The Accounting Expression Of Fixed Assets In The Cr And Russia

Ma sa r yk u n iv e rsi t y Faculty of Economics and Administration Branch of study: Finance THE ACCOUNTING EXPRESSION OF FIXED ASSETS IN THE CR AND RUSSIA Účetní zobrazení dlouhodobého majetku v ČR a Rusku Diploma thesis Supervisor: Ing Ladislav ŠIŠKA, Ph.D Author: Mark LITVINOV Brno, April 2012 Masarykova univerzita Ekonomicko-správní fakulta Katedra financí Akademický rok 2011/2012 ZADÁNÍ DIPLOMOVÉ PRÁCE Pro: LITVINOV Mark Obor: Finance Název tématu: ÚČETNÍ ZOBRAZENÍ DLOUHODOBÉHO MAJETKU V ČR A RUSKU The accounting expression of fixed assets in the CR and Russia Zásady pro vypracování: Cíl práce: Porovnat způsoby účetního zobrazení dlouhodobého majetku v ČR a Rusku a na základě této komparace vyhodnotit pozitiva a negativa obou účetních systémů, vč otázky věrohodnosti vyjádření fyzického a morálního opotřebení majetku Postup práce a použité metody: Teoretická část práce rozebere způsoby zobrazení dlouhodobého majetku v ČR a Rusku Konkrétně budou porovnány především způsoby vymezení dlouhodobého majetku, složky jeho pořizovací ceny a způsoby odepisování, které vyjadřuje dlouhodobý pokles hodnoty dlouhodobého majetku v důsledku fyzického opotřebení, ale i morálního zastarání Stranou pozornosti nezůstane ani vliv vyššího vytížení majetku na pozitivní výsledky hospodaření v důsledku lepšího roznesení fixních nákladů, které jsou s ním spojeny, většího objemu výkonů V praktické části práce bude představen konkrétní ruský podnik a jeho výrobní program Následně se pozornost upře na strukturu dlouhodobého majetku v daném podniku, způsob jeho zobrazení v účetnictví, na výpočet jeho zůstatkové ceny a úroveň vytížení majetku ve sledovaném období V závěru budou diskutovány rozdíly, které by se vyskytly, pokud by analyzovaný podnik vykazoval stejná aktiva podle českých účetních předpisů Diskutována bude i otázka použití reprodukčních cen pro vyjádření hodnoty dlouhodobého majetku V práci se uplatní zejména obecně vědní metody analýzy, syntézy a komparace K získání informací pro zpracování praktické části budou využity účetní směrnice a data, dále rozhovory s pracovníky finančního útvaru konkrétního podniku Rozsah grafických prací: dle pokynů vedoucího práce Rozsah práce bez příloh: 60 – 80 stran Seznam odborné literatury: SLÁDKOVÁ, EVA Finanční účetnictví a výkaznictví Vyd Praha: ASPI, 2009 451 s ISBN 978-80-7357-434 PRUDKÝ, PAVEL - LOŠŤÁK, MILAN Hmotný a nehmotný majetek v praxi :komentář, příklady, výklad změn 12 aktualizované vyd Olomouc: Anag, 2010 279 s ISBN 9788072635962 VALOUCH, PETR Účetní a daňové odpisy 2011 vyd Praha: GRADA Publishing, a.s., 2011 140 s Účetnictví a daně ISBN 978-80-247-3803-1 Účetní předpisy pro podnikatele: (zákon o účetnictví, prováděcí vyhláška k zákonu, České účetní standardy): komentář Edited by Libuše Müllerová - Hana Vomáčková - Dana Dvořáková 3., aktualiz vyd Praha : ASPI, 2009 xvi, 585 s ISBN 978-80-7357-435 BŘEZINOVÁ, HANA - ŠTOHL, PAVEL Účetní závěrka: výklad a praktické příklady: pro studenty vysokých škol s ekonomickým zaměřením aktualiz vyd Znojmo: Soukromá vysoká škola ekonomická Znojmo, 2010 136 s ISBN 9788087314074 Vedoucí diplomové práce: Ing Ladislav Šiška, Ph.D Datum zadání diplomové práce: 2011 Termín odevzdání diplomové práce a vložení IS je uveden v platném harmonogramu akademického roku …………………………………… vedoucí katedry V Brně dne 2011 ………………………………………… děkan J mén o a p ří j men í a u tora: Název d i p l omov é p ráce: Název p rác e v an gl i čti n ě: Kated : Ved ou cí d i p l omové p ráce: Rok ob h ajob y: Mark Litvinov Účetní zobrazení dlouhodobého majetku v ČR a Rusku The accounting expression of fixed assets in the CR and