Deferred income - what is it? Application of the account “Deferred income. Deferred income: the procedure for accounting and reflection in the reporting Which account reflects the deferred income

Account 98.02 - "Gratuitous receipts" is subject to the account "Deferred income" (98).

Consider account 98 in accounting

This account is designed to accumulate information about: (click to open)

• Income received, which relates to future reporting periods;
• Shortage arrears for previous years to be received;
• The difference in case of shortage and damage between the amount of the recovery and the value of the value.

The amounts of deferred income are reflected in the credit of account 98, and in debit - the amounts of the transferred income to the corresponding accounts when the expected date comes.

Sub-accounts can be opened to account 98 "Deferred income":

98-1 "Income received for future periods",

98-2 "Gratuitous receipts",

98-3 "Forthcoming receipts of arrears on shortages identified in previous years",

98-4 "The difference between the amount to be recovered from the perpetrators and the book value for the shortfall in valuables", etc.

Consider subaccount 98-2 "Gratuitous receipts"

for other material assets received free of charge - as they are written off to the accounts for accounting for production costs (sales costs).

Analytical accounting for subaccount 98-2 “Gratuitous receipts” is maintained for each gratuitous receipt of values.

Example. Gratuitous receipts

LLC "Titan" received equipment under a donation agreement with a useful life of 45 months, worth 400,000 rubles. Inventories and fixed assets cannot be attributed to the free income received immediately, its recognition occurs as it is used.

The table of transactions for account 98 with free receipt of goods and materials and fixed assets: (click to open)

Deferred income is funds received or received in the coming month, quarter, year. Logically, it can be considered such profit and amounts that debtors will return. However, this is not quite true. Next, let's figure out how it is done.

General information

When products are shipped, they are sold. Typically, this transaction records income. The ownership of the goods passes at the time of its transfer to the purchaser. There is no product in stock, therefore, it becomes possible to demand payment from the counterparty. In this case, there is no upcoming income. The prospect of a possible profit is also irrelevant. In practice, accounting records only completed transactions and proceeds from the principle of compliance. It boils down to the following. The receipts must correspond to the costs at the expense of which they were received.

Example

The above principle is easy enough to understand, but very problematic to implement. Suppose a business has received the rent for 3 years in advance. The question of which account to use to reflect funds does not arise. The problem is exactly how much should be shown as profit. At first, it was customary to reflect all funds received as income. However, later, when the principle of conformity began to be applied, they began to draw up annual reports. It is logical that the income should include the profit for the year. As for the remaining amount, they are not shown in the report.

Another question arose - where to attribute them. The simplest solution was to record it as accounts payable. This is explained by the fact that the lessor, having received the due amount, recognizes its obligations to the lessee. Accordingly, in each next year, the debt will decrease, and the profit will increase. However, this approach is of little use in practice. The fact is that accounts payable are an obligation that requires repayment. And in the considered example, it is absent, since the owner has already received the money, and the object has provided.

Account introduction

Usually deferred income is assets that have already been received. In most cases, they are presented in the form of monetary amounts. Taking into account the principle of comparability, these receipts must be compared with the costs due to which they arose. This is where the question of the correct division of profits arises. It is not known for certain how a way was found to show revenue of the future periods. Line 1530, which summarized information about such receipts, still exists. Subsequently, it was fixed that each item must correspond to the balance of the account on the general ledger. As a result, the issue was resolved, where they reflect deferred income. The account of the same name was entered 98. The amount on line 1530 is equal to the aggregate of the credit balance on the account. 98 and 86 (in terms of targeted funding from the budget, grants, technical assistance, etc.).

Account characteristics

Introduction p. 98 was related to problems in reflecting rent. When they were resolved, accountants realized that with the help of the found approach, it was possible to regulate financial flows. As a result, a large number of sub-accounts arose, which include revenue of the future periods. it:

1. Profit earned against the coming years.
2. Gratuitous receipts.
3. The upcoming shortfall arrears discovered in previous years.
4. The difference between the amount of the penalty with the culprit and the book price for the shortfall.

