Most organizations receive targeted funding from trust funds, budget funds and other sources. For budgetary organizations, the process of obtaining funding is regulated by decisions of the State Treasury, and for business enterprises, the correct receipt and use of budgetary funds is somewhat difficult.
It is necessary
Unprofitable financial result
Instructions
Step 1
Earmarked funding is not income until there is confirmation of its receipt, that is, until the organization meets all the conditions for funding. It is recognized as income over the period when expenses related to the fulfillment of the conditions for obtaining targeted financing have been incurred.
Step 2
Difficulties arise in obtaining financing to cover losses, since funds are allocated after the end of the reporting period and the preparation of financial statements. If it is envisaged to receive funds, then it is incorrect to recognize expenses in the reporting period, since the principle of correspondence between income and expenses is violated. However, without preliminary determination of the unprofitable financial result, the organization will not receive funds to cover losses.
Step 3
Obtaining accurate data on the receipt of targeted financing losses that arose in previous periods is an event that requires changes in accounting estimates, as well as making adjustments to the reporting after the balance sheet is closed. Therefore, in order to receive targeted financing, draw up clarifying financial statements, provide for the attribution of expenses to the amount of financing to deferred expenses. Then transfer the costs to the period when the funding was received.
Step 4
Targeted financing can be provided either for capital investments or for operating expenses. If funding is received in the form of subsidies or subsidies from state compulsory insurance funds or other budgets, then it is considered as income from other sources and included in the gross income for tax purposes. But grants and subsidies, which are recurrent payments, are different from capital expenditures, which involve payments for the purchase of fixed assets, emergency and strategic stocks of goods, and compensation for losses.
Step 5
All expenses for the purchase of fixed assets, carried out at the expense of targeted financing by the state, cannot be depreciated, since in fact they were carried out at the expense of the state, and not at the expense of the taxpayer.
