Basement and cellar construction
Which account is the inventory shown in? Materials in balance

Which account is the inventory shown in? Materials in balance

In line 1210 enter data on the total value of the company's inventories listed as of December 31, 2015. A breakdown of the data in line 1210 by groups and types of inventories listed in the organization is given in Section 4 of the Explanations to the Balance Sheet and the Income Statement. So, for example, the data could be given here:

on the cost of raw materials and materials not written off for production, recorded in the debit of accounts 10 “Materials”, 15 “Procurement and acquisition of material assets”, 16 “Deviation in the cost of material assets”;
on the cost of goods intended for resale, recorded in the debit of account 41 “Goods”;
on the cost of finished products, recorded in the debit of account 43 “Finished products”;
on the cost of finished products and goods shipped to customers, recorded as the debit of account 45 “Goods shipped”;
on the amount of costs in work in progress recorded in accounts 20 “Main production”, 23 “Auxiliary production”, 29 “Service production and facilities”;
on the amount of sales costs that were not written off to the accounts for accounting for sales revenue, recorded in the debit of account 44 “Costs of circulation”;
on the amount of unwritten off deferred expenses recorded in the debit of account 97 “Deferred expenses”.

Raw materials

Raw materials include material assets that are the basis for the manufacture of a particular product, are included in its composition or are necessary components in its manufacture. In addition, raw materials are considered to be resources that are fully used in the process of the company's activities. According to the Chart of Accounts, these types of assets also include: purchased semi-finished products; finished components; fuel (oil, kerosene, gasoline, etc.) and lubricants; container; spare parts for repair of fixed assets; production waste (stumps, cuttings, shavings, etc.); inventory, tools and household supplies that are not included in fixed assets; special clothes.

Accounting for such property is regulated by PBU 5/01. According to paragraph 5 of the document, raw materials and materials are taken into account at actual cost.

Line 1210 includes the initial cost of raw materials and materials not written off for production as of December 31, 2015. It is recorded in the debit of account 10 “Materials”. This balance line shows the debit balance of this account as of the mentioned date.

Materials can be reflected both at actual cost and at accounting (planned) prices. When using the second option, their cost is formed using accounts 15 “Procurement and acquisition of material assets” and 16 “Deviation in the cost of material assets.” In this situation, line 1210 of the balance sheet indicates the debit balance of account 10 (accounting price of materials), 15 (cost of materials in transit) and 16 (deviations). If the balance of account 16 is credit, then it reduces the cost of materials at which they are reflected in the balance sheet.

The company has the right to create a reserve for depreciation of the cost of raw materials and materials. Its amount is taken into account in the credit of account 14 “Reserves for reduction in the value of material assets.” If there is a reserve, its amount reduces the cost of materials at which they are reflected in the balance sheet.

Formation of actual cost of materials...

The actual cost of materials is based on all costs associated with the acquisition of this property (excluding VAT, if the company accepts it for deduction). According to paragraph 6 of PBU 5/01, such costs include, in particular:

amounts paid to the materials supplier;
expenses for information and consulting services related to the purchase of materials;
customs duties accrued when importing materials into Russia;
expenses for the services of the intermediary through whom the materials were purchased;
costs for the procurement and delivery of materials to the place of their use;
materials insurance costs;
expenses for maintaining the company's procurement and warehouse division;
interest costs on commercial loans provided by material suppliers;
expenses for paying interest on bank loans received for the purchase of materials and accrued until the moment of their receipt;
expenses for bringing materials to a state suitable for use for the intended purposes (for example, for their additional processing, sorting, packaging, improving technical characteristics);
general business expenses directly related to the purchase of materials.

Like any other property, materials can be obtained in several ways. For example, purchased for a fee, manufactured by the company itself, received as a contribution to the authorized capital or free of charge, acquired as part of commodity exchange (barter) transactions, capitalized as a result of disassembly and dismantling of fixed assets. Depending on the method of acquiring materials, the company forms their initial cost.

This line of the Balance Sheet reflects information about the organization’s reserves, namely (clause 20 of PBU 4/99):

— about raw materials, supplies and other similar valuables;

— costs in work in progress;

— finished products;

— goods for resale and goods shipped;

— expenses of future periods.

At what cost are inventories recorded?

