An example of an explanatory note for the year. How to write explanations for the balance sheet and income statement. Required information

EXPLANATORY NOTE

to the balance sheet for 2016

Limited Liability Company "Kid"

1. Basic information about the organization

TIN: 1256478956

Gearbox: 156879589

Registered with the Federal Tax Service of Russia No. 77 for Moscow.

The financial statements of the company are formed on the basis of the current accounting and reporting rules and the Federal Law of December 6, 2011 No. 402-FZ "On Accounting". There were no significant deviations from the accounting rules in 2014.

The number of employees at the end of the reporting period amounted to 15,879 people.

The main activity of the company is the sale of cash registers.

The activity was carried out by the company throughout the entire period of 2016 and was aimed at generating income in the reporting and subsequent periods.

In 2016, there was an increase in the authorized capital due to additional contributions from participants in the amount of 150,458 rubles.

The size of the authorized capital of the company as of December 31, 2016 is 10,589,658 rubles.

2. Revenue (income) from sales

Revenue from the sale of goods is recognized in accordance with PBU 9/99 "Income of the organization".

Sales revenue in 2016 amounted to RUB 15,978,000. (without VAT):

Revenues for the previous reporting periods amounted to (without VAT):

• 2015 - 26,789,654 rubles;
• 2014 - 25,879,584 rubles;
• 2013 - 15,987,654 rubles;

3. Costs related to implementation

Selling and administrative expenses are fully recognized in the cost of goods sold in the reporting year of their recognition as expenses for ordinary activities (clause 9 PBU 10/99 "Expenses of the organization").

The costs associated with the sale in 2016 amounted to 7,896,541 rubles. (without VAT).

For the purposes of tax accounting, the amount of expenses associated with the sale amounted to 5,987,562 rubles.

The resulting difference in the accounting of production and management expenses for the purposes of accounting and tax accounting was formed in connection with the application of PBU 18/02 “Accounting for settlements of corporate income tax”.

The costs associated with the sale for the previous reporting periods amounted (excluding VAT):

• 2014 - 4,996,541 rubles;
• 2013 - 7,886,541 rubles;
• 2012 - 3,826,541 rubles.

4. Other income

The amount of other income in 2016 amounted to 165,895 rubles.

For the purposes of tax accounting, the amount of other income amounted to 156,845 rubles.

The resulting difference in the accounting of other income for the purposes of accounting and tax accounting was formed in connection with the application of PBU 18/02 “Accounting for settlements of corporate income tax”.

5. Other expenses

The amount of other expenses in 2016 amounted to RUB 653,564.

For the purposes of tax accounting, the amount of other income amounted to 569,875 rubles.

The resulting difference in the accounting of other expenses for the purposes of accounting and tax accounting was formed in connection with the application of PBU 18/02 “Accounting for settlements of corporate income tax”.

6. Income tax calculations

The Company forms in the accounting records and discloses in the financial statements information on corporate income tax calculations in accordance with the requirements of PBU 18/02 “Accounting for corporate income tax calculations”.

Profit for income tax purposes in accordance with the data of tax accounting registers and data of the tax declaration amounted to 9,990,438 rubles.

The income tax rate in 2016 was 20%.

The amount of accrued income tax according to the tax return for 2016 amounted to 1,998,087 rubles.

7. Information about the accounting policy of the organization

The Regulation on Accounting Policy was drawn up in accordance with the provisions of the Federal Law of December 6, 2011 No. 402-FZ "On Accounting", the requirements of PBU 1/2008 "Accounting Policy of the Organization" and other current provisions, guidelines, instructions.

Director Simonyan ( Simonyan A.K.)

Chief Accountant Sidorova(Sidorova A.P.)

The main purpose of compiling an explanatory note is to decipher the financial statements. A well-written explanatory note will put the inspectors close to your company, greatly facilitate the delivery of the balance sheet and reduce the likelihood of an extraordinary tax audit.

Explanations to the balance sheet and income statement may consist of two parts - tabular and textual. To reflect quantitative data, it is more convenient to use the tabular form given in Appendix No. 3 to the order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n.

The numbers of explanations are indicated in column 1 (“Explanations”) of the balance sheet.

If the information presented in tabular form is not enough to fully disclose the picture of the financial condition of the organization (and this is how it most often happens), additional explanations are given in text form.

It is advisable to disclose in the application:

fixed assets

Section 2 of the notes to the balance sheet and income statement consists of four tables.

2.1. Availability and movement of fixed assets.

2.2. Capital investment in progress.

2.3. Change in the value of fixed assets as a result of completion, additional equipment, reconstruction and partial liquidation.

