Conducting a revaluation of inventories

Why is a revaluation of inventories necessary?

Inventory revaluation is carried out if one of the conditions is met:

1. MPZs are outdated and not suitable for new industries.

2. MPZs have lost some of their consumer properties.

3. There was a decrease in the current market value (TRV) of the inventories.

When the TRS becomes lower than the actual one, a reserve is created in the form of the difference between them (clause 25 of PBU 5/01, approved by order of the Ministry of Finance of the Russian Federation dated 06/09/2001 No. 44n; clause 20 of the Guidelines for accounting of inventories, approved by order Ministry of Finance of the Russian Federation dated December 28, 2001 No. 119n).

ATTENTION! With simplified accounting, it is not necessary to re-evaluate and create inventory reserves.

How reserves are formed

The created reserves (or they can be called the amount of possible losses that an organization may experience if inventory is written off at the moment) are taken into account in the account. 14.

In accounting, the creation of a reserve is reflected by posting Dt 91.2 Kt 14. This is done after inventory and revaluation, usually before drawing up the annual balance sheet. The frequency of revaluation is not regulated, so the organization determines it independently.

When the inventories for which the reserve has been created are put into operation, sold, or the TRS for them increases, the accrued reserve will be written off to increase financial results - Dt 14 Kt 91.1. Each reserve is accounted for separately.

Reflection in accounting of the results of revaluation/depreciation

After completing calculations to determine the revalued value of fixed assets, profitable investments in tangible assets and equipment for installation, organizations must reflect the results of the revaluation in accounting.

The result of revaluation can be either an increase in value or a decrease in the value of the property.

In previous years, up to January 1, 2013, organizations, when reflecting the results of revaluation in accounting, guided by the norms of the Revaluation Instructions, attributed the revaluation results to account 83 “Additional capital”:

The revaluation of the initial value of the property was reflected:

Dt 01, 03, 07, 08 – Kt 83,

The additional assessment of the amount of depreciation of fixed assets was reflected:

Dt 83 – Kt 02

The depreciation of the initial value of the property was reflected by the entry using the “red reversal” method on the debit of accounts 01, 03, 07, 08 in correspondence with the credit of account 83, the markdown of the depreciation amount of fixed assets was reflected by the “red reversal” method on the debit of account 83 in correspondence with the credit of account 02:

Due to the entry into force of new regulatory legal acts from the beginning of 2013, the reflection of the revaluation results as of January 1, starting with the revaluation as of January 1, 2014, has changed :

Instructions for accounting of fixed assets, approved by Decree of the Ministry of Finance dated April 30, 2012 No. 26 (hereinafter referred to as Instruction No. 26),

Instructions for accounting of investment real estate, approved by Resolution of the Ministry of Finance dated April 30, 2012 No. 25 (hereinafter referred to as Instruction No. 25),

amendments made to the Instructions on the procedure for determining the cost of a construction project in accounting, approved by Resolution of the Ministry of Construction and Architecture dated May 14, 2007 No. 10 (hereinafter referred to as Instruction No. 10).

So, starting from January 1, 2014. Reflection of the revaluation results in accounting is carried out:

- fixed assets listed in account 01 (also similar to fixed assets listed in account 03 but not related to investment real estate) - in accordance with clause 18 of Instruction No. 26;

- fixed assets listed in account 03 and related to investment real estate - in accordance with clause 13 of Instruction No. 25;

- unfinished construction of facilities and equipment for installation - in accordance with clause 76 of Instruction No. 10.

Reflection of the results of revaluation of equipment for installation

According to part one of subclause 76.1 of clause 76 of Instruction No. 10, the amount of additional valuation of equipment for installation is reflected in account 91 “Other income and expenses” in the amount in which it restores the amount of depreciation of these objects previously reflected in account 91.

According to part two of subclause 76.2 of clause 76 of Instruction No. 10, if the amount of depreciation of equipment for installation was not previously reflected in account 91, then the entire amount of revaluation of unfinished construction and equipment for installation is reflected in the debit of accounts 07 “Equipment for installation and construction materials”, 08 “Investments in long-term assets” and account credit 83 “Additional capital”.

Thus, the additional valuation of construction in progress and equipment for installation as of January 1, 2016 is reflected

D-t 07.08 – K-t 83.

Example. The initial cost of equipment for installation, listed in account 07 before revaluation, was 100 million rubles. When applying a coefficient of 1.23 (conditionally), the revalued value amounted to 123 million rubles. The result of the revaluation - an additional valuation of 23 million rubles is reflected:

D-t 07 – K-t 83 – for 23 million rubles.

