Off-balance sheet account. Accounting for transactions on off-balance sheet accounts of a credit organization On off-balance sheet accounts of the bank are taken into account
OFF BALANCE SHEET ACCOUNTS
OFF BALANCE SHEET ACCOUNTS
OFF-BALANCE SHEET ACCOUNTS - (in bank accounting) - accounts in which values not related to the bank’s assets are taken into account, as well as some monetary documents and instructions for performing transactions. They take into account: reserve funds cash notes and coins; borrowers' obligations; settlement documents submitted to the bank for collection (to receive payments); valuables accepted for storage; strict reporting forms, check and receipt books, letters of credit for payment, etc.
Dictionary of financial terms.
See what “OFF-BALANCE SHEET ACCOUNTS” is in other dictionaries:
off-balance sheet accounts- an accounting account designed to account for funds not owned by to this enterprise on the right of ownership, for example, leased fixed assets; marketable material values, accepted for safekeeping; equipment accepted... ... Large legal dictionary
See Off-Balance Sheet Accounts... Legal dictionary
off-balance sheet accounts- see off-balance sheet accounts... Large legal dictionary
Accounting Key Concepts Accountant Accounting General Ledger Reverse balance sheet Reporting period... Wikipedia
Bank balance- – one of the main forms accounting. In it, the credit institution reflects the state of its own and attracted resources, their sources, as well as the placement of these funds. According to the balance sheet, control is exercised over the formation and... Banking Encyclopedia
CHART OF ACCOUNTS FOR CREDIT INSTITUTIONS- a system of accounting accounts used by credit institutions. The chart of accounts came into effect on January 1, 1998. The reasons for the introduction are: the need to get closer to international standards; the need to comply with new... ... Great Accounting Dictionary
Money-credit policy- (Monetary policy) The concept of money credit policy, goals of monetary policy Information about the concept of monetary policy, goals of monetary policy Contents >>>>>>>>>> ... Investor Encyclopedia
An off-balance sheet account is an account designed to summarize information about the presence and movement of values that do not belong to an economic entity, but are temporarily in its use or disposal, as well as to control individual... ... Wikipedia
BANK CAPITAL- (English capital of bank) – the amount of the bank’s own funds, amounting to financial basis its activities and source of resources. K.b. designed to maintain customer confidence in the bank and convince creditors of its finances. sustainability. K.b. it should be… … Financial and credit encyclopedic dictionary
U.S. dollar- (US USD) The US dollar is the monetary unit of the United States of America US dollar: exchange rate and denomination monetary unit USA, history and prospects for the development of the world's reserve currency Contents >>>>>>>>> ... Investor Encyclopedia
Often, in the process of work, enterprises have to carry out operations to record the movement and storage of property that does not belong to them. In addition, it is necessary to keep records of transactions related to the fulfillment of requirements and obligations to partners. For these purposes, off-balance sheet (off-balance sheet) accounts are used.
Off-balance sheet accounts are intended for recording and entering information about material assets that do not belong to an economic entity and are at its disposal temporarily. Off-balance sheet accounts are also used to control certain types of financial transactions. Their name emphasizes that they are outside the balance sheet and are not taken into account in it.
The need for separate accounting of values that do not belong to the economic entity is explained by the fact that only own funds and the sources that form them. If assets that do not belong to it are reflected on the balance sheet of an enterprise, it turns out that they are taken into account twice: by the owner and by the temporary owner. This will be contrary to the law and distort the reality financial position enterprises.
The main purpose of off-balance sheet accounts
- control of the use and safety of material assets that are owned by the enterprise on lease, safekeeping, transferred for installation, processing and other similar purposes
- accounting for contingent rights or obligations of a business entity
- control of relevant types business transactions
- providing comprehensive information on funds off the balance sheet for management purposes, as well as the ability to assess the financial position of the enterprise.
The off-balance sheet account has a traditional, albeit slightly simplified structure. It reflects the opening balance, receipts and write-offs of material assets during the month, and the ending balance.