2.4. Other use of fixed assets.

Table 2.1 includes information on availability and company. The data in the columns of the table are reflected separately for fixed assets, separately for profitable investments in material assets. The information is provided broken down into groups of fixed assets and profitable investments, respectively. Data are for the reporting and previous years.

The presence of groups of fixed assets and profitable investments is reflected in the columns "At the beginning of the year" and "At the end of the period". This also includes the amount of accumulated depreciation.

In the column "Changes for the period" you should enter information about the receipt, disposal, revaluation of groups of objects, as well as the amount of depreciation accrued on them.

Please note: in case of revaluation of objects in the columns "Initial cost" the current market value or current (replacement) value is given.

EXAMPLE. REFLECTION OF OS AND PROFITABLE INVESTMENTS

fixed assets

At the beginning of the reporting year, the balance sheet of Aktiv JSC included a building and a car used by the administration.

Their initial cost was 1,000,000 rubles, respectively. and 180,000 rubles, and the accrued depreciation - 240,000 rubles. and 36,000 rubles.

In addition, in the reporting year, Aktiv built a warehouse with an initial cost of 1,300,000 rubles.

The amounts of depreciation accrued on existing and acquired objects in the reporting year amounted to:

For a car - 24,000 rubles;

For buildings - 64,000 rubles.

Profitable investments

Suppose that the main activity of Aktiv JSC is car rental. As of the beginning of the reporting year, the company had 10 rental cars with a total initial cost of 1,000,000 rubles.

The amount of depreciation accrued on them was 250,000 rubles. During the reporting year, it increased by another 200,000 rubles.

In June of the reporting year, Aktiv bought another car worth 180,000 rubles. (excluding VAT). For the year, depreciation was charged on it in the amount of 18,000 rubles.

The total amount of depreciation accrued for the reporting period amounted to 218,000 rubles. (200,000 + 18,000).

Thus, depreciation is calculated in the amount of:

At the beginning of the reporting year - 250,000 rubles;

At the end of the reporting year - 468,000 rubles. (250,000 + 200,000 + 18,000).

The accountant will fill out Table 2.1 as shown on page 34 (to simplify the example, data for the last year is not given).

Table 2.2 reflects the cost of capital investments in progress.

Investments in progress include:

• unfinished transactions for the acquisition, modernization and other similar actions with fixed assets. The information is provided broken down into groups of fixed assets. Data are entered for the reporting and previous years.

Capital investments are reflected in columns with a breakdown "At the beginning of the year", "Changes for the period" and "At the end of the period".

Recall that in the form of the balance sheet there is no line to reflect information on unfinished capital investments. Therefore, such information is reflected in line 1170 “Other non-current assets”.

On line 1140, the costs of capital investments in progress cannot be indicated, since they do not meet the requirements in accordance with which the asset is taken into account as an item of fixed assets (paragraph 4 of PBU 6/01).

Table 2.3 should contain data on the change as a result of completion, additional equipment, reconstruction and partial liquidation.

The rows of the table separately indicate the increase and decrease in the value of fixed assets. An increase may occur as a result of completion, additional equipment and reconstruction, and a decrease due to partial liquidation.

Information about the increase or decrease in value is indicated for each whose value has changed.

The data in the columns of table 2.3 are given for the reporting and previous periods.

Table 2.4 reflects information about other uses of fixed assets of the company. Here, in particular, information about the cost is indicated:

• fixed assets that are transferred or received on lease and are listed both on the balance sheet of the company and behind it;
• fixed assets transferred to conservation;
• real estate that is put into operation and is actually used, but is under state registration;
• others (for example, transferred or received as collateral, but used by the company).

The columns of table 2.4 indicate their cost:

• as of the reporting date (column 2);

Accounts receivable and accounts payable

This section details the accounts receivable and accounts payable of the firm. It consists of four tables.

5.1. Availability and movement of receivables.

5.2. Overdue accounts receivable.

5.3. Availability and movement of accounts payable.

To fill in the tables, use the data on the settlement accounts:

• 60 "Settlements with suppliers and contractors";
• 62 "Settlements with buyers and customers";
• 63 "Provisions for doubtful debts";
• 66 "Settlements on short-term credits and loans";
• 67 "Settlements on long-term credits and loans";
• 68 "Calculations on taxes and fees";
• 69 "Calculations for social insurance and security";
• 70 "Settlements with personnel for wages";
• 71 "Settlements with accountable persons";
• 73 "Settlements with personnel for other operations";
• 75 "Settlements with the founders";
• 76 "Settlements with different debtors and creditors".

