LLC is a customer-developer for the construction of a residential building, it does not perform the functions of a general contractor. The building has been under construction since 2015. The completion of the construction of the residential building and its commissioning are planned for the fourth quarter of 2016. The implementation of the object is carried out by attracting participants under equity participation agreements. The rest of the apartments are planned to be sold after the object is put into operation and the property rights are registered by concluding sales contracts. According to the current legislation (Article 755 of the Civil Code of the Russian Federation), the term of the developer's warranty obligations is at least 5 years from the date of commissioning of the facility. Construction costs are recorded on account 08.
Does the customer-developer have the right to create a reserve in accounting for warranty repairs and warranty services in the event that apartments are transferred to equity holders and buyers under sales contracts? How to reflect the creation of a reserve for future expenses for warranty repairs and warranty service, if it is possible to create it?

On this issue, we take the following position:
Expenses incurred after obtaining a commissioning permit as the apartments are handed over to buyers under sales contracts can be recognized as part of estimated liabilities.
For similar expenses incurred during the transfer of apartments to equity holders, in the accounting records of the organization there are no grounds for the formation of an estimated liability associated with the costs of warranty repairs.

Position justification:

Civil Law Aspects

Legal relations for the sale of apartments under sales contracts are governed by the norms of the Russian Federation on sales contracts, as well as the Russian Federation of 07.02.1992 N 2300-I "On Protection of Consumer Rights" (hereinafter - Law N 2300-I).
By virtue of the Civil Code of the Russian Federation, the seller is obliged to transfer to the buyer the goods, the quality of which corresponds to the contract of sale. Moreover, the seller is responsible for the quality of the goods in any case, regardless of whether this condition is spelled out in the contract or not.
Quality assurance may be provided for by the contract (the Civil Code of the Russian Federation). In this case, the seller is obliged to transfer to the buyer the goods that meet the requirements that apply to its quality within a certain time (warranty period) fixed by the contract.
Guided by the Civil Code of the Russian Federation, the buyer, having discovered defects in the purchased goods that were not specified in advance, has the right to demand a commensurate reduction in the purchase price, the gratuitous elimination of defects in the goods within a reasonable time, reimbursement of their expenses for the elimination of defects in the goods.
Accordingly, according to the norms of the Civil Code of the Russian Federation, the obligation to eliminate the defects of the goods free of charge within the warranty period is assigned to the seller, who bears the corresponding costs associated with the fulfillment of the obligation under warranty service.
By virtue of Law N 2300-1, the consumer has the right to present the provisions of Art. 18 of the said Law, the requirements for the seller (manufacturer, authorized organization, importer) regarding the defects of the goods, if they are found during the warranty period or the expiration date.
If a warranty period is established for the goods (in this case, apartments), then the buyer, if defects are found within this period, has the right to make demands (Civil Code of the Russian Federation), in particular, for the immediate elimination of these defects free of charge (Civil Code of the Russian Federation and Law N 2300-1) .
A participant in shared construction has the right to present claims to the developer in connection with the inadequate quality of the object, provided that such quality is revealed during the warranty period (Federal Law of 30.12. changes to some legislative acts Russian Federation"(hereinafter - Law N 214-FZ)). This period is established by the agreement and cannot be less than five years. It is calculated from the date of transfer of the object to the participant (unless otherwise provided by the agreement) (Law N 214-FZ).
According to the Civil Code of the Russian Federation, the contractor, unless otherwise provided by the construction contract, guarantees the achievement by the construction object of the indicators specified in the technical documentation and the possibility of operating the facility in accordance with the construction contract during the warranty period. If defects are discovered during the warranty period, the customer must report them to the contractor within a reasonable time (the Civil Code of the Russian Federation).
At the same time, the costs associated with guaranteeing the proper quality of construction are ultimately borne by the contractor, even if the participant in shared construction made claims about the quality of the construction object to the customer-developer (FAS of the North Caucasus District dated 06.27. case N A53-25840/2012).
Therefore, reasonable foreseen expenses for warranty obligations arise only from the general contractor and subcontractors (HAC RF dated January 16, 2012 N VAC-17150/11, Eighteenth Arbitration Court of Appeal dated June 20, 2012 N 18AP-4700/12).