Let's consider them separately.

Gratuitous receipts

Previously, they were called gifts, which involved the conclusion of a donation agreement. At present, such receipts are commonly referred to as sponsorship. Until a certain period, they were classified as income of the period in which they were received. Meanwhile, there were experts who indicated that the actual investment should be shown in the documents. Gratuitous receipts were estimated at 1 ruble.

With the improvement of the accounting system, a new approach has been developed. Objects received free of charge were capitalized by invoice. 08 s CD count. 98.2. Accordingly, the gifts were recognized as revenue of the future periods. it means that in the documents this profit was shown as "stretched" over several years.

Depreciation

Deferred income in the balance sheet is funds with a notional market value. If it is overestimated, which in some cases also takes place with conscientious business conduct, the profit can be increased by reducing it through depreciation. If the estimate is underestimated, then the receipts will be adjusted accordingly. When it comes to fixed assets, on the one hand, depreciation should be charged in future periods. On the other hand, receipts of upcoming time intervals are written off to current costs. They neutralize each other.

As a result, it turns out that the use of equipment becomes free of charge. The fact is that income is absorbed by depreciation, but it does not fall on the cost of goods. Meanwhile, it is theoretically more correct to admit that no depreciation is made for fixed assets received free of charge. The entry is made solely on the attribution of part of the proceeds of the future period to the costs of the current one. This confirms the fact that depreciation is considered a transfer of previously committed expenses, and not a fund for the renovation (renewal) of fixed assets. Other gratuitous receipts, earmarked funds acting as deferred income, reflect the same way.

Debt for shortages

The rent incident had certain implications for accounting for deferred income. At first, the specialists did not see any problems, but then they began to include everything that was possible in this category. First, these were gratuitous values, then - past losses. There were reasons for such actions. Let us consider what is the reason for the attribution of debt for shortages to deferred income.

Postings are drawn up based on the identification of the relevant fact. The accountant takes the discovered shortage in DB account. 94. Simultaneously credited account. 98.3. The developers of the chart of accounts, apparently, assumed that the more shortages were discovered, the more receipts would be subsequently. If the financially responsible employee recognizes the fact and gives an obligation to compensate for the deficiency, a receivable is formed. It is unlikely that it will ever be repaid. In any case, completely.

If the financially responsible employee does not admit his guilt, then there is no question of any income at all. The current chart of accounts provides for a regulatory account. 98.4. It summarizes information on the difference between the amount to be recovered from the perpetrators and the book value of the shortfall. This account applies exclusively to merchants using the sales price capitalization scheme.

The nature of the count

Count. 98 clearly belongs to the category of financial and distribution items. Here it is necessary to recall the underestimated problem of accounting policy. The question is as follows. What exactly of the income is attributed to the current and what - to the future period? To some extent, the answer to this question depends on the professional discretion of the chief accountant. Meanwhile, characterizing the count. 98, perhaps it would be more correct to classify it as additional. If done correctly, it complements the 99 account. In this case, the interested person will see the actually received, and not the formally fixed amount of profit.

P. 1530

As mentioned above, it is attributed to deferred income in the balance sheet. it:

1. Budgetary funding.
2. Balances not used at the end of the year. They are on the account. 86.
3. Amounts of grants received, technical assistance, etc.

The lessor companies have the right to include in such receipts the difference between the amount of payments and the value of the property held by the recipient. All other receipts are classified as current or payables. In general, the values ​​on line 1530 as of December 31 of the last year and of December 31 of the period preceding the previous one are carried over from the balance sheet for the previous year.

Nuances

Some aspiring professionals often ask: deferred income - asset or liability? Actually, the question is quite logical. After all, in fact, we are talking about receipts, profits. Meanwhile, deferred income - liability... The situation is different with the costs of the coming years (quarter, month). They refer to the asset. In this case, there is a certain accounting paradox. The funds actually received, presented in the liability and materialized in the asset, reduce the reported profit. At the same time, the costs of the coming years (months, quarters) will increase.