Raw materials and other similar values are taken into account at actual cost, which is determined in the manner established by clauses 6 - 11, 13 PBU 5/01, clauses 16, 17, 63 - 71 of the Guidelines for accounting of material and production inventories (clause 5 of PBU 5/01, clauses 15, 62 of the Guidelines for the accounting of inventories, clause 11 of the Guidelines for the accounting of special tools, special devices, special equipment and special clothing).

The specified material assets, accounted for in separate subaccounts of account 10 “Materials,” can be listed on this account at actual cost or at accounting prices. In the latter case, the difference between the cost of these assets at accounting prices and their actual cost of acquisition (procurement) is reflected in account 16 “Deviation in the cost of materials” (clauses 80, 83, 85 of the Guidelines for accounting of inventories, p. 13 Guidelines for accounting of special tools, special devices, special equipment and special clothing, Instructions for using the Chart of Accounts).

If the receipt of materials is reflected using account 15 “Procurement and acquisition of material assets”, the balance of account 15 shows the availability of goods in transit at the end of the month (at the agreed value) (Instructions for using the Chart of Accounts, clause 26 of PBU 5/01, clause 85 of the Guidelines for accounting of inventories).

Attention!

Since raw materials, materials and other assets used to create non-current assets of the organization do not meet the characteristics of inventories given in paragraph 2 of PBU 5/01 (are not used as raw materials and supplies in the production of products intended for sale (when performing works, provision of services), are not intended for sale, are not used for the management needs of the organization), they cannot be recognized as part of inventories and reflected in the Balance Sheet on line 1210 “Inventories”. Such assets are reflected in the Balance Sheet as part of non-current assets (Appendix to the Letter of the Ministry of Finance of Russia dated January 29, 2014 N 07-04-18/01).

Finished products is accepted for accounting at the actual production cost, which is determined in the manner established by clause 7 of PBU 5/01, para. 5 clause 16, clause 203 of the Guidelines for accounting of inventories. At the same time, the balances of finished products in the warehouse (other storage places) at the end (beginning) of the reporting period can be assessed in the analytical and synthetic accounting of the organization at accounting prices, in particular at standard (planned) cost (clause 5 of PBU 5/01, para. 2 clause 203, clause 204 of the Guidelines for accounting of inventories).

Information about the availability and movement of finished products is reflected in account 43 “Finished products”.

If accounting for finished products is carried out at accounting prices, then the difference between the actual cost and the cost of finished products at accounting prices is reflected in account 43 in a separate subaccount “Deviations of the actual cost of finished products from the accounting cost” (clause 206 of the Guidelines for accounting of material and production stocks).

When accounting for finished products at standard (planned) cost, account 40 “Output of products (works, services)” (Instructions for using the Chart of Accounts) can be used to identify the difference between the actual cost and the cost of finished products at standard cost. Account 40 is closed monthly to account 90 “Sales” and has no balance at the reporting date.

Thus, if deviations from the accounting value of finished products are accounted for on account 43, then in the Balance Sheet finished products are reflected at actual cost, and if on account 40, then finished products are reflected at standard (planned) cost (clause 59 of the Regulations on maintaining accounting and financial statements, clause 24 PBU 5/01).

Attention!

If on the reporting date the organization has entered into an agreement for the sale of finished products at a price below its cost, then a reserve is created to reduce the cost of these finished products (clause 25 of PBU 5/01, Appendix to the Letter of the Ministry of Finance of Russia dated January 29, 2014 N 07-04-18/ 01).

Goods are accepted for accounting at actual cost, which is determined in the manner established by clauses 6, 8 - 11 PBU 5/01 (clause 5 PBU 5/01). Organizations engaged in trading activities can account for goods at the cost of their acquisition. Organizations engaged in retail trade can account for goods at their sales price (clause 13 of PBU 5/01, clause 60 of the Regulations on Accounting and Financial Reporting).

Account 41 “Goods” is intended to summarize information about the availability and movement of goods.

In organizations engaged in retail trade and keeping records of goods at sales prices, information about trade margins (discounts, markups) on goods is reflected in account 42 “Trade margin”.

The receipt of goods and containers can be reflected using accounts 15 “Procurement and acquisition of material assets” and 16 “Deviation in the cost of material assets” or without their use in a manner similar to the procedure for accounting for the corresponding transactions with materials (Instructions for using the Chart of Accounts).

