Instructions for applying the chart of accounts

The chart of accounts and instructions for its use include correspondence on basic business operations . In other words, not all operations are covered.

In the first part, the chart of accounts and instructions for its use contain information on long-term assets. The first section discusses intangible assets, fixed and other long-term assets.

Instructions for the use of the chart of accounts indicate that this section summarizes data on availability, movement, and spending:

1. The main resources that belong to the company in accordance with the right of ownership and received in accordance with the financial lease agreement.
2. Intangible assets that an enterprise has on the basis of ownership.
3. Long-term investments in associates and subsidiaries, securities or corporations with foreign capital and others.
4. Imported and domestic equipment to install.
5. All types of investments.
6. Parts of long-term settlements, financial lease accounts, deferred expenses, debt (long-term) of employees, other debts (receivables).

In the 2nd section, the instruction for applying the chart of accounts covers the accounting procedure for accounting items:

1. Core resources.
2. Depreciation of these funds.
3. The main resources received under a finance lease.
4. Long term investment.
5. Capital investment.
6. Equipment for installation.
7. Depreciation of intangible resources.
8. Intangible assets.
9. Deferred expenses and debts (receivables) of a long-term nature.

The instruction for applying the chart of accounts in the second part explains the accounting for current assets. The accounts in the inventory section are intended to summarize data on movement and availability:

1. Raw materials, purchased semi-finished products, materials, components, containers, fuels, household supplies, spare parts and other means that are intended for use in the production process or in the performance of services or work.
2. Work in progress.
3. Products for sale in the normal course of business.
4. Finished goods.

The instruction on the application of the chart of accounts prescribes a certain procedure for the formation of inventory records. In particular, attention should be paid to their condition, structure, quantity, movement, revaluation order and other indicators. The accounting information should contain information on finding reserves to reduce the cost of goods, the rational use of material resources, lower spending standards, as well as ways of proper storage and preservation. This section describes the procedure for maintaining articles on accounting:

1. Materials.
2. Fattening and rearing animals.
3. Acquisition and procurement of materials.
4. Main production.
5. Semi-finished products produced at the enterprise.
6. Serving farms.
7. Auxiliary production.
8. Of goods.
9. General production costs.
10. Finished products.

The section on accounts receivable summarizes information on accounts from buyers and customers, from dependent and subsidiary business companies, separate divisions, as well as about bills received, debts of debtors, founders, personnel.

In the section on cash, short-term investments and other current assets, accounts are intended to summarize data on the movement and availability of monetary resources in foreign and national currency held by banks in accounts, on hand, as well as on investments in short-term securities and losses and shortages.