Another point concerns taxation. Deferred expenses with STS (income minus costs) are missing. They do not exist in the case of another version of the "simplification". In addition, there are no and revenue of the future periods. STS does not provide such concepts at all.

Specificity of records

As mentioned above, the income of the coming periods is shown on account 98 Kd. Accounts reflecting the movement of funds or settlements with creditors and debtors correspond with it. By db count. 98 amounts are debited on the occurrence of the periods to which they relate. For example, usually under the terms of a lease, property users pay in advance for a quarter or half a year. This amount cannot relate entirely to the income of the period in which it was received. The funds are divided into equal shares. Each of them is recognized as income of the current period on a monthly basis. In this case, the amount received is credited first to the account. 98. The wiring is as follows:

• Db count. 51 CD count. 98.

This entry is made for the entire amount of the receipt. Further, each month, in equal proportion, the income of the forthcoming periods is written off to the profit of the current one:

• Db count. 98 CD count. 91.

Let's look at an example. LLC entered into a lease agreement on February 18, 2017 for 120 days. The acceptance certificate was signed on March 1. According to the terms of the agreement, the tenant must transfer the amount six months in advance. On December 25, 24 thousand rubles were received on the account of the owner, including VAT 4 thousand rubles. The accountant makes the following entries:

• Db count. 51 CD count. 98.1 - receipt of funds.
• Db count. 98.1 cd count. 68 - VAT accrual.

At the end of each month, an entry is made:

• Db count. 98.1 cd count. 90.1 - monthly rent is reflected in the income from the sale of services.
• Db count. 90.3 CD count. 68 - VAT charged.
• Db count. 68 CD count. 98.1 - tax has been restored in terms of the amount attributable to the reporting month.

Revision

How is it done? In the course of the audit, first of all, the legality of referring the amounts received by the enterprise to the considered category of receipts is checked. Recall that the income for the coming periods includes:

1. Income received on account of the months, quarters, semesters, years that did not come. These include the amount of rent, subscription fees, revenue from passenger traffic on quarterly / monthly tickets, and so on.
2. The value of the assets received free of charge.
3. Forthcoming receipt of debt for shortages discovered during the reporting period for previous years and found guilty by the financially responsible employee or awarded in the framework of the lawsuit.
4. The difference between the amount to be recovered from the guilty person for missing material or other values, and their value.

The audit also verifies the correctness of the income estimate. When posting receipts for upcoming periods, it is carried out in the following order:

1. The amounts received on account of the forthcoming month, quarter, year, half-year are accounted for in the amount of payment received upon the fact (according to the agreement).
2. The value of assets transferred to the enterprise free of charge is estimated in accordance with the market price. It takes into account the value that existed at the time of posting.
3. Shortage receivables from prior years found in the current period are recorded at market prices. The cost is taken into account, in effect at the date of the recognition of guilt by the materially responsible employee or the date of the court order.
4. The amount of the difference in the valuation of the shortfalls to be collected is calculated as the difference between the market price of the missing values ​​and the value at which they were capitalized.

During the audit carried out at the end of the year, the validity of the resulting balances on the sub-accounts is checked:

1. "Amounts received for forthcoming periods". Only those funds that relate to the next year should be shown here.
2. "Gratuitous receipts". This subaccount reflects the market value of the property received free of charge in the part that relates to the under-depreciated value (if deductions are made for depreciation), or inventories that were not written off to the accounts for accounting for production costs.
3. "Forthcoming receipts of arrears on shortages discovered in previous years." This subaccount reflects the market value of tangible assets related to the unpaid part of the obligation.

In the course of the audit, the correctness of the write-off of the amounts shown on the account summarizing information about the property received free of charge is also checked. Operations are carried out in the following order:

1. For fixed assets provided to the company free of charge - in the course of depreciation.
2. For other material values ​​received free of charge - as they are referred to production.

