Accounting is a procedure in which business transactions related to loans and borrowings are reflected in the registers of financial services of an enterprise. What is the specificity of these records? Through which postings are long-term liabilities and short-term loans and borrowings reflected in accounting?
What is the difference between a loan and a loan?
To begin with, we will study some theoretical aspects of accounting for the obligations in question. So, before considering how accounting for loans and loans is implemented, you can examine the differences between them. These criteria can be identified by referring to the provisions of the civil legislation of Russia.
Regarding the loan: in accordance with the agreement, one party acting as the lender transfers the ownership of another business entity - the borrower, money or other resources, and after a while the second returns the property to the first or equivalent to it.
Loan agreements can be signed by both organizations and individuals. This agreement must be in writing, unless otherwise provided by law.
A party to an ordinary loan agreement can be any citizen or organization. Operations of the corresponding type are not licensed and, as a rule, are not limited. In the manner that is regulated by civil law, a loan can be obtained, for example, from the founder or a partner organization.
In turn, a loan is a loan that can be provided by an organization only in the status of a credit and financial organization, assuming a license from the Central Bank of the Russian Federation. Loans, in turn, are based on the norms of not only the Civil Code of the Russian Federation, but also other, financial sources of law. However, they should be provided only on the basis of a written contract. Bank loans are generally considered to be urgent and require interest.
An agreement between a financial institution and a borrower in many cases involves securing an appropriate loan with an asset, guarantee, or through the conclusion of a special agreement with an insurance company. Thus, the fundamental differences between loans and loans are that the obligations of the first type:
- arise due to the conclusion of the organization of a contract with a specialized financial institution with a license from the Central Bank of the Russian Federation,
- involve the transfer by the lender to the borrower in all cases of cash;
- arise as a result of the conclusion of a written contract between the parties to the legal relationship.
The contract between the lender and the borrower fixes all the basic conditions of the loan: the amount transferred from one side to the other, the amount and conditions for calculating interest, interest.
Object of accounting of operations on loans in accounting
Let us now consider what objects credit accounting can be related to in accounting. The main ones are business operations arising as a result of the enterprise fulfilling the contract, according to which one entity - the creditor or lender - transfers, as we noted above, the ownership of the other to the borrower, the money, while the second undertakes to return the amount taken to the first, and also if it is provided for by agreement - also interest.
In some cases, the subject of the agreement may be some material object - real estate or equipment, an intellectual product (for example, software). In rare cases, the borrower is expected to return a smaller amount than was taken under the contract. As a rule, this is possible if the parties to the agreement are the Central Bank of the state, which adopted a policy of negative interest rates, as well as private financial institutions. In Russia, the key rate of the Central Bank is now quite high, so loans issued between various market participants almost always involve the payment of interest.
Accounting for loans and borrowings in accounting is carried out on special accounts 66 and 67. The first reflects operations on short-term loans, the second - on long-term ones. The appropriate accounting procedure is approved by a separate source of law - PBU 15/2008. We will study in more detail how these procedures are implemented based on the provisions of regulatory legislation.
Accounting for loan operations in accounting: regulation
In accordance with the rules of law, according to which credits and loans should be recorded in accounting, the amount of obligations of the enterprise - if it acts as a borrower, is reflected in accounting registers based on the content of the contract with the creditor. Information on the loan repayment terms should also be disclosed in the reporting sources.
Loans and borrowings are classified into 2 types - short-term and long-term, and their accounting is carried out on the accounts listed above. Costs related to loans should be reflected in accounting separately from the amounts taken under the loan agreement. These costs are reflected in accounting documents for the period in which they appeared. They should also be evenly included in the structure of other expenses of the organization.
Using special accounting accounts, amounts that correspond to the main amount or interest accrued on long-term or short-term loans or loans, accounting entries are generated using accounting accounts. Consider their specifics.
Accounting for borrowed obligations: accounts and postings
In the general case, as we noted above, long-term and short-term loans and credits are reflected in accounts 66 and 67. Analytical accounting of the corresponding liabilities is carried out on the basis of their classification in a specific category, as well as individually (each loan is considered as an independent legal relationship).
