Is it possible to cover losses from previous years using retained earnings? Net profit accounting model in "1C: Accounting" Loss to be covered, how to remove it
At the end of the year, the organization determines the financial result of its activities. The financial result is formed by income and expenses from main activities, reflected in account 91, as well as taxes () and other income and expenses not included in accounts 90 and 91. For example, directly debited to account 99.
At the end of the year, closing entries are made, accounts 90 and 91 are closed, the final financial result is formed on account 99 - a loss is reflected on debit, and profit on credit. You can read more about the formation of the final financial result in.
In this article I want to dwell in more detail on what subsequently happens to the resulting profit or loss.
At the end of the year, when all accounts are closed, all postings are made and all transactions are accounted for, the last final posting is made - to reflect the net profit or loss for the year.
The corresponding postings look like:
D99 K84– reflects the amount of net profit for the year.
D84 K99– reflects the amount of loss for the year.
Account 84 “Retained earnings (uncovered loss) is an active-passive account that reflects either the amount of retained earnings or uncovered loss.
Read in more detail about the reflection of profits and losses of an organization in the article: ““.
At the end of the year, at a meeting of company participants, decisions are made on what the retained earnings will be used for or how the resulting loss will be covered. The result of the meeting is its written decision, which stipulates these points. In accordance with this decision, all further entries are made to distribute net profit or cover losses (depending on the financial result of the company’s activities).
What can retained earnings be spent on?
First of all, it must be said that profits can be distributed only once and only based on the decision of the meeting. If there is no solution, then profits cannot be distributed.
It is important that distribution occurs only once a year - at the meeting of participants at the end of the year. If a decision is made not to distribute profit, then it will be reflected on the credit of account 84; in subsequent years it will be considered undistributed profit from previous years and can only be used for reinvestment.
Net profit can be used for:
- Creation of reserve capital (for joint-stock companies, the creation of this capital is mandatory);
- Repayment of losses from previous years;
- Payment of dividends to company participants in accordance with the size of their share (contributions);
- Other purposes (vacations for employees, financial assistance, charity, etc.).
Video lesson “Accounting for retained earnings”: postings, example
Video lesson about accounting in an organization using account 84 “Retained earnings, uncovered loss.” Practical examples with key transactions and typical accounting situations are considered. The lesson is taught by the teacher of the “Accounting and Tax Accounting” website, chief accountant Gandeva N.V. To watch, click on the video below ⇓
Postings for the distribution of net profit at the end of the year (account 84)
Uncovered loss for the year can be covered as follows:
- Due to the account formed on account 83;
- Due to the account formed on account 82;
- Due to additional contributions from company participants.
Balance Reformation- This is a write-off of profit (loss) received by the organization over the past financial year.
The reformation is carried out on December 31, after the last business transaction of the organization is reflected in the accounting.
The balance sheet reform consists of two stages:
1. Closing accounts in which the company’s income, expenses and financial results of the company’s activities were recorded during the year: 90 "Sales" and 91 "Other income and expenses";
2. Inclusion of the final financial result in retained earnings (uncovered loss).
Closing account 90 and 91
Closing an account 90 “Sales” implies “zeroing” all subaccounts by writing off the amounts accumulated on them during the calendar year to the subaccount 90-09 "Profit/loss from sales."
The account is closed in the same way. 91 “Other income and expenses”: amounts accumulated in sub-accounts during the calendar year are written off to the sub-account 91-09 "Balance of other income/expenses."
| Debit | Credit | ||
| Check | Face | Check | Face |
| 91-01 | Other income and expenses | 91-09 | Other income and expenses |
| 91-09 | Other income and expenses | 91-02, | Other income and expenses |
To close an account 90 And 91 At the end of the reporting year, accounting calculations are prepared in the folder " CLOSING THE PERIOD" with the rules of operations:
4.01. Closing 90 to 90-09 for the year;
4.02. Closing 91 on 90-09 for the year.
After closing the accounts, as of January 1 of the new reporting year, subaccounts 90 and 91 do not have a balance.
Rice. 14-9 – Closing 90 to 90-09 for the year
Rice. 14-10 – Closing 91 at 90-09 for the year
Inclusion of the final financial result in retained earnings (uncovered loss)
Within a year on the account 99 "Profits and losses" reflects the financial result of the organization's activities. At the end of the reporting year (December 31), after reflecting all transactions, it is necessary to determine the final financial result (net profit or net loss) and include it in retained earnings (uncovered loss).
If an organization applies PBU 18/02 “Accounting for income tax calculations”, then to determine the final financial result it is necessary to write off the amounts recorded in sub-accounts 99-SHE, 99-IT, 99-OPNO-01, 99-PPNO-01 And 99-UR to a subaccount 99-FR"Profit/loss for the reporting year." As a result, on the subaccount 99-FR we get the amount of net profit (net loss).
If the organization does not apply PBU 18/02, then no turnover on subaccounts 99-SHE, 99-IT, 99-OPNO-01, 99-PPNO-01 And 99-UR no, and close them to a subaccount 99-FR not required.
The amount of net profit (net loss) of the reporting year must be written off from the account 99-FR to the account 84 "Retained earnings (uncovered loss)."
Check 84 “Retained earnings (uncovered loss)” is intended to summarize information about the presence and movement of amounts of retained earnings or uncovered loss of an organization. Analytical accounting by account 84 not being carried out. The following sub-accounts are open on the account:
84-01 "Profit subject to distribution";
84-02 "Loss to be covered";
84-03 "Retained earnings in circulation";
84-04 "Retained earnings used."
