Formation of an organization’s accounting policy for 2021: what should be taken into account

Who draws up, signs and approves the accounting policy?

The responsibility for developing accounting policies rests with the person who manages the accounting in the organization:

Chief Accountant
the head of the organization, if he maintains accounting records and prepares reports personally
organization or individual entrepreneur providing accounting and reporting services

Who signs the accounting policy statement?

Chief Accountant;
the head of an organization (IP) providing accounting and reporting services.

Who approves the accounting policy?

Head of the organization.

Long-term assets

For reference:

Instructions for accounting of fixed assets, approved. Resolution of the Ministry of Finance dated April 30, 2012 No. 26 (Instruction No. 26).

Instructions for inventory accounting, approved. Resolution of the Ministry of Finance dated November 12, 2010 No. 133 (Instruction No. 133).

Instructions on the procedure for calculating depreciation of fixed assets and intangible assets, approved. Resolution of the Ministry of Economy, Ministry of Finance, Ministry of Construction and Architecture dated February 27, 2009 No. 37/18/6 (Instruction No. 37/18/6)

Instructions on the procedure for revaluing fixed assets, profitable investments in tangible assets, equipment for installation, approved. Resolution of the Ministry of Economy, Ministry of Finance, Ministry of Construction and Architecture dated November 5, 2010 No. 162/131/37

Presidential Decree No. 622 of October 20, 2006 “On issues of revaluation of fixed assets, profitable investments in tangible assets, unfinished construction projects and equipment for installation” (Decree No. 622)

Instructions for accounting of intangible assets, approved. Resolution of the Ministry of Finance dated April 30, 2012 No. 25 (Instruction No. 25)

Instructions on the procedure for forming the cost of a construction project in accounting, approved. Resolution of the Ministry of Construction and Architecture dated May 14, 2007 No. 10 (Instruction No. 10).

Presidential Decree No. 284 dated August 15, 2017 “On disposal of property” (Decree No. 284).

Inventory accounting

For reference:

Instructions for inventory accounting, approved. Resolution of the Ministry of Finance dated November 12, 2010 No. 133 (Instruction No. 133)

Instructions for accounting of gratuitous assistance, approved. Resolution of the Ministry of Finance dated October 31, 2011 No. 112 (Instruction No. 112)

Production cost accounting

Finished product accounting

For reference:

Instructions on the procedure for applying the standard chart of accounts, approved. Resolution of the Ministry of Finance dated June 29, 2011 No. 50 (Instruction No. 50)

Instructions for accounting of income and expenses, approved. Resolution of the Ministry of Finance dated September 30, 2011 No. 102 (Instruction No. 102)

Tax Code - Tax Code

Other accounting issues

For reference:

Instructions on the procedure for applying the standard chart of accounts, approved. Resolution of the Ministry of Finance dated June 29, 2011 No. 50 (Instruction No. 50)

Instructions for accounting of income and expenses, approved. Resolution of the Ministry of Finance dated September 30, 2011 No. 102 (Instruction No. 102)

Tax Code - Tax Code

Tax aspects of accounting policy P

General (organizational) aspects

1. How is accounting organized:

there is an accounting department;
maintaining accounting records with the involvement of another organization or individual entrepreneur.

2. Methods and methods of accounting:

automated accounting;
journal order form;
mixed form.

List of appendices to accounting policies

1. Chart of accounts for the organization's accounting

2. Forms of PUD and registers developed by the organization

3. Document flow schedule of the organization

4. Inventory procedure

Best regards, Consulting

31.03.2020

What should be taken into account when drawing up accounting policies for 2021?

Accounting policies are applied by organizations consistently from one year to the next. In 2021, separate regulatory legal acts on accounting were adopted, affecting the formation of accounting policies of organizations for 2021.

In this article we will talk about the main changes that should be taken into account when drawing up accounting policies for 2021, which will allow organizations, if necessary, to make changes and (or) additions to the accounting policies.

At the same time, organizations should take into account that during 2021, regulatory legal acts may be adopted, with the entry into force of which it will be necessary to make other changes and (or) additions to the accounting policy.

Revision of standard service lives and (or) useful lives of fixed assets

From 02/01/2020, parts 1 and 2 of clause 24 of Instruction No. 37/18/6 are stated as follows: the commission for the implementation of depreciation policy (hereinafter referred to as the commission) has the right to revise the standard service life and (or) useful life of fixed assets with mandatory reflection in the regulations on accounting policies (individual entrepreneurs - in the book of accounting of fixed assets) the possibility of their revision from the beginning of the reporting year, as well as in cases of completion of modernization, reconstruction, partial liquidation, retrofitting, completion, technical diagnostics and examinations, registered as capital investments by acceptance certificates of completed work, in cases of revaluation with the involvement of an appraiser, transfer of fixed assets during reorganization, in the cases listed in Part 3, Clause 25, Part 1, Clause 45 of Instruction No. 37/18/6.

Changes in service life are made depending on the general characteristics of the work and the criteria for changing the characteristics of objects as a result of their implementation in accordance with Appendix 5 to Instruction No. 37/18/6.

In comparison with the previously existing procedure, a new case has been added in which the commission has the right to revise the standard service life and (or) useful life of fixed assets: transfer of fixed assets during reorganization. The case listed in clause 46 of Instruction No. 37/18/6 (as amended, valid until 01/31/2020) was also excluded due to the exclusion of clause 46 from Instruction No. 37/18/6 from 02/01/2020.

For information

Paragraph 46 of Instruction No. 37/18/6 (as amended, valid until January 31, 2020) provided that in the event of an unforeseen change in the conditions of production, sales of products (works, services), leading to a deterioration in the financial condition and the occurrence of losses, the organization and individual entrepreneurs who have chosen in the current year to calculate depreciation on individual depreciable objects the linear method based on a useful life set equal to or lower than the standard one, the direct method of the sum of numbers of years or the declining balance method, have the right to make a one-time transition to the linear method for all or individual depreciable objects , productive methods of calculating depreciation and / or the reverse method of the sum of numbers of years.

In the accounting policy, the following entry options may occur:

— the commission for the implementation of depreciation policy has the right to revise the standard service life and (or) useful life of fixed assets from the beginning of the reporting year, as well as in cases of completion of modernization, reconstruction, partial liquidation, retrofitting, completion, technical diagnostics and examinations completed in as capital investments by acceptance certificates of completed work, in cases of revaluation with the involvement of an appraiser, transfer of fixed assets during reorganization, in the cases listed in Part 3, Clause 25, Part 1, Clause 45 of Instruction No. 37/18/6;

- do not revise the standard service life and (or) useful life of fixed assets from the beginning of the reporting year, as well as in cases of completion of modernization, reconstruction, partial liquidation, retrofitting, completion, technical diagnostics and inspections carried out, registered as capital investments in acts of delivery - acceptance of completed work, in cases of revaluation with the involvement of an appraiser, transfer of fixed assets during reorganization, in the cases listed in Part 3, Clause 25, Part 1, Clause 45 of Instruction No. 37/18/6.

