Accounting policy for financial accounting

Employer / organization​ · Document date Approve the accounting policy below and its identified appendices. Apply it from Effective date. Person responsible for organizing implementation: Person responsible for maintaining the accounts​.

Activities and accounting objects: Activities and accounting objects​. Accounting shall be maintained continuously and consistently. The policy applies from year to year; changes shall be documented where the grounds specified in Article 8 of Federal Law No. 402-FZ (402-ФЗ) exist. General methods of financial accounting and preparation of financial statements apply.

Responsibility for maintaining the accounts is assigned to: Person responsible for maintaining the accounts​. Working chart of accounts and analytical breakdowns: The working chart of accounts shall provide separate recording of assets, liabilities, income and expenses by accounting object, subdivision and activity. Analytical records of receivables and payables shall be maintained by counterparty and contract, inventories by item and storage location, and fixed assets by individual asset. Tax balances and the unified tax account shall be reconciled separately.

Additional details reflecting actual circumstances: Working chart of accounts and analytical breakdowns​. Source documents, registers, and persons responsible for preparation and signature: A source document shall substantiate an actual business event and contain its name, date, issuer, description of the transaction, measurements, and the positions and signatures of the responsible persons, identifying them. Forms shall be approved by the head of the organization; mandatory forms shall be used where required by law. Registers shall provide chronological and systematic recording, links to source documents, identification of the preparer and control over corrections.

Additional details reflecting actual circumstances: Source document forms and accounting registers​. Registers shall be maintained in the accounting system: Accounting system and backups​. Document workflow, review, corrections and archival retention: A document shall be prepared when the event occurs or, if this is impossible, immediately afterwards. The responsible person shall check the details, authority and substance and submit the document to the accounting department for arithmetic and logical checks and recording in the accounts. Corrections shall be traceable; deletion of the original entry without grounds is prohibited. The retention period shall be determined by the document type and applicable requirements, rather than by a single date for all documents. Additional details reflecting actual circumstances: Document workflow schedule and retention​.

Establish the following methods for homogeneous groups of accounting objects: Methods shall be applied consistently to homogeneous objects. Where applicable standards do not prescribe a method, a justified method shall be developed and approved under the prescribed procedure. The choice of method shall reflect the economic substance of transactions and shall not be determined solely by tax rules. Materiality shall be assessed both quantitatively and qualitatively: information is material if its omission or misstatement could affect a financial statement user’s decision. Specific methods and criteria for groups of accounting objects shall be recorded below. Additional details reflecting actual circumstances: Measurement and recognition methods​.

Inventory verification shall be conducted under Federal Accounting Standard (ФСБУ) 28/2023; an internal schedule cannot override mandatory cases. Procedure: The head of the organization shall determine the objects, dates, responsible persons and methods of establishing actual existence. Source documents shall be complete before reconciliation begins. Results shall be compared with the registers, discrepancies investigated and documented, and decisions recorded in the proper period. Inventory verification shall not be replaced solely by reconciliation of account movements; the documents shall establish who checked the object, when and how.

Additional details reflecting actual circumstances: Inventory verification procedures​. Transaction controls, period-end closing, materiality, and preparation and signature of financial statements under applicable standards, including Federal Accounting Standard 4/2023: Period-end closing shall include checks of document completeness, reconciliations of balances, accruals, estimates, impairment and events after the reporting date. Errors shall be distinguished from changes in estimates. Material errors shall be corrected under the applicable procedure, and the supporting grounds retained. Financial statements shall be prepared from verified registers; material information shall be disclosed in the notes. Responsible persons shall check consistency between statements, comparability and the signatory’s authority. Additional details reflecting actual circumstances: Internal control and financial statements​. The appendices specified in the policy shall be approved together with it and made available to responsible persons. Signatory’s position​ __________ / Signatory’s full name​ /; authority: Basis of authority​.

Inventories shall be recognized at actual cost, including directly attributable costs and taking account of discounts received. Recoverable taxes shall not be included in cost. The unit of account shall allow control over movements and balances; quantity records shall be maintained by storage location and responsible person. Disposals of homogeneous inventories shall be valued at weighted average cost, calculated from the relevant group’s records as of the issue date. At the reporting date, inventories shall be valued taking possible impairment into account; the grounds and calculations for the allowance shall be documented. Exceptions are permitted only where the organization is entitled to the selected simplified method. Receivables shall be reviewed for recoverability; the doubtful portion shall be assessed for each debtor, taking account of financial position and security. Assets and liabilities may be offset only in the prescribed cases.

Capital investments shall be recorded by object until the asset is ready for use. Cost shall include expenditure attributable to creation and preparation; current expenses shall not be capitalized solely to shift their effect to future periods. Completion shall be supported by documents establishing readiness for use. Fixed assets shall be identified as individual assets, taking account of significant components and their useful lives. On recognition, the useful life, residual value and depreciation method shall be determined. The value threshold for low-value items shall be set with regard to materiality; the tax threshold does not apply automatically. Even where costs are expensed, the existence and movement of such items shall remain subject to control. Depreciation shall be charged on a straight-line basis, allocating the depreciable amount evenly over the expected useful life. Depreciation parameters shall be reviewed when expected conditions change and at the times required by the standards. Impairment shall be assessed separately; ceasing to use an asset does not in itself automatically require its write-off. Disposal shall be documented upon derecognition, with the resulting gain or loss recorded.

Transactions shall be recorded according to their economic substance in the period to which they relate. An advance does not become revenue merely because money has been received. The conditions for recognizing income and related expenses shall be checked against the contract and supporting documents. Provisions shall be recognized where the relevant conditions and a justified estimate exist and reviewed at the reporting date; a tax provision does not replace an accounting estimate. When mandatory standards change, the transition shall be documented, specifying the date and method of accounting for its effects. Early application of a new standard requires a separately approved decision and a complete set of transition rules.