Types of off-balance sheet accounts
007 “Debt of insolvent debtors written off at a loss.” This contains information about written off debts. Such accounts are maintained for five years after the debts have been written off, in order to monitor the possibility of repayment if the borrowers' solvency changes.
008 “Securities for obligations and payments received.” Contains information about the availability and movement of funds received as guarantees for securing obligations, as well as security that were received for goods transferred to other organizations. The amount of the guarantee to be accounted for is determined by the terms of the contract.
009 “Securities for obligations and payments issued.” Reflects funds issued as guarantees to secure obligations.
010 “Depreciation of fixed assets.” This off-balance sheet account is intended to summarize data on the movement of amounts reflecting the depreciation of housing facilities, amenities, road facilities and the like, as well as fixed assets (in the case of non-profit organizations). Depreciation is calculated at the end of the year according to depreciation rates.
011 “Fixed assets leased out.” Serves to display data on objects classified as fixed assets and leased. It is used in cases where, according to the terms of the agreement, the property must be reflected on the balance sheet of the lessee. Accounting is carried out at the prices specified in the lease agreement.
In addition to those listed, the list of off-balance sheet accounts can be supplemented by the organization itself, in accordance with the specifics of its activities. This should be reflected in .
For some types of economic entities, slightly different off-balance sheet accounts are used. Thus, Order of the Ministry of Finance of the Russian Federation No. 157n defines the chart of accounts for government and local authorities authorities, off-budget funds, scientific and educational institutions, government agencies. This plan identifies twenty-six types of off-balance sheet accounts that can be used by these organizations as needed.
The chart of accounts, in addition to the main ones, also includes off-balance sheet accounts. In what cases should off-balance sheet accounts be used for accounting? How are they different from regular ledger accounts? How are postings made to off-balance sheet accounts? You will get answers to these questions by reading the article below.
The chart of accounts contains 99 main and 11 off-balance sheet accounts. The main 99 accounts are used to record all business transactions occurring in the organization. Off-balance sheet accounts are used to record additional information about these transactions. Unlike the main ones, off-balance sheets do not show financial condition enterprise, their data is not used in the formation, that is why they have such a name, that is, they are “behind the balance sheet” of the enterprise. Off-balance sheet accounts characterize the features of the enterprise’s activities and are used by the organization for the convenience and clarity of accounting.
Features of accounting for off-balance sheet accounts
Accounting for off-balance sheet accounts has its own characteristics. First of all, this is due to the fact that it is not carried out on off-balance sheet accounts. Just like a balance sheet account, an off-balance sheet account has debits and credits, but unlike the first ones, the rule does not apply to them double entry. In order to take into account any transaction and make an entry to account for it, you do not need to reflect the amount simultaneously as a credit to one account and a debit to another.
The debit of the off-balance sheet account reflects the receipt of the object, and the credit reflects its disposal. That is, the wiring is one-sided.
For the convenience of accounting, analytical accounts can be opened on off-balance sheet accounts.
Characteristics of off-balance sheet accounts
001 “Leased fixed assets” – used to account for fixed assets leased. This object is not reflected in the balance sheet accounts in any way, so as not to lose it, you should use off-balance sheet account 001. The cost of the leased fixed asset is reflected in debit 001 by posting D001; when the object is returned to the lessor, the fixed asset is deregistered and a unilateral posting is made K001. Read more about leasing fixed assets.
002 “Inventory and materials accepted for safekeeping” is used to account for inventory items owned by another enterprise and temporarily stored in the organization. For example, the buyer has paid for the goods, but has not yet shipped and is stored in the seller’s warehouse. Such goods will be recorded as a debit to off-balance sheet account 002; at the time of shipment, posting K002 will be made, that is, the goods will be deregistered.
003 “Materials accepted for processing” - it can be used by organizations that have production and provide services for processing raw materials of other organizations. When customer-supplied raw materials are received for processing, the organization credits it to debit 003; after the processing procedure is completed, the materials are written off from credit 003.
004 “Goods accepted for commission” – is intended to account for goods accepted for commission by commission agencies. Similarly, the receipt of goods for commission is reflected by posting D004, its disposal K004.