When writing off net profit, the following entry is generated:
| Debit | Credit | ||
| Check | Face | Check | Face |
| 99-FR | 84-01 | ||
When writing off a net loss, the following entry is generated:
| Debit | Credit | ||
| Check | Face | Check | Face |
| 84-02 | 99-FR | ||
As a result, on January 1 of the new reporting year, the synthetic account 99 has no balance.
In the program, the determination and write-off of the final financial result occurs automatically when the accounting calculation is completed in the folder " CLOSING THE PERIOD"with the rule of operations" 4.03. Reformation of the balance sheet for the year".
Rice. 14-11 – Reformation of the balance sheet for the year
Thus, to account for financial results in the program, it is necessary to perform the following operations.
In accordance with the Chart of Accounts, accounting for retained earnings or uncovered losses is kept in account 84 “Retained earnings (uncovered losses)”. Three sub-accounts can be opened for it:
84-1 “Profit subject to distribution”
84-2 “Uncovered loss”
84-3 “Retained earnings from previous years.”
Since account 84 reflects the amount of depreciation as a result of the revaluation of fixed assets, the accountant must provide a separate subaccount 84-4 “Revaluation of fixed assets” for these purposes.
Profit distribution
With the final entries of December, the credit balance on account 99 “Profits and losses” is transferred to account 84 “Retained earnings (uncovered loss)”.
The organization's accountant makes the following entry:
DEBIT 99 CREDIT 84 subaccount 1 “Profit to be distributed.”
This amount represents retained earnings for the reporting year. It comes at the disposal of the organization and can be spent in accordance with the decision of the owners. The procedure for using retained earnings based on the results of the previous year is determined at the general meeting of owners.
Contributions to reserve capital
By decision of the general meeting, part of the profit is allocated to reserve capital.
Reserve capital is part of the enterprise's own capital. It is formed from the net profit of the enterprise and has a strictly intended purpose.
In this case, the following entry is made in accounting:
DEBIT 84-1 CREDIT 82 “Reserve capital”
– reflects the amount of reserve capital formed from last year’s profits.
The reserve capital of a joint stock company must be at least 5% of the authorized capital (Clause 1, Article 35 of Law No. 208-FZ). Annual contributions to the reserve fund should not be less than 5% of your net profit. Contributions cease when the reserve fund reaches the amount established by the charter.
Limited liability companies can create reserve capital if this is provided for by the company's charter (Article 30 of Law No. 14-FZ). Thus, if the LLC participants decide to create reserve capital, then there are no restrictions either on the procedure for its formation or on its size.
The funds of the reserve fund have an exclusive purpose. They can be spent:
– to cover the company’s losses; – to repay the company’s bonds in the absence of other funds; – for the repurchase of company shares in the absence of other funds. Reserve capital funds cannot be used for other purposes.
Dividends for the year
The remaining part of the profit is used to pay dividends to the founders and to pay bonuses to the organization’s employees at the end of the year.
The following entries must be made in accounting:
DEBIT 84-1 CREDIT 75 “Settlements with founders” subaccount 2 “Settlements for payment of income”
– the amount of accrued dividends is reflected;
DEBIT 84-1 CREDIT 70
– reflects the amount of the bonus for the organization’s employees. In an LLC, part of the organization's profit intended for distribution among its participants is distributed in proportion to their shares in the authorized capital.
The Law “On Joint Stock Companies” and the Law “On Limited Liability Companies” establish some restrictions on the payment of dividends (see table).
Restrictions on profit distribution and dividend payment
| Type of restriction | Joint-stock companies (Article 43 of Law No. 208-FZ) | Limited liability companies (Article 29 of Law No. 14-FZ) |
| 1 | 2 | 3 |
| JSC has no right to accept | 1. Until full payment of the entire authorized capital | 1. Until full payment of the entire statutory |
| mother's decision (vol. | society. | capital of society. |
| report) about payment | 2. Before the repurchase of all shares that should be | 2. Before payment of actual value |
| dividends on shares | redeemed in accordance with Article 76 of the Law | shares (parts of shares) of a company participant |
| well, but LLC has no right | No. 208-FZ. | in cases provided for by law |
| decide | 3. If on the day such a decision is made the company | No. 14-FZ. |
| about distribution | meets the criteria of insolvency (bankruptcy) | 3. If at the time of making such a decision |
| their profits between | va) or if the indicated signs appear in society | society meets the signs of inconsistency |
| between participants about | va as a result of the payment of dividends. | solvency (bankruptcy) or if these |
| society | 4. If on the day such a decision is made, the value of the company’s net assets is less than its authorized capital, and the reserve fund, and the excess of the liquidation value of the issued preferred shares over the par value determined by the charter, or becomes less than their size as a result of such a decision. 5. In other cases provided for by federal laws. | signs will appear in society as a result of making a decision on the distribution of profits. 4. If at the time of such a decision the value of the company’s net assets is less than its authorized capital and reserve fund or becomes less than their size as a result of such a decision. 5. Other cases provided for by federal laws. |
As for joint-stock companies, Article 43 of Law No. 208-FZ establishes additional restrictions on making decisions on the payment of dividends.
- The first case is when the joint stock company has not made a decision on full payment of dividends on all types of preferred shares, which provide an advantage in the order of receiving dividends over preferred shares of this type. In this situation, the JSC does not have the right to make a decision (announce) on the payment of dividends on preferred shares of a certain type, for which the amount of the dividend is determined by the company’s charter (clause 3 of Article 43 of Law No. 208-FZ).
- The second case is when the joint stock company has not made a decision to pay the full amount of dividends on all types of preferred shares, the amount of dividends for which is determined by the company's charter. In this situation, the JSC does not have the right to make a decision (announce) on the payment of dividends on ordinary shares and preferred shares, the amount of dividends for which is not determined (clause 2 of Article 43 of Law No. 208-FZ).