Conclusion

The main problem facing the accountant is to establish the boundary between receipts that can be immediately included in the current period, and those that should be attributed to the future. In solving it, the experience of a specialist and his professionalism will be of great importance. In most cases, there are no serious difficulties. Difficulties may arise with the amounts of arrears resulting from shortages. If the responsible persons do not admit their guilt, then the enterprise will not simply not make a profit, but will incur certain losses. If the problem cannot be resolved peacefully, then it will be possible to compensate them only through the courts within the framework of the claim.

Using account 98 in accounting

Account 98 of accounting is necessary to reflect information about income that comes in the current period, but can only be attributed to transactions that will take place in the future. With the help of this account, information about the received assets (non-current or financial), the financial benefit from which will arise in the future, is promptly processed.

According to clause 12 of PBU 9/99, income can be recognized and accounted for if there is an accurate certainty that the potential benefit from the acquired assets will follow in the future.

The use of account 98 is as follows: it is formed from income that is expected in the future, such as:

1. The difference that is expected from the excess of lease payments over the value of the property transferred to the final lease (clause 4 of the Instructions approved by order of the Ministry of Finance dated February 17, 1997 No. 15 - until 2001, deferred income was accounted for on account 83).
2. Budget funds have been allocated for the purchase of non-circulating funds or for financing current expenses (clause 9 of PBU 13/2000).
3. Fixed assets received free of charge (clause 29 of the order of the Ministry of Finance dated 13.10.2003 No. 91n).
4. The difference formed between the amount of recovery from the perpetrators for the stolen property and the cost of the shortfall (order of the Ministry of Finance dated October 31, 2000 No. 94n - description of account 98).

Account 98 of accounting is a passive, reporting and distribution ledger. The credit of the account reflects the amount of receipts related to future periods. On debit - the listed income at the beginning of this reporting period. The balance of the account is always in credit.

Account Analytics 98

In accordance with the Chart of Accounts, it is assumed that the deferred income account will be used to summarize a variety of information. In order to streamline the information, it is recommended to open the following sub-accounts for account 98 (in the entries they are indicated with a "dot" or a hyphen):

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• 01 - the following income is taken into account: rent paid in advance, subscription service fee, subscription for transportation, payment for utilities, etc .;
• 02 - receipts received free of charge;
• 03 - expected receipt of debt for deficiencies identified earlier;
• 04 - excess of the amount of recovery from the guilty over the cost of the shortfall.

For each sub-account, separate records are kept for each type of income. The list of sub-accounts is open - enterprises can independently add other sub-accounts according to their needs. The types of subaccounts to be opened should be indicated in the accounting policy of the enterprise.

Typical transactions for account 98

For account 98, postings are described in the chart of accounts. Using subaccounts, the main transactions look like this:

• Dt 08 Kt 98.02 - fixed assets received free of charge at market value were taken into account;
• Dt 98.02 Kt 91.01 - income is recognized in the amount of monthly depreciation;
• Dt 86 Kt 98.02 - budget funds were received, which were directed to finance costs;
• Dt 94 Kt 98.03 - the amount of the shortfall, confirmed in the court decision, is reflected in the accounting;
• Dt 98.03 Kt 91 - the amount of the shortfall has been repaid;
• Дт 73 Кт 98.04 - the amount of the difference between the amount of the shortfall collection from the guilty employee and the real price of the lost property is reflected;
• Dt 51 Kt 98.01 - an advance payment of rent has been received for six months in advance;
• Kt 98.01 Kt 90.01 - reflected the monthly rental payment;
• Dt 10 Kt 98.02 - free material was received for production, reflected in the accounting at market value;
• Dt 08 Kt 98.02 - equipment was transferred to the balance sheet as a charity;
• Dt 62 Kt 98.05 - leased transport;
• Dt 98.05 Kt 90.01 - a regular lease payment has been charged;
• Dt 51 Kt 98.02 - a grant was received with targeted use for the improvement of the territory;
• Dt 98.02 Kt 91.01 - the plants were planted on the territory acquired through the grant.

