Business, as well as any other kind of activity, has its ups and downs.
In addition, it depends on the state of the economy in the country and in the world as a whole. It happens so that for a certain period of time, the company does not extract revenues from its own activities.
These companies mainly include trade organizations or companies that produce and sell their goods.
According to the Regulations on accounting"Charges of the organization" (PBU 10/99) all costs are divided into: expenses on ordinary activities, operating expenses, non-operating and extraordinary expenses.
Expenses from ordinary activities - allexpenses incurred by the company in the production and (or) sales of products, goods and services. These include expenditure on the purchase of materials, wages of workers, cost of renting premises, etc. These costs must be written off in the period of time in which they occurred (paragraphs 17 and 18 PBU 10/99).
The specific procedure in the absence of display in the accounting of expenses revenue It depends on the type of activity of the enterprise. Companies that manufacture their own products, purchasing materials, raw materials, wages and depreciation is calculated to reflect the costs in the usual manner, to the debit of account 20 "Primary production". General expenses (maintenance of management, etc.) are recorded first in the account 26 "Total economic costs", and then also charged to expense 20.
DEBIT CREDIT 20 10 subaccount "Materials" -
DEBIT 20 CREDIT 70 - payroll employees production-
DEBIT 20 CREDIT 02 - depreciation onEquipment for the production of products- DEBIT CREDIT 26 70 - accrued salary workers control- unit DEBIT 20 CREDIT 26 - decommissioned general expenses.
The new, just open a company often has no income and revenue some time. Therefore, all the expenses for the purchase of equipment depreciation charge of the content management apparatus before the start of production refers to the account 97 "Deferred expenses" until 2011, and then, when the company will start production output, they write off the debit account 20. However, according to the new edition n. 65 of the Regulation "costs incurred by the organization in the reporting period but related to future reporting periods are recognized in the balance sheet in accordance with the terms of the recognition of assets, established by normative legal acts on accounting and are subject to cancellation in the manner prescribed to write off the value of the assets of this type. "
In other words, the exclusionary rule thatcosts incurred in the reporting period, but related to future, we must clearly recognize the deferred expenses. The document refers to the normative legal acts on accounting, ie the FDR. If any PBU not oblige to consider costs as deferred expenses, the company has the right to recognize them at once in the calculation.