86 accounting account accounting is necessary to summarize data on the movement of amounts intended for the implementation of activities under special programs. This article reflects revenues from the budget and from other enterprises. All of these amounts are for their intended purpose.
General Posting Rules
Purpose funds received for the implementation of certain programs are shown on the loan of the above article. It corresponds to the score. 76, summarizing data on settlements with various creditors and debtors. The use of targeted financing is shown by debit. In this case, the article in question corresponds to the score. 20 and 26. They reflect the main production and general running costs.
Such a posting is made if the proceeds are spent by a commercial organization. In the record, the score 86 corresponds to the count. 83 if the amounts are received as an investment. If the commercial organization sent money from the budget, then the account participates. 98. Analytical accounting of targeted financing is carried out depending on the direction of spending amounts in the context of sources of their income.
Explanation
Target financing is a gratuitous receipt of money, which is allowed to be spent only under the program provided by the entity that allocated them. Simply put, the ability to spend received amounts is limited by certain conditions. When they are executed, the funds become the property of the enterprise. If the established conditions are not met, the company must return all received amounts. In this case, they will relate to accounts payable. 
Categories
Account 86 reflects information on income and expenditure:
- State aid and the amounts provided in a similar manner by other persons in the form of subsidies and subventions.
- Sunday loans.
- Amounts for events.
- Various resources.
Subventions are cash receipts intended for strictly defined purposes. If they are not realized, then the amount must be returned. Subsidies can be either in-kind or cash payments. If they are not used for their intended purposes, then they usually will not be returned.
Under state aid should be understood direct economic actions aimed at increasing the benefits for the enterprise. They include the issuance of subsidies, subventions, direct financing of various events, as well as the provision of non-repayable loans. The latter are loan amounts from which the firm is exempted from repayment if it spends them on the implementation of programs for which, in fact, they have been allocated. Direct financing - covering by the state or other bodies of the costs of the enterprise that it might have incurred if it had not received such assistance.
Key spending areas
Target financing is used for:
- Reimbursement of expenses or coverage of losses.
- Maintaining the financial position of the company, replenishing its capital.
- Acquisition of assets.
The revenue category does not include:
- Assistance received in the form of benefits, tax credits, exemptions and vacations.
- Acceptance of loans and other repayable loans.
- Spending on operations related to state property management, state participation in the company's assets.
The indicated amounts are not included in account 86.
Conditions
Accounting for targeted financing is carried out in such cases:
- There is sufficient confidence that the procedure for providing assistance will be followed by the enterprise.
- The company has every reason to believe that the amounts will be received.
The fulfillment of the first condition will depend on the capabilities and intentions of the management of the company to use assistance. Confidence in observing the procedure for its provision is determined in the process of analysis of relevant public decisions, agreements, design estimates and technical and economic documents. The reasons to believe that the amounts will actually be received are determined by the receipt of reliable information about the transfer of assets, repayment of debts, notifications of appropriations, and so on.
PBU
The accounting procedure for state aid is regulated by Regulation 13/2000. It can be guided by the reflection of non-budgetary amounts. The receipt of assets or the payment of accounts payable are recorded on account 86 on credit. It corresponds to the debits of settlement accounts. At the same time, the Plan and the PBU establish that granting the right of the company, duly executed, to receive assistance is reflected in Cd. 86 in the form of receivables of a subject or budget, which has undertaken to provide it.
In this case, the receipt of the amounts will be shown in correspondence with the account. 76, summarizing data on settlements with creditors / debtors, aimed at fulfilling previously performed obligations. Meanwhile, it must be remembered that the reflection of financing at the time of provision can be carried out only when there are formal and clear obligations, the repayment of which can be required in court.
Question of benefit
Often, specialists have difficulties with reporting. They are due to the vagueness of the moment regarding the beginning of the receipt of benefits. In particular, it is not clear whether this happens when the amounts are received, or when they begin to make a profit? In the first case, the benefit arises when the right to financing appears, or the funds have already arrived. This will depend on the chosen company policy. If the second option is accepted, then it is considered that money is not mastered when it was received, but when the company began to make a profit. In this case, the following entries will be made:
- Db sc 51
- Cd 86.
This reflects the flow of money. For simplicity, you can skip intermediate article 76:
- Db sc 08.4 ("Acquisition of OS")
- Cd 51 ("Settlement accounts").
So show the payment of purchased fixed assets. Further, their capitalization is reflected:
- Db sc 01
- Cd 08.4.
It should be noted that all OS acquisitions due to help do not reduce its volumes. In the process of operating facilities depreciation is charged:
- Db sc 26
- Cd 02.
Only after reflecting all these operations, the company begins to master the assistance received:
- Db sc 86
- Cd 91.1.
In this case, financing will decrease not in the process of spending funds, but during the operation of the asset. As mentioned above, assistance can be provided not only in cash, but also in kind. For example, materials were provided free of charge. In this case, the postings will be as follows:
- Db sc ten
- Cd 86.
After write-offs of materials a new record is being compiled. She will be next:
- Db sc 20 ("Main production")
- Cd ten.
Further, the accountant reflects the direction of development of the assistance received. The following wiring is made:
- Db sc 86
- Cd 91.1.
Conclusion
Amounts summarized by the account 86, in case of violation of the conditions for their provision can be withdrawn, or the process of their submission is terminated. In this regard, any significant deviation from the prescribed procedure must be reflected in the statements. Termination or withdrawal of assistance should be recognized immediately as payables. Income from financing should be written off as an expense.The corresponding settlement items are credited to the aggregate amount of the amount to be repaid (with other creditors or with the budget). The debit of the account corresponds to them. 86.
The excess of the returned amounts over the balance of unused income is considered an expense. It relates to the debit of the financial results account. The analytics of the article under review should provide information on who exactly transferred the aid, for what needs and under what conditions, as well as on the amount of recognized income for each of its types and the balances of the amounts received for the acquisition of unamortized or unrecorded assets.