Preliminarily divide all debts according to their maturity into short-term (must be paid within 12 months following the reporting date) and long-term (with a maturity of more than a year).

When filling out this section of the explanations to the balance sheet and the income statement, in the column “At the beginning of the year”, reflect the balance of the relevant accounts as of January 1 of the reporting year: - debit, for accounts payable - credit.

In the column "At the end of the period", indicate the balances of receivables and payables as of the end of the reporting year. The column “Changes for the period” reflects the receipts and disposals of debts, as well as the transfer of debt from long-term to short-term.

EXAMPLE. REFLECTION OF INFORMATION ABOUT DEBTS

Last year, Aktiv JSC issued an interest-free loan to an employee in the amount of 50,000 rubles. for a period of two years with the condition of a lump sum repayment. In accounting, this transaction was reflected in the posting:

Debit 73, subaccount "Long-term receivables"   Credit 50
- 50,000 rubles. - An interest-free loan.

At the beginning of the reporting year, these receivables were included in non-current assets of the balance sheet, and at the end of the reporting year (as of the reporting date), the accountant transferred them to current assets. In analytical accounting, this operation is reflected in the entry:

Debit 73, subaccount "Short-term receivables"   Credit 73, subaccount "Long-term receivables"
- 50,000 rubles. – transfer from long-term to short-term debt.

In this case, the corresponding fragment of table 5.1 "Asset" will look like this.

The Ministry of Finance of Russia recommends not to reflect in table 5.1 the debts received and repaid (written off) in the reporting year. Therefore, include in this table only those receivables and payables that are not repaid at the end of the reporting year. For example, it is not required to reflect debit and credit turnovers on account 70 “Settlements with personnel for wages”. Therefore, the accountant should focus on balances as of January 1, 2016, tracking their disposal, and also reflect the receipt of debts that you have as of December 31, 2016.

Table 5.2 reflects information on overdue receivables. Data on debts are indicated by their types. The columns indicate the amount of debt accounted for under the terms of the contract, and the book value.

The book value is the value under the terms of the contract, reduced by the amount created for it.

• as of the reporting date (column 2);
• December 31 of the previous year (column 3);
• December 31 of the year preceding the previous one, that is, the year before last (column 4).

Table 5.3 is intended to reflect data on the presence and movement of accounts payable. It is filled in by analogy with table 5.1.

Table 5.4 reflects information on overdue accounts payable.

The columns contain data:

• as of the reporting date (column 2);
• December 31 of the previous year (column 3);
• December 31 of the year preceding the previous one, that is, the year before last (column 4).

Explanations in text form

It is advisable to include essential information in the text part of the explanations:

• about your company;
• about her financial situation;
• on the comparability of data for the reporting and previous years;
• on valuation methods and material items of financial statements;
• about deviations from the accounting rules, if following them did not allow you to reliably reflect the property status and financial results of your company (clauses 6 and 37 of PBU 4/99);
• on changes in the accounting policy of the company for the next reporting year;
• about financial activities, such as buying shares in other companies;
• on the investment activities of the company, for example, on the development of the material and technical base;
• on subsidiaries and dependent companies (Articles 105 and 106 of the Civil Code of the Russian Federation);
• on the reorganization of the company;
• events after the reporting date.

Information about the company's activities

In this section, you can include:

• a brief description of the size and structure of the firm;
• a brief description of its usual activities;
• sales volumes of products, goods, works, services by types and geographical sales markets;
• data on extraordinary facts of economic activity and their consequences;
• information about the business activity of the organization;
• resource efficiency indicators, etc.

If possible, present the information in dynamics (for several years). At the same time, indicate the factors that influenced the financial results of the company in the reporting year.

The size of the firm (scale of business) can be partly judged by the size of its number of employees, the size of production space and other resources.

Briefly describe the production structure of the organization: its production, workshops, services, and also including branches and representative offices.

Describing the activities of the company by type, do not skimp on the details. Provide information:

• on the range and volumes of manufactured products (work performed, services rendered) for the reporting and previous years;
• about the directions of its investments;
• about plans to expand or change the sectoral and specific structure of the company's activities.

When disclosing information on the volume of sales of products (goods, works and services) by type, provide not only general data, but also information in the context of the main geographical sales areas.

If extraordinary events occurred in the past year, then describe them in the explanations. It can be a fire, flood, technological accident, theft of property and other similar situations.

Also reflect the economic consequences of these incidents: the amount of direct damage and liquidation costs, the amount of compensation received from the guilty citizens and organizations or from insurance companies, etc.