In general, the actual cost of inventories (including raw materials, materials, finished products and goods) is not subject to change (clause 12 of PBU 5/01). But for inventories, the market price of which has decreased or they have become obsolete or have completely or partially lost their original qualities, are charged in accounting reserve for reduction in the value of material assets . To account for such a reserve, account 14 “Reserves for reducing the value of material assets” is intended (clause 25 of PBU 5/01, clause 20 of the Methodological Guidelines for Accounting for Inventories, Instructions for the Application of the Chart of Accounts). Let us recall that the creation of estimated reserves is considered as a change in estimated values in accordance with paragraphs 2, 3 of PBU 21/2008.

Goods shipped are accounted for in account 45 “Goods shipped” at a cost consisting of the actual production cost (or standard (planned) cost) and costs of selling (selling) products (goods, work, services, etc.) (with partial write-off of costs) (Instructions for using the Chart of Accounts, clause 61 of the Regulations on Accounting and Financial Reporting).

Attention!

A reserve for a decrease in the value of goods listed as shipped goods on the reporting date is not created (Letters of the Ministry of Finance of Russia dated January 29, 2008 N 07-05-06/18, dated January 29, 2009 N 07-02-18/01). An exception is the situation when an agreement has been concluded for the sale of goods at a price below the book value of these goods. In this case, the organization creates a reserve for reducing the value of material assets for the difference between the book value and the selling price of goods (clause 25 of PBU 5/01, Appendix to the Letter of the Ministry of Finance of Russia dated January 29, 2014 N 07-04-18/01, Explanation 11- 05 “Reserve for inventories under concluded contracts” (Committee on Interpretations. 02.25.2011)).

Attention!

The property transferred to the buyer is removed from the organization’s fixed assets (clause 29 of PBU 6/01). If the moment of writing off the accounting records of a real estate object, the ownership of which is subject to state registration, does not coincide with the moment of recognition of income and expenses from the disposal of an object of fixed assets, then the residual value of the disposed object of fixed assets can be taken into account on account 45 “Goods shipped”, and in the balance sheet is reflected as part of current assets (Letter of the Ministry of Finance of Russia dated January 27, 2012 N 07-02-18/01).

In our opinion, as alternative options for accounting for the cost of retiring real estate, account 97 “Fixed assets” and the subaccount “Retirement of fixed assets” to account 01 “Fixed assets” can be used. In this case, regardless of the chosen accounting option, the cost of such objects is shown in the Balance Sheet on line 1210.

Work in progress (WIP) is taken into account in the assessment determined by one of the methods established by clause 64 of the Regulations on Accounting and Financial Reporting.

To reduce the value of work in progress, a reserve can be created, which is accounted for in account 14 “Reserves for reducing the value of material assets” (Instructions for using the Chart of Accounts). Let us recall that the creation of estimated reserves is considered as a change in estimated values in accordance with paragraphs 2, 3 of PBU 21/2008.

Animals being raised and fattened are taken into account on account 11 “Animals for growing and fattening” (on the corresponding sub-accounts). Animals purchased from other organizations and persons are accounted for at the actual cost of acquisition (actual costs) or accounting prices; transferred from the main herd - at residual value or initial (replacement) cost; offspring, weight gain and growth of animals - at the planned cost with adjustment at the end of the year to the actual cost of rearing (clauses 9, 10, 12, 13, 14 of the Methodological Recommendations for the accounting of animals for growing and fattening, Instructions for using the Chart of Accounts) .

The acquisition of animals from other organizations and persons can be reflected using accounts 15 “Procurement and acquisition of material assets” and 16 “Deviations in the cost of material assets” (when using accounting prices) (paragraph 2 of clause 45 of the Methodological Recommendations for the Accounting of Farmed Animals and fattening, Methodological recommendations for the use of the Chart of Accounts of organizations of the agro-industrial complex, Instructions for the use of the Chart of Accounts, Methodological recommendations for the correspondence of accounts of agricultural organizations). Animals for growing and fattening, owned by the organization, but in transit, are taken into account in accounting in the assessment provided for in the contract, with subsequent clarification of the actual cost (clause 62 of the Methodological Recommendations for the accounting of animals for growing and fattening).