005 “Equipment accepted for installation” – used by contractors who accept equipment from the customer that requires installation.
006 “Strict reporting forms” - intended for accounting for BSO. Organizations that use in their activities, after receiving them, are debited to 006; as they are used, they are written off from credit 006. BSO is equal to cash documents, are used by organizations that provide services to the public and do not have a cash register. Instead of a cash receipt, such organizations are issued a strict reporting form to their customers and clients, at the same time writing it off from off-balance sheet account 006.
007
“Debt written off at a loss” - if the organization has counterparties who are registered accounts payable, and the chances of repaying the debt are minimal. Then the amount of debt is written off to debit 007, here it is listed for 5 years. Perhaps during this period the debtor will return the amount.
008
“Security for obligations and payments received” – this off-balance sheet account is used by mortgagees in the course of their activities.
009 “Security for obligations and payments issued” - here an organization can take into account its own property pledged as security for its loan or loan, or as a guarantee.
010 “Depreciation of fixed assets” – non-profit organizations OS depreciation is calculated here.
011 “Fixed assets leased out” - here organizations take into account fixed assets leased out; lessors use it to account for objects transferred to the lessee.
Is it necessary to use off-balance sheet accounts? Of course, every organization should keep records on off-balance sheet accounts if necessary. If, during an audit, for example, a tax audit, or during an inventory, fixed assets or inventory items that are not accounted for on balance sheets are discovered, then they can be accepted as surplus. For example, a fixed asset was received for rent, but it was not included in the account. 001. This will mean that the object is located in the organization, but will not be accounted for anywhere. Of course, during inspections questions will arise about what kind of object this is and where it came from. As a result, it can be accepted by the organization's surplus and accepted for accounting on account 01, which is unacceptable in this case. Therefore, you need to approach accounting on off-balance sheet accounts responsibly and remember to do it in a timely manner.
annotation
This document intended for conducting lectures on the theoretical course "Introductory course. Topic 4. "Off-balance sheet accounting."
Student knowledge requirements:
General knowledge of the basics banking technology And banking system within the framework of topic 1 “Fundamentals of Banking” (Introductory course);
Knowledge of the basics of the accounting system within the framework of topic 2 “Fundamentals of Accounting” (Introductory course).
Knowledge of the basics of cash flow calculations within the framework of topic 3 “Fundamentals of calculation – cash service(RKO)";
At the end of the training, students should master the following issues discussed in this topic of the “Introductory Course”:
The concept and purpose of off-balance sheet accounting;
Features of working with off-balance sheet accounts;
Concept and work with a document file;
Concept and work with a card index of values;
Basic accounting entries on maintaining card files.
The theoretical course is designed for company trainees.
The course program provides for mandatory final testing.
Course duration
· Lectures – 2 hours;
· Independent work and answering tests 2 hours.
Topic 4. "Off-balance sheet accounting."
1. Basic provisions of off-balance sheet accounting.................................................... . 4
1.1. Normative base and the main provisions of off-balance sheet accounting.................................... 4
1.2. Concept and purpose of off-balance sheet accounts.................................................... ................... 4
B. Trust accounts................................................................. .................................... 5
B. Off-balance sheet accounts.................................................... ........................................................ ....... 5
D. Urgent operations.................................................. ........................................................ ............ 6
D. Depository accounts......................................................... ........................................................ ........................... 6
2. Document file .................................................................... ................................... 7
2.1. Working with documents in file cabinet No. 1.................................................... ................................... 7
2.2. Working with documents in file cabinet No. 2.................................................... .................................. 8
2.3. Working with correspondent account card index documents.................................................... ...................... 10
3. Card index of valuables.................................................... ................................... 10
4. Card file of amounts .................................................... ........................................... eleven
List of sources................................................ ........................................ 13
List teaching aids....................................................................................................... 13
Regulations................................................ ........................................................ ..... 13
Internet resources........................................................ ........................................................ ..................... 13
Test questions on the topic:.................................................. ....................... 14
Basic provisions of off-balance sheet accounting
Regulatory framework and main provisions of off-balance sheet accounting.