In accordance with clause 76.2 of Instruction No. 10, the reflection of markdowns on equipment items for installation in account 83 is carried out within the limits of the available balance for this item. The remaining amount of the markdown is reflected in account 91 “other income and expenses”.

Based on the above norm, organizations must maintain analytical accounting for account 83 on an object-by-object basis, i.e. have information about the history of revaluations of each object.

Since the procedure for reflecting the results of markdown of an object directly depends on the balance of the additional fund in account 83 for this object, in practice there may be several options. Let's consider these options using the example of one object.

Example. The initial cost of equipment for installation, listed in account 07 before revaluation - 100 million rubles, after revaluation - 82 million rubles. The result is a markdown of 18 million rubles.

Option 1 – for the object, the balance of the additional fund in account 83 exceeds the amount of the markdown (amounts to 18 million rubles or more).

If the additional fund is sufficient, the markdown is reflected:

D-t 83 – K-t 07 – for 18 million rubles.

Option 2 – there is no balance in the additional fund for equipment. This may be the case if the object was not revalued in previous years (for example, for an organization of non-state ownership), or was registered in December 2015. (coefficient is 1) or joined the organization in 2015.

If there is no additional fund for the object, the markdown is reflected:

D-t 91 – K-t 07 – for 18 million rubles.

Option 3 - there is a balance of the additional fund for the object, which is less than the markdown amount - 10 million rubles. In this case, the depreciation of the object (18 million rubles) will be “distributed” between 83 accounts (for the amount of the balance of the additional fund - 10 million rubles) and 91 accounts (for the remaining amount - 8 million rubles):

D-t83 – K-t 07 – for 10 million rubles,

D-t 91 – K-t 07 – for 8 million rubles.

Reflection of the results of revaluation of fixed assets

In accordance with part two of subclause 18.1 of clause 18 of Instruction No. 26, if the amount of depreciation of a fixed asset was not previously reflected in account 91 “Other income and expenses”, then the entire amount of revaluation of this fixed asset is reflected in account 83 “Additional capital”. The specified business transactions are reflected in accounting:

on the debit of account 01 “Fixed assets” and the credit of account 83 “Additional capital” - by the amount of the additional valuation of the initial cost of the fixed asset;

on the debit of account 83 “Additional capital” and the credit of account 02 “Depreciation of fixed assets” - by the amount of additional assessment of the accumulated depreciation of fixed assets

Example. The initial cost of the building before revaluation is 100 million rubles, the amount of accumulated depreciation is 40 million rubles. (depreciation percentage – 40%). Coefficient 1.2.

After revaluation, the initial cost is 120 million rubles. the amount of depreciation is 48 million rubles. (120 million rubles x 40%).

The result of the additional valuation of the original cost is 20 million rubles. reflected:

D-t 01 – K-t 83 – for 20 million rubles.

The result of the additional assessment of the depreciation amount is 8 million rubles. reflected:

D-t 83 – K-t 02 – for 8 million rubles.

Reflection of the writedown of fixed assets carried out as of January 1, 2021 is carried out in accordance with clause 18.2. Instructions No. 26. Thus, the amount of depreciation of a fixed asset is included in the reduction of the additional fund within the existing balance of this fixed asset, formed as a result of previously carried out revaluations of this fixed asset. The remaining amount of depreciation of fixed assets is reflected in account 91 “Other income and expenses”.

If there is no balance of the additional fund for a fixed asset, formed as a result of previously carried out revaluations of this fixed asset, then the entire amount of the writedown of this fixed asset is reflected in account 91 “Other income and expenses”.

As in the case of objects of unfinished construction and equipment for installation, the reflection of the depreciation of fixed assets depends on the balance of the additional fund for this object. Thus, for each fixed asset item, where the result of revaluation is a markdown, it is necessary to raise the “history” of its revaluations.

Let's imagine how the balance of the additional fund was formed over all the years of revaluations for a specific object. Since every year the results of the revaluation of fixed assets were reflected in two entries (dt 01 - set 83 and dt 83 - set 02), then every year in account 83 there was a difference between the amount aimed at increasing the additional fund and the amount in reduction of additional fund. This difference essentially reflected the change in the residual value of the property after revaluation.

Example.

When revaluing the object as of January 1, 2014, the following results are reflected:

D-t 01 – K-t 83 – for 160 million rubles.

D-t 83 – K-t 02 – for 100 million rubles.

Balance on account 83 after revaluation for 2013 = 60 million rubles.

When revaluing the object as of January 1, 2015, the following results are reflected:

D-t 01 – K-t 83 – for 170 million rubles.

D-t 83 – K-t 02 – for 120 million rubles.