Costs associated with the sale products, goods, works, services, as well as expenses associated with the procurement of agricultural raw materials, livestock and poultry (if the organization’s accounting policy provides for their partial write-off from account 44 “Sales expenses”), are subject to distribution as follows (Instructions for application of the Chart of Accounts, Guidelines for the application of the Chart of Accounts of enterprises and organizations of the agro-industrial complex, paragraph 2 of paragraph 228 of the Guidelines for accounting of inventories):

1) in organizations engaged in industrial and other production activities - packaging and transportation costs (between individual types of shipped products on a monthly basis, based on their weight, volume, production cost or other relevant indicators);

2) in organizations engaged in trading and other intermediary activities - transportation costs (between the goods sold and the balance of goods at the end of each month);

3) in organizations that procure and process agricultural products - expenses for the procurement of agricultural raw materials and expenses for the procurement of livestock and poultry.

Future expenses are taken into account in the amount of actual costs incurred minus their part attributed to the expenses of expired periods (clause 65 of the Regulations on accounting and financial reporting, paragraph 2, clause 39 PBU 14/2007, clause 16 PBU 2/2008, Letter of the Ministry of Finance Russia dated January 12, 2012 N 07-02-06/5, Appendix to the Letter of the Ministry of Finance of Russia dated January 29, 2014 N 07-04-18/01).

3.1.2.1.2. What accounting data is used?

when filling out line 1210 “Inventories”

This line of the Balance Sheet indicates the cost of inventories, determined based on the methods used by the organization to evaluate inventories, minus the created reserve for reducing their value (clauses 58, 59, 61, 62, 64, 65 of the Regulations on Accounting and Financial Reporting , pp. 24, 25 PBU 5/01, pp. 60, 61 Methodological recommendations for accounting of animals for growing and fattening, pp. 20, 35 PBU 4/99).

Line 1210 “Inventories” = Debit balance on account 10 + Debit balance on account 11 + Debit balance on account 41 - Credit balance on account 42 + Debit balance on account 43 + Debit balance on account 15 +/- Balance on account 16 - Credit balance on account 14 + Debit balance on account 45 + Debit balance on accounts 20,21,23,28,29 + Debit balance on account 97 (analytical expense account with a write-off period not exceeding 12 months + Debit balance on account 44)

Organizations independently determine the detail of the indicator on line 1210 “Inventories”. For example, the Balance Sheet may contain separate information on the cost of materials, finished products and goods, and costs in work in progress, if such information is recognized by the organization as significant (paragraph 2 of clause 11 of PBU 4/99, clause 3 of Order of the Ministry of Finance of Russia N 66n).

The “Explanations” column provides an indication of the disclosure of the indicator in line 1210 “Inventories”. If an organization draws up Explanations to the Balance Sheet and the Statement of Financial Results according to the forms contained in the Example of Explanations given in Appendix No. 3 to Order of the Ministry of Finance of Russia No. 66n, then in the column “Explanations” on line 1210 “Inventories” tables 4.1 and 4.2 are indicated .

Example of filling out line 1210 “Inventories”

Indicators for accounts 10, 14, 20, 23, 41, 43, 97 in accounting as of December 31, 2014 (indicators for accounts 15 and 16, 21, 28, 29, 42, 44, 45 in accounting for this date absent): rub.

Fragment of the Balance Sheet for 2013

Explanations	Indicator name	Code	As of December 31, 2013	As of December 31, 2012	As of December 31, 2011
1	2	3	4	5	6
	II. CURRENT ASSETS
4.1,	Reserves	1210	22 437	18 632	15 487
	including:
	raw materials and materials	1211	8622	6480	7600
		1212	9634	8200	4372
		1213	4120	3862	3415

Solution

The cost of the organization's inventory is:

as of December 31, 2014 - RUB 14,704 thousand. (RUB 2,469,600 - RUB 48,000 + RUB 4,000,000 + RUB 54,200 + RUB 5,160,000 + RUB 3,030,000 + RUB 38,000);

Including:

the cost of materials for the organization is:

costs in work in progress are:

The cost of finished products and goods for resale is:

A fragment of the Balance Sheet in Example 2.1 will look like this.

Explanations	Indicator name	Code	As of December 31, 2014	As of December 31, 2013	As of December 31, 2012
1	2	3	4	5	6
	II. CURRENT ASSETS
4.1,	Reserves	1210	14 704	22 437	18 632
	including:
	raw materials and materials	1211	2422	8622	6480
	costs in work in progress	1212	4054	9634	8200
	finished products and goods for resale	1213	8190	4120	3862

The balance is drawn up in accordance with clearly defined instructions, which can be found in PBU 4/99. This document requires the reliability of the information in the report, therefore the item “Inventories” must be collected strictly according to the formula: Debit 10, 11 – Credit 14 + Debit 15, 16 + Debit 20, 21, 23, 28, 29 + Debit 43 + Debit 41 – Credit 42 + Debit 44, 45 + Debit 97. Inventories on the balance sheet are a current asset that indicates the company’s financial security. The absence or sharp decrease in indicators in line 1210 of the current assets section, which collects all data on inventories, may indicate a scarcity of resources in the enterprise’s warehouses. On the other hand, there is an option that the process of turning an asset into money occurs so quickly that the company can barely keep up with its marketing service.

