Balance sheet: an explanatory note to the balance sheet. Form, sample

In accordance with PBU 4/99 "BU", reports on profits, cash flows and capital are supplemented with notes. The balance sheet is not an exception. An explanatory note to the balance sheet is part of the annual accounts of enterprises. It contains detailed information on income and expenditure items.

About the document

The explanatory note is part of the reporting. There is no unified form for filling it. In general, the document should contain information that shows the implementation of planned indicators. The note is prepared based on the results of the financial statements and discloses information about the elements of the accounting policy. Based on the materials provided, you can draw up a plan for future development.

Structure

An explanatory note to the balance sheet of a public institution should disclose such data:

1. Give a description of the main activities, as well as the most significant factors of work.
2. Show accepted methods of accounting.
3. Give comparative characteristics of the current and previous periods.
4. In case of discrepancy, provide information on the causes of their occurrence.

The basis for filling in the data is the balance sheet. The explanatory note to the balance sheet contains 19 sections. Let us consider them in more detail.

Organization data

1. Form of ownership and name of legal entity.
2. Address.
3. Average annual number of employees at the reporting date.
4. Composition of control organs.
5. Information about the founders.
6. The amount of capital.
7. Information about the auditors.
8. Availability of licenses.
9. Managment structure.
10. The amount of taxes paid in the reporting year.

Information on the accounting policy

The note displays the following data:

• Rules for registering assets and liabilities;
• The cause and consequences of policy change;
• Data on the accounting rules for the next year;
• The corrected data are indicated.

The explanatory note to the balance sheet of the institution, which is prepared on the consolidated accounts, should include information about the subsidiaries, members of the group, their location, the amount of their capital, the share of the assets of each of them. The consequences of a policy change that may affect the financial position or other performance of an organization are valued in cash.

Information on assets and liabilities

The explanatory note to the balance sheet of the Republic of Belarus contains such data on the OS:

• Initial cost and the amount of accrued depreciation at the beginning and end of the year;
• The period of use of the facility;
• Ways of calculating depreciation;
• The movement of leased and OS by groups;
• Real estate objects at the stage of state registration, but taken into operation;
• Methods of asset valuation;
• The amount of markdown of the OS, which is transferred to retained earnings.

The explanatory note is added to the balance sheet in the display of data on the IBE:

• Methods for estimating reserves;
• The consequences of method changes;
• The size and movement of funds under the depreciation of values.

Information about loans, loans and finances is also displayed:

• Availability, maturity, changes in the amount of debt;
• Types, maturity of issued bills and bonds;
• The amount of interest costs that is included in operating expenses and the value of assets;
• Value of the weighted average rate;
• Methods of assessing the investments upon their disposal and the consequences of their change;
• Value, types of securities, encumbered with collateral;
• The cost transferred to the Central Bank and finvlozheny;
• Composition and movement of the provision for impairment;
• Assessment of debt securities and loans taking into account the discount.

For assets and liabilities in foreign currency, the note displays:

• Exchange differences classified as financial results or otherwise recorded;
• The Bank of Russia's exchange rate as of the reporting date.

Balance sheet analysis

This section includes an assessment of the economic state of the enterprise. It is drawn up in accordance with the Instruction on Solvency Control of Entities. The section analyzes all types of liquidity, the level of funds, the profitability, the level of financial dependence and sustainability.

The analytical part of the note should contain the procedure for calculating the indicators. Consider the main ones.

1. Current liquidity - reflects the level of asset securing short-term liabilities. A high value of the coefficient indicates a stable financial state:

Km = A2: (P5 - page 640), where:

• A2 is the result of the second section of the balance asset (p. 290);
• P2 is the result of the fifth section of the liability (p. 690).

2. Coefficient of collateral for circulating assets - shows which part of the JSC is formed at the expense of own funds:

K ao = (P3 + p. 640-A1): A2, where:

• P3 - the third section of the liability (p. 490);
• A1 is the first asset section (page 290).

