Most organizations receive funding for special purposes through trust funds, budget funds and other sources.
For budgetary organizations, the process of obtainingFinancing is settled by decisions of the State Treasury, and for business enterprises the correct receipt and use of budgetary funds is somewhat difficult.
You will need
- Loss financial result.
Targeted financing is not an income to thoseSince there is no confirmation of its receipt, that is, until the organization fulfills all the conditions for financing. Income is recognized during the period when expenses related to meeting the conditions for obtaining the targeted financing were incurred.
Difficulties arise when financing is receivedTo cover losses, as the funds are allocated after the end of the reporting period and the preparation of financial statements. If funds are to be provided, it is wrong to recognize expenses in the reporting period, as the principle of compliance of incomes and expenses is violated. However, without preliminary determination of the unprofitable financial result, the organization will not receive funds to cover losses.
Obtaining accurate coverage dataOf the losses of the target financing that have arisen in previous periods is an event that requires a change in accounting estimates, as well as making adjustments to the financial statements after the balance sheet is closed. Therefore, in order to obtain earmarked funding, compile a clarifying financial statement, consider allocating expenditures for financing to future expenses. After that, you transfer the expenses to the composition of the period when the financing was received.
Targeted financing can be provided eitherFor the implementation of capital investments, or for current expenses. If funding is received in the form of subsidies or grants from the state compulsory insurance funds or other budgets, then consider it as income from other sources and include in the gross revenues for tax purposes. But grants and subsidies that are current payments differ from capital expenditures, which involve payments to purchase non-negotiable assets, emergency and strategic stocks of goods, and compensation for losses.
All expenses for the purchase of fixed assets,Carried out through targeted financing by the state, can not be depreciated, since in fact they were carried out at the expense of the state, and not at the expense of the taxpayer.