Revision of standard service lives and (or) useful lives of intangible assets

From 02/01/2020, part 3, clause 24 of Instruction No. 37/18/6 is stated as follows: the commission has the right to revise the standard service life and (or) useful life of intangible assets with mandatory reflection in the accounting policy regulations (individual entrepreneurs - in the book of accounting of fixed assets and depreciation) from the beginning of the reporting year, when renewing or extending the period of their operation, including when making investments related to changes in an intangible asset that do not entail the creation of a new object of an intangible asset, in the manner established by Instruction No. 37/18/6.

Until 02/01/2020, the commission had the right to review the standard service life and/or useful life of intangible assets subject to the renewal or extension of their service life in the manner established by Instruction No. 37/18/6 <*>.

In the accounting policy, the following entry options may occur:

— the commission for the implementation of depreciation policy has the right to revise the standard service life and (or) useful life of intangible assets from the beginning of the reporting year, when renewing or extending their service life, including when making investments related to making changes to an intangible asset, not entailing the creation of a new intangible asset, in the manner established by Instruction No. 37/18/6;

- do not revise the standard service life and (or) useful life of intangible assets from the beginning of the reporting year, when renewing or extending their service life, including when making investments related to making changes to an intangible asset that do not entail the creation of a new one object of an intangible asset, in the manner established by Instruction No. 37/18/6.

Depreciation of fixed assets and intangible assets

According to clause 37 of Instruction No. 37/18/6, the organization independently determines the methods and methods of calculating depreciation within the above limits. The methods and methods of calculating depreciation for objects of the same name may vary. Before the end of the useful life of depreciable objects, methods and methods for calculating depreciation are allowed to be revised:

- from the beginning of the reporting year with mandatory reflection in the accounting policy of the organization (book of fixed assets for individual entrepreneurs);

- during the reporting year in cases of completion of modernization, reconstruction of fixed assets, their additional equipment, completion, technical diagnostics and inspection with their complete stop, for fixed assets transferred during reorganization, in case of renewal or extension of the life of intangible assets, including including when making investments that do not entail the creation of a new intangible asset.

Cases highlighted in bold are new as of 02/01/2020. At the same time, the possibility of revision is excluded in the cases provided for in clause 46 of Instruction No. 37/18/6 (as amended, valid until 01/31/2020), due to the exclusion of this item from Instruction No. 37/18/6 from 02/01/2020 .

Let us note that in 2021, in accordance with paragraph 1 of Resolution No. 229, organizations and individual entrepreneurs had the right to decide not to accrue depreciation from January 1 to December 31, 2021 for all or individual fixed assets and intangible assets used by them in entrepreneurial activity.

For 2021, there is currently no such regulatory legal act.

At the same time, Resolution No. 802 continues to be in effect, which stipulates that organizations have the right to decide not to accrue depreciation from January 1, 2021 - for fixed assets and intangible assets provided for by business plans for investment projects to create or modernize production facilities. The exercise of this right is carried out until December 31 inclusive of the year in which these production facilities reach their designed capacity or achieve a positive financial result (net profit), but no more than three years from the date of commissioning of fixed assets and the date of acceptance of intangible assets for accounting.

At the same time, the standard service life and useful use of such fixed assets and intangible assets are extended for a period equal to the period in which depreciation was not calculated <*>.

For reference Entrepreneurial activity is the independent activity of legal entities and individuals, carried out by them in civil circulation on their own behalf, at their own risk and under their own property responsibility and aimed at systematically making a profit from the use of property, the sale of things produced, processed or purchased by these persons for sales, as well as from performing work or providing services, if these works or services are intended for sale to other persons and are not used for personal consumption <*>.

Revaluation as of January 1 of fixed assets, profitable investments in tangible assets, equipment for installation

Decree N 622 stipulates that, unless otherwise established by the President of the Republic of Belarus, revaluation (change in value) of fixed assets, profitable investments in tangible assets, equipment for installation (hereinafter, unless otherwise indicated, property) listed in accounting records (in book of income and expenses of organizations and individual entrepreneurs applying the simplified taxation system) is carried out in the manner determined by the Council of Ministers of the Republic of Belarus, taking into account the requirements of Decree No. 622:

- in relation to buildings, structures and transmission devices <*>:

if the inflation rate in November of the current calendar year for the period preceding it from the date of the last revaluation, carried out without fail in accordance with the requirements of the law, calculated and published by the National Statistical Committee, reaches 100 percent or more - by all organizations;

if the event specified in paragraph does not occur. 2 subp. 1.1.1 of Decree No. 622, - by decision of the organization or the owner of its property;

- in relation to property not specified in subparagraph. 1.1.1 of Decree No. 622, - by decision of the organization or the owner of its property <*>.

The last mandatory revaluation (change in value) of fixed assets, profitable investments in tangible assets, construction-in-progress and equipment for installation was carried out on January 1, 2014.

Thus, for the revaluation of buildings, structures and transmission devices as of January 1, 2021, the guideline is the inflation rate in November 2021 to December 2013.

On its official website, Belstat reports that in accordance with subparagraph. 1.1.1 of Decree N 622, the inflation rate in November 2021 compared to December 2013 was 76.6%.

Thus, the inflation threshold required for mandatory revaluation of buildings, structures and transmission devices as of 01/01/2021 has not been exceeded.

This point should be taken into account when determining the conditions for revaluing property in 2021, since Part 2, Clause 1 of Instruction No. 162/131/37 stipulates that an organization carries out a revaluation of property in cases established by legislative acts. If legislative acts grant organizations the right to conduct a revaluation of property, the organization has the right, in its accounting policies, to provide for the conditions for carrying out a revaluation of property (criteria for the materiality of changes in the value of property), including its frequency.

Reflection in accounting of business transactions on disposal of fixed assets and investments in long-term assets. Determination of the initial value of property received free of charge

Subclause 1.1. Decree No. 284 established that organizations (with the exception of budgetary organizations, the National Bank, banks, non-banking financial institutions, open joint-stock company "Development Bank of the Republic of Belarus"), upon disposal of property specified in paragraph 2 of Decree No. 284, by gratuitously transfers, write-offs or sales have the right to write off until December 31, 2021 at the expense of additional capital within the limits of its balance (based on the purpose of passive account 83 “Additional capital”, in this case we mean a credit balance) and retained earnings (uncovered loss) in the remaining amount :

- in case of gratuitous transfer - the amount of the residual value of the property and the costs associated with its transfer;

- upon write-off - the amount of the residual value of the property and the costs associated with its write-off, minus the cost of material assets received during write-off and accepted for accounting (if any);

- upon sale - the amount of the residual value of the property and the costs associated with its sale, minus the funds from its sale (excluding value added tax), subject to receipt (received) at the disposal of the organization.