The business activity of the company is evidenced by the following data:

• availability of contracts for export deliveries, indirectly confirming the quality of products (works, services) and the breadth of sales markets;
• the presence of well-known customers who purchase products, works and services of the company;
• participation of the company in research and development work, the effectiveness of such activities;
• carrying out environmental and other similar activities.

Information about beneficial owners

Since the end of last year, the company has a new responsibility. According to Federal Law No. 215-FZ of June 23, 2016, all companies are required to have information about their own, store it and document the accuracy of this data.

So, in the Federal Law of 07.08.2001 No. 115-FZ (hereinafter referred to as the Law No. 115-FZ) “On Counteracting the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism”, Article 6.1 “Responsibilities of a Legal Entity to Disclose Information” was added on their beneficial owners”, according to which individuals and legal entities have new rights and obligations.

Paragraph 7 of the new article establishes that information about the beneficial owners of the company is disclosed in its reporting. Therefore, in the financial statements for 2016, special attention should be paid to the disclosure of data on their beneficial owners.

A beneficial owner is an individual who ultimately directly or indirectly (through third parties) owns (has a predominant participation of more than 25% in the capital) a client - a legal entity or has the ability to control the client's actions (Article 3 of Law No. 115-FZ) . Unlike Law No. 115-FZ, the Tax Code uses the term "interdependent persons".

EXAMPLE. REFLECTION OF INFORMATION ABOUT BENEFICIARIES

I. P. Sidorov owns 51% of the shares in Alfa JSC. In turn, Alpha is the owner of a 60% stake in Gamma JSC. Since I.P. Sidorov does not directly own the shares of Gamma JSC, his participation in the capital of this company should be recognized as indirect. The share of Sidorov's indirect participation in Gamma JSC will be: 0.51 × 0.6 = 0.306 or 30.6%. Therefore, Sidorov has a majority equity interest (more than 25%) and meets the criteria of a beneficial owner of Gamma JSC.

1) have information about their beneficial owners and take reasonable and available measures in the circumstances to establish the following information in relation to their beneficial owners:

• Full Name;
• citizenship;
• Date of Birth;
• details of the identity document;
• data of a migration card, a document confirming the right of a foreign citizen or stateless person to stay (residence) in the Russian Federation;
• address of the place of residence (registration) or place of stay;
• TIN (if any).

If it is impossible to determine the beneficiary so simply, then for insurance you need to have evidence confirming that the company has taken measures to establish it.

According to the clarifications of Rosfinmonitoring of the Russian Federation, copies of requests to the founders and answers to them may be documents confirming the adoption of such measures:

2) regularly, but at least once a year, update information about their beneficial owners and document the information received;

3) store information about their beneficial owners and the measures taken to establish them for at least five years from the date of receipt of such information;

4) provide the available documented information about their beneficial owners or about the measures taken to establish information regarding their beneficial owners at the request of the authorized body, tax authorities or other federal executive body authorized by the Government of the Russian Federation.

For failure to comply with the listed requirements, an administrative fine is established (Article 14.25.1 of the Code of Administrative Offenses of the Russian Federation):

• for officials - from 30,000 to 40,000 rubles;
• for legal entities - from 100,000 to 500,000 rubles.

Until 2013, the explanatory note was part of the financial statements. But after certain legislative changes, it ceased to be part of the reporting, although the law states that taxpayers can provide additional information that they consider useful.

According to the current legal regulation, financial statements also have applications. As attachments, you can specify a statement of changes in equity, a statement of the intended use of funds, explanations for and. And what features have explanations and how should they be compiled?

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General provisions

As mentioned above, they are part of the annual financial statements. At the same time, they may not be presented by non-profit organizations and public associations that are not engaged in entrepreneurial activities and do not have turnover for the sale of products or goods.

Explanations can be presented both in text form and in tables. At the same time, companies have the opportunity to independently determine the content. But in the corresponding order of the Ministry of Finance of the Russian Federation (N 3 of 07/02/2010) recommended forms are presented.

During their registration, certain requirements must be met:

• all must be numbered;
• the number must be indicated in the column on the appropriate lines.

You need to be aware that, according to the current legal regulation, they are not considered a separate reporting form, but are only an appendix to the financial statements. In fact, this is a decoding to it. Explanations to the balance sheet and income statement consist of certain sections.

These include:

• financial investments;
• estimated liabilities;
• production costs;
• reserves;
• securing obligations, etc.

Each section consists of one or more tables. Explanation lines are to be encoded. Compilation of explanations can be carried out using the word program.

The legislative framework

According to the current legislative requirements, the financial statements must reflect reliable data that make it possible to draw up a provision on:

• the financial position of the enterprise;
• financial results of its economic activity;
• during the reporting period.