In joint-stock companies, the amount of annual dividends cannot be more than recommended by the board of directors (supervisory board) of the company (clause 3 of article 42 of Law No. 208-FZ).
Social expenses
By decision of the general meeting of shareholders (participants), part of the net profit may be used to finance expenses that are not included in expenses for ordinary activities. For example, to pay financial assistance to employees, to purchase gifts for them, or to organize a festive event.
In this case, the amount of net profit that is allocated for these activities should be reflected in account 84 “Retained earnings (uncovered loss)” separately. To do this, you can use additional subaccount 4 “Social expenses”.
In this case, the following entry must be made in accounting:
DEBIT 84-1 CREDIT 84-4
– reflects the amount of net profit, which, by decision of the owners, was used to finance social expenses in 2007.
During the year, expenses for which the owners of the organization have allocated part of the net profit must be financed from this source. For example:
DEBIT 84-4 CREDIT 70
– reflects the amount of financial assistance allocated to an employee of the organization.
DEBIT 84-4 CREDIT 76
– reflects the costs of purchasing gifts for the organization’s employees.
It is possible that the organization will not use the entire amount of net profit allocated by the owners for social expenses over the next period. At the end of the year, the amount of the balance in subaccount 84-4 must be added to the profit to be distributed.
In accounting, this operation is reflected as follows:
DEBIT 84-4 CREDIT 84-1
– the balance of net profit not used during the year for social expenses is written off.
At the general meeting of shareholders (participants) a decision will be made on where the specified amount will be allocated.
Distribution of profits for other purposes
By decision of the general meeting of shareholders, net profit can be used to increase the par value of the JSC shares or to increase the authorized capital of the LLC.
After state registration of changes in the constituent documents, the following entry will be made in accounting:
DEBIT 84-1 CREDIT 80 “Authorized capital”
– the authorized capital is increased due to retained earnings of previous years or the reporting year.
If the general meeting decided to use retained earnings to pay off losses of previous years, the following entry is made in accounting:
DEBIT 84-1 CREDIT 84 subaccount 2 “Uncovered loss”
– net profit is aimed at repaying losses of previous years.
After the use of profit is reflected in the accounting, the balance in the “Profit to be distributed” subaccount of account 84 shows the amount of retained earnings. It can be transferred to the appropriate subaccount:
DEBIT 84-1 CREDIT 84-3
– reflects the amount of retained earnings of the enterprise.
EXAMPLE For approval of the annual meeting of shareholders of JSC Zarya, the annual
financial statements.
Based on the results of work for 2007, JSC Zarya received a profit of 200,000 rubles.
The authorized capital of the company is 400,000 rubles. The amount of reserve capital formed in previous years is equal to 5,000 rubles, that is, it is less than established by law (400,000 rubles ? 5% = 20,000 rubles). Therefore, the general meeting of shareholders, held on March 10, 2008, decided to allocate part of the profit in the amount of 10,000 rubles. (RUB 200,000 ? 5%) to replenish reserve capital.
In addition, the general meeting of shareholders decided to allocate 7,000 rubles to pay off losses from previous years, as well as:
– for the payment of dividends to the founders – 100,000 rubles; – for bonuses to employees at the end of the year – 40,000 rubles; – to hold a corporate party on the occasion of the anniversary of the general director of the organization
tions – 20,000 rub. The remaining amount of net profit is 23,000 rubles. remained undistributed. The following entries were made in the accounting records of Zarya JSC: December 31, 2007
DEBIT 99 CREDIT 84-1
DEBIT 84-1 CREDIT 82
– 10,000 rub. – part of the profit is used to form reserve capital;
DEBIT 84-1 CREDIT 84-2
– 7,000 rub. – the loss of previous years has been repaid;
DEBIT 84-1 CREDIT 75-2
– 100,000 rub. – part of the profit of the reporting year is used to pay dividends to the founders;
DEBIT 84-1 CREDIT 70
– 40,000 rub. – part of the profit is transferred to bonuses for the organization’s employees;
DEBIT 84-1 CREDIT 84-4
– 20,000 rub. – reflects the amount of net profit reserved to finance the costs of holding a corporate party;
DEBIT 84-1 CREDIT 84-3
– 25,000 rub. – the amount of the organization’s net profit that remains undistributed is written off.
Covering losses for the reporting year
If at the end of the year the organization received a loss, then the general meeting of founders decides from what sources it can be covered. Like profit distribution, loss coverage will only be reflected in the accounting records in the next year.
Retained earnings from previous years
The uncovered loss of the reporting year is accounted for in the debit of subaccount 84-2. It can be repaid using retained earnings from previous years, which is included in the credit of subaccount 84-3.
Based on the minutes of the general meeting of shareholders (founders), the following entry must be made in accounting:
DEBIT 84-3 CREDIT 84-2
– the loss of the reporting year was repaid from retained earnings of previous years.
In addition, the loss of the reporting year can be repaid from net profit, which was used to finance social expenses in 2006, but was not fully used. As we have already said, the accountant wrote off the balance of this amount at the end of the year to subaccount 84-1 “Profit subject to distribution.”
If the general meeting of owners decides to use it to pay off the losses of the reporting year, then the entry in the organization’s accounting will be as follows:
DEBIT 84-1 CREDIT 84-2
– the loss of the reporting year was repaid from the net profit of previous years.
Can additional capital be used?
Additional capital is a part of the organization’s equity capital, which shows the common ownership of its participants and is an independent reporting indicator.