The procedure for using off-balance sheet accounts and reporting on off-balance sheet transactions is described in the regulatory documents of the Central Bank of the Russian Federation (see list " Regulatory documents):
In 1997 Central Bank Russia developed and adopted the “Chart of Accounts”. B Position TsBR city N 205-P accounting rules were described. According to it, the accounts of the banking accounting plan in credit institutions are divided into the following accounting areas (chapters):
· A. Balance sheet accounts;
· B. Trust accounts;
· B. Off-balance sheet accounts;
· G. Urgent operations;
· D. Depository accounts.
Note. The structure of the chart of accounts, the structure and characteristics of analytical and synthetic accounts are described in detail in topic 2 “Basics of accounting”. of this course. Within the framework of this topic, the procedure for working with accounts will be discussed in more detail accounting areas (chapters) B. OFF BALANCE SHEET ACCOUNTS
Concept and purpose of off-balance sheet accounts
Off-balance account (Off-balance account)- an accounting account used to record values and documents that are not included in the balance sheet and are not reflected in its assets and liabilities. Off-balance sheet accounts are also used to account for funds that are posted in this moment impossible on the main balance sheet accounts A.
The bank's off-balance sheet accounts include:
· reserve funds of cash notes and coins;
means and values, not bank-owned, but are in his custody and management (including trust management);
· delayed and overdue payments;
· unfulfilled obligations and claims (forward transactions);
· settlement documents transferred to the bank for collection;
· valuables accepted for storage;
· strict reporting forms, check and receipt books;
· securities(depository activities) in pieces
· letters of credit for payment, etc.
Off-balance sheet accounts, similar to balance sheet accounts, are divided into synthetic accounts of the first and second order. The exception, in this case, is the accounts of accounting area D. “DEPO ACCOUNTS”. It contains only 2nd order accounts.
Accounting for off-balance sheet accounts is carried out on active and passive accounts in compliance with the double entry principle. Off-balance sheet accounts are grouped into sections based on the economic content of the values and documents recorded on them.
Related information.
Accounting acts as an independent Information system, the components of which are accounting accounts. Summarization of information recorded in accounting accounts is carried out in balance sheet. However, when maintaining accounting records, there is a need to establish and reflect in it the ownership of property (ownership rights) of the organization. The need for this is explained by the fact that if ownership does not extend to the property used by the organization, it must be shown “off the balance sheet”. Therefore, it is important to classify accounts based on their relationship to the balance sheet.
Balance accounts are intended for property accounting, equity and obligations of the organization. According to their purpose, they can be active, passive And active-passive.
Off-balance sheet accounts are intended to account for the availability and movement of funds temporarily in the use or disposal of an organization, its contingent rights and obligations, as well as for monitoring individual business transactions. Off-balance sheet accounts are shown after the balance sheet and are not included in the total calculation of the organization’s funds.
In off-balance sheet accounts, business transactions are recorded without using the double entry method. In this case, the “debit” side corresponds to the concept "coming", and the “credit” side - to the concept "expense", "disposal".
According to their purpose, off-balance sheet accounts are divided into three groups.
- Wealth accounts- this takes into account material assets that are temporarily in use or accepted by the organization for safekeeping (for example, the “Leased fixed assets” account).
- Control accounts- they are designed to monitor transactions that require off-balance sheet control. For example, the account “Debt of insolvent debtors written off at a loss” summarizes information about accounts receivable written off at a loss due to the debtor's insolvency. However, such a write-off does not constitute cancellation of the debt. Therefore, for 5 years, such debt is subject to accounting in an off-balance sheet account until it is repaid or the observation period expires.
- Contingency accounts. These accounts are designed to monitor the availability and movement of received and issued guarantees to secure obligations and payments. To account for such rights and obligations, the accounts “Security for obligations and payments received” and “Security for obligations and payments issued” are used. Collateral is a document in which one organization guarantees another to fulfill loan obligations within a certain period for a certain amount. Bonds, bills of exchange, other securities and types of property are used as collateral for loans received, goods shipped, work performed, and services provided.