Line 1210 of the balance sheet "inventories"

Animals for growing and fattening include:

young animals;
adult animals in fattening and feeding;
birds;
animals;
rabbits;
bee families;
adult cattle culled from the main herd for sale (without fattening);
livestock accepted from the population for sale.

When forming expenses for ordinary activities, their grouping should be ensured by the following elements:

material costs;
labor costs;
contributions for social needs;
depreciation;
other costs.

Products (works) that have not passed all stages (phases, redistributions) provided for by the technological process, as well as incomplete products that have not passed testing and technical acceptance, are classified as work in progress.

Line 1210 of the balance sheet: explanation

Attention

The indicators in line 1210 “Inventories” as of December 31 of the previous year and as of December 31 of the year preceding the previous year are transferred from the Balance Sheet for the previous year. The “Explanations” column provides an indication of the disclosure of the indicator in line 1210 “Inventories”.

If an organization draws up Explanations to the Balance Sheet and the Statement of Financial Results according to the forms contained in the Example of Explanations given in Appendix No. 3 to Order of the Ministry of Finance of Russia No. 66n, then in the column “Explanations” on line 1210 “Inventories” tables 4.1 and 4.2 are indicated . Example of filling out line 1210 “Inventories” Indicators for accounts 10, 14, 20, 23, 41, 43, 97 in accounting as of December 31, 2014
(indicators for accounts 15 and 16, 21, 28, 29, 42, 44, 45 are not in the accounting records as of this date): rub. Indicator As of the reporting date (December 31, 2014) 1 2 1. By debit of account 10 2,469,600 2.

Inventories. line 1210

Important

This line of the Balance Sheet reflects information about the organization’s reserves, namely (clause 20 of PBU 4/99): - raw materials, materials and other similar valuables; - costs in work in progress; - finished products; - goods for resale and goods shipped; - expenses of future periods. At what cost are inventories recorded?

Raw materials, materials and other similar values are taken into account at the actual cost, which is determined in the manner established by paragraph.

clauses 6 - 11, 13 PBU 5/01, clauses 16, 17, 63 - 71 Guidelines for accounting of inventories (clause 5 PBU 5/01, clauses 15, 62 Guidelines on accounting of inventories, p.

Line 1210 “inventory”: how to fill it out correctly

Instructions for the use of the Chart of Accounts, Methodological recommendations for the use of the Chart of Accounts of enterprises and organizations of the agro-industrial complex, para. 2 clause 228 of the Guidelines for accounting of inventories): 1) in organizations engaged in industrial and other production activities - packaging and transportation costs (between individual types of shipped products on a monthly basis, based on their weight, volume, production cost or other relevant indicators); 2) in organizations engaged in trading and other intermediary activities - transportation costs (between the goods sold and the balance of goods at the end of each month); 3) in organizations that procure and process agricultural products - expenses for the procurement of agricultural raw materials and expenses for the procurement of livestock and poultry.

Line 1210 of the balance sheet: inventories

Such assets are reflected in the Balance Sheet as part of non-current assets (Appendix to the Letter of the Ministry of Finance of Russia dated January 29, 2014 N 07-04-18/01).

Finished products are accepted for accounting at the actual production cost, which is determined in the manner established by clause 7 of PBU 5/01, para. 5 clause 16, clause 203 of the Guidelines for accounting of inventories. At the same time, the balances of finished products in the warehouse (other storage places) at the end (beginning) of the reporting period can be assessed in the analytical and synthetic accounting of the organization at accounting prices, in particular at standard (planned) cost (clause.
5 PBU 5/01, para. 2 clause 203, clause 204 of the Guidelines for accounting of inventories).

Information about the availability and movement of finished products is reflected in account 43 “Finished products”.

