Reserve for warranty repairs and warranty service in tax accounting

The need to issue a warranty in relation to the manufactured product is associated with a certain number of defective units of the product that do not meet the established quality criteria in the released batch. Elimination of defects and identified deficiencies is the responsibility of the supplier (Articles 469-477 of the Civil Code of the Russian Federation).

The theoretical possibility of a decrease in profit (in the coming period) due to the need to eliminate shortcomings in the sold product must be reflected in the financial statements as potential expenses.

Otherwise, the reporting will be incorrect and misleading regarding the company’s possible losses.

If, during a specified period, the manufacturer is required to repair the sold product in connection with the warranty issued under it, then an estimated liability must be recognized in the accounting of the enterprise.

The guarantee stock is created to write off expenses for servicing sold goods evenly over a specified period and can be formed by both manufacturers and trading structures.

How to take into account the costs of warranty repairs and maintenance ?

Who and when is obliged to create a reserve for warranty repairs in accounting?

The company is obliged to recognize in its accounting a reserve for warranty repairs (WRR) if 3 conditions coincide at once (clause 5 of PBU 8/2010 “Estimated liabilities, contingent liabilities and contingent assets”, approved by order of the Ministry of Finance of Russia dated December 13, 2010 No. 167n):

the company has the obligation to eliminate defects of the goods (products, works) discovered in the future during the warranty period, since it has issued a guarantee for them;
there is a possibility of a decrease in economic benefits as a result of the fulfillment of warranty obligations;
the amount of the provision can be reasonably determined.

The procedure for recognizing RGR in accounting:

the liability is recognized at the reporting date;
the amount of the RGR should allow you to pay off creditors or transfer the obligation to another person (clause 15 of PBU 8/2010);
the estimated amount of costs for warranty repairs is assessed using actual data, based on practical experience or expert opinion (clause 16 of PBU 8/2010);
significant amounts of RGR are disclosed in the accounting reports (clause 24 of PBU 8/2010).

The following materials will tell you about other types of estimated liabilities:

“Provisions for doubtful debts in accounting”;
“Reflection of the reserve for vacation pay in accounting”.

Is it necessary to form a reserve for warranty repairs and warranty service for income tax purposes, the Ministry of Finance clarified. Get free trial access to the ConsultantPlus system and find out the opinion of officials.

Accounting

In accounting, contributions to the reserve for warranty repairs are classified as expenses for ordinary activities or other expenses (clause 5 of PBU 10/99, clause 8 of PBU 8/2010). Expenses to increase the reserve are recognized as other expenses of the organization (clause 20 of PBU 8/2010).

In accounting, reflect the accrual of the reserve for warranty repairs on account 96 “Reserves for future expenses” in the subaccount “Reserve for warranty repairs” (Instructions for the chart of accounts):

Debit 20 (23, 44), 91-2 Credit 96 subaccount “Reserve for warranty repairs”

– deductions have been made to the reserve for warranty repairs.

If the expected period for fulfilling the estimated liability exceeds 12 months after the reporting date, you need to determine how much of the reserve to write off as expenses for the current reporting period and how much in the following reporting periods. To do this you need to calculate:

– present value of the estimated liability;

– expenses that increase the liability in subsequent reporting periods.

The present value of the estimated liability (the amount of the reserve that can be written off as expenses of the current period) is calculated using the formula:

Present value of the provision

Amount of estimated liability

Discount coefficient

The discount factor is determined as follows:

Discount coefficient

1 + discount rate

…

The number of multipliers corresponds to the number of years of discounting of the estimated liability. The discount rate is determined expertly, for example, depending on the projected inflation rate.

Expenses to increase the provision, which are written off in the following reporting periods, are considered as follows:

Expenses to increase the estimated liability

Present value of the provision at the end of the previous reporting period

Discount rate

The above calculation procedure is also used by organizations that have stated in their accounting policies that they adjust, taking into account the discount factor, estimated liabilities that are due less than 12 months after the reporting date.

This procedure is provided for in paragraph 20 of PBU 8/2010.

An example of how deductions to the reserve for warranty repairs of goods are reflected in accounting. The organization provides a three-year warranty on products sold.

Torgovaya LLC sells televisions. The organization provides a two-year warranty for products sold in January 2015. Expenses for warranty repairs that may arise during the warranty period are recognized by Hermes as an estimated liability and, in accordance with PBU 8/2010, creates a reserve for warranty repairs in accounting. In accordance with the calculation procedure provided for in the accounting policy, the discount rate used by the organization is 14 percent.

As of January 31, 2015, the amount of upcoming expenses for warranty repairs, calculated based on expert estimates, amounted to RUB 1,200,000. The accountant must reflect this amount as part of the reserve for future expenses within two years.

To determine the amount of the reserve, the accountant calculated the discount factor: 1: (1 + 0.14)2 = 0.76947.

The amount of the reserve, which the accountant took into account at a time in the expenses of January 2015, was: 1,200,000 rubles. × 0.76947 = 923,364 rubles.

Since Hermes does not create a reserve for warranty repairs in tax accounting, temporary differences and a corresponding deferred tax asset arise in accounting.

The accounting regulations do not indicate how to distribute between reporting periods the costs of creating and increasing the reserve for warranty repairs. Hermes has established in its accounting policy that it distributes such expenses evenly, taking into account the number of months of reserve accrual per calendar year.

In addition, the accountant will calculate the increased (present) value of the reserve:

– as of January 31, 2021: RUB 923,364. + 923,364 rub. × 0.14 = 1,052,635 rubles;

– as of January 31, 2021: RUB 1,052,635. + 1,052,635 rub. × 0.14 = 1,200,000 rub.