This sphere of legal relations received its regulation in the Federal Law “On Accounting”.

When compiling explanations, it is necessary to take into account the relevant provisions of RAS 4/99 (paragraphs 24-27). It is also necessary to be guided by the norms of other accounting provisions and subparagraph “b” of paragraph 4 of order No. 66n.

For example, in the explanations it is necessary to disclose information that relates to the accounting policies of organizations. Basically, they relate to the numerical indicators of financial statements.

At the same time, it is necessary to take into account the fact that the financial statements do not include information that is related. The composition and content of such information are provided for in paragraph 39 of PBU 4/99. In particular, an enterprise may provide additional information if, in the opinion of its executive body, such data is useful to interested parties.

Related information may include information such as:

• the dynamics of the financial performance of the enterprise;
• planned development of the company;
• proposed investments;
• risk management policy, etc.

The Law “On Auditing Activities” states that audit procedures are also carried out in relation to explanations. And additional information, as a rule, is not subject to evaluation.

An example of registration of explanations to the balance sheet by sections

The explanations are divided into several sections.

In particular, there are the following sections:

These are the main sections that must be completed. To have a better idea of ​​how to fill them out, you can see an example of the design of explanations for the balance sheet.

Required information

There is certain information that must be filled in without fail. What information should be filled in?

These are the basic details that must be filled in. In addition to them, you can specify additional information that is not included in the financial statements, but which may contain useful data.

Below is a description of several tables by section.

Section 1 consists of 5 tables that are dedicated to:

And section 2 consists of the following tables, which are devoted to:

• the presence and movement of fixed assets;
• capital investments in progress (lines 5240, 5250);
• change in the value of fixed assets (lines 5260, 5270);
• other use of fixed assets (line lines 5280-5286).

The explanatory note is a mandatory component of the financial statements in paragraph 5 of PBU 4/99 "Accounting statements of the organization". Explanations should disclose information related to the organization's accounting policies, as well as provide reporting users with additional data - those data that are not appropriate to include in tabular reporting forms, but which are necessary for users to assess the performance of the organization.

The right not to provide an explanatory note is given only to small businesses that are not required to conduct an audit of the reliability of financial statements.

To reflect the state of the organization at the reporting date, it should contain the following information:

1. Information about the organization:

• legal form and name of the legal entity;
• legal and actual address;
• the average annual number of employees for the reporting period or as of the reporting date;
• composition of members of executive and control bodies;
• information about the founders;
• the size of the authorized capital;
• information about the auditor, appraiser;
• the availability of licenses, the timing of their issuance;
• organization management structure;
• the amount of taxes paid by the organization in the reporting year.

• discloses separate rules for accounting for assets and liabilities adopted by the accounting
  politics;
• the reason for the change in accounting policy is indicated;
• reflects the consequences of changes in accounting policies compared with the previous reporting period;
• a change in accounting policy for the year following the reporting year is reported;
• it is indicated that the relevant data of the periods preceding the reporting year included in the financial statements for the reporting year have been adjusted.

3. Information on individual assets and liabilities:

For fixed assets:

• on the initial cost and the amount of accrued depreciation for the main groups of fixed assets at the beginning and end of the reporting year;
• on the useful life of objects;
• on the methods of calculating depreciation and its reflection in accounting;
• on the movement of fixed assets during the reporting year by main groups (inflow, disposal, etc.);
• about real estate objects that are in the process of state registration, but have already been put into operation and actually used;
• on the availability at the beginning and end of the reporting period and the movement during the reporting period of certain types of own fixed assets;
• on the availability at the beginning and end of the reporting period and the movement during the reporting period of leased fixed assets;
• on methods of valuation of assets acquired under agreements providing for the repayment of obligations in non-cash assets;
• on the amount of depreciation of fixed assets, which, as a result of revaluation, is credited to the account of retained earnings (uncovered loss);
• about objects of fixed assets, the cost of which is not redeemed;

In terms of inventories:

• about methods for assessing the MPZ by their groups (types),
• about the consequences of changing these methods,
• on the size and movement of reserves for depreciation of material assets.

For loans and borrowings:

• on the availability, maturity and change in the amount of debt on the main types of loans and credits;
• on the amount, types, maturity dates of issued promissory notes and placed bonds;
• on the amounts of borrowing and credit costs included in operating expenses and in the value of investment assets;
• on the value of the weighted average rate of loans and credits (if applicable).

