Calculations for income tax in UPP: procedure, features and typical errors

Account 99 Profits and losses

Net profit (net loss) consists of the following components:

During the month, revenue and expenses for ordinary activities are recorded on account 90, other income and expenses on account 91.

When closing the month, the financial result is taken into account in account 99 Profit and loss. When making a profit in the reporting period, the following entry is made:

Debit 90-9 Credit 99 - profit from sales is reflected (the final turnover of the reporting month).

When a loss is incurred in the reporting period, the following entry is made:

Debit 99 Credit 90-9 - loss from sales is reflected (the final turnover of the reporting month).

When the amount of income exceeds the amount of expenses, the following entry is made:

Debit 91-9 Credit 99 - profit from other activities of the organization is reflected (the final turnover of the reporting month).

When the amount of expenses exceeds the amount of income, the following entry is made:

Debit 99 Credit 91-9 – reflects the loss from other activities of the organization (the final turnover of the reporting month).

Subaccounts to account 99: which one reflects the financial results of the reporting year?

According to the current Chart of Accounts, subaccounts can be opened for account 99:

• 1 “Profits and losses from ordinary activities” is intended to account for the financial results obtained from the sale of goods, provision of services, and performance of work.
• 2 “Profits and losses from operating activities.” This takes into account the financial result, which is identified on account 91 (for example, from the sale and other write-off of fixed assets, intangible assets, from the sale of materials, etc.).
• 3 “Profits and losses from non-operating transactions” reflects the financial result from non-operating transactions on account 91.
• 4 "Extraordinary Income". This sub-account keeps records of emergency income broken down by type (from emergency incidents).
• 5 "Extraordinary expenses".
• 6 “Payments for income tax and financial sanctions” displays transactions for calculating income tax and penalties.
• 7 “Profit and loss of the reporting year” reflects the financial result at the end of the reporting period.

Tax sanctions

If the tax inspectorate has assessed fines for violation of tax rules with income tax or similar taxes (UTII, Unified Agricultural Tax, single tax paid when applying the simplified tax system), which the organization does not intend to challenge, they are reflected in the accounting records as of the date of the decision to prosecute:

Debit 99 Credit 68 - a fine was assessed for violation of income tax rules.

Fines for violation of tax rules for other taxes, fines and penalties for insurance premiums, fines for late submission (failure to submit) of any declarations and reports to the Pension Fund are charged to other expenses and taken into account in account 91 on the date of the decision to prosecute.

The taxable profit of the amount of penalties, fines and other sanctions accrued for violations of tax legislation is not reduced (clause 2 of Article 270 of the Tax Code of the Russian Federation).

Closing account 99 at the end of the year

At the end of the year, the balance sheet is reformed - all subaccounts to accounts 90, 91 and 99 are closed with internal entries. After this, the balance remains only on subaccount 99.01. This is the financial result of the reporting year; it is written off to account 84.

Reformation of the balance sheet is the final operation of the reporting year. As of January 1 of the following year, the balance in account 99 should be zero.

If at the end of the reporting year a profit is made (the account balance is 99 credits), the following entry is made:

Debit 99 Credit 84 - reflects the net profit of the reporting year.

If at the end of the reporting year a loss is received (account balance 99 is debit), the following entry is made:

Debit 84 Credit 99 - reflects the net (uncovered) loss of the reporting year.

What is balance sheet reformation? When should it be done? Posting example

Every year on December 31, each organization must carry out a mandatory operation before drawing up an annual report - balance sheet reformation. The purpose of the balance sheet reform is to determine the financial condition of the organization for the reporting year - obtaining net profit or loss.

Technically, balance sheet reformation is the closing of account balances:

• 90 "Sales",
• 91 “Other income and expenses”,
• 99 "Profits and losses."

In order to make sure that the balance on all accounts is formed correctly, before reforming the balance sheet, it is necessary to conduct an inventory.
During the inventory, it is necessary to be guided by the Order of the Ministry of Finance of the Russian Federation dated June 13, 1995. No. 49 “On approval of guidelines for inventory of property and financial obligations.”

The entire inventory process can be divided into stages.

Stage 1: The head of the organization signs the order using form No. INV-22. The order states:

• composition of the inventory commission: chairman, members of the commission, indicating the position and full name;
• types of objects being inventoried;
• inventory period;
• reason for inventory.

Stage 2: The Inventory Commission determines:

• the actual availability of fixed assets, inventory, cash, monetary documents and strict reporting document forms;
• availability of documents confirming the organization’s rights to existing intangible assets, financial investments in the authorized capital of other organizations, loans granted to other organizations. Inventory of funds held in banks in current, foreign currency and special accounts is carried out by reconciling the balances of amounts listed in the corresponding accounts according to the organization’s accounting department with data from bank statements;
• the composition of receivables and payables, determined by reconciliation with counterparties.