Accounting for additional capital is kept on account 83 “Additional capital”. The credit of this account reflects the formation of additional capital, and the debit indicates the use of additional capital.
The sources of formation of additional capital of a commercial organization are the amounts:
– revaluation of fixed assets during revaluation; – share premium; – positive exchange rate difference in case of repayment of debt on contributions to the authorized capital expressed in foreign currency.
As a rule, amounts recorded as the debit of account 83 are not written off. However, in some cases, a reduction in the amount of additional capital is still possible. Such cases are indicated in the Instructions for using the Chart of Accounts. They may be related:
– with a decrease in the value of fixed assets on the date of revaluation, which were previously subject to revaluation; – with the disposal of fixed assets that were overvalued during the revaluation; – with the distribution of additional capital between the founders; – with an increase in the authorized capital of the enterprise. The Instructions do not provide for the use of additional capital to cover losses.
Reduction of authorized capital
The loss received at the end of the reporting year can be repaid by reducing the authorized capital of the organization to the amount of net assets. This is usually done if, at the end of the second and each subsequent financial year, the value of the company's net assets is less than its authorized capital. In this case, the organization is obliged to announce a reduction in its authorized capital to an amount not exceeding the value of its net assets. This provision is established by paragraph 4 of Article 35 of the Law of the Russian Federation No. 208-FZ and paragraph 3 of Article 20 of the Law of the Russian Federation No. 14-FZ.
After the company has decided to reduce its authorized capital, it must:
– notify all known creditors of the company about this;
A joint stock company or limited liability company is given 30 days for this (clause 1, article 30 of RF Law No. 208-FZ, clause 4, article 20 of RF Law No. 14-FZ). Within 30 days from the date of notification to them or from the date of publication of the message about the company’s decision, creditors may, in writing, demand early termination or fulfillment of the relevant obligations of the company and compensation for losses.
After the relevant changes made to the constituent documents undergo state registration, the following entry must be made in accounting:
DEBIT 80 CREDIT 84-2
– the authorized capital is reduced to the amount of net assets.
Use of reserve capital
The company's reserve fund is used to cover its losses in the absence of other funds (Clause 1, Article 35 of Law No. 208-FZ).
In this case, based on the minutes of the general meeting of founders, the following entry is made:
DEBIT 82 “Reserve capital” CREDIT 84-2
– the loss of the reporting year was repaid using reserve capital funds. In addition, the loss may be covered by targeted contributions from the founders, if such a decision is made by the
general meeting of founders. Then the following entry will be made in accounting:
DEBIT 75 subaccount 1 CREDIT 84-2
– the loss of the reporting year was repaid through targeted contributions from the founders.
If there are insufficient sources to cover the loss of the reporting year, then the amount of the uncovered loss will be reflected in the debit of subaccount 84-2.
EXAMPLE For approval of the annual meeting of shareholders of Prometey LLC, a year was submitted
vaya accounting statements. Indicators of the third section of the balance sheet include:
– authorized capital of the company – 10,000 rubles, – additional capital in the form of an increase in the value of property based on revaluation – 3,000 rubles,
– reserve capital formed in accordance with the constituent documents in previous years – 1000 rubles;
– retained earnings from previous years – 4,000 rubles. Based on the results of work for 2006, Prometey LLC received a loss of 6,000 rubles. On March 10, 2007, a general meeting of founders was held, at which the annual
organization report. All retained earnings from previous years were used to pay off losses.
years in the amount of 4,000 rubles, as well as reserve capital in the amount of 1,000 rubles. Thus, a loss of RUB 1,000. remained uncovered. The following entries were made in the accounting records of Prometheus LLC: December 31, 2006.
DEBIT 84-2 CREDIT 99
DEBIT 84-3 CREDIT 84-2
– 4000 rub. – retained earnings from previous years were used to cover the losses of the reporting year;
DEBIT 82 CREDIT 84-2
– 1000 rub. – the loss is covered by reserve capital.
Starting from 2017, losses incurred in 2007 and later can be carried forward to an unlimited number of subsequent tax periods, and profits for the reporting (tax) periods 2017-2020 can be reduced by the amount of losses from previous tax periods by no more than 50 percent. 1C experts spoke about how these changes are supported in the 1C: Accounting 8 program, edition 3.0 for BUKH.1C.
Federal Law No. 401-FZ dated November 30, 2016 amended Article 283 of the Tax Code of the Russian Federation, which regulates the procedure for transferring losses to the future. Please note that the concept of “carrying forward losses” is used only for profit tax purposes, since in accountingIn accounting, the procedure for accounting for losses is different.
The procedure for accounting for losses...
...in accounting
First of all, in accounting, one should distinguish between the concepts of “net profit (loss)” and “retained profit (uncovered loss)”, since these indicators are formed on different accounting accounts and have different meanings. Back in 2002, the Russian Ministry of Finance drew attention to this in a letter dated August 23, 2002 No. 04-02-06/3/60, and since then nothing has changed.
According to the instructions for using the Chart of Accounts for accounting the financial and economic activities of an organization, approved. By order of the Ministry of Finance of Russia dated October 31, 2000 No. 94n (hereinafter referred to as the Instructions for using the Chart of Accounts), the net profit (loss) indicator is formed on balance sheet account 99 “Profits and losses” and represents the final financial result of the organization’s activities for the reporting period.
The credit balance of account 99 at the end of the year indicates the presence of net profit, and the debit balance indicates the presence of a net loss.