Subclause 1.2 of Decree No. 284 establishes that organizations (with the exception of budgetary organizations, the National Bank, banks, non-banking financial institutions, open joint-stock company "Development Bank of the Republic of Belarus"), when disposing of the property specified in paragraph 2 of Decree No. 284, by its gratuitous transfer has the right, until December 31, 2020, to determine the initial value of the gratuitously received property according to the residual value listed in the accounting records of the transferring party as of the first day of the month in which its transfer occurred in the manner prescribed by law.

Thus, the above accounting options provided for by Decree No. 284 can be applied only until December 31, 2020. In 2021, one should be guided by the generally established procedure provided for by Instruction No. 26, Resolution No. 112.

Accounting for exchange rate differences when recalculating the value of assets and liabilities expressed in foreign currency

In connection with the adoption of Decree No. 159, commercial organizations (with the exception of banks, OJSC Development Bank of the Republic of Belarus, non-bank financial institutions) amounts of differences arising from January 1, 2021 to December 31, 2022 when recalculating the value of assets expressed in foreign currency and liabilities in the official monetary unit of the Republic of Belarus, has the right to be attributed to income (expenses) of future periods and written off to income (expenses) for financial activities in the manner and within the time limits established by the head of the organization , but no later than December 31, 2022 <*>.

Decree No. 159 comes into force after its official publication (from May 15, 2020) and applies to relations arising from January 1, 2021 <*>.

Decree No. 159 does not regulate taxation of exchange rate differences.

Issues of taxation of exchange rate differences are regulated by the Tax Code and Decree N 504.

The procedure for accounting for exchange rate differences in accordance with Decree No. 159 is the right of the organization. It is not necessary to apply it, and organizations can still reflect all exchange rate differences in the credit (debit) of account 91 “Other income and expenses” (except for the cases specified in paragraphs 5, 6 of National Standard No. 69 and National Standard No. 74).

According to the wording given in paragraph 1 of Decree No. 159, Decree No. 159 applies to the recalculation of the value of assets and liabilities expressed in foreign currency and does not change the procedure for reflecting in accounting exchange rate differences that arise when recalculating the value expressed in the official monetary unit of the Republic of Belarus in the amount equivalent to a certain amount in foreign currency, the value of assets, liabilities.

Commercial organizations that have not applied the procedure established by Decree No. 159 for reflecting exchange rate differences in accounting for relationships that arose from January 1, 2021, can apply it from January 1, 2021 when making changes to the accounting policy in accordance with paragraph. 3 parts 1 and part 2 clause 7 art. 9 of Law No. 57-Z.

Commercial organizations that have applied the procedure established by Decree N 159 for reflecting exchange rate differences in accounting for relationships that arose from January 1, 2021, may switch from January 1, 2021 to applying the procedure for reflecting exchange rate differences in accounting established by clause 7 of the National Standard N 69, when making changes to the accounting policy in accordance with paragraph. 3 parts 1 and part 2 clause 7 art. 9 of Law No. 57-Z <*>).

In the accounting policy, the following entry options may occur:

— take into account exchange rate differences in accounting when recalculating the value of assets and liabilities expressed in foreign currency in account 91 “Other income and expenses” in the manner established by the norms of National Standard No. 69;

— attribute exchange rate differences in accounting when recalculating the value of assets and liabilities expressed in foreign currency to income (expenses) of future periods and write them off to income (expenses) from financial activities in the manner and within the time frame established by the head of the organization, but no later than December 31, 2022 .

Determination of VAT amounts not subject to deduction when carrying out certain types of activities

VAT amounts presented upon acquisition or paid upon import of goods (work, services), property rights associated with the receipt of income (revenue) in terms of the implementation of:

— lottery activities;

— activities for conducting electronic interactive games;

— activities in the field of gambling business;

— activities to provide services in the field of agroecotourism;

— activities to carry out transactions initiated by individuals and legal entities with non-deliverable over-the-counter financial instruments (activities on the over-the-counter Forex market);

- activities for which a single tax is paid from individual entrepreneurs and other individuals) <*>.

For the purpose of determining non-deductible amounts of VAT on goods, including fixed assets and intangible assets (work, services), property rights used:

— directly for the purposes of carrying out the activities specified in part 1 sub. 24.11 Art. 133 Tax Code, - VAT amounts are accepted by direct invoice;

- simultaneously for the purposes of carrying out the activities specified in part 1 sub. 24.11 Art. 133 of the Tax Code, and for the purposes of production and (or) sale of goods (work, services), property rights, turnover on the sale of which is recognized as an object of taxation by value added tax - the amounts of value added tax are distributed on an accrual basis between these types of activities in proportion to revenue ( income) received from the relevant activity, or other distribution criterion determined by the payer in accordance with the accounting policy of the organization (decision of the individual entrepreneur) <*>.

From the subparagraph specified in Part 1. 24.11 Art. 133 of the Tax Code (as amended until 12/31/2020) activities are excluded from 01/01/2021 the provision of services for maintenance and (or) repair of motor vehicles and their components by organizations that are payers of the single tax on imputed income, the sales turnover of which is not are recognized as subject to VAT taxation in accordance with Part 1, Clause 7, Art. 378 Tax Code (as amended until December 31, 2020).

This limitation has been removed due to the abolition of the single tax on imputed income.

Accounting for exchange rate differences when taxing profits

In order to ensure the stable operation of organizations, Decree N 504 was adopted.

For the purposes of Decree N 504, exchange differences include exchange differences determined in the manner established by the legislation on accounting and reporting, and included in accordance with tax legislation as part of non-operating income and (or) expenses (footnote <*> to clause 1 Decree N 504).

Organizations (except for banks) have the right to include exchange rate differences arising during a calendar year in:

- non-operating income and (or) expenses when determining the tax base for income tax on the dates determined in accordance with Art. 174 and 175 of the Tax Code, during the tax period or in the last reporting period of the corresponding calendar year;

- non-operating income when determining the tax base of the single tax for producers of agricultural products (hereinafter referred to as the single tax) on the dates determined in accordance with Art. 174 Tax Code, during the tax period or in the last reporting period of the corresponding calendar year.

The procedure for tax accounting of exchange rate differences chosen by the organization is reflected in its accounting policy and is not subject to change during the current tax period <*>.