Balance on account 83 after revaluation for 2012 = 110 million rubles (60 million rubles + 50 million rubles)

When revaluing the object as of January 1, 2016, the following results are reflected:

D-t 01 – K-t 83 – for 200 million rubles.

D-t 83 – K-t 02 – for 170 million rubles.

Balance on account 83 after revaluation for 2013 = 140 million rubles (60 million rubles + 50 million rubles + 30 million rubles)

The balance of the additional fund for all years of previous revaluations of the object is equal to 140 million rubles. (60 million rubles + 50 million rubles + 30 million rubles).

Knowing the amount of the surplus fund balance for the object, the organization will then compare the amount of the object’s markdown with it. There will also be three options here:

1st option – on account 83 there is enough balance of the additional fund for the object to “close” the result of the markdown, then the following entries will be made:

D-t83 – K-t 01 – for the amount of markdown of the original cost:

D-t02 – K-t 83 – for the amount of accumulated depreciation markdown

2nd option – on account 83 the balance of the object is zero (or with a minus), then the following transactions will be made:

D-t91 – K-t 01 – for the amount of markdown of the original cost:

D-t02 – K-t 91 – for the amount of accumulated depreciation markdown

3rd option – the balance of the additional fund for the object is not enough to “close” the result of the markdown with it, then the following entries will be drawn up:

within the balance of the additional fund:

D-t83 – K-t 01 – for the amount of markdown of the original cost:

D-t02 – K-t 83 – for the amount of accumulated depreciation markdown

for the remaining markdown amount:

D-t91 – K-t 01 – for the amount of markdown of the original cost:

D-t02 – K-t 91 – for the amount of accumulated depreciation markdown

Let's consider all possible options for reflecting markdowns using the example of a specific fixed asset. The condition is given in the table, in millions of rubles.

As we discussed above, the balance of the additional fund for the object is a “collapsed” result of previous revaluations, i.e. the difference between the result of a change in the original cost and the result of a change in the amount of depreciation. Therefore, before comparing the result of the depreciation of the object as of January 1, 2016 with the balance of the additional fund, it must also be “collapsed”, that is, subtract the amount of depreciation depreciation from the amount of depreciation. In this case, the result of the depreciation of the object is 40 million rubles. (100 million rubles - 60 million rubles) and represents a markdown of the residual value of the object. The order of reflecting the markdown in accounting depends on the amount of the balance listed in account 83 for this object.

Option 1. The balance of the additional fund for the object is more than 40 million rubles, then the markdown will be reflected as follows:

D-t83 – K-t 01 – for 100 million rubles.

D-t02 – K-t 83 – for 60 million rubles.

Option 2. The balance of the additional fund for the object is equal to zero (or with a minus), then the markdown will be reflected as follows:

D-t91 – K-t 01 – for 100 million rubles.

D-t02 – K-t 91 – for 60 million rubles.

Option 3. The balance of the additional fund for the object is 28 million rubles, which is less than the result of the markdown.

In this case, the amount of the object’s markdown (40 million rubles) will be “distributed” between 83 accounts (for the amount of the balance of the additional fund - 28 million rubles) and 91 accounts (for the remaining amount - 12 million rubles).

In order to distribute 28 million rubles. - the amount of markdown reflected through account 83 between accounts 01 and 02 should be based on the fact that 28 is part of the residual value. The percentage of the residual value of an object is always known, since it is the reciprocal of the depreciation percentage. So, if according to the condition the percentage of depreciation is 60%, then the percentage of residual value is 40% (100% - 60%).

Based on this proportion of the residual value, we find the amount of markdown of the original cost, reflected through account 83:

28 million rubles: 40 x 100 = 70 million rubles.

The markdown amount is distributed similarly between accounts 01 and 02. reflected through 91 accounts:

12 million rubles: 40x100 = 30 million rubles.

To check the correctness of the compiled entries, let us note that according to our condition, the amount of markdown of the original cost reflected through 83 and 91 accounts should leave 100 million rubles (70 million rubles + 30 million rubles), the amount of depreciation markdown reflected through 83 and 91 accounts – 60 million rubles. (42 million rubles + 18 million rubles).

Reflection of the revaluation of fixed assets listed in account 03. relating to investment real estate is carried out as follows:

D-t(K-t) 03 (subaccount 03-1 “Investment real estate”) - K-t (D-t)91 - for the amount of additional valuation (discount) of the initial cost of investment real estate;

D-t(K-t) 91 - K-t (D-t) 02 - for the amount of additional valuation (markdown) of depreciation.

Procedure for revaluation of inventories

For revaluation you need:

• decision (order, instruction) of the director;
• inventory - based on its results, an inventory list-act is drawn up (instruction of the USSR Ministry of Finance No. 75 and the USSR State Committee for Prices No. 10-17/1500-25 dated 05/05/1986);

How to conduct an inventory and reflect it in accounting, read the articles:

• “Inventory of inventories”;
• “Reflection of inventory results in accounting.”