3. The ratio of security of accounts payable - shows the ability of the organization to settle on liabilities after the sale of assets:

К кз = (П4 + (П2 - page 640)): ВБ, where:

• P4 - the total of the 4 sections of the liability (p. 590);
• WB is the balance currency (p. 300).

The organization is considered insolvent if within 4 quarters the unsatisfactory balance sheet structure is displayed, as evidenced by the value of the debt security ratio at a level above 0.85.

4. The solvency index shows how much of the short-term loans an enterprise can pay off at the time of reporting:

And pl = (short-term arrears - long-term arrears): the balance currency.

Data on incomes and expenditures

This part displays information on the sales volumes and geography of sales markets, the composition of costs, the availability of reserves for future payments, the structure of other revenues and expenses, emergency factors. Separately, information is provided on contracts that provide for non-monetary form of payments: their number, share of proceeds, ways to determine the value of goods transferred.

Activity Rating

The standard form of an explanatory note to the balance sheet contains a section in which:

• Breadth of sales markets, availability of exports;
• Reputation of the enterprise in the market;
• Level of performance indicators;
• Efficiency of resource use.

Change of residues

If in the reporting period there was a reorganization of the enterprise, then these data are recorded in the balance sheet. The explanatory note to the balance sheet should contain information on the reasons and scope of the changes. This section is also filled in if the data changes at the beginning of the year.

Affiliates

The preparation of an explanatory note to the balance sheet provides for the display of information on the existence of subsidiaries, founders and shareholders:

• Their list;
• The nature of the relationship;
• Reasons for referring to affiliated persons;
• Types of transactions and methods for determining prices for them;
• Share of owned shares.

Activities

This section displays information about the guarantee and legal obligations of the organization, their amount and the amount of the created reserve.

Data on joint activities

1. Number of partnership contracts.
2. Objectives of the activity.
3. Deposit amount.
4. The value of property and liabilities, profit or loss for the current year.
5. Information about the assets used and joint operations.

Segment information

The format of the explanatory note to the balance sheet for the FSS implies the existence of a section in which information on associations and unions is displayed - provided that the constituent documents stipulate that the information on the accounting statements is given in summary form:

• List of units;
• Total revenue;
• Profit or loss;
• Book value of assets, liabilities, capital investments in the OS and NMA;
• The amount of depreciation;
• Share in the net profit of subsidiaries;
• Value of investments in joint activities.

Events after the balance sheet date

This section displays information about the facts of economic activity, which strongly influenced the value of assets and liabilities. They need to be disclosed in full. Do not display data can affect the decision of users of financial statements. Events are entered in the note, but changes are not made in the report. Evaluation of the consequences in monetary terms must be documented or indicated that it is impossible to do so.

A copy of the explanatory note to the balance sheet may contain the following facts:

• Declaring a debtor bankrupt;
• The performed valuation of assets, the results of which confirm the change in their value;
• Obtaining data on the financial standing of a subsidiary whose securities are quoted on the exchange;
• Sale of stocks at an inflated price;
• Announcement of dividends;
• Reimbursement of claims from the insurance company;
• The adoption of a court decision requiring the creation of a reserve;
• Reorganization, reconstruction of the organization;
• Decision-making on the issue of securities;
• Transaction related to the sale and purchase of the OS;
• A fire, an emergency situation that resulted in the destruction of part of the assets;
• Cessation of core business;
• Decrease in the cost of OS;
• Actions of state authorities;
• Unpredictable changes in exchange rates, asset prices.

State aid

An explanatory note to the balance sheet of an educational institution and any other organization that receives assistance from the budget should contain information about:

• Nature and magnitude of cash and credit receipts;
• Target use of financial resources;
• Unfulfilled conditions for the provision of funds and related obligations.

Environmental indicators

A sample of an explanatory note to the balance sheet of enterprises whose activities adversely affects the environment is different from the standard document. In addition, it records:

• Data reflecting the degree of impact (emissions, waste);

• Information on land reclamation;

• Data on the costs of environmental protection.