Reflection in the balance

The deferred income account has a constant credit balance at the end of the reporting period. For this reason, in the balance sheet, the balance is reflected in liabilities in line 1530. It reflects only incomes clearly indicated in regulatory enactments:

• budget receipts to finance expenditures;
• unused earmarked funds remaining from the previous period;
• the difference between the total value of the lease payments and the value of the asset on the lessee's balance sheet.

Companies receiving targeted funding from state and extra-budgetary funds, in account 98, reflect the use of such earmarked receipts. At the end of the year, the unused balances of targeted financing from account 86 are transferred to account 98.

In this case, the data from account 98 are excluded from the formula for calculating the net assets of the enterprise (clause 6 of the Procedure, approved by order of the Ministry of Finance dated 28.08.2014 No. 84n).

For the timely reflection in the accounting of information on income that will bring benefits in the future, account 98 is used. By its nature, this is a passive account that has a special position in accounting. It is recommended to open sub-accounts for the account to account for each of the types of income. In addition, it is recommended to keep records in the context of each of the assets or other receipts. The credit balance of the account at the end of the year is reflected in line 1530 of the balance sheet.

Score 98 « revenue of the future periods » performs an important corrective function, since it often happens that an enterprise simultaneously receives income for several reporting periods at once, for example, annual (quarterly) payments for leased property, payments for sold subscriptions or planned transportation, etc. That is, the company accepts payment for services, the profit from the provision of which should be taken into account in the future. Using the 98th account will allow you to distribute the revenue corresponding to each reporting period, thereby streamlining tax payments.

How is accounting for deferred income , and by what criteria such income should be determined, this publication will tell.

Deferred income: what belongs to them

The structure of deferred income reflects receipts for services, the implementation of which will last for a long time, but payment for them has already been received. These can be payments:

• for rent of buildings, machines, vehicles, etc .;
• for renting housing and utilities;
• for the carriage of goods;
• for passenger transportation, when the purchased tickets are sold for use in future periods;
• for various subscriptions.

In addition, target receipts are recorded on account 98 - grants, tranches (if there are government support programs).

Deferred income: account structure 98

The main function of the account is to combine analytical information about the income of the coming periods. Depending on the source of origin of payments, the following sub-accounts are opened for the account, provided for by the Chart of Accounts:

• 98/1 "Income received for future periods";
• 98/2 "Gratuitous receipts";
• 98/3 “Proceeds from compensation for deficiencies established for previous periods”;
• 98/4 "The difference between the amounts to be recovered from the guilty and the value of the missing property on the balance sheet", etc.

On credit, the amounts received attributable to the DBP are recorded, on debit, the amounts transferred when income is recognized.

There is no separate PBU “Deferred Income”, the use of the account is regulated by the Chart of Accounts, PBU 9/99 “Income”, PBU 13/2000 “Accounting for State Aid”. Today, future income can be considered:

• targeted budget financing;
• the cost of the free-of-charge delivered fixed assets, inventories;
• the difference between the amount of lease payments under the agreement and the value of the leased property.

Where are deferred income reflected in the balance sheet?

Account 98 is passive, and line 1530 is assigned to it in the balance sheet, which reflects deferred income . The credit balance of account 98 recorded on it indicates that the company has a balance of receipts that will be recognized as revenue in the period directly related to the payment.

Note that an increase in deferred income indicates an increase in the company's work aimed at attracting counterparties, the intensity of the provision of services, the gratuitous receipt of assets or targeted government assistance.

Postings to be reflected in deferred income accounting

Here are the main records that the accountant operates with, taking into account future income:

Thus, the amount from the credit account. 98 are written off in installments as the revenue is accepted for deferred income.