For February 2015 – January 2021, the present value of the reserve will increase by 129,271 rubles. (RUB 1,052,635 – RUB 923,364). For February 2021 - January 2021, the present value of the reserve will increase by 147,365 rubles. (RUB 1,200,000 – RUB 1,052,635).

The present value of the reserve for February–March 2015 increased by RUB 21,545. (RUB 129,271: 12 months × 2 months). Since Hermes does not create a reserve for warranty repairs in tax accounting, temporary differences and a corresponding deferred tax asset arise in accounting.

Likewise, the present value of the provision will increase up to and including January 2021.

Let's assume that the reserve for warranty repairs was never used, then Hermes will reflect its amount in income as of March 31, 2021.

In accounting, Hermes will make the following entries.

January 31, 2015:

Debit 44 Credit 96 subaccount “Reserve for warranty repairs” - 923,364 rubles. – the estimated liability for warranty repairs is reflected;

Debit 09 Credit 68 subaccount “Calculations for income tax” – 184,673 rubles. (RUB 923,364 × 20%) – a deferred tax asset is reflected.

March 31, 2015:

Debit 91-2 Credit 96 subaccount “Reserve for warranty repairs” - 21,545 rubles. (RUB 129,271: 12 months × 2 months) – reflects the increase in the estimated liability for warranty repairs for February–March 2015;

Debit 09 Credit 68 subaccount “Calculations for income tax” – 4309 rubles. (RUB 21,545 × 20%) – a deferred tax asset is reflected.

June 30, 2015:

Debit 91-2 Credit 96 subaccount “Reserve for warranty repairs” - 32,318 rubles. (RUB 129,271: 12 months × 3 months) – reflects the increase in the estimated liability for warranty repairs for April–June 2015;

Debit 09 Credit 68 subaccount “Calculations for income tax” – 6464 rubles. (RUB 32,318 × 20%) – a deferred tax asset is reflected.

September 30, 2015:

Debit 09 Credit 68 subaccount “Calculations for income tax” – 6464 rubles. (RUB 32,318 × 20%) – a deferred tax asset is reflected.

December 31, 2015:

Debit 09 Credit 68 subaccount “Calculations for income tax” – 6464 rubles. (RUB 32,318 × 20%) – a deferred tax asset is reflected.

March 31, 2021:

Debit 91-2 Credit 96 subaccount “Reserve for warranty repairs” - 35,334 rubles. (RUB 129,271: 12 months × 1 month + RUB 147,365: 12 months × 2 months) – reflects the increase in the estimated liability for warranty repairs for January–March 2021;

Debit 09 Credit 68 subaccount “Calculations for income tax” – 7067 rubles. (RUB 35,333 × 20%) – a deferred tax asset is reflected.

June 30, 2021:

Debit 91-2 Credit 96 subaccount “Reserve for warranty repairs” - 36,841 rubles. (RUB 147,365: 12 months × 3 months) – reflects the increase in the estimated liability for warranty repairs for April–June 2021;

Debit 09 Credit 68 subaccount “Calculations for income tax” – 7368 rubles. (RUB 36,841 x 20%) – a deferred tax asset is reflected.

September 30, 2021:

Debit 09 Credit 68 subaccount “Calculations for income tax” – 7368 rubles. (RUB 36,841 × 20%) – a deferred tax asset is reflected.

December 31, 2021:

Debit 09 Credit 68 subaccount “Calculations for income tax” – 7368 rubles. (RUB 36,841 × 20%) – a deferred tax asset is reflected.

March 31, 2021:

Debit 91-2 Credit 96 subaccount “Reserve for warranty repairs” - 12,280 rubles. (RUB 147,365: 12 months × 1 month) – reflects the increase in the estimated liability for warranty repairs for January 2021;

Debit 96 subaccount “Reserve for warranty repairs” Credit 91-1 – RUB 1,200,000. – the unused reserve for warranty repairs was restored to income;

Debit 68 subaccount “Calculations for income tax” Credit 09 – 237,544 rubles. ((RUB 1,200,000 – RUB 12,280) × 20%) – the deferred tax asset is repaid.

Provision for warranty repairs and VAT

It is important for the company forming the RGR to remember that the following are not subject to VAT (subclause 13, clause 2, article 149 of the Tax Code of the Russian Federation):

repair and maintenance services for goods during the warranty period of their operation, if they are provided without additional payment;
cost of spare parts used during warranty repairs.

Explanation of the provisions of Art. 149 of the Tax Code of the Russian Federation, see the material “Art. 149 of the Tax Code of the Russian Federation: questions and answers.”

However, not everyone can take advantage of this VAT exemption.

For example, the issue of application of this exemption by third parties involved in relations with manufacturers of goods and repair companies, but not directly performing warranty repairs (the “manufacturer-distributor-dealer” chain), remains unregulated by law.

Examples of contradictory judicial positions are presented below:

the distributor is not entitled to VAT exemption (Resolution of the 9th AAS dated October 26, 2011 No. 09AP-26094/11);
whether the distributor has the opportunity to use the right to exemption from VAT (Resolution of the Federal Antimonopoly Service of the Moscow Region dated 02.02.2012 No. F05-13111/11).

The use of VAT exemption by dealers is interpreted clearly in their favor (letter of the Ministry of Finance of Russia dated February 28, 2013 No. 03-07-07/5908).

Another controversial situation with VAT arises if a warranty is issued by the manufacturer, but the trading company carries out warranty repairs at its own expense. In this case, the trading company must pay VAT from its own funds, since in the absence of compensation from the manufacturer, such repairs are not considered warranty and are recognized as a free service.

When and how trading companies are formed in the accounting of RGR, we will tell you in the next section.

