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


About the authors:

Elena G. Tokmakova,
Associate Professor of the Department of Economic Safety, Accounting, Analysis and Audit, Financial and Economic Institute, Tyumen State University, Associate Professor

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

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.

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