The inventory commission reflects all data obtained during the inventory in inventory lists or inventory reports.
The inventories are signed by all members of the inventory commission and financially responsible persons. At the end of the inventory, the financially responsible persons give a receipt confirming that the commission has checked the property in their presence and that there are no claims against the commission members.

Stage 3: The data obtained during the inventory must be verified with accounting data. In case of discrepancies, comparison statements are drawn up.

Stage 4: Data from the inventory results are summarized in the statement of results identified by the inventory according to form No. INV-26.

Before reforming the balance sheet, you must check all account balances. If errors are identified, they must be corrected.

You can find out how to correct errors in accounting in the article: Preparing for annual reporting. Major bug fixes

All subaccounts to account 90 “Sales” are closed in correspondence with subaccount 90.9 “Profit/loss from sales”:

• Dt 90.1 Kt 90.9 – the “Revenue” subaccount is closed
• Dt 90.9 Kt 90.2 – the subaccount “Cost of sales” is closed
• Dt 90.9 Kt 90.3 – the “VAT” subaccount is closed

Organizations reflect their income and expenses from other activities on account 91 “Other income and expenses”, which is also closed in correspondence with subaccount 91.9 “Balance of other income and expenses”:

• Dt 91.1 Kt 91.9 – the subaccount “Other income” is closed
• Dt 91.9 Kt 91.2 – the subaccount “Other expenses” is closed

Every month, based on the results of its activities, the organization determines the financial result:

• Dt 90.9 Kt 99 – profit from ordinary activities is reflected;
• Dt 99 Kt 90.9 – loss from ordinary activities is reflected.

For other income and expenses, the financial result is reflected as follows:

• Dt 91.9 Kt 99 – profit from other activities is reflected;
• Dt 99 Kt 91.9 – loss from other activities is reflected.

As of December 31, account 99 “Profits and losses” is closed in correspondence with account 84 “Retained earnings (uncovered loss)”.
If at the end of the year the organization makes a profit, then the following entry is generated:

• Dt 99 Kt 84

If at the end of the year a loss is received, then the following entry is generated:

• Dt 84 Kt 99

This will be the last posting in the reporting year.
As a result, the balance in account 99 “Profits and losses” as of January 1 is reset to zero. After reforming the balance sheet, you can begin to compile the annual balance sheet.

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Instructions 99 count

Instructions for using the chart of accounts for accounting the financial and economic activities of organizations in accordance with Order No. 94n dated October 31, 2000:

Account 99 “Profits and losses” is intended to summarize information on the formation of the final financial result of the organization’s activities in the reporting year. The final financial result (net profit or net loss) is made up of the financial result from ordinary activities, as well as other income and expenses.

The debit of account 99 “Profits and Losses” reflects losses (losses, expenses), and the credit shows the profits (income) of the organization. A comparison of debit and credit turnover for the reporting period shows the final financial result of the reporting period.

Account 99 “Profits and losses” during the reporting year reflects:

- profit or loss from ordinary activities - in correspondence with account 90 “Sales”;

- balance of other income and expenses for the reporting month - in correspondence with account 91 “Other income and expenses”;

- the amount of accrued conditional income tax expense, permanent liabilities and payments for recalculation of this tax from actual profit,

- as well as the amount of tax penalties due - in correspondence with account 68 “Calculations for taxes and fees”.

At the end of the reporting year, when preparing annual financial statements, account 99 “Profits and losses” is closed. In this case, by the final entry of December, the amount of net profit (loss) of the reporting year is written off from account 99 “Profits and losses” to the credit (debit) of account 84 “Retained earnings (uncovered loss)”.

The construction of analytical accounting for account 99 “Profits and losses” should ensure the generation of data necessary for drawing up a profit and loss statement.

Postings and examples of using 99 accounts

Example 1. Write-off to account 99

Let’s say that SDM-Project LLC purchased in December 2014 equipment worth 800,000 rubles, a useful life (LP) of 5 years, the depreciation method in the accounting book is the declining balance method and in the NU – linear.

Let's do the calculation. For 2015-2016, accumulated depreciation was: in BU - 288,000 rubles, in NU - 320,000 rubles. The amount of VVR was 32,000 rubles, IT is equal to 32,000 * 20% = 6,400 rubles.

In December 2016, the OS was sold. The write-off of IT during this operation is reflected by the posting:

Example 2. Monthly closure of account 99

Let’s assume that in January 2016, Quadrum 10 LLC rented out property and paid interest on the loan. Renting for an organization is other income, and not the main activity. Rent was charged in the amount of 118,000 rubles, incl. VAT 18,000 rub. The amount of interest paid was 42,000 rubles.

Reflection of transactions by postings:

Simultaneously with the closing of the period, the conditional expense for NP is reflected in the accounting system. In our case, its amount will be: 58,000 * 20% = 11,600 rubles.

The amount of accrued tax is reflected by the posting:

Typical transactions for account 99

By debit of the account