Replacement of spare parts and components

The terms of the contract may stipulate that the customer organization pays only for warranty repairs (without taking into account the cost of spare parts). In this case, if during the repair there is a need to replace any parts (components), the customer organization is obliged to provide them at its own expense (Articles 703, 704, 713 of the Civil Code of the Russian Federation).

As a rule, the customer organization transfers spare parts and components for warranty repairs on a toll basis (clause 156 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n). Since in this case the ownership of the transferred property does not pass to the performer of the work (clause 1 of Article 220 of the Civil Code of the Russian Federation), take it into account in the same manner as customer-supplied materials. After the repair, the contractor must provide the customer with a report on the use of the received spare parts (Clause 1, Article 713 of the Civil Code of the Russian Federation). If not all spare parts were used during the repair process, the contractor must return them using the invoice. These documents are the basis for writing off materials used for warranty repairs.

Situation: how to reflect in accounting the receipt of spare parts intended for warranty repairs? Spare parts were received from a foreign manufacturer of products free of charge within the warranty period of the product.

Reflect them on off-balance sheet account 003 “Materials accepted for processing.”

If the manufacturer has established a warranty period for the product, the obligation to eliminate defects lies with him (the exception is the case when the fact of damage to the product by the consumer is proven) (Article 476 of the Civil Code of the Russian Federation, paragraph 2 of paragraph 6 of Article 18 of the Law of the Russian Federation of February 7, 1992 No. 2300-1).

In order to ensure the possibility of using the product during its service life, the manufacturer undertakes to:

carry out repairs and maintenance of products;

supply spare parts to trade and repair organizations during the service life of the product (and in the absence of such a period, for ten years from the date of transfer of the product to the consumer).

One of the ways to fulfill the warranty obligation is the free replacement of defective spare parts (both with and without repair work). As a rule, the consumer makes a request to eliminate the defects of the product to the direct seller. In turn, the seller in this case has the right to address these demands to the manufacturer. And the manufacturer can either compensate all the seller’s expenses for warranty repairs (including the cost of spare parts purchased by him), or carry out the repairs himself or provide the seller with spare parts free of charge for further transfer to the consumer.

This follows from Article 469, paragraph 2 of Article 470, Article 475, paragraph 3 of Article 477 of the Civil Code of the Russian Federation and Article 6 of Law No. 2300-1 of February 7, 1992.

In the situation under consideration, the organization receives spare parts for warranty repairs of sold products free of charge for free transfer to the consumer.

Spare parts received for warranty repairs are the property of the manufacturer (Article 713 of the Civil Code of the Russian Federation). Therefore, in accounting, reflect them on off-balance sheet account 003 “Materials accepted for processing”:

Debit 003

– spare parts provided by the manufacturer for further transfer to the consumer are accepted for accounting.

Please accept spare parts for accounting at the price indicated in the accompanying documents (invoice, delivery note) received from the manufacturer. The basis for accepting spare parts for accounting are primary accounting documents confirming the receipt of spare parts (act of acceptance and transfer of spare parts, agreement with the manufacturer, receipt order) (Part 1 of Article 9 of the Law of December 6, 2011 No. 402-FZ).

When transferring spare parts to the consumer, make the following wiring:

Credit 003

– the cost of spare parts transferred to the buyer for replacement is written off.

Write off spare parts based on the spare parts acceptance certificate and the spare parts consumption report.

This procedure follows from the Instructions for the chart of accounts, as well as the provisions of Article 713 of the Civil Code of the Russian Federation.

When receiving spare parts from a manufacturer, an organization may incur costs, for example, to pay VAT and customs duties (duties), if the manufacturer is a foreign organization.

The amount of customs duties (duties) paid at customs for spare parts received for warranty repairs should be included as part of other expenses (clause 11 of PBU 10/99). Make the following entry in accounting:

Debit 91-2 Credit 76 subaccount “Calculations for customs duties and fees”

– the amount of customs duties (duties) paid at customs when importing spare parts is taken into account as part of other expenses.

Reflect the VAT paid at customs by posting:

Debit 19 Credit 68 subaccount “VAT calculations”

– VAT payable at customs when importing spare parts is reflected.

Industry specifics of the reserve for warranty repairs

The need to create a RGR may arise from different enterprises and organizations. Do industry specifics affect the algorithms for generating RGR?

To answer this question, we will focus on the scheme for the formation of RGR in 2 non-related industries: trade and construction.

RGR in trade

The need for the creation of RGR by trading companies is associated with the provision of guarantees to buyers for the goods sold. The most common type of warranty support that is beneficial for buyers is when selling household appliances.

Warranty repair costs in such a situation may only arise from one of the following entities:

manufacturer of household appliances;
trading company.

A trading company does not have the right to create a RGR if repairs under warranty are carried out:

manufacturer;
workshop of a trading company - if the manufacturer compensates for the costs incurred.

If a trading company provides customers with a company guarantee and repairs sold goods during the warranty period, it forms a RGR.

The purpose of creating a RGR in accounting is to uniformly include upcoming expenses for warranty repairs and warranty service in the costs of the reporting period of a trading company.

Regulatory grounds for the formation of the RGR:

PBU 8/2010 “Estimated liabilities, contingent liabilities and contingent assets” (approved by order of the Ministry of Finance of Russia dated December 13, 2010 No. 167n);
clause 72 of the Regulations on accounting and financial reporting (approved by order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n).

If a trading company creates a RGR for the first time, it needs to:

enter into the working chart of accounts. 96 “Reserves for future expenses” (if this account was not previously provided) and supplement the accounting policy with a methodology for calculating the reserve;
the amendments made to the accounting policy should be approved by order of the manager and the involved accounting specialists should be familiarized with them;

When developing a methodology for calculating RGR, a trading company can use statistical data (on breakdowns of specific goods, costs of repairing them, etc.), as well as the “tax” scheme for the formation of RGR (Article 267 of the Tax Code of the Russian Federation). The calculated annual amount of the planned RGR is approved by order of the head of the trading company before the start of the reporting year.