For financial investments:

• on the methods for evaluating financial investments upon their disposal by groups (types) and the consequences of changes in these methods;
• on the value and types of securities and other financial investments encumbered with collateral;
• on the value and types of securities and other financial investments transferred to other organizations or persons (except for sale);
• on the composition and movement of the reserve for depreciation of financial investments;
• on valuation of debt securities and granted loans at a discounted value.

For assets and liabilities denominated in foreign currency:

• the amount of exchange differences included in financial results;
• the amount of exchange differences otherwise accounted for;
• the official exchange rate of the Bank of Russia in effect on the reporting date of the financial statements.

4. Analysis and evaluation of the balance sheet structure and profit dynamics:

The main activities of the organization for the reporting period are indicated;

The financial condition is assessed for the short term, for this the coefficients are calculated:

• current, absolute and critical liquidity;
• security with own funds;
• ability to restore (or lose) solvency;
• profitability;
• financial dependence;
• financial activity;
• financial stability, etc.

An assessment of the current solvency is given, while indicating:

• the presence of money in cash and on current accounts;
• existence of losses;
• overdue receivables and payables;
• outstanding credits and loans;
• the presence or absence of debt to the budget;
• paid (payable) penalties for non-fulfillment of obligations to the budget);
• assessment of the organization's position in the securities market and the causes of the negative phenomena that took place.

An assessment of the financial condition for the long term is given, while the following indicators are indicated:

• structure of sources of funds;
• the degree of dependence of the company on external investors and creditors, etc.

5. Information about the income and expenses of the organization:

• on sales volumes of products, goods, works, services by types (or branches) of activity and geographical sales markets (or activities);
• on the composition of production costs (or distribution costs);
• on the composition of reserves for future expenses and payments, their availability at the beginning and end of the reporting period and their movement;
• on the composition of other income and expenses;
• on the presence of extraordinary facts of economic activity and their consequences.

In relation to the proceeds received under agreements providing for the repayment of obligations by non-monetary means, it is necessary to reflect the following information:

• on the total number of organizations with which these contracts are carried out, with the allocation of those that account for the bulk of such revenue;
• on the share of revenue received under the specified contracts with organizations related to the company;
• on the method of determining the cost of products (goods) transferred by the organization under such contracts.

6. Explanations to significant items of financial statements:

• information is disclosed if it is significant and if it is not disclosed in the forms of financial statements.

7. Assessment of the business activity of the organization:

• the breadth of markets for products, including the availability of export supplies;
• reputation of the organization (fame of clients using the services of the organization, and other information);
• the degree of fulfillment of planned indicators, ensuring the specified rates of their growth (decrease);
• the level of efficiency in the use of the organization's resources.

8. Change in opening balances:

• reasons for the change in opening balances (changes in the content of reporting and its form, the introduction of new accounting requirements, reorganization of the organization);
• the magnitude of the change in opening balances.

9. Affiliates (as a rule, these are the parent, subsidiary or dependent company, founders and shareholders):

• list of affiliated persons;
• the reason why the firm or individual is affiliated;
• the nature of the relationship with these persons;
• types of transactions with affiliates;
• methods for determining prices for each type of transactions with affiliates.
• share of the company's shares owned by an affiliate.

10. Conditional facts of economic activity

(Guarantee obligations of the organization, litigation, information on the availability and amount of guarantees issued by the organization, obligations arising from bills of exchange accounted (discounted) by the organization):

• the content of the conditional fact - the nature of the obligation and the expected date of its performance;
• a brief description of the uncertainties that exist in relation to the timing of performance and the amount of the obligation.
• the amount of the reserve formed in connection with the consequences of the conditional fact, its change.
• probable consequences of the occurrence of the conditional fact.

11. Information about joint activities:

• types and number of simple partnership agreements;
• goals of organizing joint activities;
• the amount of the contribution to the joint activity;
• the value of assets and liabilities relating to the joint venture;
• the amount of profit or loss received in the reporting year from joint activities;
• information on shared assets;
• information on joint operations.

12. Segment information

(It is used by an organization when compiling consolidated financial statements if it has subsidiaries and affiliates, and also if the constituent documents of associations of legal entities (associations, unions, etc.) created on a voluntary basis are entrusted with compiling consolidated financial statements):

• list of segments;
• total revenue, including revenue from sales to external customers and transactions with other segments;
• financial result (profit or loss);
• total balance sheet value of assets;
• the total amount of liabilities;
• the total amount of capital investments in fixed assets and intangible assets;
• the total amount of depreciation deductions for fixed assets and intangible assets;
• aggregate share in net profit (loss) of dependent and subsidiaries, joint activities;
• the total amount of investments in these associated companies and joint activities.

