The state provides for the receipt of various income from the enterprise. All of them should be accounted for correctly. And for this you need to know what they are. In this regard, other income is of interest. What is this? How should they be carried out? This, as well as a number of other questions, will be answered.
Introductory information
And you should start with the definition. Other income is income from operating and non-operating activities, as well as extraordinary acquisitions. Accounting conducts them on account 91. Accounting for other income is carried out at 91-1. Expenses go to subaccount 91-2, and the balance to 91-9.
Display Specifics
PBU 9/99 is used as the main supporting document. Subclause 18.2 of the said provision states that other income is non-operating and operating income minus expenses that relate to them. This reflection is allowed in the following cases:
- Relevant accounting rules provide for or do not prohibit a similar display of income.
- Revenues and related expenses arise as a result of the same fact of economic activity (or similar in nature).
In accounting, they are recognized in the manner regulated by paragraph 16 of PBU 9/99, namely:
- Proceeds from the sale of fixed assets and other assets that differ from money (the exception is foreign currency), goods, products and interest earned for providing the organization’s finances. This also includes participation in the authorized capital of other organizations (though only in cases where this is not considered as a subject of activity of a commercial structure). This is done in the manner prescribed by paragraph 12 of PBU 9/99.
- Penalties, fines and penalties for breach of contract and damages are displayed in the reporting period when they were recognized by the debtor. Alternative - the court ruled to recover.
- Amounts of deposits and payables for which the limitation period has expired. Also displayed in the reporting period when this event occurred.
- Revaluation amounts of assets.
- Other income - as they are identified or formed.
Operating income
To avoid problems, you should understand what should be considered. This type of other income has a list, which is given in paragraph 7 of PBU 9/99. It should be noted that these classes should not be the subject of ongoing activities:
- Rent. In this case, other income is the proceeds associated with the receipt of funds for the temporary possession and use of assets of the organizational structure.
- License fees. These include income received for granting rights that arise as patents for inventions, industrial designs and other types of intellectual property.
- Revenues generated through participation in the authorized capital of other organizations. These also include interest and other income of the organization on securities.
- In addition to the above, operating income also includes profit that the structure receives as a result of joint activities carried out in accordance with a simple partnership agreement. But this is very rare.
The specifics of operating income
Here, not everything is as easy as it might seem at first glance. Accounting for other income in this case is based on paragraph 15 of PBU 9/99. It stipulates that a prerequisite is the assumption of temporary certainty of the facts of the activity.Everything should be displayed in the reporting period in which it takes place. At the same time, the actual time of receipt or payment is not critical. The procedure for working with them is similar to revenue recognition, corresponding to clause 12 of PBU 9/99. At the same time, the accompanying bureaucratic moments should not be overlooked.
Take rent, for example. When working in this direction, there should be not only accounting for other income, but also compliance with the current civil code. As his requirements can lead to the conclusion of the contract, consideration of aspects of the use of the asset. There are also reservations to property that can be leased.
Revenues from the provision of intellectual property
In this case, it implies the acquisition of profits, to which individuals and legal entities have the exclusive right. This is possible as a result of the implementation of intellectual activity and the creation of means of individualization equated to them. Third parties may use them solely with the consent of the copyright holders. According to article 138 of PBU, all this can be classified as intangible assets. The legal regime of this type provides for the allocation of three types of objects:
- The results of creative activities that are protected by patent law. These are inventions, utility models, industrial designs.
- Means of individualization of products, services offered, work performed or the entire legal entity. This is a trademark, appellation of origin, company name.
- The results of creative activities that are protected by copyright. These are works of literature, science, art, topology of integrated circuits, databases, programs for electronic computers.
All this to a certain extent affects the display in accounting.
Intellectual Property Specifics
The financial result from other income is generated from objects with different legal regimes. How? Means of individualization and industrial property are governed by patent law. Works of art, science, literature and much more - this is already the sphere of copyright. The differences between them are that the second is designed to provide a comfortable environment for the functioning of the company, and the second is engaged in the protection of contents.
To protect inventions, utility models, industrial designs, company names and service marks, registration with the relevant authorities is required according to a specific procedure. For copyright it is superfluous. It is enough to simply express the work in an objective form that allows reproduction. In accounting, operations related to the transfer of rights to the obtained results of intellectual activity depend on the chosen form of the contract:
- Commercial concession.
- Copyright agreement - refers to the transfer of non-exclusive rights to use a work.
- Concessions.
- License Agreements. In this case, a non-exclusive and open form is provided.