Russia Katedra financí Ing Ladislav Šiška, Ph.D 2012 Anotace V podmínkách globální ekonomické recese je velmi důležité využití stálých aktiv podniku Stálá aktiva, jako hlavní nástroj výrobního procesu, umožňují jakékoli organizaci stát se produktivnější a ziskovější Většina aspektů podnikové činnosti a jejího řízení je s nimi úzce spojena Diplomová práce se zabývá analýzou efektivity využití stálých aktiv na příkladu ruské akciové spolenosti “Koncern Izhmash” Tato společnost je jedním z největších ruských výrobců sportovních, loveckých stejně jako bojových zbraní Zahrnuto je i srovnání účetního systému České republiky a Ruska Annotation Under conditions of the global economic recession, fixed assets utilization efficiency increase is of great importance Fixed assets while being the major part of production process, allow any organization to become more productive and profitable Most aspects of enterprise activity and management are closely connected with them The diploma thesis deals with an analysis of fixed assets utilization efficiency through the example of the Russian joint stock company “Concern Izhmash” This company is one of the biggest Russian producers of sports and hunting as well as combat weapons The comparison of the Czech Republic and Russian accounting systems is also included Klíčová slova Analýza dlouhodobých aktiv, srovnání účetních systémů, využití zařízení, ocenění dlouhodobých aktiv, odpisy dlouhodobých aktiv Keywords Fixed assets analysis, comparison of the accounting systems, the utilization of the equipment, fixed assets evaluation, depreciation of fixed assets Prohlášení Prohlašuji, že jsem diplomovou práci Účetní zobrazení dlouhodobého majetku v ČR a Rusku vypracoval samostatně pod vedením Ing Ladislava Šišky, Ph.D a uvedl v ní všechny použité literární a jiné odborné zdroje v souladu s právními předpisy, vnitřními předpisy Masarykovy univerzity a vnitřními akty řízení Masarykovy univerzity a Ekonomicko-správní fakulty MU V Brně dne 26 dubna 2012 vlastnoruční podpis autora Poděkování Na tomto místě bych rád poděkoval Ing Ladislavu Šiškovi, Ph.D za cenné připomínky a odborné rady, kterými přispěl k vypracování této diplomové práce stejně tak jako za čas, který mi věnoval Dále bych rád podekoval své rodine za morální a materiální podporu, které se mi dostávalo po celý prubeh mého studia After having studied the accounting systems of the Czech Republic and Russia I can say each of them has its distinguishing features The accounting system applied in the Czech Republic reflects fixed assets costs and depreciation more accurately It regards residual value as well, so fixed assets value in the financial statement is more adequate Besides, the revaluation of fixed assets in the Russian Federation usually is not carried out on a regular basis The concern “Izhmash” also does not revaluate its fixed assets In case of using the Czech Republic accounting rules the concern “Izhmash” could express the fixed assets value in the balance-sheet more correctly (the decrease in fixed assets value will be approximately 10%).125 The accounting system in Russia is quite rigid, some problems related to fixed assets accounting arise It also does not allow outside users who are really interested in the information from the company to get all necessary information Some bureaucratic obstacles hinder the development of the Russian economy as well as its accounting system In comparison to the Russian accounting system the one of the Czech Republic is more sufficient and adequate 125 See table no.12 76 List of References Zákon o účetnictví č 563/1991 Sb., ve znění pozdějších předpisů Účetnictví podnikatelů: zákony, prováděcí