13. Events that occurred after the reporting date:

• description of the nature of the event;
• the possible consequences of an event occurring after the balance sheet date.

14. State aid

(If commercial organizations received government assistance):

• the nature and amount of budgetary funds received;
• purpose and amount of budget credits;
• the nature of other forms of state aid;
• unfulfilled as of the reporting date the conditions for the provision of budgetary funds and related contingent liabilities and contingent assets.

15. Environmental indicators

(In the event that the organization's activities have a negative impact on the environment):

• indicators reflecting the degree of impact on the environment (emissions, discharges, waste);
• land reclamation activities;
• activities and costs for environmental protection.

16. Information disclosed by joint-stock companies:

• the number of shares that are issued and paid;
• shares that are issued but not paid or paid in part;
• the nominal value of shares owned by the joint-stock company itself, as well as its subsidiaries and affiliates.

When issuing an additional issue of shares:

• the reason why the additional ordinary shares were issued;
• the date of their release;
• main terms of release;
• the number of additional ordinary shares issued;
• the amount of funds received from their placement.

17. Information reflected in accordance with PBU 18/02:

• conditional expense (conditional income) for income tax;
• permanent and temporary differences that arose in the reporting period and resulted in the adjustment of the conditional expense (conditional income) on income tax in order to determine the current income tax (current tax loss);
• permanent and temporary differences that arose in previous reporting periods, but resulted in the adjustment of the conditional expense (conditional income) for income tax of the reporting period;
• the amount of permanent tax liability, deferred tax asset and deferred tax liability;
• reasons for changes in applied tax rates compared to the previous reporting period;
• the amounts of a deferred tax asset and a deferred tax liability written off to the profit and loss account in connection with the disposal of an asset item (sale, transfer free of charge or liquidation) or type of liability.

18. Information on discontinued operations:

• description of the terminated activity: operating or geographical segment (part of a segment, set of segments) within which (which) the termination of activity takes place;
• date of recognition of the activity as terminated; the date or period in which the termination of the entity's operations is expected to be completed, if known or determinable;
• the value of the assets and liabilities of the organization, expected to be disposed of or redeemed as part of the termination of activities;
• amounts of income, expenses, profits or losses before tax, as well as the amount of accrued income tax related to discontinued activities;
• cash flow related to discontinued activities, in the context of current, investment and financial activities during the current reporting period.
• as assets are disposed of or liabilities related to discontinued operations are settled, the entity discloses in the explanatory note (or in the income statement) the amount of profit (loss) associated with the disposal of assets or the settlement of liabilities before tax and the amount of the corresponding income tax.
• The explanatory note also reflects the fact of cancellation of the termination program.

19. Other indicators:

• the main characteristics reflecting the feasibility, effectiveness and efficiency of the organization;
• product competitiveness;
• credit policy, credit history, solvency;
• information about the property received as a pledge, transferred and received in trust management.

One of the conditional forms of financial statements is an explanatory note. As the name implies, it contains a kind of decoding of the statements, that is, in fact, it describes in words the financial position of the company at the end of the year and the changes that have occurred in it during the reporting period.

Explanatory note to the balance sheet - mandatory or not?

First of all, we note that the explanatory note and the explanations to the balance sheet should not be confused. The latter, in accordance with clauses 5 and 28 of PBU 4/99 “Accounting statements of an organization”, are separate reporting forms, such as a cash flow statement, a statement of changes in equity and other forms in the financial statements, which are actually considered appendices to the balance sheet and statement of financial results. The explanatory note itself also refers to the explanations in the reporting set.

Is an explanatory note to the balance sheet required? Of course, the company must compile it and submit it to the IFTS as part of the financial statements. However, there is one exception here. If the characteristics of the company's activities allow it to carry the status of a representative of a small business, then such a company can draw up financial statements in a simplified form. This involves the submission of financial statements as part of only two forms: a balance sheet and a statement of financial results. A small business will also not have an explanatory note to the financial statements.

How to write an explanatory note: sample

The content of the explanatory note, in cases where it is necessary to draw up, should provide regulatory authorities with information about the company's activities in the reporting period. It indicates the main characteristics of the business as a whole, as well as factors affecting changes in certain indicators. There is no strict format for an explanatory note. That is, an accountant can compile it in text form and use various tables, summaries, graphs or charts in it, in a word, use in this report all methods of presenting information that he deems necessary. The data set for the explanatory note is also determined by the accountant himself. At the same time, he must be guided by the very purpose of this form, in other words, disclose in it the information necessary for the formation of the controllers' understanding of the company's activities.