When applying the procedure for tax accounting of exchange rate differences, which provides for their reflection in the last reporting period of the corresponding calendar year, in the following cases:

- specified in clauses 1, 3, 4 and 6 of Art. 44, paragraph 4 - 6 art. 45 of the Tax Code (cases of liquidation, reorganization of an organization, a branch fulfilling the tax obligations of a legal entity, upon termination of a foreign organization’s activities in the territory of the Republic of Belarus through a permanent representative office, upon termination of a simple partnership agreement (joint activity agreement)), exchange rate differences are included in non-operating income and (or) expenses when determining the tax base for income tax (included in non-operating income when determining the tax base of the single tax) when submitting a tax return (calculation) in accordance with the specified paragraphs;

— transition (except for transition from the beginning of the calendar year):

from the general taxation procedure to a single tax, exchange differences arising in the calendar year during the period of application of the general taxation procedure are included in non-operating income and (or) expenses when determining the tax base for the profit tax for the reporting period preceding the month from which the application of the single taxation begins tax;

from the single tax to the general taxation procedure, exchange differences arising in the calendar year during the period of application of the single tax are included in non-operating income when determining the tax base of the single tax for the reporting period preceding the month from which the application of the general taxation procedure begins <*>.

Since 2021, similar norms have been enshrined in clause 14 of Art. 167 NK.

In the accounting policy, the following entry options may occur:

- exchange rate differences arising during the calendar year should be included in non-operating income and (or) expenses when determining the tax base for income tax on the dates determined in accordance with Art. 174 and 175 of the Tax Code, during the tax period;

Organizational accounting chart of accounts

In its accounting policy, the organization must stipulate the chart of accounts of the organization's accounting, containing a complete list of synthetic and analytical accounts (including sub-accounts) necessary for maintaining accounting, taking into account the industry characteristics of economic activity.

We note that clause 3 of Resolution No. 74 (came into force on January 25, 2020) supplemented clause 3 of Instruction No. 50 with part of the following content: an organization can, if necessary, enter additional off-balance sheet accounts into the working chart of accounts using free numbers of off-balance sheet accounts.

Primary accounting documents

Let us dwell on the primary accounting documents compiled individually, which should be included in the accounting policy, since there has been a change in legislation on this issue.

The primary accounting document confirming the completion of work (provision of services) can be drawn up by the contractor (performer) and the customer individually in cases determined by the Ministry of Finance of the Republic of Belarus, provided that the agreement concluded in writing between the contractor (performer) and the customer stipulates This is the procedure for registration of work performed (services provided) <*>.

Resolution No. 13 was amended by Resolution No. 33 (came into force on August 22, 2020).

Resolution No. 33 amended paragraph 1 of Resolution No. 13, which provides cases in which the primary accounting document for business transactions can be drawn up individually.

Now the primary accounting document confirming the completion of a business transaction can be drawn up in the following cases:

1) performance of work (provision of services) under a contract concluded in writing, which provides for the execution of primary accounting documents confirming the performance of work (provision of services), individually, with the exception of construction contracts that are not public contracts;

2) temporary possession and use or temporary use of property under a lease agreement (temporary possession and use of property under a financial lease (leasing) agreement, concluded in writing, which provides for the execution of primary accounting documents confirming temporary possession and use or temporary use of property, alone;

3) purchase and sale of inventory, performance of work and provision of services through gas stations;

4) provision of services by the customer, developer for organizing construction, determined in accordance with clause 1 of Art. 55 Law No. 300-З;

5) receipt of inventory items from outside the Republic of Belarus <*>.

The primary accounting document is drawn up by a participant in a business transaction individually in the cases specified in paragraph 1 of Resolution No. 13, on the basis of documents (information) containing information about this business transaction and (or) an agreement <*>.

With regard to the receipt of inventory items from outside the Republic of Belarus, it should be noted that if the supplier has provided the organization with a document that meets the requirements of the legislation of the Republic of Belarus for primary accounting documents, then the sole preparation of the primary accounting document is not necessary.

But if the supplier has not provided the organization with a document that meets the requirements of the legislation of the Republic of Belarus for primary accounting documents, then the sole preparation of the primary accounting document is mandatory.

For cases 1 and 2, it is established that the relevant agreements must provide for the execution of primary accounting documents by the individual.

We would like to add that the sole preparation of primary documents is provided for by National Standard No. 16.

The primary accounting document confirming the completion of a business transaction using tokens can be drawn up solely by the participants in this transaction based on the corresponding entries in the register of transaction blocks (blockchain), another distributed information system and (or) data on transactions (operations) made in the operator system cryptoplatforms or with these operators, as well as other sources of information <*>. The individually compiled primary accounting document is accompanied by supporting documents, for example, a printout of transactions from a blockchain or other distributed information system.

It is important to note that the preparation of the primary accounting document is carried out individually according to generally established rules. Such a document must contain all the details provided for by the Law for the primary accounting document.

Primary accounting documents, unless otherwise established by the President of the Republic of Belarus, must contain the following information:

— name of the document, date of its preparation;

— name of the organization, surname and initials of the individual entrepreneur who is a participant in the business transaction;

— the content and basis for a business transaction, its assessment in natural and value terms or in value terms;

— positions of persons responsible for carrying out a business transaction and (or) the correctness of its execution, their names, initials and signatures.

Primary accounting documents may contain other information that is not mandatory, for example, the necessary calculations of reserve amounts <*>.

We also draw the attention of organizations to Resolution No. 74, which established the form of the act of writing off property owned by the Republic of Belarus. If the property is not owned by the Republic of Belarus, then the organization has the right to independently develop the form of an act on the write-off of property containing the details provided for in paragraph 2 of Art. 10 of Law N 57-Z <*>.

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The material was prepared using legal acts as of January 22, 2021.

The procedure and features of the formation of accounting policies for 2021 by commercial organizations are outlined.

LEGAL REGULATION

● Law of July 12, 2013 No. 57-Z “On Accounting and Reporting” (hereinafter referred to as Law No. 57-Z)

● National accounting and reporting standard “Accounting policies of the organization, changes in accounting estimates, errors”, approved. Resolution of the Ministry of Finance dated December 10, 2013 No. 80 (hereinafter referred to as NAS No. 80)

● National standard of accounting and reporting “Individual accounting statements”, approved. Resolution of the Ministry of Finance dated December 12, 2016 No. 104 (hereinafter referred to as NAS No. 104)

● National accounting and reporting standard “Consolidated financial statements”, approved. Resolution of the Ministry of Finance dated June 30, 2014 No. 46 (hereinafter referred to as NAS No. 46)

● Instructions on the procedure for applying the standard chart of accounts, approved. Resolution of the Ministry of Finance dated June 29, 2011 No. 50 (hereinafter referred to as Instruction No. 50)

● Instructions for inventory of assets and liabilities, approved. Resolution of the Ministry of Finance dated November 30, 2007 No. 180 (hereinafter referred to as Instruction No. 180)

● Instructions for accounting of income and expenses, approved. Resolution of the Ministry of Finance dated September 30, 2011 No. 102 (hereinafter referred to as Instruction No. 102)

General provisions

Accounting policy is a set of methods for organizing and maintaining accounting records adopted by an organization (paragraph 22 of article 1 of Law No. 57-Z).