At the end of the reporting year, when preparing annual financial statements, account 99 is closed. In this case, by the final entry of December, which is part of the accounting procedure - balance sheet reformation, the balance of account 99 is written off to account 84 “Retained earnings (uncovered loss)”:
- the amount of net profit is written off to the credit of account 84.01 “Profit subject to distribution”;
- the amount of the net loss is written off to the debit of account 84.02 “Loss subject to coverage”.
Thus, balance sheet account 84 summarizes information about the presence and movement of amounts of retained earnings (uncovered loss).
Retained earnings are spent at the discretion of the company's owners. For example, they can use it for dividends, to increase the authorized capital, and also to cover losses of previous years. The loss of previous years can be written off not only from retained earnings, but also from reserve capital, if it was created.
... in tax accounting
A loss is the negative difference between income and expenses (taken into account for tax purposes) received by the taxpayer in the reporting (tax) period. The tax base is recognized as equal to zero in the reporting (tax) period when the loss was incurred (clause 8 of Article 274 of the Tax Code of the Russian Federation).
If a loss is received at the end of the year, then in accordance with the provisions of Article 283 of the Tax Code of the Russian Federation (as amended by Federal Law No. 401-FZ of November 30, 2016), the taxable profit of any subsequent reporting (tax) periods can be reduced by the entire amount of the loss received or by part of it amounts (carry forward the loss to the future).
In this case, the following features must be taken into account:
- it is impossible to carry forward losses for certain types of activities taxed at a rate of 0% (clause 1 of Article 283 of the Tax Code of the Russian Federation);
- a loss not carried forward to the next year may be carried forward in whole or in part to subsequent years;
- profit received for the reporting (tax) periods 2017-2020 cannot be reduced by the amount of losses of previous tax periods by more than 50%. The restriction does not apply to tax bases to which reduced income tax rates apply. Such special rates are established for certain types of organizations, for example, for participants in regional investment projects; for participants of special economic zones (SEZ); organizations that have received the status of resident of the territory of rapid socio-economic development, etc. (clause 2.1 of article 283 of the Tax Code of the Russian Federation);
- Losses from several previous tax periods are carried forward in the order in which they were incurred;
- the taxpayer is obliged to keep documents confirming the amount of loss incurred during the entire period of transfer.
... taking into account the provisions of PBU 18/02
The amount of income tax, which is determined on the basis of accounting profit (loss), is a conditional expense (conditional income) for income tax. In accounting, such a conditional expense (conditional income) is reflected regardless of the amount of taxable profit (loss) (clause 20 of PBU 18/02 “Accounting for income tax calculations”, approved by order of the Ministry of Finance of Russia dated November 19, 2002 No. 114n, hereinafter - PBU 18/02).
According to the Instructions for using the Chart of Accounts, when a loss is received according to accounting data, conditional income should be accrued, which is reflected in the credit of account 99.02.2 “Conditional income for income tax” in correspondence with the debit of account 68.04.2 “Calculation of income tax”. A loss carried forward that was not used to reduce income tax in the reporting period, but which will be accepted for tax purposes in subsequent reporting periods, results in the formation of a deductible temporary difference. The deductible temporary difference, in turn, leads to the formation of deferred income tax (deferred tax asset - hereinafter referred to as DTA), which should reduce the amount of income tax in subsequent reporting periods. At the same time, the organization recognizes it only if there is a probability that it will receive taxable profit in subsequent reporting periods (clauses 11, 14 of PBU 18/02).
IT is reflected in the debit of account 09 “Deferred tax assets” in correspondence with the credit of account 68.04.2. As the loss is transferred and its amount is reflected in the income tax return, the deductible temporary difference is reduced (until full repayment), and the corresponding amount of IT is written off by an entry in the debit of account 68.04.2 in correspondence with the credit of account 09 (clause 17 of PBU 18/ 02, Instructions for using the Chart of Accounts).
Accounting for losses from previous yearsin "1C: Accounting 8" (ed. 3.0)
The procedure for accounting for losses from previous years in the 1C: Accounting 8 program, edition 3.0, is carried out in two stages:
1. Transfer of losses of the current period to expenses of future periods.
2. Write-off of losses from previous years.
The operation of transferring a loss of the current period to future expenses (FPO) is performed manually using a document Operation(chapter Transactions - Transactions entered manually). The purpose of this operation is to ensure automatic write-off of losses in the future. For this purpose, the mechanism of deferred expenses is used, which is well known to users of the program. The tax loss of the current year, accounted for in the debit of account 99.01.1 “Profits and losses on activities with the main tax system” must be transferred to the debit of account 97.21 “Deferred expenses” with the type of expense Losses from previous years. For taxpayers applying the provisions of PBU 18/02, it is additionally necessary to adjust the analytics of deferred tax assets accounted for in account 09.
This manual operation is recorded on the last day of the year before the balance sheet reformation. If the accounting system does not reflect the transfer of losses to the RBP, the program will detect this situation and remind the user about it. In January of the following year, when performing a routine operation Income tax calculation included in processing Closing the month, a message will be displayed on the screen that the loss from last year has not been carried forward. Processing is interrupted, and until the user creates an operation to transfer the loss, he will not be able to move forward.
Meanwhile, the transfer of losses to the future is a taxpayer’s right, and not an obligation (clause 1 of Article 283 of the Tax Code of the Russian Federation). What to do if for some reason the taxpayer does not want to exercise this right?
In this case, you will still have to create a manual operation, but in the form of a directory element Future expenses you just don’t need to indicate the start date for writing off the loss. In the future, you can open the desired entry at any time (section Directories - Deferred expenses) and fill in the field Write-off period from:, if the user changes his mind and wants to reduce the profit received by losses of previous years, starting from the specified date.