Accounting

The reserve for warranty repairs is an estimated liability, the accounting procedure for which is regulated by the provisions of PBU 8/2010 "Estimated Liabilities, Contingent Liabilities and Contingent Assets" (hereinafter referred to as PBU 8/2010).
According to paragraph 4 of PBU 8/2010, an estimated liability is an obligation of an organization with an uncertain amount and (or) due date, which may arise:
a) from the norms of legislative and other normative legal acts, judgments, contracts;
b) as a result of an entity's actions that, as a result of past practice or statements by the entity, indicate to others that the entity is assuming certain responsibilities and, as a result, those individuals have a reasonable expectation that the entity will fulfill those responsibilities.
In accordance with clause 5 of PBU 8/2010, an estimated liability is recognized in accounting if the following conditions are simultaneously met:
a) the organization has an obligation resulting from past events in its economic life, the fulfillment of which the organization cannot avoid. When an entity has doubts about the existence of such a liability, the entity recognizes a provision if, after considering all the circumstances and conditions, including expert opinion, it is more likely than not that the liability exists;
b) the decrease in the economic benefits of the organization, necessary for the fulfillment of the estimated obligation, probably;
c) the value of the estimated liability can be reasonably estimated.
Expenses incurred after obtaining a commissioning permit as it is handed over to buyers under sales contracts, in our opinion, can be recognized as part of estimated liabilities.
According to clause 15 of PBU 8/2010, an estimated liability is recognized in the organization's accounting records in an amount that reflects the most reliable monetary estimate of the costs required for settlements under this liability.
Based on clause 16 of PBU 8/2010, the amount of the estimated liability is determined by the organization based on the available facts of the economic life of the organization, experience in fulfilling similar obligations, and, if necessary, expert opinions. The Organization shall provide documentary evidence of the reasonableness of such an assessment. At the same time, in accordance with paragraph 7 of PBU 8/2010, the probability of a decrease in economic benefits is assessed for each obligation separately, except for cases where, as of the reporting date, there are several obligations that are homogeneous in nature and the uncertainty generated by them, which the organization evaluates in aggregate.
Appendix No. 2 to PBU 8/2010 provides an example of calculating estimated liabilities for warranty repairs and warranty services (Example 3).
In addition, we note that in accordance with paragraph 20 of PBU 8/2010, if the estimated period for fulfilling the estimated liability exceeds 12 months after the reporting date or a shorter period established by the organization in the accounting policy, such an estimated liability is valued at a cost determined by discounting its value (at the present cost).
Since PBU 8/2010 does not establish a specific methodology for determining the amount of the estimated liability, in order to bring accounting and tax accounting closer together, in this case, when determining the amount of the reserve for warranty repairs, you can use the methodology for calculating it established by the norms of tax legislation (TC RF). Relevant provisions must be fixed in the accounting policy for accounting purposes.
The formation of a reserve in this case is reflected by the posting:
Debit 20, 23, 29 Credit 96.
With regard to apartments transferred to equity holders, we note the following. As mentioned above, the costs associated with guaranteeing the proper quality of construction are ultimately borne by the contractor, therefore, we believe that the organization of the customer-developer of the construction of a residential building that does not perform the functions of a general contractor has no grounds for forming an estimated liability associated with the costs of warranty repairs when transferring apartments to equity holders.

Prepared answer:
Legal Consulting Service Expert GARANT
auditor, member of the RAMI Karataeva Tatiana

Response quality control:
Reviewer of the Legal Consulting Service GARANT
auditor, member of the RAMI Gornostaev Vyacheslav

The material was prepared on the basis of an individual written consultation provided as part of the Legal Consulting service.

IN THIS ARTICLE:

what is the savings Income tax, VAT;

what is the idea based on Decree of the Federal Arbitration Court of the Moscow District dated March 5, 2013 No. A41-12501 / 12.

Tax authorities often charge additional income tax and VAT to builders if the costs of the object are made after it has been accepted by the customer. Whereas in practice, the completion of an already commissioned object is very common. The resolution of the Federal Arbitration Court of the Moscow District dated 05.03.13 No. A41-12501 / 12 will help fight off such claims.

