Off-balance sheet accounts are those accounts, the balance of which is not included in the balance sheet. As a rule, they reflect transactions on obligations of borrowers; on values that are accepted for storage and others. They have a three-character code, for example 001 Leased Fixed Assets. What are these accounts for?
Off-balance sheet accounts summarize information about those values that are temporarily in the use of the organization. They also control some business operations.
Off-balance sheet accounts also reflect the financial condition of the organization, for example, you can control the issuance of collateral.
Is it obligatory to record transactions on these accounts? Tax inspectors cannot give an unambiguous answer. On the one hand, transactions reflected off the balance sheet do not change the taxable base. On the other hand, if you do not reflect the leased fixed asset, it will be a gross mistake. If you do not want to have problems with the tax office, carefully monitor the movements of all transactions.
For example, account 006 reflects business transactions related to the movement of strict reporting forms (diplomas, work books, coupons, and others). In this case, an off-balance sheet account is simply necessary, since it is he who reflects transactions related to forms. There is no such account in the chart of accounts.
If you are an organization that carries out contract work (installation, repair, etc.), then reflect the accepted equipment for further installation on account 005. With this off-balance sheet account you can get complete information about all the equipment that you ever have on installation …
On account 011, reflect the property that you leased to another organization. With the help of this off-balance sheet account, you will be able to control the movement of these assets, and during inventory this account is mandatory, since this property is also included in all property.
The Chart of Accounts, approved by Order of the Ministry of Finance, contains some of the main off-balance sheet accounts. However, you have the right to use your records, the characteristics of which are specified in the accounting policy of the organization. These accounts must be recorded in correspondence with the balance sheet.