Losses from previous years are automatically included in expenses that reduce the income tax base when performing a regulatory operation Write-off of losses from previous years. The amount of write-off of losses is calculated only if, at the time of performing the routine operation, according to tax accounting data in account 97.21 “Deferred expenses” with expense type U bydki of past years there is a debit balance. The write-off is made to the debit of account 99.01.1 in accordance with the data specified in the directory Future expenses.
Starting from 2017, losses incurred in 2007 and later can be carried forward to an unlimited number of subsequent tax periods, and profits for the reporting (tax) periods 2017-2020. can be reduced by the amount of losses of previous tax periods by no more than 50%. This change is supported in the 1C: Accounting 8 program starting from version 3.0.45.20.
To remove the ten-year limit established in the program for “old” losses (acquired from 2007 to 2015), it is enough to open the corresponding directory entries Future expenses and clear the field Write-off period:.
As for participants in regional investment projects, SEZ participants, etc., for such organizations that apply reduced tax rates, automatic write-off of losses according to the rules of Article 283 of the Tax Code of the Russian Federation in “1C: Accounting 8” is not supported.
Let's look at how the program "1C: Accounting 8" (rev. 3.0) carries out the transfer of losses to the future, taking into account the latest changes in tax legislation.
Example 1
Reflection of the amount of loss in accounting and reporting
To identify the amount of the 2016 tax loss, which the taxpayer has the right to carry forward to the future, it is necessary to first complete all regulatory operations for December 2016 included in the processing Closing the month.
The amount of the loss will be reflected, for example, in Certificate of income tax calculation, if you set tax accounting data as indicators in the report settings.
You can analyze tax accounting data for account 99 for 2016 using one of the standard reports from the section Reports, For example Account analysis. If you cancel a routine operation Balance Reformation, then the report Account Analysis for account 99 it will be more clear: a debit balance in the amount of 5 million rubles. indicates a loss (Fig. 1).
In the tax return for corporate income tax for 2016 (approved by Order of the Federal Tax Service of Russia dated October 19, 2016 No. ММВ-7-3/572@, hereinafter referred to as the Order of the Federal Tax Service), this amount of loss is reflected:
- with a minus sign in Sheet 02 on line 100 “Tax base”;
- in Appendix No. 4 to Sheet 02 with a minus sign on line 140 “Tax base for the reporting (tax) period” and with a plus sign on line 160 “Balance of uncarried loss at the end of the tax period - total.”
Since the organization applies the provisions of PBU 18/02, when performing a routine operation Income tax calculation For December 2016, a deferred tax asset (DTA) is recognized and an accounting entry is generated:
Debit 09 for the type of asset “Loss of the current period” Credit 68.04.2 - for the amount of IT (RUB 1,000,000.00 = 5,000,000.00 x 20%).
The income statement in line 2300 reflects the amount of loss according to accounting data: 5,000 thousand rubles. with a minus sign (a negative value is indicated in parentheses). Please note that this amount may not coincide with the tax loss. The amount of recognized deferred tax asset in the amount of RUB 1,000 thousand. is reflected in line 2450 “Change in deferred tax assets” and reduces the amount of loss. Thus, indicator 2400 “Net profit (loss)” reflects the amount of the adjusted loss in the amount of 4,000 thousand rubles. with a minus sign. The recorded deferred tax asset will further reduce the income tax base.
In the first section of the balance sheet asset “Non-current assets” the amount of deferred tax asset is in the amount of 1,000 thousand rubles. reflected in line 1180 “Deferred tax assets”.
In the third section of the liability “Capital and reserves”, the amount of the uncovered loss for 2016 is reflected in the total amount on line 1370 “Retained earnings (uncovered loss)”. If the organization at the beginning of the year had no retained earnings (uncovered loss) from previous years, and no dividends were distributed during the year, then the value of line 1370 should be equal to the value of line 2400 of the financial results statement (see Instructions for using the Chart of Accounts).
Carry forward of current period loss for the future
In order for the loss received in 2016 to be taken into account automatically in the 1C: Accounting 8 program (rev. 3.0), it must be transferred to future expenses. Let's create a document Operation 12/31/2016 (Fig. 2).
In the document form, to create a new transaction, you need to click the button Add and enter correspondence on the debit of account 97.21 “Deferred expenses” and the credit of account 99.01.1 “Profits and losses from activities with the main taxation system.” Since in accounting a loss is not carried forward to the future, the field Sum leave it blank, but fill in the special resources for tax accounting purposes:
Amount of NU Dt 97.21 and Amount of NU Kt 99.01.1 - for the amount of loss (RUB 5,000,000.00); Amount VR Dt 97.21 and Amount VR Kt 99.01.1 - for a taxable temporary difference (-5,000,000.00 rub.).
In the form of a directory element Future expenses you need to provide the following information:
- name of deferred expenses, for example, Loss 2016;
- type of RBP for tax accounting purposes - Losses from previous years(selected from a predefined directory Types of expenses (NU));
- the amount of loss (RUB 5,000,000.00) is indicated as a guide, since the amount of the balance according to accounting and tax accounting data is used to write off the RBP;
- method of recognizing expenses - In a special order;
- the start date of loss transfer is the first day of the year following the year in which the loss was received, that is, 01/01/2017;
- We do not indicate the end date, since the restriction on the period for carrying forward losses has now been lifted;
- The write-off account and analytics are not required.
Carrying forward a loss means that the tax base is planned to be reduced in the future. In accounting, such a reduction in the tax base will occur due to the write-off of a deferred tax asset. Since at the time of loss transfer the manual transaction reflects temporary differences in the valuation of the asset Future expenses, then for this type of asset in accounting it is necessary to reflect the occurrence of IT using the posting:
Debit 09 for the type of asset “Future expenses” Credit 09 for the type of asset “Loss of the current period” - in the amount of IT (RUB 1,000,000.00).