When a partial transfer of rights takes place, the use of intellectual property does not stop. Thus, an intangible asset brings economic benefits and is not deducted from the balance sheet of the organization.
What does the wiring look like?
Other income should always be displayed correctly. According to PBU 9/99, they are classified depending on how they relate to the subject of activity. If the funds received are not related to the main activity of the organization, then first of all it is necessary to display the receipt of income. For this, the debit is account 76, the loan 91-1. At the same time, one should not forget about the calculation of value added tax. In this case, the debit is 91-2, and the loan is 68. Although, this option is not always foreseen. It all depends on the purpose of the payment. Moreover, even account 91 “Other income” is not always present.
Let's look at another example. Suppose you want to display a one-time fee under a license agreement as part of deferred income. In this case, debit 76 is used, and credit 98-1. But the matter is not limited to this. You must display the operating income under the license agreement. In this case, the posting is debit 98-1, and the loan is 91st. And do not forget about the calculation of value added tax. It is carried out according to the previously mentioned scheme debit 91-2, credit 68. The order also changes in cases where license payments are periodic. In this case, you should initially display the royalty calculation for the reporting period. Posting is debit 76, and credit 91-1. Then the value added tax is calculated. It is carried out at debit 91-2, the loan is 76 or 68. When a payment is received from the user, the amount is carried out in such a way: debit 51 - loan 76. Of course, everything is not limited to these options.
Participation in the authorized capital of other structures
In the legislative sphere, the issue of dividends has been worked out. This is the part of the net profit that is transferred to the owner and is his income. They are regulated by paragraphs 5 and 7 of PBU 9/99. But this is provided that participation in the authorized capital of other organizations is not the subject of a commercial structure.
The design scheme is as follows: debit 76-3, credit 91-1. Manipulations are not limited to this. So, debit 51 is carried out, and credit 76-3. Along with this, it is necessary to reflect the write-off of debts on the payment of income tax. In this case, the debit is 68, and the loan is 76. Here you must not forget about the requirements of PBU 18/02. In accounting, in this case the posting is made: debit 99 - credit 68.
Revenues from joint ventures
This is regulated by article 1041 of the Civil Code of the Russian Federation. In order to form a simple partnership, it is necessary to conclude a contract in which the obligations of the parties to each other will be considered. At the same time, it is planned to combine deposits and joint action for profit.
A variant is possible with the achievement of another goal that does not contradict the law. In this case, you do not need to create a separate legal entity. Profits are distributed in proportion to the value of deposits. Of course, unless otherwise provided by the existing contract. In this case, PBU 20/03 deals with regulation. Clause 14 of this document stipulates that profits earned as part of a joint venture should be treated as operating income. According to the provisions of PBU 9/99, this is displayed on a debit of 76-3, and a loan of 91-1.
A little about the balance of other income
After the end of the reporting periods, it is always necessary to tame the total for sub-account 91-3. It is necessary to monitor its value. It is highly desirable that the balance is always positive. But if expenses are greater, then this may be an occasion to think about how entrepreneurial activity is carried out correctly and adequately. Although its negative value does not always indicate the presence of any problems or bad trends. Perhaps this is part of a market strategy.
Revenues from the sale of fixed assets, as well as other assets of the organization
The need for this may arise for a number of reasons. For example, an object is out of order and cheaper to sell than to restore. The organization may reprofile production, and in this case the equipment will not be needed. It just needs money. The reasons are mass. As a result of the manipulations, not only property tax is reduced, but also the company gets rid of unnecessary fixed assets.
According to paragraph 7 of PBU 9/99, the money received relates to operating income. Paragraph 30 of PBU 6/01 provides for the use of the amount agreed upon in the contract. Separately, it is worth mentioning the associated costs. According to paragraph 31 of PBU 6/01, they must be written off in the reporting period to which they relate.In this case, do not forget about the posting between credit 01 and debit 91-2.
Income received from the provision of cash for use
This direction provides for the implementation of activities on a contractual basis. Paragraph 1 of Article 807 serves as a starting point. When concluding a contract, the term and interest must be indicated. After all, if these points are not stipulated, then the legislation has blanks for this case. And then you have to act in a general manner. Other financial income received under this item is posted to debit 58, and credit 50 or 51 (depending on the situation).
Conclusion
So it is considered what constitute other income of the enterprise. It should be noted that this topic is extremely extensive. And it’s stupid to hope that it can fit in one article. Moreover, even a book to describe all possible situations and their solutions is not enough. After all, it is such a thing that it takes years to study it.