The principal amount that the enterprise owes is recorded in accounting as part of accounts payable in the amount that is reflected in the contract. The company should also record information on lost funds in the form of loans. The financial statements must also record the maturity dates of obligations.
Borrowing costs must be accounted for separately from their principal amounts, in a specific billing period and subject to other expenses being included in the structure. At the same time, it does not matter on what terms borrowed funds are provided. As part of the accounting of interest in the accounting registers of the company, credit entries of such accounts as 66 or 67 are used, as well as those corresponding to those for which specific sources of payments are reflected.
Interest on liabilities can be attributed to the cost of procurement of material and production resources, if the main amount of their respective funds is directly related to them and invested until the relevant resources are capitalized. If this condition is not met, then interest should be accounted for as part of transaction costs - using account 91.
The corresponding amount of capital can be directed to investing in non-current resources. In this case, interest on loans is recognized through postings:
- on the credit of account 08, as well as on the loan of the main accounts of debt accounting in case interest is paid until the moment the funds are put into operation;
- on the debit of account 91 and the credit of the main accounts, if the corresponding funds are transferred after the fixed assets have been accepted into production.
If the loan was returned late or if interest was paid in arrears, then the penalties under the loan agreement should be reflected in accounting by posting to the debit of account 91.2.
Thus, if the amounts are taken on credit and used to invest in non-current assets, the accountant carries out their accounting through the following entries:
- Dt 08, Kt 66 (or 67) in the accounting registers if interest on loans is transferred to the creditor until the moment when the fixed assets are put into operation or, for example, assets related to intangible are registered;
- Dt 91, Kt 66 (or 67), if interest appears after the implementation of the marked operations.
It is worth noting that if the loan is settled by the company in arrears, then the fines provided by the contract are included in the structure of expenses, which are classified as non-operating expenses. In this case, postings are made to the debit of account 91. However, as soon as the loan or loan is repaid, the corresponding operation in accounting is confirmed by the following entry in the registers: Dt 66 (or 67), Ct 50 (or, for example, 51, 52 or 55).
Obligations repaid in a timely manner and those that are performed later than the contractual deadline should be accounted for separately. Accounting for settlements on loans of short-term and long-term type is carried out, as we already know, is also carried out separately. It will be useful to consider the specifics of accounting for each type of transaction.
Accounting for liabilities
Regarding long-term liabilities - there are 2 main methods of accounting for them.
First, you can create postings on account 67 before the loan or loan repayment period expires. Secondly, it is allowed to reflect the postings on the corresponding account until the moment when there are 365 days left until the relevant obligations are paid off.
If the term is less, then account 66 should already be used, on which, in turn, short-term loans are taken into account. The way in which long-term loans are reflected in accounting - according to 1 or 2 scheme, must be approved in the accounting policy of the company.
There is a special category of loans - formed by the issuance of securities by the company. We will study them in more detail.
Emissions Loans: Accounting Features
The characteristics of the borrowed funds in question are as follows. It is worth noting that the postings used to account for the liabilities under consideration apply the same as in the case of conventional loans.
The main feature of reflection in accounting of operations with borrowed funds arising as a result of the issue is that if securities are put into circulation at a cost higher than the nominal or corresponding value, the following should be applied:
- Dt 51, Kt 66 or 67 (in amounts corresponding to the nominal value of issued securities);
- Dt 51, Kt 98 (for amounts reflecting an increase in the value of issued securities relative to the nominal).
At the same time, the amount shown on account 98 must be evenly debited within the time period while the securities are being circulated to account 91.
If securities are placed at a price lower than the nominal value, then the corresponding difference should be accrued evenly within the term of the bond circulation using the entries Dt 91.1, Kt 66 (or 67).
The company in the accounting policy section , which records loans and borrowings, can record that the decrease in the value of issued securities should be previously taken into account in the cost structure of future periods. If so, then to record business transactions in accounting registers, posting Dt 97, Kt 66 (or 67) will be used.
