Balance sheet: explanatory note to the balance sheet. Shape, sample

In accordance with PBU 4/99 “BU”, statements of profit, movement of funds and capital are supplemented by notes. The balance sheet is no exception. The explanatory note to the balance sheet is part of the annual reporting of enterprises. It contains detailed information about income and expense items.

About the document

The explanatory note is part of the reporting. There is no standardized form for its completion. In general, the document should contain information reflecting the performance of planned targets. The note is compiled based on the results of the financial statements and discloses information about elements of accounting policies. Based on the materials provided, you can draw up a plan for future development.

Structure

An explanatory note to the balance sheet of a public institution should disclose such data:

1. To characterize the main activities, as well as the most significant factors of work.
2. Display accepted accounting methods.
3. Give a comparative description of the current and previous periods.
4. In case of data discrepancy, provide information on the reasons for their occurrence.

The basis for filling in the data is the balance sheet. The explanatory note to the balance sheet contains 19 sections. Let's consider them in more detail.

Organization Details

1. Form of ownership and name of legal entity.
2. Address.
3. The average annual number of employees at the reporting date.
4. The composition of the control organs.
5. Information about the founders.
6. The amount of capital.
7. Information about the auditors.
8. Availability of licenses.
9. Managment structure.
10. The amount of taxes paid in the reporting year.

Accounting Policy Information

The note displays the following data:

• rules for registering assets and liabilities;
• the cause and consequences of a policy change;
• data on accounting rules for the next year;
• corrected data is indicated.

The explanatory note to the balance sheet of the institution, which is prepared according to the consolidated statements, should include information on subsidiaries, group members, their location, the amount of their capital, and the share of assets of each of them. The consequences of a policy change that may affect the financial position or other performance of the organization are evaluated in cash.

Asset and liability information

The explanatory note to the balance sheet of the Republic of Belarus contains such data about the OS:

• initial cost and amount of accrued depreciation at the beginning and end of the year;
• term of use of the facility;
• depreciation methods;
• the movement of leased and fixed assets in groups;
• real estate at the stage of state registration, but accepted for operation;
• asset valuation methods;
• the amount of the markdown of the asset, which is transferred to retained earnings.

Filling out an explanatory note to the balance sheet also consists in displaying data on the IBE:

• stock assessment methods;
• consequences of method changes;
• the size and movement of funds under the decline in value

Information on loans, loans and financial investments is also displayed:

• availability, maturity, changes in the amount of debt;
• types, maturities of issued bills and bonds;
• the amount of interest costs, which is part of operating expenses and the value of assets;
• weighted average rate;
• ways to evaluate investments at their disposal and the consequences of their changes;
• cost, types of securities, encumbered with a pledge;
• cost of transferred securities and financial investments;
• the composition and movement of the reserve for impairment;
• assessment of debt securities and loans, taking into account the discount.

For assets and liabilities in foreign currency, the note shows:

• exchange differences attributable to financial results or otherwise accounted for;
• Exchange rate of the Bank of Russia at the reporting date.

Analysis of the balance sheet structure

This section includes an assessment of the economic condition of the enterprise. It is compiled in accordance with the Instructions for monitoring the solvency of entities. The section analyzes all types of liquidity, the level of provision with funds, profitability, the level of financial dependence and stability.

The analytical part of the note should contain the procedure for calculating indicators. Consider the main ones.

1. Current liquidity - reflects the level of asset support for short-term liabilities. A high value of the coefficient indicates a stable financial condition:

Ktl = A2: (P5 - p. 640), where:

• A2 - the result of the second section of the asset balance (p. 290);
• P2 - the result of the fifth section of the liability (p. 690).

2. Coefficient of provision with current assets - shows which part of the joint-stock company is formed at the expense of own funds:

To ao = (P3 + p. 640 - A1): A2, where:

• P3 - the third section of the liability (p. 490);
• A1 is the first section of an asset (p. 290).

3. The ratio of accounts payable - shows the ability of the organization to pay for obligations after the sale of assets:

To KZ = (P4 + (P2 - p. 640)): WB, where:

• P4 - the result of section 4 of the liability (p. 590);
• WB - balance sheet currency (p. 300).

An organization is considered insolvent if within 4 quarters an unsatisfactory balance structure is displayed, as evidenced by the value of the debt security ratio at a level above 0.85.

4. The solvency index shows which part of short-term loans the company can repay at the time of reporting:

And pl = (short-term arrears - long-term arrears): balance sheet currency.

Income and expense data

This part displays information on sales volumes and geography of sales markets, cost structure, availability of reserves for future payments, structure of other income and expenses, emergency factors. Information is given separately on contracts providing for a non-monetary form of settlement: their quantity, share of revenue, methods for determining the value of the goods transferred.

Activity rating

The standard form for the explanatory note to the balance sheet contains a section that displays:

• the breadth of markets, the availability of exports;
• company reputation in the market;
• level of performance indicators;
• resource efficiency.

Change balances

If in the reporting period there was a reorganization of the enterprise, then these data are recorded in the balance sheet. An explanatory note to the balance sheet should contain information on the reasons and extent of the changes. This section is also filled in if the data at the beginning of the year changes.

Affiliates

Drawing up an explanatory note to the balance sheet provides for the display of information on the presence of subsidiaries, founders and shareholders:

• their list;
• nature of the relationship;
• reasons for referring to affiliates;
• types of operations and methods for determining prices for them;
• share of owned shares.

Activity Facts

This section displays information about the warranty and judicial obligations of the organization, their value and the amount of the created reserve.