Example

Trading sells food processors and provides them with a 12-month company warranty (the manufacturer does not provide warranty repairs). The company’s accounting policy stipulates that the RGR is formed according to the “tax” method using data for the previous 3 years when calculating the amount of the reserve.

To form the RGR, the following data were used (for the previous 2 years):

TC Vita's revenue for sold food processors is RUB 6,230,000. (excluding VAT);
expenses for warranty repairs - 180,000 rubles.

Algorithm for calculating RGR:

determination of the percentage of deductions to the Russian State Register: (180,000 / 6,230,000) × 100 = 2.889%;
monthly deductions are made to the RGR, calculated on the basis of revenue from the sale of food processors and the percentage of deductions. For example, with revenue in January of 112,000 rubles. this is 3,235.68 rubles. (RUB 112,000 × 2.889%).

How to take into account the costs of warranty repairs, read in ConsultantPlus. To do everything correctly, get trial access to the system and go to the Typical Situation. It's free.

RGR in construction

Construction companies, like trading companies, have to deal with warranty obligations - if the construction contract stipulates that the contractor, during the warranty period, is obliged to eliminate at his own expense defects that were not identified during the acceptance of the work performed.

For uniform recognition in accounting of expenses associated with the performance of these duties, the construction company creates a RGR.

However, a construction company has the opportunity not to fulfill warranty obligations if the shortcomings and defects that arise are not due to its fault, but in connection with (clause 2 of Article 755 of the Civil Code of the Russian Federation):

normal wear and tear of the object (or its parts);
improper use;
incorrect application of operating instructions developed by the customer or third parties involved;
improper maintenance and (or) repairs performed by the customer (general contractor or involved subcontractors).

It is necessary to take into account that paragraphs. 2 and 4 tbsp. 724 of the Civil Code of the Russian Federation stipulate that the customer (general contractor) has the right to demand that the contractor eliminate deficiencies within 5 years from the moment the result of the work was accepted - the possibility of reducing this period is not provided for by law.

Thus, construction companies - unlike trade companies - have a legally established minimum period during which they are obliged to carry out warranty repairs and, in connection with this, may incur corresponding costs.

Otherwise, the approaches to the algorithms for generating RGR for a construction company are similar to those described above for trading companies.

Categories

The legal regulation of the seller’s liability for selling goods of inadequate quality to the buyer is contained in Art. 469–477 of the Civil Code of the Russian Federation and in the Law of the Russian Federation of February 7, 1992 No. 2300-1 “On the Protection of Consumer Rights” (hereinafter referred to as Law No. 2300-1).

The seller according to clause 1 of Art. 469 of the Civil Code of the Russian Federation is obliged to transfer to the buyer goods, the quality of which corresponds to the purchase and sale agreement. In other words, when selling, the seller provides a guarantee for the product.

As follows from paragraph 2 of Art. 470 of the Civil Code of the Russian Federation, the contract may provide for the provision by the seller of a guarantee of the quality of the goods; the seller is obliged to transfer to the buyer the goods, which must meet the requirements provided for in Art. 469 of this Code, for a certain time established by the contract (warranty period).

The warranty period is established by the manufacturer (performer) in its technical documentation (agreement with the consumer) and is calculated in time units.

Thus, the seller is responsible for the quality of the goods in any case, regardless of whether the corresponding condition is provided for in the contract or not. If a warranty period has been established for the product, the buyer has the right to make claims related to defects in the product if they are discovered during the warranty period (Clause 3 of Article 477 of the Civil Code of the Russian Federation).

Items for which a guarantee may be issued

From paragraph 2 of Art. 470 of the Civil Code of the Russian Federation it follows that the seller has the right to provide a quality guarantee for the product as a whole. Similar requirements are contained in paragraphs. 6 and 7 art. 5 of Law No. 2300-1.

At the same time, in paragraph 3 of Art. 470 of the Civil Code of the Russian Federation and clause 3 of Art. 19 of Law No. 2300-1, components and components of goods are identified as an independent subject of warranty obligations of sellers (manufacturers).

In accordance with paragraph. 1 item 2 art. 1 and Art. 421 of the Civil Code of the Russian Federation, freedom of contract can only be limited by the provisions of laws and other legal acts. The legislation does not prohibit the seller (manufacturer) from establishing a warranty period for individual components and components of the product.

Thus, it seems that the seller (manufacturer) has the right to establish a warranty period both for the product as a whole and for individual components and components of the product.

Seller's responsibility for product quality

The presence of a warranty on the goods sold determines the limits of the seller’s liability for inadequate quality of the goods. As a general rule (that is, if there is a legal guarantee), the seller is responsible for defects in the goods if the buyer proves that they arose before the risk of accidental death or accidental damage passed to the buyer or for reasons that arose before that moment.

The procedure for recognizing expenses for warranty repairs in the tax accounting of the manufacturer

In accordance with sub. 9 clause 1 art. 264 of the Tax Code of the Russian Federation, expenses for the provision of services for warranty repairs and maintenance, including deductions to the reserve for future expenses for warranty repairs and warranty service (taking into account the provisions of Article 267 of the Tax Code of the Russian Federation), are considered other expenses associated with production and sales.

Clause 1 of Art. 267 of the Tax Code of the Russian Federation establishes that taxpayers selling goods (work) have the right to create reserves for upcoming expenses for warranty repairs and warranty service.

Thus, ch. 25 of the Tax Code of the Russian Federation provides for two methods of accounting for tax purposes for expenses incurred for warranty repairs and maintenance:

· direct write-off of costs actually incurred during the warranty period as part of other expenses associated with production and sales;

· formation of a reserve for warranty repairs with subsequent write-off of actual expenses incurred from the funds of the created fund.