Accounting methods – methods of primary observation used in accounting and (or) preparation of financial statements, types of accounting valuation, methods of grouping and summarizing business transactions (clause 2 of NAS No. 80).

The organization independently develops its accounting policies, based on the accounting principles specified in Art. 3 of Law No. 57-Z.

Article 11 of Law No. 57-Z provides that the duties of the chief accountant of the organization, the head of the organization in the case provided for in paragraph 2 of Art. 7 of Law No. 57-Z, organizations or individual entrepreneurs providing accounting and reporting services include:

● formation of the organization's accounting policy;

● setting up and maintaining accounting records in the organization;

● preparation and timely submission of organization reports;

● other responsibilities in the field of accounting and reporting.

Clause 2 of Art. 7 of Law No. 57-Z stipulates that the head of a micro-organization, a partnership of owners, a public and religious organization (association) has the right to keep accounting records and prepare reports personally if this head meets the requirements for the chief accountant specified in paragraph 3 of Art. 8 of Law No. 57-Z.

The head of the organization is obliged:

● organize accounting and reporting, as well as create the necessary conditions for this;

● ensure strict compliance by employees of the organization with the requirements of the chief accountant, organization or individual entrepreneur providing accounting and reporting services, in terms of compliance with the procedure for execution and submission of documents and information necessary for accounting and reporting, and other requirements on issues within their competence (clause 3 of article 7 of Law No. 57-Z).

According to clauses 10, 12 of Art. 8 of Law No. 57-Z, the chief accountant reports directly to the head of the organization. The requirements of the chief accountant, within the limits of his competence, are mandatory for all structural divisions and employees of the organization.

The requirements of an organization or individual entrepreneur providing accounting and reporting services, within their competence, are mandatory for all structural divisions and employees of the organization to which accounting and reporting services are provided.

In cases of disagreement between the head of the organization and the chief accountant, organization or individual entrepreneur providing accounting and reporting services, regarding the execution of certain business transactions, their registration with primary accounting documents and reflection in accounting, documents on these business transactions must be accepted for execution by the chief accountant, organization or individual entrepreneur providing accounting and reporting services, upon written order from the head of the organization. In such cases, the head of the organization is solely responsible for the completion of these business transactions, their registration with primary accounting documents and their reflection in accounting.

According to paragraph 1 of Art. 9 of Law No. 57-Z, the organization independently forms its accounting policy and sets it out in the accounting policy regulations, which is signed by the chief accountant of the organization, the head of the organization or individual entrepreneurs providing accounting and reporting services, and approved by the head of the organization.

The organization has the right to both create a new version of its accounting policy for 2021 and use the previously approved one during its activities, making changes and additions to it if necessary.

FOR REFERENCE

When approving the accounting policy, you should take into account the requirements of the Instructions for office work in government bodies and other organizations, approved. Resolution of the Ministry of Justice dated January 19, 2009 No. 4.

Mandatory components of accounting policies

Types of accounting estimates

Accounting valuation is the valuation of assets, liabilities, equity capital, income, expenses of an organization in accounting and (or) reporting (paragraph 21 of article 1 of Law No. 57-Z).

According to Art. 12 of Law No. 57-Z, the accounting assessment of assets, liabilities, equity capital, income, expenses of an organization is carried out in the official monetary unit of the Republic of Belarus.

For the accounting assessment of assets, liabilities, equity capital, income, expenses of an organization, the following are used:

● initial cost – the cost at which an asset or liability is accepted for accounting;

● present (discounted) value – the current value of future inflows and outflows of funds from the use of an asset or the current value of the future use of funds to pay off a liability;

● revalued value – the value of an asset or liability after its revaluation;

● other types of accounting assessment established by law (clause 2 of article 12 of Law No. 57-Z).

The procedure for applying types of accounting assessment is established by law.

Rules for accounting of assets, liabilities, equity capital, income, expenses in case of changes in accounting policies, changes in accounting estimates, correction of errors and disclosure of information about them in the financial statements of organizations (except for the National Bank, banks, non-bank financial institutions, banking groups , bank holding companies, budgetary organizations) establishes NAS No. 80.

Organizational accounting chart of accounts

Chart of accounts - a systematic list of accounting accounts (paragraph 14, article 1 of Law No. 57-Z).

Based on the standard chart of accounts, the head of the organization approves the chart of accounts of the organization's accounting, containing a complete list of accounts, including subaccounts, and analytical accounts, off-balance sheet accounts necessary for accounting.

For accounting of business transactions, the organization, in agreement with the Ministry of Finance, can, if necessary, enter additional accounts into the working chart of accounts using free account numbers.

An organization can clarify the contents of individual subaccounts given in the standard chart of accounts, excluding or merging them, and also introduce additional subaccounts.

Maintaining analytical accounting of assets, liabilities, equity capital, income and expenses in the organization should ensure the receipt of data on their availability and movement necessary for the preparation of financial statements (clause 3 of Instruction No. 50).

Forms of primary accounting documents

Primary accounting document is a document on the basis of which a business transaction is reflected in the accounting accounts (paragraph 13 of article 1 of Law No. 57-Z).

The preparation of primary accounting documents, accounting registers and reporting is carried out by the organization in Belarusian or Russian.

According to Art. 10 of Law No. 57-Z, the primary accounting document is drawn up when a business transaction is carried out, and if this is not possible, immediately after its completion.

Each business transaction is subject to registration with a primary accounting document.

Primary accounting documents, unless otherwise established by the President, must contain the following information:

● name of the document, date of its preparation;

● name of the organization, surname and initials of the individual entrepreneur who is a participant in the business transaction;

● the content and basis for a business transaction, its assessment in physical and monetary terms or in monetary terms;

● positions of persons responsible for carrying out a business transaction and (or) the correctness of its execution, their names, initials and signatures.

Primary accounting documents may contain other information that is not mandatory.

Forms of primary accounting documents included in the list of primary accounting documents, approved. by resolution of the Council of Ministers dated March 24, 2011 No. 360 (hereinafter referred to as the List), are approved by the authorized government agencies specified in the List. Other forms of primary accounting documents may be approved by republican government bodies in agreement with the Ministry of Finance or the head of the organization.

The organization has the right to independently approve the forms of primary accounting documents for use, regardless of the availability of forms of such documents approved by the republican government bodies.