Inventories (assets)

When it becomes determined that the sufficient conditions for recognition of revenue in accounting will not be met, the organization recognizes receivables in an amount equal to the value of previously recorded goods shipped. If an organization, in accordance with the established procedure, recognizes selling expenses in the cost of products sold in full in the reporting period as expenses for ordinary activities, then the goods shipped are reflected in the valuation without taking them into account.
The amount on line 215 is equal to the final balance on account 45 “Goods shipped”. The article “Deferred expenses” (line 216) reflects the amount of expenses recognized in accounting in accordance with the established procedure, but not related to the formation of costs for the production of products (works, services) for the reporting period.

Rules and procedure for filling out the “current assets” section

at the cost of raw materials, materials and semi-finished products.

The goods shipped may include:

finished products (finished products);
goods;
work;
services;
animals for growing and fattening;
semi-finished products of own production;
materials and other similar valuables.

Sales costs If the amount of transportation and procurement costs associated with the acquisition (procurement) of goods and their delivery to the organization constitutes a significant share in the total revenue from sales of goods (more than ten percent), as well as if their level is uneven during year (crop products, fisheries, etc.), then a proportional distribution of these expenses is allowed between the actual cost of goods sold in a given month and their balance at the end of the month.

Inventories balance sheet

Russian Federation, Accounting Regulations “Accounting for Inventories” (PBU 5/01). When organizations record the procurement of inventories using accounts 15 “Procurement and acquisition of material assets” and 16 “Deviation in the cost of inventories” in the balance sheet, the amount of deviations of actual expenses for the acquisition of inventories from their accounting price or deviations associated with by providing the organization with discounts (mark-ups) in accordance with the contract, the occurrence of amount differences in settlements for purchased inventories, is added to the cost of the balances of inventories reflected in the relevant items of the group of items “Inventories”, or is deducted when determining the final data for the item in the case receiving discounts, the occurrence of amount differences.

Inventories and costs balance sheet

The procedure for writing off detected deviations of actual expenses for the acquisition of inventories from their accounting price is established by the organization independently when adopting an accounting policy. The group of articles “Inventories” contains a breakdown by type of inventory.

The item “Raw materials, materials and other similar assets” (line 211) of the balance sheet reflects the balances of stocks of raw materials, basic and auxiliary materials, fuel, purchased semi-finished products and components, spare parts, containers and other assets that are accounted for by the organization in account 10 “Materials” . The amount on line 211 is equal to the final debit balance on account 10 “Materials”.
The article “Animals for growing and fattening” (line 212) is filled out by agricultural organizations or organizations with agricultural divisions. The amount on line 212 is equal to the final debit balance on account 11 “Animals for growing and fattening.”

Balance Sheet Inventories

In this case, work in progress is reflected in the assessment adopted by the organization when forming its accounting policy in accordance with regulatory documents on accounting. In trading organizations, the balance of work in progress is reflected in account 44 “Sales expenses”, and in other organizations - in account 20 “Main production”. If trade organizations or public catering organizations do not recognize the recorded distribution costs in the cost of goods (services) sold in full in the reporting period as expenses for ordinary activities, then the amount of these costs (in terms of transportation costs) attributable to the balance of unsold goods and raw materials, is reflected in the balance sheet under the item “Costs in work in progress.”
PBU 5/01, Appendix to the Letter of the Ministry of Finance of Russia dated January 29, 2014 N 07-04-18/01, Explanation 11-05 “Reserve for inventories under concluded contracts” (Interpretations Committee. 02/25/2011)). Attention! The property transferred to the buyer is removed from the organization’s fixed assets (clause 29 of PBU 6/01). If the moment of writing off the accounting records of a real estate object, the ownership of which is subject to state registration, does not coincide with the moment of recognition of income and expenses from the disposal of an object of fixed assets, then the residual value of the disposed object of fixed assets can be taken into account on account 45 “Goods shipped”, and in the balance sheet is reflected as part of current assets (Letter of the Ministry of Finance of Russia dated January 27, 2012 N 07-02-18/01).

Each line of the balance sheet has a specific meaning and code. To reflect indicators about the movement and availability of finished products, balance line 1210 is used. Information from accounting account 45 is entered into this line. Let's consider the features of the formation of this indicator in the balance sheet, as well as the procedure for filling out the specified line of the report.

How are finished product indicators formed?

Initially, data on finished products is formed on account 43 of accounting. At the same time, the cost of products is not indicated and is written off as expenses to account 90:

Products intended for further sale or that will be used for the needs of the enterprise are formed in the form of the following entries:

Debit 43 – Credit 40 (or 20-29)

If the products are used for the needs of the enterprise, then account 43 is not used, and the products are reflected in account 10. In this case, the indicator is not used to form the overall balance on line 1210 of the balance sheet, but is entered in the line “Raw materials, supplies and other material assets”.

