Business, like any other type of activity, has its own periods of ups and downs.
In addition, it depends on the state of the economy in the country, and indeed in the world as a whole. It also happens that during a certain period of time an enterprise does not extract revenues from its own activities.
These enterprises are mainly trade organizations or companies that manufacture and sell their goods.
According to the Regulations on Accounting"Expenses of the organization" (PBU 10/99) all costs are divided into: expenses for ordinary activities, operating expenses, non-operating and extraordinary expenses.
Expenses for ordinary activities are allExpenses incurred by the enterprise in the process of production and (or) sale of products, goods, services. These include spending on the purchase of materials, the wages of employees, the cost of renting premises, etc. These expenses should be written off in the period in which they occurred (paragraphs 17 and 18 of PBU 10/99).
Specific order of displaying expenses in accounting in the absence Proceeds Depends on the type of activity of the enterprise. Firms that produce their own products purchase materials, raw materials, accrue depreciation and wages, reflect expenses in the usual manner, on the debit of account 20 "Main production". General economic expenses (maintenance of the management apparatus, etc.) are accounted first in account 26 "General economic expenses", and then also written off to 20 accounts.
DEBIT 20 CREDIT 10 sub-account "Raw materials and materials"
DEBIT 20 CREDIT 70 - accrual of wages to employees of production-
DEBIT 20 CREDIT 02 - accrual of depreciation forEquipment for the production of goods - DEBIT 26 CREDIT 70 - Salaries paid to the employees of the administration staff - DEBIT 20 CREDIT 26 - general business expenses are written off.
A new, newly opened company, often does not have revenues and Proceeds Some time. Therefore, all expenses for purchasing equipment, accrual of depreciation, maintenance of the management apparatus prior to the start of production until 2011 were charged to 97 "Expenses of future periods", then, when the enterprise starts production, they were debited to debit 20 accounts. However, according to the new version of clause 65 of the Regulation "the costs incurred by the organization in the reporting period, but related to the next reporting periods, are reflected in the balance sheet in accordance with the conditions for the recognition of assets established by regulatory legal acts on accounting and shall be written off in the manner prescribed For writing off the value of assets of this type. "
In other words, the rule thatThe costs incurred in the reporting period, but related to the following, must be clearly recognized as expenses of future periods. The document refers to the regulatory legal acts on accounting, that is, to the PBU. If any PBU does not oblige to consider expenses as expenses of future periods, the company has the right to recognize them immediately upon accrual.