According to the judges, the situation when the general contractor first delivers the result of the work performed to the customer and only after that signs the act with the subcontractor is a generally recognized business practice in the construction industry. Thus, if the works of the subcontractor are accepted after their delivery to the customer, then this does not yet indicate the unreasonableness of expenses and VAT deductions. By initially signing the work acceptance certificate with the customer, the company protects its interests, since in case of revealing hidden defects, the subcontractor will have to eliminate them before the work is handed over to the general contractor. The courts had come to similar conclusions before (Decree of the Federal Arbitration Court of the Moscow District dated 04.05.12 No. A40-76052 / 11-107-322).

Idea shared Dmitry Lvov,
tax lawyer

Assessing the safety of an idea

official

Alexander Mokhov, Advisor to the State Civil Service of the Russian Federation 3rd class:

“In itself, the implementation of expenses after the acceptance of work by the customer is not a basis for refusing expenses and deductions. Of course, provided that these works were actually performed. Even in the case of additional charges, the company will be able to defend its position in court.”

expert

Roman Tulsky, tax consultant at Baker Tilly Rusaudit LLC:

“Indeed, the presence of discrepancies in the dates of drawing up acts on the acceptance of work performed cannot unconditionally indicate that the company has received unreasonable tax benefits. The refusal of the company to deduct only on this basis is unlawful.

practitioner

Yuri Permyakov,Financial Director of the group of companies "Autocentre KGS":

“I think that if claims are made, the company will be able to refute them, based on the arguments given in this court order. Especially if subcontractors subsequently list cash to the accounts of companies with dubious characteristics.

In January, we were handed over the facilities for KS-11 and we put them into operation, but in March and April we incurred costs for these facilities that were not taken into account in a timely manner, i.e. for example, light, ventilation, etc. were completed there. on trifles. Question: how to reflect these costs?

If the expenses were incurred after the commissioning of the object, then do not include such expenses in the initial cost, include them in the cost of ordinary species activities. If the expenses were incurred before the commissioning of the object, and after the commissioning they brought documents for the completed work, then they must be included in the initial cost, and an updated declaration on income tax and property tax will be required.

The rationale for this position is given below in the materials of the Glavbukh System

1.Situation: When the cost of a fixed asset can be adjusted

Usually, once established, the initial cost does not change during the operation of the fixed asset. There are only a few isolated cases where this is possible. Thus, a change in the initial cost of a fixed asset is permissible during its completion, additional equipment, reconstruction, modernization, partial liquidation and revaluation. This procedure follows from paragraph 14 of PBU 6/01.

There is, however, one more situation when the initial cost of the fixed asset will have to be adjusted. You will have to do this if a significant mistake was made initially when forming the initial cost. The fact is that such an error can lead to a gross violation of the rules for keeping records of income and expenses. And it needs to be corrected. Such an indication is in paragraph 4 of PBU 22/2010.

Therefore, if any costs associated with the acquisition of an object are incurred by the organization after its inclusion in fixed assets, do not change the initial cost. And consider the costs as part of the costs of ordinary activities. *

Sergei Razgulin,

Acting State Councilor of the Russian Federation, 3rd class

2. Article: Expenses identified after the delivery of the object, the company has the right to recognize

what changed
"Belated" expenses of the organization are allowed to be taken into account when calculating profits.

a comment
Officials agreed that certain types of costs can be included in the costs after the commissioning of the fixed assets.

Additional expenses

In practice, situations are not uncommon when, after the investor accepts construction objects (fixed assets) from the customer:*

– an act of work performed, accepted by the customer before the transfer of completed objects to the investor, gets to the investor after the object is put into operation;

- the price of work carried out by the contractor under the contract is changed on the basis of a court decision.

How should an accountant account for additional costs?

The value of the item needs to be adjusted.

In the situation with the act transferred later, as explained in the letter, there is an incomplete reflection by the investor of data on the initial cost of the fixed asset. This entails incomplete accounting of accrued depreciation for income tax purposes. Additional costs should be included in the initial cost of the object. And recalculate the depreciation accrued on the object based on the new cost. Moreover, from the date of commissioning of the facility.

The organization may choose to correct the misrepresentation in one of the following ways: either by submitting revised income tax returns (with recalculated depreciation) for past periods, or by submitting returns taking into account the difference in depreciation attributable to past periods in expenses, at a time in the period of receipt of the relevant documents. *

Sincerely,

Marina Bembeeva, expert of BSS "System Glavbuh".