Please note that the operation to transfer losses to the BPO should be entered after the final processing Closing the month for December.
After saving the manual operation, you must re-enter the form Closing the month and do the following sequence of actions for operations:
- Retransfer of documents per month- select a team Skip operation;
- Balance Reformation- select a team Perform operation.
If there is a need to close the month again, the manual operation to carry forward the loss should be canceled (marked for deletion). After the final closure of the month, you need to uncheck the deletion of the manual operation (record it in the accounting) and perform the balance sheet reformation again without re-posting the documents.
Write-off of losses from previous years
Since January 2017 in processing Closing the month a routine operation is activated Write-off of losses from previous years, during which the program reduces the profit of the current month by the amount of losses of previous tax periods according to the updated norms of Article 283 of the Tax Code of the Russian Federation, that is, by no more than 50%.
The result of a decrease in profit is reflected in special resources of the accounting register:
Amount of NU Dt 99.01.1 and Amount of NU Kt 97.21 - for the amount of write-off of the loss; Amount VR Dt 99.01.1 and Amount VR Kt 97.21 - for taxable temporary differences.
If there is no profit in the current month, then the document will still be created, but will not have any movements in the registers. If a loss is incurred in the current month, the amount written off is restored, and in the specified resources the amount written off of the loss is reversed.
According to the conditions of Example 1, the organization “TF Mega” in the first quarter of 2017 received a profit of 1,000,000.00 rubles.
Half of this amount can be reduced by the amount of losses from previous tax periods.
We will close the month for March 2017 and form Certificate-calculation of write-off of losses of previous years(the certificate is generated on an accrual basis from the beginning of the year). In column 4 for March 2017, the amount of RUB 500,000 will be indicated as the amount of loss taken into account in the reduction of profit. (Fig. 3).
During a routine operation Income tax calculation the amount of income tax will be reduced by writing off the deferred tax asset, which is reflected by the posting:
Debit 68.04.2 Credit 09 by type of asset “Deferred expenses”
In total, for this type of asset for the first quarter, IT was written off in the amount of RUB 100,000.00. (500,000.00 x 20%).
Let's look at how the income tax return for the first quarter of 2017 is filled out. Appendix No. 4 to Sheet 02 automatically reflects the following indicators (Fig. 4):
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Line of Appendix No. 4 to Sheet 02 of the income tax return for the first quarter of 2017 |
Data |
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Uncarried loss for 2016 (RUB 5,000,000), the same amount is reflected on line 010 in the total balance of uncarried loss at the beginning of the tax period |
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Tax base for the reporting period (RUB 1,000,000) |
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The amount of the portion of the loss that reduces the tax base. This includes the credit turnover of account 97.21 with the type “Losses of previous years” (RUB 500,000) |
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Balance of uncarried loss at the end of the tax period (RUB 4,500,000) |
From line 150 of Appendix No. 4 to Sheet 02 of the declaration, the amount of the part of the loss that reduces the tax base is transferred to line 110 of Sheet 02 of the report. The tax base for calculating tax will be reduced by this amount (p. 120), which will be 500,000 rubles. (1,000,000 - 500,000).
Filling out profit declarations for interim reporting periods
Despite the fact that the taxpayer has the right to carry forward a loss to the future in any reporting period (clause 1 of Article 283 of the Tax Code of the Russian Federation), Appendix No. 4 to Sheet 02 is included in the declaration only for the first quarter and tax period (clause 1.1 of the Order of the Federal Tax Service ). Accordingly, Appendix No. 4 to Sheet 02, as well as line 110 of Sheet 02 of the half-year and 9-month declarations are not filled out in the program. At the same time, the algorithm for writing off losses does not change. How, in this case, should you fill out a declaration under the conditions of Example 1?
The answer to this question is provided by paragraph 5.5 of the Order of the Federal Tax Service, according to which in income tax returns for interim reporting periods, line 110 of Sheet 02 is determined based on the data:
- line 160 of Appendix No. 4 of the declaration for the previous tax period;
- line 010 of Appendix No. 4 of the declaration for the first quarter of the current tax period;
- line 100 of Sheet 02 for the reporting period for which the declaration is drawn up.
In practice, this means the following: line 110 must be filled out manually based on tax accounting data, while the remaining indicators on Sheet 02 are filled in automatically.
Thus, for the first half of 2017, the credit turnover of the account was 97.21 with the form Losses from previous years according to tax accounting data it is 1,000,000 rubles. The same amount is reflected in column 4 Certificates of calculation of write-off of losses of previous years for June 2017 as the amount of loss included in the reduction of profit. Thus, in line 110 of Sheet 02 of the half-year declaration, you need to enter the value: 1,000,000. The tax base indicator for calculating the tax (page 120) will be reduced by this amount, which will be 1,000,000 rubles. (2,000,000 - 1,000,000).
For 9 months of 2017, the credit turnover of the account was 97.21 with the form Losses from previous years according to tax accounting data it is 1,500,000 rubles. The same amount is reflected in column 4 Certificates of calculation of write-off of losses of previous years for September 2017. In line 110 of Sheet 02 of the declaration for 9 months, the value is manually entered: 1,500,000.
The tax base indicator for calculating income tax (p. 120) will be 1,500,000 rubles. (3,000,000 - 1,500,000).
Reflection of losses in the organization's annual reporting
Let's close the month for December 2017. According to tax accounting data, the amount of loss taken into account in reducing profit for 2017 is 2,000,000 rubles, and the balance of the uncarried loss at the end of 2017 is 3,000,000.00 rubles.
