razmetka dorozhnaja. Klassifikacija. Tehnicheskie trebovanija: utv. Prikazom Federal'nogo agentstva po tehnicheskomu regulirovaniju i metodologii ot 13.12.2011 g. № 1175-s [State Standard Р 51256-2001. Hardware for traffic arrangement. Road marking. Classification. Requirements: approved by Order from Federal Bureau of Technical Adjustment and Methodology from 13.12.2011 № 1175-s]. (in Russian).

3. Zylyova, N. V. Uchet objazatel'stv geologorazvedochnoj organizacii po ohrane okruzhajushhej sredy / / Vestnik Omskogo universiteta. Serija "Jekonomika" [Accounting for commitments of exploration organization for environmental protection / / Omsk University Bulletin. "Economy" series]. 2012. № 4. P. 192-195. (in Russian).

4. Kenzeyeva, I. A. Otdel'nye voprosy buhgalterskogo ucheta ocenochnyh objazatel'stv po rashodam na likvidaciju osnovnyh sredstv i vosstanovlenie okruzhajushhej sredy / / Finansovye i buhgalterskie konsul'tacii [Some issues of accounting estimated liabilities for the costs of decommissioning and environmental restoration / / Financial and accounting tutorials]. URL: http://www.gaap.ru/articles/Otdelnye voprosy bukhgalterskogo ucheta otsenochnykh obyazatelstv po raskhodam na likvidatsiyu osnovnykh sredstv i vosstanovlenie okruzhayushchey sredy/ (in Russian).

5. Lytneva, L. I., Malyavkina, L. I., Fyodorova, T. V. Buhgalterskij uchet: uchebnik [Accounting: textbook]. 2nd edition (revised). М.: PH "Forum": NIC "INFRA-M", 2013.512 p. (in Russian).

6. Mel'nikova, L. A., Petrov, А. М. Buhgalterskij uchet finansovyh rezervov i ocenochnyh objazatel'stv: monografija [Estimated liabilities and bankroll accounting: monograph]. М.: Vuzovskij uchebnik: NIC "INFRA-M", 2015. 96 p. (in Russian).

7. Prikaz Minfina Rossii ot 13.12.2010 g. № 167n (red. ot 27.04.2012 g.) "Ob utverzhdenii Polozhenija po buhgalterskomu uchetu "Ocenochnye objazatel'stva, uslovnye objazatel'stva i uslovnye aktivy" (PBU 8/2010)" [Treasury Department Order from 13.12.2010 № 167n "On approval of accounting regulations "Estimated liabilities, contingent liabilities and contingent assets" (edited 27.04.2012) (PBU 8/2010)"]. (in Russian).

8. Plan schetov buhgalterskogo ucheta finansovo-hozjajstvennoj dejatel'nosti organizacij i instrukcija po ego primeneniju: utv. Prikazom Minfina RF ot 31.10.2000 g. № 94n [Plan of accounts for financial and economic activity of organizations and instruction for its implementation: Approved by the Ministry for Finance from 31.10.2000 № 94n]. (in Russian).

9. Sapozhnikova, N. G., Popravko, I. V. Problemy formirovanija informacii o rezervah i ocenochnyh objazatel'stvah po garantijnomu remontu i obsluzhivaniju v uchete i otchetnosti v sootvetstvii s rossijskimi i mezhdunarodnymi standartami / / Mezhdunarodnyj buhgalterskij uchet [Problems of organizing data on reserves and estimated liabilities for warranty repair and maintenance in accounting provision according to Russian and International standards / /International accounting]. 2011. № 45. Pp. 2-7. (in Russian).

10. Frezorger, N. S Porjadok otrazhenija ocenochnyh objazatel'stv, uslovnyh objazatel'stv i uslovnyh aktivov: chto izmenilos' za 9 let / / Finansovye i buhgalterskie konsul'tacii [The procedure of recognizing estimated liabilities, contingent liabilities and contingent assets: what has changed in 9 years / / Financial and accounting tutorials]. 2011. № 03 (19). URL: http://www.reghelp.ru/article/poryadok otrageniya.shtml (in Russian).