Accounting Form

The form of accounting is the procedure for making and summarizing entries in accounting accounts and the set of accounting registers in which such entries are made (paragraph 23 of Article 1 of Law No. 57-Z).

The accounting form can be automated, journal-order, with manual data processing, etc.

According to Art. 11 of Law No. 57-Z, accounting information contained in primary accounting documents is subject to timely registration in accounting registers.

Accounting registers are compiled in accordance with the accounting form used by the organization in compliance with the requirements established by Art. 11 of Law No. 57-Z.

Accounting registers must contain the following information:

● name of the register;

● name of the organization;

● the start and end dates of maintaining the register and (or) the period for which the register was compiled;

● chronological and (or) systematic grouping of business transactions;

● assessment of business transactions in physical and monetary terms or in value terms;

● positions of persons responsible for maintaining the register, their names, initials and signatures.

The procedure for conducting an inventory of the organization's assets and liabilities

Article 13 of Law No. 57-Z provides that the assets and liabilities of an organization are subject to inventory. When conducting an inventory, the actual presence of the organization's assets and liabilities is compared with accounting data.

Carrying out an inventory of the organization’s assets and liabilities is mandatory:

● during reorganization or liquidation of an organization;

● before preparing annual reports;

● when changing financially responsible persons;

● when facts of theft and (or) damage to property are revealed;

● in the event of an emergency;

● in other cases provided for by law.

The procedure for reflecting in accounting and reporting discrepancies identified during the inventory between the actual availability of assets and liabilities of the organization and accounting data is established by the Ministry of Finance. Currently, this procedure is regulated by Instruction No. 180.

In this section of the accounting policy, it is necessary to fix the issues of conducting an inventory, for which there is no clear procedure in the legislation and there is variability, namely the number of inventories in the reporting year, the timing of the inventory, the list of assets and liabilities verified for each of them, etc.

Other ways of organizing and maintaining accounting records

Other methods of organizing and maintaining accounting records are established by law.

Moreover, if in relation to specific business transactions, individual components of assets, liabilities, equity capital, income, expenses of an organization, the legislation does not establish a procedure for their reflection in accounting and reporting, such a procedure is developed by the organization independently using professional judgment based on the requirements established legislation (clause 5 of article 9 of Law No. 57-Z).

According to para. 16th century 1 of Law No. 57-Z professional judgment - the point of view and action of the chief accountant of the organization, the head of the organization in the case provided for in paragraph 2 of Art. 7 of Law No. 57-Z, organizations or individual entrepreneurs providing services for accounting and reporting, adopted by the organization when maintaining accounting and reporting, which are set out by the organization in the regulations on accounting policies and notes to the statements.

The accounting methods adopted by the organization in accordance with the accounting policy must be reflected in the notes to the individual financial statements for 2021 (clause 51 of NAS No. 104).

Law No. 57-Z does not require a mandatory document flow schedule in the accounting policy; at the same time, it is advisable to provide for a document flow schedule (regulation of the movement of primary accounting documents and accounting registers) in other ways of organizing and maintaining accounting records. This approach will correspond to the definition of accounting policy as a set of methods for organizing and maintaining accounting records.

The accounting policy may approve independently developed forms of accounting statements used by the organization if additional indicators are introduced into the forms of accounting statements established by NAS No. 104 at the direction of the users of these statements. The possibility of introducing additional lines and columns into the financial reporting forms is determined by clause 4 of NAS No. 104.

Guided by the norms of Instruction No. 102 and other legal regulations, organizations should determine the types of activities they carry out (current, investment, financial) and, based on the constituent documents in their accounting policies, determine which types of activities will relate to the current activity.

Inclusion of other components into the accounting policy

Law No. 57-Z does not contain a prohibition on the inclusion in the accounting policy of other components not listed in paragraph 4 of Art. 9 of Law No. 57-Z.

It is possible, but not necessary, to prescribe in the accounting policy the legal acts on the basis of which the organization will conduct accounting. The feasibility of this is determined by the organization itself.

Based on the norms of Law No. 57-Z and NAS No. 80, the accounting policy should define methods of organizing and maintaining accounting for which the legislation contains more than one possible option, as well as if such methods are not defined by law.

It is not necessary to prescribe in the accounting policy the methods of maintaining and organizing accounting, which are clearly defined in the regulatory legal acts, since organizations are required to be guided by the current legislation when maintaining accounting records. The feasibility of this is determined by the organization itself.

IMPORTANT!

If the legislation specifies the only possible actions in certain situations, then the organization does not have the right to change them and prescribe otherwise in its accounting policies.

Accounting policies when preparing consolidated statements

Consolidated reporting is prepared for a group of organizations (economic group, holding, economic entity and its unitary enterprise, subsidiaries and dependent economic entities, unitary enterprise and its subsidiary unitary enterprise) as the reporting of a single organization.

Organizations united in a group of organizations must use the same accounting methods in those reporting periods for which consolidated statements are prepared (clause 3 of NAS No. 46).

According to paragraph 2 of Art. 17 of Law No. 57-Z, socially significant organizations (except for banks) are required to prepare annual consolidated statements in accordance with International Financial Reporting Standards (hereinafter referred to as IFRS) in the official currency of the Republic of Belarus.

FOR REFERENCE

Socially significant organizations - JSCs that are the founders of the unitary enterprise and (or) the main economic entities in relation to subsidiary economic entities, banks and non-bank financial institutions, insurance organizations (paragraph 7 of article 1 of Law No. 57-Z).

For these purposes the following were adopted:

● Resolution of the Council of Ministers, National Bank dated 08/19/2016 No. 657/20 (hereinafter referred to as Resolution No. 657/20), which introduced 42 International Financial Reporting Standards and 26 Explanations to them as TNLA on the territory of the Republic of Belarus from 01/01/2017 ;

● Resolution of the Council of Ministers, the National Bank dated December 30, 2016 No. 1119/35 “On the implementation in the territory of the Republic of Belarus of International Financial Reporting Standards and their Explanations adopted by the International Financial Reporting Standards Foundation”;

● Resolution of the Council of Ministers, the National Bank dated November 4, 2017 No. 830/12 “On the implementation in the territory of the Republic of Belarus of International Financial Reporting Standards and their Explanations adopted by the International Financial Reporting Standards Foundation.”

Thus, socially significant organizations need to take this aspect into account when choosing appropriate accounting methods in their accounting policies and (or) preparing financial statements.

Introduction of changes and additions to the academic policy

Clause 6 of Art. 9 of Law No. 57-Z establishes that the accounting policy of the organization does not change, except for the cases provided for in Part 1, Clause 7, Art. 9 of Law No. 57-Z.