Information about JSC

An example of an explanatory note to the balance sheet, presented below, contains such information about the Central Bank:

• Number of issued and paid securities, their nominal value;
• Stock movements at the beginning and end of the period;
• The value of securities owned by the AO and its subsidiaries;
• Availability of reserves and the purpose of their creation.

For additional emission, the following shall be indicated:

• Cause of release;
• date;
• Conditions of implementation;
• Number of issued ordinary shares;
• The amount of proceeds from the placement.

Section 17

This item displays the data required by PBU 18/02:

• Conditional expenditure (income) for the NPP;

• The differences that led to the adjustment of the amount of tax;

• PNO, IT, IT;

• Reasons for changes in tax rates;

• The amounts of IT and OHA, written off in connection with the disposal of the OS.

Termination of activities

If the organization is at the liquidation stage, the final balance sheet is submitted to the FTS. The explanatory note to the balance sheet contains such information:

• Description of the liquidated activity;

• Date of completion of work;

• The value of property and liabilities to retirement;

• Movement of funds in the current, investment and financial activities;

• The amount of revenues, expenses, profits, losses before tax, accrued by the NPP;

• Cancellation of liquidation.

Other indicators

There are not many of them, but it is not worth dumping them:

• Competitiveness of goods;

• Credit policy, solvency;

• Information on property transferred and received for management.

An example of an explanatory note to the balance sheet

Explanations to the balance sheet of JSC "Organization" for 2015:

1. General information

The joint-stock company "Organization" is registered by the Inspectorate of the Federal Tax Service No. 5 in St. Petersburg on October 28, 2010. (Next are the checkpoint, TIN, state registration certificate data, address.)

The balance sheet is prepared in accordance with the current accounting and reporting rules (IFRS).

Statutory fund: 2 million (two million) rubles.

Number of ordinary shares: 1,000 pieces with a par value of 2,000 (two thousand) rubles.

The main type of employment: milk processing (OKVED 15.50).

Composition of the founders of persons:

Ivanov Andrey Sergeevich - member of the Board of Directors;

Averin Stepan Pavlovich is a member of the Board of Directors.

2. Provisions of accounting policy

The order for accounting policy No. 158 was signed by the director on December 25, 2013 ( briefly describes the provisions: methods for calculating depreciation, valuation of liabilities and assets, etc. ).

3. Balance structure (the specific weight of each balance line is shown and changes in indicators are calculated).

4. Valuation of assets (value of property is correlated with capital).

5. Analysis of financial indicators (liquidity, profitability, security of stocks, level of financial dependence, etc.) are calculated.

6. The composition of the OS (million rubles.) - For convenience, we will present in the form of a table.

Name	Initial cost	Accrued depreciation	Book value
Land	1.25		1.25
Building	58.3	6.9	51.4
Vehicles	1.3	0.4	0.9
Equipment	32.6	4.9	27.7
Inventory	0.4	0.07	0.33

7. Liabilities and reserves

As of December 31, 2015, an estimated obligation to pay vacations in the amount of 1.5 million rubles was created, the number of days - 66, the period of use - 2016. The reserve of doubtful debts was formed to the amount of 1.687 million rubles. Due to the presence of overdue and unsecured debt LLC "Enterprise". There is no reserve for the depreciation of inventories, since there are no signs of their depreciation.

8. Work and salary

Debt on wages for December 2015 is 1.79 million rubles. Term of payment - 15.01.16. Staff turnover - 24.99%, list size - 166 people. The average monthly salary is 20,765 rubles.

9. Issued and received collateral (species are indicated).

03/20/2016

Director of JSC "Organization" Signature

Conclusion

According to the results of the calendar year, the balance sheet is submitted to the Federal Tax Service. Explanatory note to the balance sheet is made in an arbitrary form. It can contain tables and diagrams. It provides a variety of details of information: from the accounting policy to the calculation of financial indicators. The main requirement - the information should be reliable and useful to users.