Reserve for warranty repairs and maintenance

Reserving expenses involves an even distribution of upcoming expenses over one or more tax periods in order to stabilize the tax base and income tax payments to the budget.

In this case, a reserve is created in respect of those goods (works) for which, in accordance with the terms of the concluded agreement with the buyer, maintenance and repairs are provided during the warranty period (clause 2 of Article 267 of the Tax Code of the Russian Federation).

In relation to goods sold for which, in accordance with the terms of the concluded agreement with the buyer, maintenance and repairs are not provided during the warranty period, a reserve for warranty repairs is not created.

The organization makes its own decision on the advisability of creating a reserve. The accounting policy for profit tax purposes for the coming year must reflect the accepted method of accounting for expenses for warranty repairs, and if a decision is made to create a reserve, the maximum amount of the reserve and the standard (percentage) of deductions, the procedure for creating a reserve for warranty repairs, that is, the method calculating the monthly amount of deductions.

If the taxpayer decides to write off expenses from the reserve, the reserve is created in the manner established by Art. 267 Tax Code of the Russian Federation.

Monthly amounts of deductions for the creation of a reserve are included in other expenses associated with production and (or) sales, which are taken into account when calculating income tax on the basis of subsection. 9 clause 1 art. 264 Tax Code of the Russian Federation.

Expenses are recognized as the amounts of deductions to the reserve on the date of sale of the specified goods (work). Expenses in the form of deductions to the reserve for warranty repairs can only arise in the reporting period in which the sale of goods subject to warranty repairs and maintenance was carried out.

Creation of a reserve. Reserve limit

In accordance with paragraph 2 of Art. 267 of the Tax Code of the Russian Federation, the accounting policy must determine the amount of contributions to this reserve.

The maximum amount of deductions is determined by clause 3 of Art. 267 Tax Code of the Russian Federation. In accordance with paragraph 3 of Art. 267 of the Tax Code of the Russian Federation, the amount of the created reserve cannot exceed the maximum amount, determined as the share of the expenses actually incurred by the taxpayer for warranty repairs and maintenance in the amount of proceeds from the sale of the specified goods (work) for the previous three years, multiplied by the amount of proceeds from the sale of the specified goods (work) for the reporting (tax) period.

Example 1

An organization specializing in the manufacture of household appliances decided to create a reserve for warranty repairs and maintenance in a maximum amount in 2002.

The amount of revenue from the sale of household appliances in 2000 amounted to 50,000 thousand rubles, in 2001 - 80,000 thousand rubles, in 2002 - 70,000 thousand rubles, in 2003 - 80,000 thousand . rub.

The amount of actual expenses for warranty repairs and maintenance of equipment in 2000 was 500 thousand rubles, in 2001 - 700 thousand rubles, in 2002 - 800 thousand rubles.

Thus, the maximum share of contributions to the reserve is 1% ((500 thousand rubles + 700 thousand rubles + 800 thousand rubles) × 100% / (50,000 thousand rubles + 80,000 thousand + 70,000 thousand roubles.)).

Consequently, the maximum amount of contributions to the reserve in 2003 is 800 thousand rubles. (80,000 thousand rubles × 1% / 100%).

In 2003, the organization incurred actual expenses for warranty repairs and maintenance of household appliances, which were written off from the reserve funds (700 thousand rubles). The balance of the reserve is equal to 100 thousand rubles. (800 thousand rubles - 700 thousand rubles), postponed to 2004. Revenue from the sale of household appliances in 2004 will amount to 90,000 thousand rubles.

The maximum share of contributions to the reserve in 2004 is equal to 0.96% ((700 thousand rubles + 800 thousand rubles + 700 thousand rubles) × 100% / (80,000 thousand rubles + 70,000 thousand RUB + 80,000 thousand RUB)), their absolute value is 864 thousand RUB. (90 thousand rubles × 0.96% / 100%).

Thus, the amount of contributions to the reserve in 2004 will be 764 thousand rubles. (864 thousand rubles – 100 thousand rubles).

If a taxpayer has been selling goods (work) for less than three years under the condition of warranty repairs and maintenance, to calculate the maximum amount of the reserve created, the volume of revenue from the sale of these goods (work) for the actual period of such sale is taken into account.

If the taxpayer has not previously sold goods (work) subject to warranty repairs and maintenance, then, in accordance with clause 4 of Art. 267 of the Tax Code of the Russian Federation has the right to create a reserve for warranty repairs and maintenance of goods (work) in an amount not exceeding the expected costs of these costs. Expected expenses mean the expenses provided for in the plan for fulfilling warranty obligations, taking into account the warranty period.

Example 2

The taxpayer decides to create a reserve for warranty repairs in 2004. In the accounting policy, he determines the maximum amount of contributions to this reserve in the amount of 4%.

For the period from 01.01.2001 to 01.01.2003, the taxpayer incurred expenses for warranty repairs in the amount of 100,000 rubles.

The volume of revenue from the sale of goods for which, in accordance with the terms of the concluded agreement with the buyer, maintenance and repairs are provided during the warranty period, for this period amounted to 5,000,000 rubles.

The limiting coefficient is 0.02 (100,000 / 5,000,000).

Based on the results for the first reporting period of 2003, revenue from the sale of goods for which, in accordance with the terms of the concluded agreement with the buyer, maintenance and repairs are provided during the warranty period, amounted to 800,000 rubles.

Thus, contributions to the reserve for the formation of a reserve for warranty repairs and warranty service, included in other expenses of the first reporting period of 2003, will amount to 16,000 rubles. (800,000 × 0.02).