According to accounting data for 2017, ONA with the type of asset was written off Current period loss in the amount of 400,000.00 rubles. (2,000,000.00 x 20%).
Now we will generate and fill out an income tax return for 2017. Appendix No. 4 to Sheet 02 automatically reflects the following indicators:
From line 150 of Appendix No. 4 to Sheet 02, the amount of the part of the loss that reduces the tax base is transferred to line 110 of Sheet 02 of the declaration. The tax base indicator for calculating tax (p. 120) will be reduced by this amount, which will be 2,000,000 rubles. (4,000,000 - 2,000,000).
We will generate and fill out financial statements for 2017. The financial results report automatically reflects the following indicators:
In the first section of the balance sheet asset “Non-current assets” the amount of deferred tax asset is in the amount of 600 thousand rubles. reflected in line 1180 “Deferred tax assets”. In the third section of the liability “Capital and reserves”, the amount of retained earnings for 2017 is reflected in the total amount on line 1370 “Retained earnings (uncovered loss)”.
Account purpose.
The account is intended to summarize information about the presence and movement of amounts of retained earnings or uncovered losses of the organization.
The amount of net profit of the reporting year is written off with the final turnover of December to the credit of account 84 “Retained earnings (uncovered loss)” in correspondence with account 99 “Profits and losses”. The amount of the net loss of the reporting year is written off with the final turnover of December to the debit of account 84 “Retained earnings (uncovered loss)” in correspondence with account 99 “Profits and losses”.
The direction of part of the profit of the reporting year to pay income to the founders (participants) of the organization based on the results of approval of the annual financial statements is reflected in the debit of account 84 “Retained earnings (uncovered loss)” and the credit of accounts 75 “Settlements with founders” and 70 “Settlements with personnel for wages” ". A similar entry is made when paying interim income.
The write-off of the loss of the reporting year from the balance sheet is reflected in the credit of account 84 “Retained earnings (uncovered loss)” in correspondence with accounts: 80 “Authorized capital” - when the amount of the authorized capital reaches the value of the organization’s net assets; 82 “Reserve capital” - when funds from reserve capital are used to pay off losses; 75 “Settlements with founders” - when repaying the loss of a simple partnership at the expense of targeted contributions of its participants, etc.
Analytical accounting for account 84 “Retained earnings (uncovered loss)” is organized in such a way as to ensure the generation of information on the areas of use of funds. At the same time, in analytical accounting, funds of retained earnings used as financial support for the production development of the organization and other similar activities for the acquisition (creation) of new property and not yet used can be divided.
Data input.
The account is a group account (its designation on the left, called a pictogram, is yellow). This means that only subaccounts can be used in transactions:
- 84.1 "Profits subject to distribution";
- 84.2 "Loss to be covered";
- 84.3 "Retained earnings in circulation";
- 84.4 "Retained earnings used."
Let's take a closer look at the subaccounts of account 84.
Subaccount 84.1 "Profit subject to distribution".
The subaccount is credited with the amount of net profit from account 99 “Profits and losses” with the final turnover of December of the reporting year (during the reformation of the balance sheet). Already in the year following the reporting year, on the basis of a decision of the competent body (general meeting of shareholders, meeting of participants, etc.), profit is distributed. It implies the accrual of dividends (income) (in correspondence with account 75 “Settlements with founders”), the transfer of funds to reserve funds (in correspondence with account 82 “Reserve capital”), covering losses of previous years (in correspondence with subaccount 84.2 “Loss, to be covered"). After these transactions are reflected, the balance of this subaccount is transferred to the credit of subaccount 84.3 “Retained earnings in circulation.” The subaccount does not provide for analytical accounting. The subaccount is active-passive. To enter the initial data, you must enter the remaining retained earnings, if any. For this purpose in "Operations Log" do the wiring:
D00 K84.1"Amount of retained earnings."
Subaccount 84.2 "Loss to be covered".
The subaccount is credited with the amount of loss from account 99 “Profits and losses” with the final turnover of December of the reporting year (during the reformation of the balance sheet). Already next year, based on the decision of the competent authority, a decision is made on the sources of coverage for the loss. It can be covered by accumulated retained earnings in circulation (in correspondence with subaccount 84.3 “Retained earnings in circulation”), reserve funds (in correspondence with account 82 “Reserve capital”), etc. The subaccount does not provide for analytical accounting . The subaccount is active-passive. To enter the initial data, you must enter the remaining undistributed loss, if any, in "Operations Log" do the wiring:
D84.2 K00"Amount of undistributed loss."
Subaccount 84.3 "Retained earnings in circulation".
The subaccount collects the total amount of profit not distributed among shareholders (participants). Entries in this subaccount are made in correspondence with subaccount 83.4 “Retained earnings used” only when the corresponding funds are actually used to create new property. The subaccount does not provide for analytical accounting. The subaccount is active-passive. To enter the initial data, you must enter the remaining retained earnings in circulation, if any. For this purpose in "Operations Log" do the wiring:
D00 K84.3"The amount of retained earnings outstanding."
Subaccount 84.4 "Used retained earnings".
The subaccount summarizes information about what part of the retained earnings was converted from cash into commodity form, that is, for what amount new property was purchased (regarding the retained earnings of the reporting year, entries are made on the basis of a decision of the competent authority). Reverse entries can occur as the commodity form of property is transferred to the cash form through depreciation. The subaccount does not provide for analytical accounting. The subaccount is active-passive. To enter initial data, you must enter the value of retained used earnings, if any. For this purpose in "Operations Log" do the wiring:
D00 K84.4"Amount of retained profit used"
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