Answer approved by Alexander Rodionov,

deputy chief hotline BSS "System Glavbuh".

March 18, 2010 | LLC "Group of companies "Consaltum"" | 6028 views

Construction Weekly continues to publish answers to builders' legal questions.

The customer signed a certificate of completion for the general contractor in advance and accepted the construction object from the general contractor for operation. Therefore, part of the work reflected in the act of acceptance of work performed is carried out by the general contractor after the commissioning of the facility and the closing of account 20 in the accounting records for this facility. The general contractor does not create a reserve to cover future expenses. From what sources should the general contractor write off the costs of completed construction projects and how should this be reflected in accounting?

Svetlana Arbuzova, Chief Accountant, GC Consultum:
– During the period of construction work, the general contractor takes into account direct costs in accounting on account 20 “Main production”, formed by writing off the used building materials, wages accrued to production personnel, taxes and contributions accrued to the payroll. All these costs are included in the cost of ordinary activities. At the time of accepting the work and signing the act of completed work by the customer, the general contractor forms in financial statements the result of the reporting period, based on income generated on the basis of acts of work performed and expenses actually incurred, generated on the basis of primary documents.
If the Certificate of Completion is signed with an unfinished construction cycle in one reporting period(II quarter), and construction works are not completed and are maintained by the general contractor in the next reporting period (in the III quarter), having supplemented the order on the accounting policy for accounting purposes, all costs related to unfinished construction continue to form the construction cost of the general contractor for this construction object - expenses for ordinary activities, and are reflected in line 020 of form 2 "Cost of goods, works, services sold" until these works are completed in the reporting period for 9 months (from January to August).
In the financial statements for 9 months, accounting profit will be formed for this construction project and for the organization as a whole.

Maria Shmeleva, accountant-expert of the O.S.V. consulting group:
- In accordance with paragraph 1 of Article 702 of the Civil Code of the Russian Federation, under a work contract, one party (contractor) undertakes to perform certain work on the instructions of the other party (customer) and hand over its result to the customer, and the customer undertakes to accept the result of work and pay for it. In this case, it is important to understand the nature of the concluded work contract: long-term (more than one year or the beginning and end of the contractual relationship belong to different reporting years) or short-term (less than one year, the beginning and end of the contractual relationship belong to the same calendar year).
If the work contract is of a long-term nature, according to the rules of RAS, settlements under such a contract should be accounted for in accordance with PBU 2/2008 “Accounting for construction contracts”. This PBU comes into force starting from the reporting for 2009.
In accordance with PBU 2/2008, the contractor recognizes the costs (direct or indirect) incurred as part of activities under the contract as expenses for ordinary activities and reflects them in accounting in the generally established manner (paragraphs 5, 9 of PBU 10/99, paragraphs 10, 11 PBU 2/2008). In this case, an entry is made on the debit of account 20 “Main production” and the credit of account 10, 60, 69, 70 and so on. Contract costs are recognized in the reporting period in which they are incurred.
Income under the contract is recognized by the contractor as income from ordinary activities (revenue under the contract) in accordance with PBU 9/99 "Income of the organization". The amount of proceeds is determined in accordance with the contract and is subject to adjustment only in cases and under the conditions stipulated by the contract.
In accordance with paragraph 2 of clause 17, clauses 25, 26 of PBU 2/2008, the contractor determines the amount of revenue using the “as soon as it is ready” method. Regardless of the presentation of the work performed for payment to the customer, in each reporting period, the contractor determines the proceeds under the contract on an accrual basis, which, until the completion of the work, he accounts as a separate asset - “accrued revenue not presented for payment”. The contractor can reflect the specified asset on account 46 "Completed stages of work in progress" in correspondence with account 90 "Sales", sub-account 90-1 "Revenue". As the proceeds are presented for payment, these amounts are formed accounts receivable customer in the account of the contractor on account 62.
In this situation, provided that the concluded contract is long-term and the contracting organization recognizes revenue “as soon as it is ready”, at the time of signing the act of acceptance of work performed “in advance”, the customer’s receivables for the total amount of the contract are formed. At the same time, the actual revenue will differ from the revenue presented for payment downward and will be proportional to the share of expenses incurred in the current reporting period in the total amount of expenses under the contract (or the percentage of facility readiness). And only after all the expenses stipulated by the contract have been incurred (the facility will be completely ready), the full amount of revenue will be reflected in the accounting and account 46 “Completed stages of work in progress” will be closed.
If the contract is not long-term and accounting policy does not provide for the application of PBU 2/2008 for accounting for settlements under construction contracts, the contractor will not be able to adjust the amount of actual revenue depending on the degree of readiness of the construction site. The signing of the act of acceptance of the work performed will mean the recognition of revenue in accounting in full (in accordance with the amount of the contract). This will lead to an underestimation of costs and an overestimation of income tax on a specific transaction in the current reporting period (if the contracting organization uses the method of recognizing revenue "on accrual" in tax accounting). Such a “premature” summing up of financial results will entail the closing of the order card in the accounting and the inability to increase the costs of this contract in the future. All expenses under this order are subject to attribution to account 91 “Other income and expenses”, expense item “Expenses on closed contracts”. However, this practice should not be abused, as this will inevitably lead to errors and unreliability of information in accounting.
In conclusion, we can say that the application of PBU 2/2008 "Accounting for construction contracts" allows you to get an objective reflection in the accounting of mutual settlements between the customer and the contractor and a more accurate financial result. Despite the fact that the obligation to apply this provision in accounting is legally fixed only for firms that enter into long-term contracts, the provision can be useful and convenient for organizations that have short-term contractual relationships with customers.