When preparing reports for the second reporting period of 2003, the reserve for warranty repairs cannot exceed 30,000 rubles. (1,500,000 × 0.02), where 1,500,000 rub. — revenue for the second reporting period of 2003 (on an accrual basis).

Consequently, an additional amount of 14,000 rubles is included in the expenses. (30,000 – 16,000).

Actually incurred expenses for warranty repairs are written off against the specified reserve. If, at the end of the tax period, the amount of expenses for warranty repairs turns out to be more than the created reserve, such excess is included in the expenses for the results of the tax period.

If the amount of the reserve for warranty repairs was not used at the end of the tax period, then the specified amount is transferred to the next year.

Let's assume that the amount of unused reserve at the end of 2003 was 15,000 rubles.

To form a reserve in 2004, it is necessary to determine two indicators:

· the total amount of expenses for warranty repairs of goods for which warranty service is provided for the 3 years preceding the current tax period;

· the total amount of revenue from the sale of goods for which warranty service is provided for the 3 years preceding the current tax period.

The indicated indicators amounted to 200,000 rubles, respectively. and 4,000,000 rub. The limit coefficient is 0.05 (200,000 / 4,000,000).

Consequently, when generating revenue from the sale of goods for which, in accordance with the terms of the concluded agreement with the buyer, maintenance and repairs are provided during the warranty period, in the amount of 350,000 rubles. contributions to the reserve will amount to 14,000 rubles. (350,000 × 0.04). Revenue is multiplied by a coefficient of 0.04 due to the fact that the specified maximum value is stated in the taxpayer’s accounting policy.

Since the amount of the newly created reserve is less than the amount of the balance of the reserve created in the previous year, an amount of 1000 rubles is included in the income of the first reporting period. (15,000 – 14,000).

Use and adjustment of the reserve for warranty repairs and warranty service

If the taxpayer has decided to create a reserve for warranty repairs and maintenance of goods (work), expenses for warranty repairs are written off from the amount of the created reserve (clause 5 of Article 267 of the Tax Code of the Russian Federation).

At the end of the tax period, the amount of the reserve must be adjusted based on the share of actual costs for warranty repairs in the volume of sales revenue for the past period.

If the amount of the created reserve is less than the amount of repair expenses incurred by the taxpayer, in tax accounting the difference between them is included in other expenses (clause 5 of Article 267 of the Tax Code of the Russian Federation).

Example 3

The amount of the created reserve is less than the actual repair costs incurred.

CJSC Start has been producing digital oscilloscopes since 1997. For this type of finished product, in accordance with contracts concluded with customers, warranty service and repairs are provided for during a warranty period of 12 months.

The expenses actually incurred by Start CJSC for warranty repairs and maintenance of the products in question for the three previous years amounted to:

· in 2000 - 100,000 rubles;

· in 2001 - 200,000 rubles;

· in 2002 - 300,000 rubles.

Revenue (excluding VAT) from the sale of digital oscilloscopes:

· in 2000 - 10,000,000 rubles;

· in 2001 - 12,000,000 rubles;

· in 2002 - 18,000,000 rubles.

Actual expenses for warranty repairs and maintenance in 2003 were:

wages of employees of Start CJSC who performed repairs and maintenance - 170,000 rubles;

UST, accrued on employees' wages (including contributions to compulsory pension insurance), and insurance contributions to compulsory social insurance against industrial accidents and occupational diseases - 60,000 rubles.

During the repairs, spare parts worth RUB 130,000 were used, VAT on which had previously been deducted in the generally established manner.

In 2003, revenue from sales of digital oscilloscopes amounted to:

· I quarter — 4,000,000 rubles;

· II quarter — 5,000,000 rub.;

· III quarter — 6,000,000 rubles;

· IV quarter — 7,000,000 rub.

In tax accounting, it is necessary to calculate the share of actual expenses incurred by Start CJSC for warranty repairs and maintenance in the amount of revenue from the sale of the goods in question for the previous 3 years (2000–2002). It is 0.015, or 1.5% ((RUB 100,000 + RUB 200,000 + RUB 300,000) / (RUB 10,000,000 + RUB 12,000,000 + RUB 18,000,000)).

The procedure for calculating the reserve is presented in the table. The maximum amounts that Start CJSC can allocate to the created reserve (column 5) are calculated as the product of revenue from the sale of goods (column 3) and the calculated percentage (column 4).

Calculation of expenses forming a reserve for warranty repairs and maintenance

No.	Quarter 2003	Revenue for the quarter, rub.	Percent	Contributions to the reserve, rub.
1	I	4 000 000	1,5	60 000
2	II	5 000 000	1,5	75 000
3	III	6 000 000	1,5	90 000
4	IV	7 000 000	1,5	105 000
5	Total	22 000 000	–	330 000

Since the actual costs for warranty repairs of the product in question in 2003 amounted to 360,000 rubles, the excess amount in tax accounting is 30,000 rubles. (360,000 rubles – 330,000 rubles) - included in other expenses (clause 5 of article 267 of the Tax Code of the Russian Federation).

In accordance with paragraph 5 of Art. 267 of the Tax Code of the Russian Federation, the amount of the reserve not fully used by the taxpayer in the tax period for repairs on goods (work) sold under the condition of providing a guarantee may be transferred by him to the next tax period.

In this case, the amount of the reserve newly created in the next tax period must be adjusted to the amount of the balance of the reserve of the previous tax period. If the amount of the newly created reserve is less than the amount of the balance of the reserve created in the previous tax period, the difference between them is subject to inclusion in the non-operating income of the taxpayer of the current tax period.