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Account 45 is used when we are talking about shipped products. In other words, if payment for sold and shipped products has not yet been received, then the indicators are formed on account 45:

debit 45 – credit 43 – actual shipment of products;
debit 90 - credit 45 – recognition of revenue from the sale of finished products.

To determine the deviation between the actual and standard cost, account 40 is used, which is closed monthly to account 90.

As a result, to form the overall indicator, it is necessary to take into account the indicators in accounts - 43, 40 and 45 of accounting.

Features of reflecting information about finished products in the balance sheet

The PBU, approved by Order of the Ministry of Finance dated July 29, 1998 No. 34n, states that financial statements must include information that has factual and material confirmation. When preparing a balance sheet or any other financial statements, the responsible person must be guided by the specified accounting provisions. accounting or other standards.

Based on existing rules, at the end of the calendar year, the company’s financial statements must reflect data on the volume of production and material inventories based on cost accounting determined using special methods. The accounting rules indicate that the assessment of inventories at the end of the reporting period should be carried out using the disposal method.

When manufacturing a product, its actual cost is determined taking into account the expenses incurred. As a result, in line 1210 of the balance sheet, finished products can be reflected at actual or accounting cost. The choice of accounting methodology depends on the nuances of the company’s work and should subsequently be reflected in the accounting policy of the enterprise. Information on the volume of finished products is reflected in the article “Inventories”, section II “Current assets”:

As we have already said, the line “Finished products and goods for resale” must be filled out. The formation of the general indicator occurs by balancing all data at the end of the reporting year on accounts 43 “Finished products” and 41 “Goods”. Before obtaining accurate data, the information indicated on accounts 45 and 40 is additionally taken into account.

If the product is outdated, has partially or completely lost its original qualities, or its price has decreased, then the indicator will be reflected in the balance sheet minus reserves for reducing the price of the product.

When preparing financial statements, a special form approved by law is used. All reports must be submitted in this form and filled out according to certain rules so that the documentation is without violations. The tax authorities are provided with statistics on certain data indicated in the appropriate lines. Each line has its own code, which is deciphered in a certain way. There is also a transcript to line 1210 of the balance sheet. To correctly fill out this column, you need to understand what exactly is included in it and enter all the necessary information.

What does column 1210 consist of?

In reporting, balance sheet line 1210 is called “Inventories”; it usually reflects the following items that relate to any material assets of the organization, raw materials, related costs and expenses, as well as goods received during the production process:

Raw materials used in production, as well as other valuables that have a similar purpose.
Costs with distribution costs.
Products received or goods used for resale.
Possible future expenses.

Given this information, it is necessary to add up the debit balance of certain accounts for the required period of time for which the report is required. This list includes the following items:

Materials that are used in production to obtain finished products, all kinds of raw materials used.
Animals raised and fattened by the organization.
Procurement or purchase of various valuables necessary for the functioning of production.
Permitted deviations in the cost of acquired assets.
The main operating production.
The resulting semi-finished products are made in-house.
Operating auxiliary production facilities.
Manufacturing defects and related costs.
Maintenance of the farm and the costs of this work.
Received goods in production.
Finished products.
Sale of created products.
Shipment of goods produced by the company.
Future costs and potential costs.

All these points allow you to understand what balance line 1210 is made up of. Also, when preparing reports, it is worth remembering that the indicators in the documentation are given in a net assessment, that is, the data when compiling a summary should be indicated after the deduction of regulated quantities.

If a company has a reserve amount in its account for a possible reduction in cost or trade margin, then the debit balance must be reduced by this amount. After this, the information should be reflected in the completed line. As for regulated quantities that are not themselves included in the balance sheet, information about them is reflected in the explanations.

In cases where the organization’s balance sheet contains raw materials or materials used for use in non-current assets, then these amounts are not reflected as current assets when filling out line 1210. The amount of these inventories is reflected in the line used for other non-current assets, its number – 1190. Also, balances related to the acquisition of non-current assets will not be reflected in 1210. As for expenses for future expenses, only those whose write-off dates do not exceed exactly one year from the date of filing the report are mentioned. The remaining expenses are classified as non-current assets and must be recorded accordingly, in the appropriate line.