Sergey Moderov, ACCA, Head of Department financial accounting according to international standards of the Institute of Entrepreneurship Problems:
- First of all, it should be noted that it is impossible to close a work contract with an act, under which the company still had to incur expenses, and it could not determine the exact cost of these expenses.
In addition, even if, from a managerial point of view, the act had to be signed in advance, every effort should have been made to estimate the upcoming costs of completing the contract as accurately as possible and create a reserve for future costs, attributing it to contract costs (on account 20 ) even in the period in which the certificate of completion was signed. Later, the organization would use the previously created reserve (balance sheet item) and would not affect the income statement.
I would recommend studying in more detail the requirements of the new PBU 2/2008 "Accounting for construction contracts", adopted by the Ministry of Finance of the Russian Federation on November 24, 2008. Despite the fact that this document regulates the accounting of work contracts lasting more than one year or starting in one period (before the New Year) and ending in another period (after the New Year), it is advisable to apply its provisions in this situation, for example, in order to in order to correctly form revenue and cost in the interim (quarterly) financial statements. So, the recommendations in this situation are as follows: for tax accounting, since the act is signed, to accept previously recognized expenses and revenue recognized under the act in the period of signing the act, because the document (certificate of work performed) exists and is signed. In accounting, using priority economic essence over the legal form, I recommend going one of the following ways.

The first way (more correct and preferred)
Apply the method of recognition of revenue and cost under the contract “as completed” (in other words, the method by which revenue and cost under the contract are recognized at the reporting date at the percentage of completion multiplied by the planned revenue and the planned cost for the project, respectively), then apply PBU 2/2008. In the reporting for the first half of the year, despite the presence of an act for 100 percent of revenue, the cost will be recognized as all actually incurred for the first quarter of the year under this agreement, and revenue will be recognized in an amount equal to the total planned revenue (for this example, the revenue reflected in the act of completed works) multiplied by the percentage of completion, calculated as the actual costs incurred in the first half of the year, divided by the total estimated (actually planned, all) costs for this contract. Thus, it is necessary to instruct the budget service of the organization to calculate the total cost of the project as accurately as possible (of course, taking into account the costs of completing the project in the III quarter). So, the percentage of completion is calculated, applied to the planned revenue.
At the same time, it is advisable to accounting entries use the good old account 46 "Completed stages of work." This account can be referred to as a "contract account".
Below are the accounting entries:
Dt c. 46 - Kt sc. 90 - revenue in the first half of the year is recognized, the amount was calculated by multiplying the total planned revenue by the percentage of completion.
Dt c. 90 - Kt sc. 20 - the cost price in the first half of the year is recognized (all actual costs incurred in the first half of the year are written off).
Dt c. 62 - Kt sc. 46 - the so-called interim payment from the customer is debited to the contract account. After that, at the end of the first half of the year, on the credit of account 46 “Completed stages of work”, there will be an estimated, conditional (not according to documents, but according to economic entity) accounts payable contractor to the customer, since in fact the customer transferred all 100 percent of the payment under the contract, the contractor completed the work only to the percentage of completion of the work described above. This contingent account payable will be reflected in the balance sheet in the line "accounts payable" with an indication in the notes to financial reporting that the specified amount means "the excess of payments by customers over the work performed, calculated on the basis of the percentage of work completed."
In tax accounting, it is necessary to recognize revenue "according to documents", that is, according to the act of completion of work. Accordingly, in the first half of the year there will be temporary differences under this contract. These differences will be eliminated in the third quarter, as the tax and accounting equalize.