In tax accounting, the reserve amount not fully used in the tax period can be transferred to the next year (clause 5 of Article 267 of the Tax Code of the Russian Federation). However, this is possible provided that the taxpayer has not stopped the production of goods (work) in the current year, the sale of which is subject to the provision of a guarantee, or the sale of goods (work) has been discontinued, but the warranty period for the goods provided for in the contracts has not expired.

Example 4

The amount of the created reserve is greater than the actual repair costs incurred.

Let's change the condition of example 3. Let's assume that in 2003, the actual expenses of Start CJSC for warranty repairs of digital oscilloscopes were not 360,000 rubles, but 250,000 rubles.

In the tax accounting of Start CJSC, a reserve was created in the amount of 330,000 rubles. The excess amount of the created reserve over the amount used in tax accounting is 80,000 rubles. (RUB 330,000 – RUB 250,000).

By virtue of clause 5 of Art. 267 of the Tax Code of the Russian Federation, the unused amount of the reserve can be transferred by the taxpayer to 2004. In the case under consideration, the accrued amount of the reserve is taken into account in the company's expenses in 2003 for tax purposes.

Example 5

Creating a reserve for the next year.

At the end of December 2003, the organization plans a provision for warranty repairs in 2004 based on expected costs. Subsequently, throughout 2004, the reserve is formed evenly in the organization’s accounting records, based on monthly deductions (one twelfth of the planned reserve amount).

Let's assume that in the first quarter. In 2004, the revenue of Start CJSC from the sale of digital oscilloscopes excluding VAT amounted to 5,000,000 rubles.

The expenses actually incurred by Start CJSC for warranty repairs and maintenance of the products in question over the previous three years amounted to:

· in 2001 - 200,000 rubles;

· in 2002 - 300,000 rubles;

· in 2003 - 250,000 rubles.

Revenue (excluding VAT) from the sale of digital oscilloscopes:

· in 2001 - 12,000,000 rubles;

· in 2002 - 18,000,000 rubles;

· in 2003 - 22,000,000 rubles.

The share of actually incurred expenses for warranty repairs and maintenance in the volume of revenue from the sale of the products in question for the previous three years (2001–2003) is 0.014 ((200,000 rubles + 300,000 rubles + 250,000 rubles) / (12,000,000 rubles + 18,000,000 rub. + 22,000,000 rub.)). Consequently, the reserve in the first quarter. 2004 can be created in the amount of 70,000 rubles. (RUB 5,000,000 × 0.014).

The difference is 10,000 rubles. (80,000 – 70,000) - between the reserve created in the first quarter. 2004 and the unused balance of the reserve carried over from 2003 (RUB 80,000) is included in the non-operating income of Start CJSC in the first quarter. 2004 (clause 5 of article 267 of the Tax Code of the Russian Federation).

simplified tax system nuances of the guarantee reserve

A simplified registration register in accounting must be created in relation to those goods (works) for which, in accordance with the terms of the contract concluded with the buyer, maintenance and repair are provided for during the warranty period.

It is necessary to take into account that:

The RGR must be formed in the accounting of a simplified person if he does not apply the simplified accounting and reporting rules provided for small enterprises (we will talk about the creation of the RGR by representatives of small businesses in the next section);
To form a RGR, a simplifier has the right to use what is described in Art. 267 of the Tax Code of the Russian Federation by an algorithm, but in tax accounting the simplifier does not have the right to create this reserve - when calculating the single simplified tax, only paid expenses can be taken into account (clause 2 of Article 346. 17 of the Tax Code of the Russian Federation), and the accrued RGR does not apply to them;
The simplifier enshrines the scheme for the formation of the RGR in the accounting policy for accounting purposes.

Study the algorithms for creating accounting policies by simplifiers using the materials posted on our website:

“Accounting policy under the simplified tax system “income minus expenses” (2021)”;
“Formation of accounting policies for individual entrepreneurs using the simplified tax system “income” - sample”.

The procedure for accounting for guarantee savings by type of taxation

When forming taxes, accounting for expenses to fulfill obligations is determined taking into account the type of taxation applied by the taxpayer.

Under the general method of taxation (OSNO), only those working on the accrual basis are allowed to transfer funds to the reserve. In the case of creating savings when working on the cash basis, a discrepancy (difference) is constantly formed, from which the tax liability must be calculated. Expenses that reduce the taxable amount, i.e. profits are subject to accounting only after their payment (Article 273 of the Tax Code of the Russian Federation).

When generating tax within the framework of the simplified tax system, expenses for the formation of any reserves, including guarantee ones, cannot be taken into account (Article 346 of the Tax Code of the Russian Federation). Actual expenses under the guarantee when paying tax on the difference between costs and revenues generally reduce the size of the tax base.

If an enterprise uses the UTII method with imputed income from a specific activity as an object of taxation, the creation of a reserve for guarantee measures does not affect the calculation of tax.

Some companies may form a single stock to service a product that is simultaneously sold under different tax regimes (OSNO and UTII). But the taxpayer can transfer only a share of expenses to the account of such a reserve, which is determined in proportion to the share of expenses for each type of activity (Article 274 of the Tax Code of the Russian Federation).

Calculation of the share of income (with OSNO):

Share = Income from OSNO / Income from all activity options.

Cost calculation:

Costs related to OSNO = Costs for creating inventory * Share of income from work under the general taxation system.

The shares of revenues and expenses are determined during the period of determining contributions to the reserve. For the annual tax base (based on profit) on the general taxation system, expenses are taken into account on an accrual basis (letter of the Ministry of Finance of the Russian Federation No. 031102/279, December 14, 2006).

For your information! Resources for fulfilling obligations are formed depending on the tax or accounting type of accounting in different ways. Differences that arise in accounting (PBU 18/02) do not arise when a guarantee reserve is not created during tax accounting, and there is no recognition of an estimated liability in accounting.