What nuances need to be taken into account when drawing up an accounting policy, read the article “PBU 1/2008 “Accounting Policy of an Organization” (nuances).”

From 2021, the new FSBU 5/2019 “Reserves” is mandatory. You can start applying the standard earlier by fixing this provision in your accounting policies. ConsultantPlus experts spoke in detail about the nuances of applying the new FSBU. Get free demo access to K+ and go to Review to find out all the details of this procedure.

Example 1

MIR LLC is an organization engaged in the sale of televisions.

In its sales area, MIR LLC displays samples of the goods it sells. Additional costs appear (installation costs, installation costs, etc.), which increase the cost of the goods on display.

MIR LLC takes these goods into account. 41, but the storage location is indicated not as a warehouse, but as a sales area.

As a result of using the product in the hall, its original qualities will most likely be lost. In accounting, a reserve is recognized for reducing the value of inventories.

Dt 44 Kt 60 (76) - expenses (installation, etc.).

Dt 19 Kt 60 (76) - VAT on expenses is taken into account.

Dt 68 Kt 19 - VAT is accepted for deduction.

Dt 91.2 Kt 14 - a reserve created for the depreciation of the value of goods in the hall.

Dt 14 Kt 91.1 - when selling or otherwise disposing of goods, the created reserve is included in the financial result.

Example 2

Zvezda LLC purchased materials at the beginning of the year. The accountant reflected them on the account. 10. At the end of the year, before balancing the balance, an inventory was carried out. As a result, it was revealed that the TRS decreased, and the director decided to create a reserve for the difference between the purchase price and the TRS.

In the annual balance sheet, the cost of materials will be reflected minus the reserve.

Let’s assume that in the next reporting period the TPC has increased, then we need to again calculate the difference between the purchase price of materials and the TPC. But in this case, we subtract the second year reserve from the first year’s reserve and make a posting for this amount Dt 14 Kt 91.1.

In the balance sheet, the cost of materials will be taken into account as the difference between the purchase amount and the amount remaining on Kt 14.

If in the future the selling price of unused materials increases, the accountant has the right to overestimate them, but not higher than the original value, since overestimation of the value of current assets is not allowed.

In tax accounting, we do not have the opportunity to create such reserves. But we can take into account the costs of markdowns in advertising costs (non-standardized), for example. This must satisfy the requirements of paragraph 1 of Art. 252 of the Tax Code of the Russian Federation (clause 4 of Article 264 of the Tax Code of the Russian Federation).

Revaluation of retail goods in 1C: Accounting

Revaluation of goods is the regulation of the sold cost of products, markdown or revaluation.

The main reasons for revaluation are:

• Change in demand for a product.
• Expiration date or expiration date of the product.
• Changes in legislation, such as changes in the VAT rate.

In the 1C: Enterprise Accounting 3.0 program, the document “Revaluation of goods” is used.

Before revaluing a product, let’s consider the main points that will help the user use this document correctly.

Setting up the program

To ensure correct accounting in the program, you need to make the following settings.

In the accounting policy settings, the user can select the method of valuing goods in retail trade:

• at acquisition cost
• at the sales price (the trade margin will be taken into account in account 42 and for tax accounting for income tax, the amount of direct expenses is determined by the cost of purchasing goods).

Go to the “Main” menu item and select “Functionality” in the form, go to the “Trade” tab and activate “Retail accounting of goods”.

Creating a warehouse

We create a new warehouse in the program with the type “Retail store”

Registration of goods arrival at the warehouse

Products can be registered in the program for both retail and wholesale warehouses.

If the organization’s accounting policy includes a retail calculation method based on the cost of acquisition, then the user must use the “Receipts (acts, invoices)” document to accept the goods to the wholesale warehouse. After accepting the goods, based on this document, you can create “Setting item prices” and then make a transfer to the retail warehouse.

When using the sales value method in the accounting policy, then when purchasing goods, the user can indicate the retail warehouse in the document.

It is also worth noting that the account on which the goods will be recorded will become 41.11 “Goods in retail trade (in ATT at sales value)” and the markup on the goods will be reflected in account 42.01 “Trade markup in automated retail outlets”.

Using the “Revaluation of goods” document, the user can add or reduce the price of an item. This document is available in the “Warehouse” menu item.

Having created the document, you need to fill in the details “Organization” and “Warehouse”, and then add the necessary items using the “Add”, “Selection” or “Fill” button.

Posting document when the price increases.

Posting a document when the price of a product decreases.