Example:

On July 10, 2017, the donation agreement formalized the receipt of 100 kg of honey in the amount of 10,000 rubles. (with an expert assessment of the market value) in the confectionery production of LLC "Alpha". Raw materials were written off gradually:

• in July 50 kg;
• in August 30 kg;
• in September 20 kg.

The receipt of honey is issued by a receipt order, in accounting it is recorded:

• D / t 10 - K / t 98/2 for the amount of 10,000 rubles.

The release of raw materials into production is formalized in stages:

• in July 50 kg:
  • D / t 20 - K / t 10 for the amount of 5000 rubles. (50 kg * 100 rubles / kg.)
  • D / t 98/2 - К / t 91/1 for 5000 rubles. - recognized other income (according to PBU 9/99) of the reporting month;
• in August 30 kg:
  • D / t 20 - K / t 10 for 3000 rubles. (30 * 100)
  • D / t 98/2 - K / t 91/1 for 3000 rubles. - income for August is recognized;
• in September 20 kg:
  • D / t 20 - K / t 10 for 2000 rubles. (20 * 100)
  • D / t 98/2 - K / t 91/1 for 2000 rubles. - income for September is recognized.

Inventory of deferred income

The procedure for comparing the balances on account 98 is mandatory. As a rule, they are inventoried at the end of the financial year, carefully checking the amount of receipts with the data of analytical items and primary documents, as well as controlling the recognition of revenue, i.e. write-off from account 98, in those periods when future income becomes relevant.

The main task of the inventory is to verify the accuracy of the information on the account and the corresponding analytics, as well as the compliance of the reflection of these transactions with the accounting policies adopted by the company.

Situations may arise in an organization when:

• in the reporting period, shortfalls in past periods were revealed that must be closed in the future;
• received or accrued income in the current period, but they can only be accepted in the future;
• etc.

Account 98 "Deferred income" is intended for such situations.

Sub-accounts 98 accounts:

Types of deferred income

1. Income from payments for utilities;
2. from the subscription fee for the provision of telecommunication services;
3. from the rent for the use of premises;
4. from cargo transportation using auto, air and rail transport;

The account is passive.

Receiving fixed assets free of charge

Example

LLC Astra received a machine worth 500,000 rubles under a donation agreement. Such goods and materials cannot be included in income immediately; income is recognized as they are used.

The useful life of the machine is set at 50 months.

Postings

Receiving materials free of charge

Example

LLC "Alina", a confectionery factory, received 800 kg of granulated sugar free of charge. The goods are capitalized at a cost of 20 rubles / kg, the total amount is 16,000 rubles. The next month, 400 kg of granulated sugar were written off to production, in the next two months - 200 kg per month.

Assets received free of charge are taken into account as part of non-operating income. In accounting, they are reflected at market value, determined at the date of acceptance for accounting. The market value is determined on the basis of prices prevailing for a given type of assets as of the current date, or on the basis of expert examination.

Postings

Deferred income from the lessor

Example

According to the terms of the agreement, the rent can be paid monthly, or several months in advance. In this case, the payment is reflected as income of the current period - in parts, multiples of the number of paid months.

The initially received amount is reflected in the credit of account 98, then it is debited on a monthly basis.

LLC "Bastion" on April 14, 2015 leases free premises to LLC "Karina". According to the agreement, LLC "Karina" transfers the rent immediately for 6 months.

On April 18, 2015 the account of the lessor LLC Bastion received 708,000 rubles, including VAT 18% - 108,000 rubles.

Postings

Reflection in the balance

Deferred incomes are reflected in the liabilities of the balance sheet, in Section V "Short-term liabilities", in line 1530. But only those incomes that are clearly specified in the regulatory documents can be attributed there. It:

• budgetary funds to finance expenses;
• balances of unused funds from the previous period;
• the difference between the amount of lease payments and the value of the property on the balance sheet of the lessee;
• etc.