Reserve for warranty repairs and small business

Representatives of small businesses are given the opportunity not to form RGR in accounting if they have chosen to use simplified methods of accounting and reporting as an accounting scheme (Clause 4, Article 6 of the Accounting Law of December 6, 2011 No. 402-FZ).

Who can consider themselves a small business and what a simplified method of accounting is, find out from the material “Features of accounting in small enterprises.”

In this case, the following documents may serve as the basis for a lawful refusal to create a RGR:

clause 3 PBU 8/2010 “Estimated liabilities, contingent liabilities and contingent assets”, approved. by order of the Ministry of Finance of Russia dated December 13, 2010 No. 167n;
clause 20 of the Information of the Ministry of Finance of Russia “On the simplified system of accounting and financial reporting” dated June 29, 2016 No. PZ-3/2016.

When refusing to form a RGR, a small business representative using simplified accounting methods must take into account that the reporting he prepares must give a reliable representation of:

on the financial position as of the reporting date;
financial result for the reporting period;
cash flows over the same period of time.

Based on such reporting, adequate and (or) effective management decisions are made, therefore, in order to increase the reliability of reporting information and uniform recognition of expenses, a small business entity may decide to voluntarily form a RGR in accounting.

IFRS-specific features of the formation of a guarantee reserve

The definition of a reserve from the perspective of international accounting and reporting is given in paragraph 10 of IFRS 37 “Reserves, contingent liabilities and contingent assets”. It means an obligation:

with an indefinite period of execution; or
of uncertain magnitude.

The standard defines the criteria for recognizing a provision in paragraph 14 of IFRS 37 - it is reflected in accounting if:

a liability exists as a result of a past event that will require an outflow of resources embodying economic benefits to be settled;
the amount of this liability can be reliably calculated.

IFRS 37 assumes that the firm will be able to calculate the liability. For example, to calculate warranty repair liability, you can multiply:

number of goods sold;
cost of repairs;
the probability of a warranty case occurring, for the calculation of which you can use, for example, the percentage of breakdowns depending on the period of use of the product.

The materials on our website will tell you how the probability indicator is used in international accounting and reporting:

“IFRS No. 15 Revenue from contracts with customers (nuances)”;
“IFRS No. 36 Impairment of assets - application features”.

Based on the content of the standard, the situation of non-recognition of a reserve can arise only in exceptional cases:

if it is not possible to calculate the amount of the reserve due to the impossibility of obtaining the data necessary for the calculation; or
the calculated provisions are not material.

Even then, disclosure of the contingent liability is required in the notes to the financial statements. Eg:

reflect the amount of expenses for warranty repairs in recent years; or
Provide data on warranty periods for product groups.

When determining the value of the RGR, one should not forget about one fundamental IFRS rule: the costs of preparing source data and implementing calculation procedures should not be greater than the benefits received by users.

Comments

04/28/2020 YK
Good afternoon. Please tell me, regarding example No. 3, is it possible to reflect the costs of an extended warranty as part of not only business expenses, but also the cost price?
Reply Link
04/29/2020 Ilona
Good afternoon. This article is about the theory of accounting for guarantees. Tell me, in what connection did your question arise? In practice, a situation is possible when the guarantee can be taken into account in the cost of the product and written off as cost upon sale. Accounting is designed to reflect the event and depends on the specific circumstances.
Reply Link
04/30/2020 YK
Purchase of equipment from the supplier and sale to the buyer. An extended warranty is also purchased along with the equipment, which is paid to the supplier immediately at the time of purchase of the equipment. The extended warranty only begins one year later (after the 1st year of the standard warranty). Is it possible to reflect the costs of purchasing an extended warranty as a BPO, and then recognize them during the period of validity of the extended warranty and reflect them in cost (in the income statement)?
Reply Link
04/30/2020 Ilona Wallen, Internal Auditor GSL Law and Consulting
The short answer is no. You cannot consider a guarantee as a BPR - in this situation it is part of the price of the product and is written off against the cost of the product upon sale. And if in detail, then I’m waiting for you for an oral/written consultation with a consideration of specific situations, features of accounting and taxation of warranty obligations ... and any other topics
Reply Link
05/02/2020 YK
In the invoice for the purchase of equipment, the product and the amount for the 1st year of the extended warranty and the 2nd year of the extended warranty are separately highlighted. (i.e. a separate amount for the product and a separately extended warranty). In your opinion, if a company purchases a product along with an extended warranty, then it should always be part of the price of the product and written off to the cost of the product upon sale, regardless of whether it is highlighted in the invoice or not? Does this only apply to PBU or IFRS too? Thank you.
Reply Link
05/07/2020 Ilona Wallen, Internal Auditor GSL Law and Consulting
According to the methodology of accounting for inventories, the actual cost of a product (as a general rule, when assessed at cost) includes all direct costs incurred by the organization for the purchase of this product until it is accepted for accounting. From my point of view, the costs of additional guarantees in your situation increase the cost of the product. It does not matter how many primary documents and how many lines in these documents justify the cost value. In IFRS, inventory accounting is carried out according to the same principle. If for some reason you think it is legitimate to take into account the supplier’s additional guarantees for goods in the form of a separate type of asset/expense, you have the right to do this by formalizing your accounting procedure in the form of the company’s accounting policy. If you need the help of a specialist to determine the correct and rational accounting of goods in your situation; to develop accounting policies, etc., you can contact us individually for advice. We will be happy to help you. take care of yourself
Reply Link

Add a comment

Rating

1 1 2

Results

The obligation to create a reserve for warranty repairs in accounting arises from those companies that provide a guarantee for goods (work, services) and during the warranty period are obliged to eliminate at their own expense defects and deficiencies identified by consumers.
The methodology for calculating the amount of the reserve is fixed in the accounting policy. You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.