The second way (which does not require effort from the accountant, but is less preferable)
Let it be as it is. That is, the recognized revenue and the recognized actual cost of the previous interim period (half year) do not change. In the reporting interim period, the remaining costs are accumulated on account 20, and then written off to the cost of account 90. At the same time, of course, the revenue corresponding to this cost will not be recognized, since it has already been recognized in the profit and loss statement for the half year. The result will be a loss on this contract in the third quarter. There will be no tax difference. The tax inspector, in theory, may question the expediency of incurring expenses in the III quarter under the completed contract, but the main recommendation is that do not draw up incomplete projects “by agreement” with acts of completed work or form a reserve for future expenses and recognize future expenses in the period when revenue is recognized (in the period of signing the certificate of completion).

Example:

In the period from January to May, the general contractor carried out construction work for the customer under a construction contract. The general contractor accumulated the costs for the construction of the facility on the debit of account 20 from the credit of accounts 10,70,69, etc., and the costs on account 20 are accumulated by the custom method (for each contract separately). In June, although the construction work stipulated by the contract had not yet been completed, the general contractor, by agreement with the customer, signed advance acceptance certificates for the work performed and put the facility into operation. In accounting, the general contractor reflected these operations with the following entries: DT 62 KT 90 for the cost of work performed. In July-August, the general contractor completed work on the act of completed work, signed in advance. From what sources should the general contractor write off the costs of work performed in July-August and how should this be reflected in accounting? The general contractor does not create a reserve to cover unforeseen expenses.

"Construction Weekly", No. 6 (398) dated 02/22/2010

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Hello, I asked a question about accounting for expenses after the delivery of the object. http://website/express-answer/raskhody-after-sdachi-obekta/ Thank you very much for the quick response. But I'm afraid I've been misunderstood by you. I want to explain the situation with an example. Let's say we have a contract for the construction of a heating main and the installation of asphalt. The amount of the contract is 15 million rubles. On December 31, 2014, acts were signed for 15 million rubles. - the entire amount of the contract, incl. and asphalting, which has not been completed, because not a season. How can I include accounting and tax accounting cost of materials used for asphalt paving in 2015. As far as I know, the Federal Tax Service is against writing off materials as expenses after the object is handed over. Thank you in advance for your response.

Answer

IFTS against the write-off of materials after the delivery of the object, if such expenses do not comply with paragraph 1 of Art. 252 of the Tax Code of the Russian Federation - are not economically justified and are not related to generating income. This, for example, may be if the contractor handed over to the customer a house without a roof, and the roof began to be completed later. That is, when some part of the work is attributed to the period after the delivery of work is not justified. In the answer, it was written that in order to convince the tax authority of the correctness of the write-off in your case, the work contract must provide for the transfer of work. For example: “In case of completion of work in winter period, the contractor, in agreement with the customer, has the right to postpone the asphalting work for the spring-summer period. Such a transfer does not affect the procedure for acceptance and delivery of work under the contract as a whole. At the same time, the customer has the right to withhold, in settlements with the contractor, a guarantee amount equal to the cost of performing the transferred work, which he pays to the contractor after the completion of the transferred scope of work. Further, the contract should specify the procedure for the transfer agreement, the procedure for the transfer and acceptance of the transferred work and the timing of the final settlement. If you do not have all this, then there are risks of disputes with the tax authorities.