How to keep score 98 Deferred income: 5 rules

How to reflect deferred income on the balance sheet? Organizations, without exception, keep accounting records. Reports on the flow of funds and the visibility of the overall picture of the company’s welfare depend on the correct recording of business transactions. Accounting keeps records carefully and scrupulously. The accountant's task is to record all income and expenses so that nothing is missed.

One of the complex and confusing accounts is considered to be “deferred income” (DBP). Usually, this happens because it is rarely used. But there are companies that use it constantly, due to their line of business.

Receiving fixed assets free of charge

Example

Astra LLC received a machine worth 500,000 rubles under a donation agreement. Such inventory items cannot be included in income immediately; income is recognized as they are used.

The useful life of the machine is set at 50 months.

Postings

How analytical accounting is carried out on account 08

On account 08, detailed analytical accounting is kept for each object on which costs are incurred. For example, on account 08 the following is kept:

• costs for each individual asset under construction or acquisition;
• costs for each type of design and survey work;
• costs for the acquisition of each intangible asset;
• costs of forming a herd for each type of animal;
• R&D costs by type of work or contracts if R&D is carried out to order.

In addition, costs should be broken down into groups. For example, costs of construction, reconstruction, installation, design and survey work, and so on.

Keep records of exports and imports in the Kontur.Accounting web service. Simple accounting, payroll and reporting in one service

Receiving free materials

Example

Alina LLC, a confectionery factory, received 800 kg of granulated sugar free of charge. The goods are capitalized at a cost of 20 rubles/kg, the total amount is 16,000 rubles. The next month, 400 kg of granulated sugar were written off for production, and in the next two months - 200 kg per month.

Assets received free of charge are included in non-operating income. In accounting they are reflected at market value determined as of the date of acceptance for accounting. Market value is determined on the basis of prices prevailing for a given type of asset as of the current date, or on the basis of an examination.

Postings

Subaccounts to account 98

Depending on the funds reflected on the balance sheet, the following additional sub-accounts are opened in the company’s accounting for account 98:

• 98.1 – for receipts for the provision of services in the future;
• 98.2 – to reflect inventory and materials donated to the company;
• 98.3 – to compensate for shortfalls identified in previous periods;
• 98.4 - to reflect the difference between the amount recovered and the book value of lost assets.

Deferred income from the lessor

Example

According to the terms of the agreement, rent can be paid monthly, or several months in advance. In this case, the payment is reflected as income for the current period - in parts, a multiple of the number of months paid.

Initially, the received amount is reflected in credit 98 of the account, then written off monthly.

On April 14, 2015, Bastion LLC leased vacant premises to Karina LLC. According to the agreement, Karina LLC transfers rent for 6 months at once.

On April 18, 2015, 708,000 rubles were received into the account of the lessor Bastion LLC, including 18% VAT - 108,000 rubles.

Postings

Account 98 in accounting

This account is intended to accumulate information about:

• Income received that relates to future reporting periods;
• The debt for the shortfall for previous years, which is to be collected;
• The difference in case of shortages and damage between the amount of recovery and the value of the property.

The amounts of income for future periods are reflected on the credit of account 98, and on the debit - the amount of income transferred to the corresponding accounts upon the arrival of the expected date.

The subaccounts of account 98 “Deferred income” are presented below in the figure:

Analytical accounting of account 98 “Deferred income” is carried out for each:

• Type of income;
• Free receipt of valuables.

Reflection in the balance sheet of the enterprise

When compiling the final balance sheet, DBP are displayed on line 1530 of the Liabilities of the balance sheet in the “Short-term liabilities” (see figure).

It shows the value of funds received free of charge, receipts for identified thefts and shortages of past periods and the amount of targeted funding received by the organization over the past calendar year.

When filling out the balance sheet, it is necessary to remember that for the purpose of drawing up correct financial statements, advances received must be reflected separately from the DBP.

Therefore, payments transferred as an advance payment are subject to accounting on line 1520 and are one of the components of accounts payable.

In fact, line 1530 ultimately needs to show the amounts of the credit balance of account 98 and the credit balance of account 86 in the target financing provided analytics.

But in the case when the amount of unused targeted funding is large and significant in the overall indicators of the organization’s turnover, then it is advisable to show it separately. A special line in the “Short-term liabilities” section can be used for display.

Additional information from the supplier

TERMS OF COOPERATION: We are located: Shopping complex Sadovod