An increase in the nominal price of a loan relative to the cost of its placement is included in the structure of operating expenses monthly during the circulation of securities using the following entry in the registers: Dt 91.2, Kt 97.
Interest should be accounted for separately from the principal. The reflection of operations with them in the framework of transactions with bonds is carried out using the record Dt 91.2 Kt 66, 67.
The company may approve in the accounting policy the norm according to which the accounting of borrowing costs when paying interest on bonds, in turn, will also be included in the cost structure of future periods. In this case, wiring Dt 97, Kt should be used. 66, 67.
The amount of interest on securities, while their circulation is carried out, forms operating expenses - the amounts composing it are monthly reflected in the record Dt 91.2 Kt. 97.
The main and additional costs of obligations
The costs associated with the use of borrowed funds by the enterprise may be basic or additional. The first include, first of all, the interest stipulated by the contract. The second most often - exchange rate difference.
The main costs should be included in the structure of operating expenses of the company. In order to correctly take into account the loan in this case, the following transactions are applied: Dt 91.2, Kt. 66 (or 67).
The additional costs most often include those associated with the payment of intermediaries when applying for a loan, consultants. It is also customary to attribute taxes and fees to the corresponding category of costs. In order to correctly take into account the loan or credit according to the appropriate scheme, the following transactions are applied: Dt 91.2, Kt 60 (or 76).
Accounting for debts when buying fixed assets
Certain nuances are characterized by accounting for loans and credits issued by the company in order to invest in fixed assets. How exactly these obligations are accounted for depends on whether depreciation is charged on the respective funds. If not, then those costs associated with obtaining a loan are included in the structure of operating expenses.
A specific list of fixed assets for which depreciation should not be charged is recorded in Russian Accounting Regulations. Accounting for loans and borrowings, if depreciation is charged, involves the inclusion of their costs in the initial cost of resources related to fixed assets. An appropriate procedure may be applied if:
- the company had costs associated with the acquisition or construction of fixed assets;
- the term for transferring interest on a loan or a loan has come;
- the value of the asset is included in the capital investment structure.
Another significant criterion is that the OS object should not be put into operation.
In order to take into account loans and credits according to the corresponding scheme, a special account must be used - 08. With its use, the posting Dt 08, Kt 66 (or 67) is generated. But if the noted conditions are not met, then the costs of the obligations are taken into account as part of transaction costs. In this case, the postings Dt 91.2, Kt are applied. 66 (or 67).
Accounting for debts when buying materials
An enterprise may issue bank loans or partner loans in case it is necessary to make investments also in materials used in production. To account for such business transactions, posting is used, according to which interest is included in the structure of the cost of materials: Dt 10, Kt. 66 (or 67).
Note that the interest paid increases the price of materials only if they are accrued until the moment of capitalization of the corresponding resources in the company's warehouse. If they are accrued after capitalization, then interest should be included in the structure of operating expenses. In this case, debit postings are used using account 91.2.
Accounting for bill loans
Consider another significant aspect of legal relations with the participation of creditors and borrowers: accounting loans related to bill. Business transactions that correspond to them are reflected through postings:
- Dt 51 (52), Kt 66 (or 67), if we are talking about actually accepted funds;
- Dt 91.2, Kt 66 (or 67) in other cases.
Interest or, conversely, amounts reflecting the fact that the value of bills is reduced are taken into account in the same manner as the obligations arising from the company as a result of the issue of securities. Closing of operations within the framework of the circulation of bills is carried out in accordance with the notification of the banking organization on the repayment of the debt by recording Dt 66, 67, Kt 62, 76.
If the organization holding the bill returns the funds that were received from the bank upon accounting for the decrease in the value of debt due to non-fulfillment of the contract by the original drawer, then posting Dt 66, 67, Kt 50, 51 is applied.
If, in the framework of the company’s settlements with customers or customers, accounts receivable that are secured by promissory notes remain, they should be accounted for in debit of accounting accounts.
If interconnected business entities are involved in the calculations of a company with banks, billsholders or lenders, then they are accounted for separately using accounts 66 or 67.