In the process of accounting, all issued and received loans and borrowings are reflected in the 58th, 66th and 67th accounts. The 66th reflects the movement of funds on short-term loans and borrowings, the 67th - under long-term contracts, and the 58th - on the funds issued. Transactions with funds received in debt are accounted for in the accounting department according to the method of reflecting interest on them.
Differences between a loan and a loan
The concepts of credit and loan are essentially different in nature. Credit:
- can be issued exclusively by a bank or a credit institution holding a license to conduct relevant activities from the Central Bank of the Russian Federation;
- a loan can be issued only at interest;
- a loan can be issued only in cash;
- loan repayment term is strictly specified in the loan agreement;
- the loan agreement is drawn up only in writing.
A loan, differing from a loan, may have the following characteristics:
- it can be issued by any natural or legal person, individual entrepreneur without any special license;
- the loan can be free and interest-free and even provide for the return by the debtor of a smaller amount than was taken;
- it can be issued in non-monetary form by resources, goods, intellectual products;
- the loan can be indefinite;
- it can be formalized orally.
Accounting for received loans and borrowings
Following the "Accounting Rules" 15/2008, the costs of securing loans and borrowings should include both interest for their use and related costs: legal and informational advice, examination of contracts, etc.
Interest paid for the use of borrowed funds can be accounted for in two ways:
- evenly throughout the entire loan term;
- in any other order provided by the contract and does not violate the principle of uniformity of their accounting.
Associated expenses are accounted for evenly throughout the entire borrowing period.
Borrowed assets are reflected in the 66th and 67th accounting accounts. The 66th is used for contracts with a validity period of 12 months or less, the 67th - for contracts with a validity period of more than 1 year.
All loans and borrowings must be accounted for separately, each as an independent legal relationship. The costs of securing loans and credits should also be accounted for separately from the principal amounts of debt, in a certain billing period and with their inclusion in the category of other expenses.
In the balance sheet, the amount of long-term loans should be displayed in line 1410 "Borrowed funds", and short-term - in line 1510, which has the same name.
Commercial loans and bills of exchange must be reflected in the lines:
- long-term debt in line 1450 "Other liabilities";
- short-term debt obligations in line 1520 "Accounts payable".
It is separately stipulated that if credit or borrowed funds were spent on investment assets, then interest on such debts should be carried out on account 08 "Investments in non-current assets". Legal entities using a simplified accounting methodology have the right to use account 91.2 in this case.
In cases where borrowed funds are invested in the purchase of material and production resources or a loan was received in the form of such resources, interest on these loans and credits can be attributed to the cost of purchasing material and production resources.
Accounting for issued loans and credits
The accountant is obliged to take into account the funds lent out in accordance with the provisions of the “Accounting Rules” 19/02 “Accounting for financial investments”. All issued loans will be reflected in the 58th account "Financial investments".
It should be borne in mind that all types of interest-free loans for the creditor organization cannot be considered financial investments, since they do not bring any income to the enterprise.
In the balance sheet, issued loans should be displayed in line 1230 "Accounts receivable". Optionally, this debt can be divided:
- for a short-term period up to 12 months inclusive;
- for a long-term period of more than 1 year.
Accounting for loans and borrowings in taxes
Cash and commodity funds received in debt under credit and loan agreements are not considered income in tax accounting. Accordingly, income tax is not calculated on them. Loans and credits issued are not considered expenses when calculating the taxable base. In the same way, money and material resources received and paid in order to repay credit and borrowed obligations are not income and expenses.
Funds for accrued and paid interest are considered non-operating expenses. In accounting, they are reflected either on the last date of each month, or on the date on which the loan or credit was fully repaid.
Assets and cash received by the organization as interest on loans issued are considered non-operating income.
