04.12.2019
When maintaining accounting (budget) records, institutions are required to form a vacation reserve for the time worked by employees. This reserve is created in order to generate complete and reliable information about the institution’s deferred obligations, as well as to evenly allocate expenses to the financial result. You will learn about what entries an accountant should make when creating (using) a reserve by reading this consultation.
Why do you need a vacation reserve?
The Labor Code of the Russian Federation gives all employees the right to annual paid leave. Therefore, every employer bears mandatory expenses for:
- vacation pay;
- or monetary compensation for unused days.
State employees plan vacations for all employees in advance. For this purpose, a special document is drawn up - a vacation schedule. The period during which an employee can rest is directly proportional to the time worked: the longer an employee works, the more vacation days there will be. Approximately 2 days accumulate in a month. Compensation for unused vacation days by the employee is paid upon dismissal. You can calculate the period and amount of compensation using the online calculator on our portal.
Therefore, the organization needs a reserve of money from which not only vacation pay or compensation will be paid, but also contributions to extra-budgetary funds. Such a stock is created in the current period and used in the future. For example, the vacation reserve for 2021 had to be formed in 2021. And currently, employers are reserving money for 2021.
“Vacation” reserve according to the new rules
Source: "Current Accounting"
Expertise of the article: Sergey Rodyushkin, GARANT Legal Consulting Service, professional accountant-expert
Order of the Ministry of Finance of Russia No. 186n (order of the Ministry of Finance of Russia dated December 24, 2010 No. 186n (hereinafter referred to as Order No. 186n)) introduced significant changes to the Regulations on accounting and reporting (approved by order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n (hereinafter referred to as Regulation No. 34n)), including the procedure for the formation of “vacation” reserves. (We wrote about this in Current Accounting No. 4, 2011 on p. 16.) This order, in particular, excluded from Regulation No. 34n the rule on reserves for future expenses.
Accountants were faced with questions: what to do with the reserves and is it possible to continue to contribute amounts to such reserves? We will answer these and other questions regarding the reserve for upcoming vacation pay.