Part 1, clause 7, art. 9 of Law No. 57-Z provides that changes to the accounting policies of an organization can be made in the event of:

● changes in legislation;

● changes in accounting methods, the application of which will lead to an increase in the truthfulness and relevance of the information contained in the organization’s reporting;

● making a decision on the reorganization or liquidation of the organization.

According to paragraph 8 of Art. 9 of Law No. 57-Z, changes in the accounting policy of the organization must be justified, signed by the chief accountant of the organization, the head of the organization or individual entrepreneurs providing accounting and reporting services, and approved by the head of the organization.

The justification for changes in accounting policies must be included in the text of the organization's accounting policies.

Changes to the organization's accounting policies are made in the manner established by the legislation on accounting and reporting.

Changing the accounting policy of an organization - replacing one method of accounting with another (clause 2 of NAS No. 80).

Thus, a change in the way accounting is organized is not considered a change in accounting policy.

According to paragraph 7 of Art. 9 of Law No. 57-Z, changes to the accounting policy of an organization in the event of a change in accounting methods, the application of which will lead to an increase in the truthfulness and relevance of the information contained in the organization’s reporting, are made from the beginning of the reporting year.

By virtue of clause 5 of NAS No. 80, changes to the accounting policy of the organization in the event of a decision on reorganization or liquidation of the organization are made from the date of the decision on its reorganization or liquidation. At the same time, the changed methods of accounting are applied to business transactions carried out after a decision is made on the reorganization or liquidation of the organization.

Information on the date from which changes to the accounting policy should be introduced in the event of changes in legislation is not provided either in Law No. 57-Z or in NAS No. 80. In this case, it is necessary to take into account the date of entry into force of the regulatory legal acts and (or) the presence of special instructions in them about this.

Ways to consolidate changes and additions to the accounting policy:

1) execution of an order to make changes and (or) additions to the accounting policy regulations;

2) execution of an order approving the provisions on accounting policies in a new edition. This method is used for a significant amount of adjustments.

Many organizations arbitrarily change their accounting practices without considering whether changing their accounting practices will improve the truthfulness and appropriateness of the organization's reporting.

Example 1.

On the balance sheet of the organization, inventory in a significant amount is listed as part of individual items in circulation. According to the accounting policy of the organization, until 2021, it was provided that the cost of individual items as part of funds in circulation, for which the law does not define a specific method for writing them off, should be transferred to the costs of production and sales of products, works, services, expenses for the sale of goods in equal parts for the period of the expected lifespan of items.

In connection with the occurrence of losses, starting from 2021, the organization plans to change the accounting policy and the cost of individual items as part of funds in circulation, for which the law does not define a specific method for writing them off, to transfer to the costs of production and sale of products, works, services, expenses for the sale of goods in the amount of 100 percent of the cost (minus the cost of these items at the price of possible use) when they are removed from service due to unsuitability.

This approach is wrong.

In the case under consideration, changing the method of accounting will not lead to an increase in the truthfulness and relevance of the information contained in the organization’s reporting, since according to paragraph 34 of Instruction No. 102, if an asset provides economic benefits over several reporting periods, then expenses are recognized in accounting by distributing the cost asset between the respective reporting periods.

The fact that the organization, until 2021, has provided in its accounting policy a method according to which the cost of individual items as part of funds in circulation, for which the law does not define a specific method for writing them off, should be transferred to the costs of production and sales of products, works, services, expenses for the sale of goods in equal parts over the period of the expected service life of the items, from the point of view of Law No. 57-Z and Instruction No. 102, is the most reliable way to write off the cost of individual items as part of funds in circulation for the costs of production and sale of products, works, services, expenses for sale of goods.

Changing this method to a method in which the cost of individual items as part of funds in circulation, for which the law does not define a specific method for writing them off, will be transferred to the costs of production and sales of products, works, services, costs of selling goods in the amount of 100% ( minus the cost of these items at the price of possible use) when they are removed from service due to unsuitability, will not lead to an increase in the truthfulness and relevance of the information contained in the organization’s reporting.

Consequently, an organization cannot change in its accounting policy the method of transferring the cost of individual items as part of funds in circulation, for which the law does not define a specific method for writing them off, to the costs of production and sales of products, works, services, costs of selling goods.

If necessary, organizations can make additions to their accounting policies in the event of business transactions that did not take place previously. Additions to the accounting policy are not considered changes to the accounting policy if the corresponding accounting methods and methods have not already been specified in the accounting policy. Law No. 57-Z and NAS No. 80 do not contain a ban on making additions to the accounting policies during the reporting year. The number of additions is not limited by law.

Justifications for changes and additions to the accounting policies are indicated in the notes to the financial statements.

Thus, the following information regarding changes in accounting policies is subject to disclosure in the notes to the financial statements:

● content and reasons for changes in accounting policies;

● the amount of adjustments to the opening balance of each item of assets, liabilities, and equity capital associated with this change at the beginning of the earliest period presented in the financial statements;

● the amount of adjustments to other accounting reporting items related to this change for each period presented in the financial statements (subclause 52.1, clause 52 of NAS No. 104).

According to sub. 16.1 clause 16 of NAS No. 46 in the notes to the consolidated statements the following information on changes in accounting policies is subject to disclosure:

● content and reasons for changes in accounting policies;

● the amount of adjustments to other consolidated financial statements items related to this change for each period presented in the consolidated financial statements.

According to paragraph 4 of NAS No. 80, the result of a change in the accounting policy of an organization in the event of a change in the method of accounting, the application of which will lead to an increase in the truthfulness and relevance of the information contained in the financial statements of the organization relating to periods preceding the reporting period (hereinafter referred to as previous periods), and which has had or is capable of having a significant impact on the financial position of the organization, financial results of operations and changes in the financial position of the organization, is determined in monetary terms as of the date from which the changed method of accounting is applied and is reflected in:

● accounting for the debit (credit) of account 84 “Retained earnings (uncovered loss)” and other equity accounts and the credit (debit) of the corresponding accounts in the reporting period from which the changed method of accounting is applied;

● financial statements by adjusting the opening balance of each item of assets, liabilities, equity capital associated with this change at the beginning of the earliest period presented in the financial statements, as well as other items of financial statements related to this change for each period presented in the financial statements, as if if the new accounting policy was applied by the organization in all previous periods.

If it is impossible to reliably determine in monetary terms the result of a change in the organization’s accounting policy relating to all previous periods in the case specified in Part 1, Clause 4 of NAS No. 80, the changed method of accounting is applied to the relevant business transactions carried out after the introduction of this method instead previously used.

The current legislation does not define what should be taken as the level of materiality if it is necessary to reflect the result of a change in an organization’s accounting policy in accounting and reporting, if it has had or is capable of having a significant impact on the financial position and (or) financial results of the organization, in accordance with paragraph 4 NAS No. 80.