Joint activity data

1. Number of partnership agreements.
2. Objectives of the activity.
3. Amount of deposit.
4. The value of property and liabilities, profit or loss for the current year.
5. Information about the assets used and joint operations.

Segment Information

The format of the explanatory note to the balance sheet for the FSS implies the presence of a section that displays information about associations and unions - provided that the constituent documents stipulate that the information on the financial statements is submitted summary:

• list of units;
• total revenue;
• profit or loss;
• book value of assets, liabilities, capital investments in fixed assets and intangible assets;
• depreciation amount;
• share in net profit of subsidiaries;
• amount of investments in joint ventures.

Events after the reporting date

This section displays information on facts of economic activity that have greatly affected the value of assets and liabilities. They need to be fully disclosed. Failure to display data may affect the decision of users of financial statements. Events are added to the note, but no changes are made to the report. An assessment of the consequences in monetary terms must be documented or indicated that this is not possible.

A copy of the explanatory note to the balance sheet may contain the following facts:

• declaring a debtor of an organization bankrupt;
• Valuation of assets, the results of which confirm a change in their value;
• obtaining data on the financial condition of a subsidiary whose securities are quoted on an exchange;
• overpricing stocks;
• declaration of dividends;
• indemnification from an insurance company;
• adoption of a court decision requiring the creation of a reserve;
• reorganization, reconstruction of the organization;
• making decisions on the issue of securities;
• transaction related to the sale of OS;
• fire, emergency, which entailed the destruction of part of the assets;
• termination of core business;
• OS cost reduction;
• actions of state authorities;
• unpredictable changes in exchange rates, asset prices.

State aid

An explanatory note to the balance sheet of an educational institution and any other organization that receives assistance from the budget should contain information about:

• the nature and magnitude of cash and credit receipts;
• targeted use of financial resources;
• unfulfilled conditions for the provision of funds and related obligations.

Environmental performance

The sample explanatory note to the balance sheet of enterprises whose activities negatively affect the environment differs from the standard document. Additionally, it is entered in it:

• data reflecting the degree of impact (emissions, waste);

• land restoration information;

• data on environmental protection costs.

Information about JSC

An example of an explanatory note to the balance sheet presented below contains such information about the Central Bank:

• the number of issued and paid securities, their nominal value;
• stock movement at the beginning and end of the period;
• the value of securities owned by AO and its subsidiaries;
• the availability of reserves and the purpose of their creation.

In case of additional issue:

• reason for release;
• date;
• conditions of sale;
• the number of issued ordinary shares;
• the amount of proceeds from the placement.

Section 17

This item displays the data required by RAS 18/02:

• Contingent expense (income) on NPP;

• differences resulting in tax adjustment;

• PNO, IT, IT;

• reasons for changes in tax rates;

• the amounts of IT and ITA written off in connection with the disposal of the operating system.

Termination of activity

If the organization is at the liquidation stage, then the final balance sheet is submitted to the Federal Tax Service. The explanatory note to the balance sheet contains the following information:

• description of the liquidated activity;

• completion date;

• value of property and disposal obligations;

• movement of funds in the framework of current, investment and financial activities;

• the amount of income, expenses, profits, losses before tax, accrued by NPP;

• abolition of liquidation.

Other indicators

There are few of them, but you should not discard them:

• competitiveness of goods;

• credit policy, solvency;

• information about the property transferred and received to the management.

An example of an explanatory note to the balance sheet

Explanations to the balance sheet of JSC “Organization” for 2015:

1. General information

Joint-stock company “Organization” was registered by the Federal Tax Service Inspectorate No. 5 in St. Petersburg on October 28, 2010 (The checkpoint, tax identification number, state registration certificate data, and address are then provided.)

The balance sheet is prepared in accordance with applicable accounting and reporting rules (IFRS).

Statutory fund: 2,000,000 (two million) rubles.

Number of ordinary shares: 1,000 with a par value of 2,000 (two thousand) rubles.

Main occupation: milk processing (OKVED 15.50).

The composition of the founders of persons:

Ivanov Andrey Sergeevich - member of the board of directors;

Averin Stepan Pavlovich - member of the board of directors.

2. Accounting policies

Order on accounting policy No. 158 was signed by the director on December 25, 2013 (the provisions are briefly described: methods for calculating depreciation, valuation of liabilities and other assets ).

3. Balance structure (the specific weight of each line of the balance is shown and changes in indicators are calculated).

4. Valuation of assets (the value of the property is correlated with capital).

5. Analysis of financial indicators (calculated liquidity, profitability, provision with reserves, level of financial dependence, etc.).

6. The composition of the OS (million rubles) - for convenience, we will present in the form of a table.

7. Liabilities and reserves

As of December 31, 2015, an estimated obligation to pay holidays in the amount of 1.5 million rubles was created, the number of days was 66, and the term of use was 2016. The reserve for doubtful debts is formed in the amount of 1,687 million rubles. due to the presence of overdue and unsecured debt of LLC “Enterprise”. There is no reserve for reducing the cost of inventories, since there is no evidence of their depreciation.

8. Labor and salary

Salary arrears for December 2015 are 1.79 million rubles. The payment term is 01/15/16. Staff turnover is 24.99%, the payroll is 166 people. The average monthly salary is 20,765 rubles.

9. Issued and received security (types indicated).

03/20/2016

Director of Organization JSC Signature

Conclusion

According to the results of the calendar year, the Federal Tax Service shall hand over the balance sheet. An explanatory note to the balance sheet is drawn up in any form. It may contain tables and charts. It provides a variety of details of information: from the provisions of accounting policies to the calculation of financial indicators. The main requirement is that the information should be reliable and useful to users.