An example of an explanatory note

Explanatory note to the balance sheet for 2016 (sample)

Alpha LLC

1. General information
   1. Alpha Limited Liability Company
   2. Legal and actual address: Moscow, st. Profsoyuznaya d. 99.
   3. Date of registration: August 21, 2013.
   4. PSRN: 1077077077077
   5. TIN: 7727077700
   6. Gearbox: 772701001
   7. Registered in the Federal Tax Service of Russia No. 27 for Moscow, certificate of state registration 77 No. 000000077.
   8. Authorized capital: 10,000 (ten thousand) rubles, paid in full.
   9. Main activity: 70.3 - Provision of intermediary services related to real estate.
   10. The number of employees as of December 31, 2016 was 65 people.
   11. There are no branches, representative offices and separate subdivisions.
   12. The balance sheet is formed in accordance with the rules of accounting and reporting in force in the Russian Federation.

1. Accounting policy

The accounting policy for accounting purposes for 2016 was approved by the order of the General Director dated December 25, 2015 No. 2015-12/28. The accounting policy did not change during the reporting period.

1. According to the approved document, the organization applies the straight-line method of depreciation of fixed assets and intangible assets.
2. The cost of inventories, finished products is carried out at actual cost;
3. the write-off of inventories into production is carried out at the average cost.
4. The financial result from the sale of products, works, services, goods is determined by shipment.

1. Key performance indicators (here you can give the main figures on the income and expenses of the company, reflected for accounting purposes)

1. In the reporting year, the revenue of Alfa LLC amounted to:
   1. For the main activity for the provision of intermediary services related to real estate - 158,456,120 rubles
   2. For other activities - 1,000,580 rubles.
2. Other income: 670,800 rubles.

1. Costs associated with production and sale:
   1. Acquisition of fixed assets: 3,480,780 rubles
   2. Depreciation: 44,118 rubles,
   3. Purchase of materials: 110,880 rubles.
   4. Payroll fund: 37,520,130 rubles,
   5. Travel expenses: 458,690 rubles,
   6. Rent: 5 420 180 rubles.
2. Other expenses: 980,456 rubles.

1. Breakdown of balance sheet items as of December 31, 2016

(Here, individual balance sheet items are deciphered with more detailed information and explanations that may be of interest to auditors. Let's give an example of such an explanation for the line "Capital and reserves").

4.1. Capital and reserves.

In 2016, the capital ratio and reserves were increased at the expense of a part of retained earnings of previous years, remaining after the payment of dividends to the founders of Alfa LLC in 2015. Thus, the cost of capital and reserves amounted to RR 880,000 as at 31 December.

1. Assessment of the value of net assets (data on net assets calculated on the basis of accounting indicators as of December 31 of the reporting year are provided).

1. The composition of fixed assets (the indicator of the corresponding line of the balance sheet is deciphered).

1. Accounts payable (including it is advisable to indicate the debt to the budget at the end of the year).

1. Other information.

General Director of Alpha LLC Ivanova T.N.

As already mentioned, the legislation does not offer a clear list of information related to the financial activities of the company, which the accountant would be required to include in the explanatory note to the balance sheet. The main thing in its preparation is to adhere to the general principle of compliance with the data of financial statements.

Related parties in the explanatory note

However, special attention should be paid to information about related parties when drawing up an explanatory note. It is recommended to indicate it in this document as a separate section (clause 14 PBU 11/2008).

The company has the right to determine the list of related parties, the data on which it will reflect in the note. The data themselves must be disclosed in the context of information on transactions with related parties, and also, regardless of the transactions, for those organizations and individuals that are recognized as affiliates.

Related parties in explanatory note, example

1. Information about affiliated persons as of December 31, 2016:
2. Ivanova Tatyana Nikolaevna - the founder of a 50% share in the management company, holds the position of General Director.
3. Petrova Ekaterina Borisovna - the founder of a 50% share in the management company, holds the position of Deputy General Director.

1. Transactions conducted in the reporting period with related parties.

2.1. On March 20, 2016, the general meeting of the founders of Alfa LLC considered and approved the financial statements for 2015. The meeting decided to pay a profit in the amount of 7,800,000 rubles at the end of 2015 to the founders based on their share in the management company. The payment (taking into account the withholding of personal income tax) was made on 1504.2016.

2.2. In July 2016, Alfa LLC entered into an agreement with the founder Petrova E.B. an agreement on the acquisition of non-residential premises worth 1,250,000 rubles. The value of the transaction is determined by an independent appraisal of the value of the property by an independent appraiser. Settlements for the completed transaction were made in full in August 2016, at the same time the act of acceptance and transfer of the premises was signed.