If in relation to specific business transactions, individual components of assets, liabilities, equity capital, income, expenses of an organization, the legislation does not establish a procedure for their reflection in accounting and reporting, such a procedure is developed by the organization independently using professional judgment based on the requirements established by law (p. 5 Article 9 of Law No. 57-Z).

EXPERT OPINION

As a guide for determining the level of materiality, you can use the norms of clause 12 of the Instructions for filling out and submitting financial reporting forms, approved. Resolution of the Ministry of Finance dated 03/07/2007 No. 41, since there are no corresponding norms in later instructions. Thus, an indicator is considered significant if its non-disclosure may affect the economic decisions of interested users made on the basis of reporting information. The organization’s decision on whether a given indicator is significant depends on the assessment of the indicator, its nature, and the specific circumstances of its occurrence. An amount is considered significant if its ratio to the total of the relevant data for the reporting year is at least 5%.

An organization may decide to apply a criterion different from the above for the purposes of reflecting material information in its financial statements.

IMPORTANT!

Entities should distinguish between changes in accounting policies and changes in accounting estimates.

Example 2.

On the balance sheet of the organization, inventory is listed as individual items as part of funds in circulation. According to the accounting policy of the organization, applied until 2021, the cost of individual items as part of funds in circulation, for which the law does not define a specific method for writing them off, was provided for transferring to the costs of production and sales of products, works, services, expenses for the sale of goods in the amount 100% (minus the cost of these items at the price of possible use) when they are removed from service due to unsuitability.

These assets have a significant value (in total), which was not transferred to costs due to accounting policies, which distorts the organization’s financial statements, since the value of the assets is overstated in comparison with current market prices.

Since 2021, the organization has changed its accounting policy and stipulated in it that the cost of individual items as part of funds in circulation, for which the law does not define a specific method for writing them off, shall be transferred to the costs of production and sales of products, works, services, expenses for the sale of goods in equal parts over the period of the expected life of the items (as a change in the method of accounting, which will lead to increased truthfulness and relevance of the information contained in the organization’s reports).

In this regard, the organization, using account 84, reflected the change in the accounting policy for previous years, since the amount established by the organization’s accounting policy to reflect such changes was exceeded. Additional depreciation of inventory for previous years was accrued.

The organization did the wrong thing.

In the case under consideration, there is an adjustment to the amount of repayment of the value of assets due to a change in the circumstances on which their accounting valuation was based, which is not a correction of an error in accounting and (or) financial statements. Consequently, there are changes in accounting estimates.

The amount of the change in the accounting estimate, with the exception of the change specified in Part 2, Clause 7 of NAS No. 80 (changes in the accounting estimate that directly affects the amount of equity capital), is reflected as part of:

● income or expenses of the reporting period in which this change occurred, if this change affects the financial statements for the reporting period;

● income or expenses in future periods, if this change will affect the financial statements for future periods (part 1, clause 7 of NAS No. 80).

Since in this case there were changes in the accounting estimate, the organization should not have adjusted the depreciation of inventory for previous periods when changing the accounting policy of the method of repayment of individual items as part of working capital. The amount of the change in the accounting estimate is reflected in the income (expenses) of the reporting period in which this change occurred, and (or) income (expenses) in future periods.

Thus, since the principle of prudence means that the accounting value of assets should not be overstated, in the first year of the remaining useful life of inventory it is advisable to provide a more accelerated method of transferring their value to costs.

FOR REFERENCE

According to paragraph 35 of the International Financial Reporting Standard (IAS) 8 “Accounting policies, changes in accounting estimates and errors” (Appendix 4 to Resolution No. 657/20), when it is difficult to distinguish a change in accounting policy from a change in an accounting estimate, this change is taken into account as a change in accounting estimate.

Changes in the amount of the organization’s equity capital as a whole and for each item separately in connection with changes to the accounting policy will need to be shown in the statement of changes in capital for the corresponding period of 2021.

Accounting policy of the newly created organization

According to clause 3 of NAS No. 80, the regulation on the accounting policy of a newly created organization is approved by the head of the organization no later than the 30th calendar day from the date of state registration of this organization. The regulations on the accounting policies of a newly created organization are applied by this organization from the date of its state registration.

The accounting policy of an organization that in the middle of the calendar year stopped maintaining records in KUDiR and began maintaining accounting records, is approved by its head before the start of accounting and is applied from the date of commencement of accounting.

Newsletter of the magazine “Planning and Economic Department”

The organization independently forms its accounting policy and sets it out in the accounting policy statement, which is signed by the chief accountant of the organization and approved by its head[1].

However, if accounting is carried out by a specialized organization or individual entrepreneur, then the accounting policy statement is signed by the head of this organization or individual entrepreneur.

According to paragraph 4 of Art. 9 of Law No. 57-Z, the accounting policy of an organization must include :

applied types of accounting estimates. Accounting is the valuation of assets, liabilities, equity capital, income, expenses of an organization in accounting and (or) reporting;
chart of accounts, which must contain a complete list of accounts, including subaccounts, analytical and off-balance sheet accounts necessary for accounting. It is developed on the basis of a standard chart of accounts by clarifying the content of the individual subaccounts given in it, excluding or combining them, as well as introducing additional subaccounts[2];

You can supplement the working chart of accounts with those that are provided for in the standard chart of accounts at any time, and an organization can enter additional accounts into it (using free numbers) only in agreement with the Ministry of Finance of the Republic of Belarus (Part 2, Clause 3 of Instruction No. 50).

forms of primary accounting documents (hereinafter referred to as PUD) developed by the organization . The accounting policy does not reflect the mandatory PUD forms, which, for example, include commodity and freight invoices, incoming and outgoing cash orders, etc. [3]. It includes only those forms that are not provided for by law, for example, acts of completion of work, write-off of materials, etc. They are provided as appendices to the accounting policies.

It is advisable to include the organization’s document flow schedule in the accounting policy (it regulates, among other things, the movement of PUD).

When adding additional details to the PUD forms approved by the republican government bodies, it is necessary to consolidate this in the accounting policy with the application of the developed forms.

[1] Clause 1 of Art. 9 of the Law of the Republic of Belarus dated July 12, 2013 No. 57-Z “On Accounting and Reporting” (as amended on July 17, 2017; hereinafter referred to as Law No. 57-Z).

[2] Parts 1, 3, clause 3 of the Instructions on the procedure for applying the standard chart of accounts, approved by Decree of the Ministry of Finance of the Republic of Belarus dated June 29, 2011 No. 50 (as amended on June 30, 2014; hereinafter referred to as Instruction No. 50).

[3] Resolution of the Council of Ministers of the Republic of Belarus dated March 24, 2011 No. 360 “On approval of the list of primary accounting documents” (as amended on September 30, 2011).