vyhlášky, standardy podle stavu k 10.1.2011 (The Law of Accounting no 563/1991 Col., as subsequently amended Accounting for businessmen: laws, implementing edict of Ministry of Finance, Czech Accounting Standards by the 10.01.2011) Vyhláška č.500/2002 Sb., kterou se provádějí některá ustanovení zákona č 563/1991 Sb.,o účetnictví, ve znění pozdějších předpisů, pro účení jednotky, ktére jsou podnikateli účtujícími v soustavě podvojného účetnictví Účetnictví podnikatelů: zákony, prováděcí vyhlášky, standardy podle stavu k 10.1.2011 (The Edict of Ministry of Finance no 500/2002 Col., as subsequently amended Accounting for businessmen: laws, implementing edict 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Accounts of Finance and Economic Activities of the Organization and Instructions for Its Use, approved by Order of Finance Ministry of the Russian Federation of 31 October 2000, no 94n Babayev Y.A Бухгалтерский учет: Учебник (Accounting Manual for students of Higher Educational Establishments) – Moscow: UNITY-DANA, 2007 Baryshnikov N.P В помощь бухгалтеру и аудитору (For an accountant and auditor, parts 1, 2) – Moscow: Philin, 2005 Belousova S.V Амортизация основных средств (Fixed assets depreciation) – Moscow: Finance and statistics, 2006 Бухгалтерский учет: пособие для студентов высших учебных заведений Accounting: Manual for students of Higher Educational Establishments / edited by Bezrukikh P.S., - Moscow : Accounting, 2008 Březinová H., Štohl P Účetní závěrka: výklad a praktické příklady: pro studenty vysokých škol s ekonomickým zaměřením (The financial statements: explanation and practical examples: for the students of higher education institutions with the economical dimension) 2., actualized edition Znojmo: Soukromá vysoká škola ekonomická Znojmo, 2010 136 pp ISBN 9788087314074 78 Březinová H, Munzar V Účetnictví I (The accounting I) 3., revised and enlarged edition Prague: Institut Svazu účetních, 2009 495p ISBN 9788086716459 Collin S Dictionary of Accounting edition London: Bloomsbury, 2004 222 p ISBN 0747569916 Dvořáková D Finanční účetnictví a výkaznictví podle mezinárodních standardů IFRS (The Financial Accounting and Reporting according to IFRS) 3., actualized and enlarged edition Brno: Computer Press, 2011 326 p ISBN 9788025136522 Hýblová E, Sedláček J Mezinárodní účetnictví (International Accounting) edition Brno: Masaryk university, 2004 138 p ISBN 8021034734 International Accounting Standards Board International Accounting Standards 2002 ISBN 0905625978 Kondrakov N.P Бухгалтерский учет (Accounting) – Moscow: Projekt- N., 2008 Loja R., Vojáčková H Účetní závěrka podle IFRS se zaměřením na majetek (Financial statements according to IFRS with focus on assets) edition Prague: Bilance, 2005 325 p ISBN 8086371484 Lugovoi V.A Бухгалтерский учет основных средств, нематериальных активов и (The accounting of fixed assets, intangible assets and long-term investments) – Moscow: FBK-PRESS, 2004 Mordovkin A.V Бухгалтерский учет и амортизация основных средств (The accounting and taxation of fixed assets) – Moscow: “Glavbuch”, 2003 Účetní předpisy pro podnikatele: (zákon o účetnictví, prováděcí vyhláška k zákonu, České účetní standardy):komentář The accounting regulations for businessmen: (the law of accounting, implementing edict of Ministry of Finance, Czech Accounting Standards): comments Edited by Libuše Müllerová - Hana Vomáčková - Dana Dvořáková 3., actualized edition Prague: ASPI, 2009 xvi, 585 pp ISBN 978807357435 Podolskyi V.I etc Аудит (Auditing) – Moscow: UNITY, 2007 Prudký P., Lošťak M Hmotný a nehmotný majetek v praxi :komentář, příklady, výklad změn (Tangible and intangible assets in practice: comments, examples, changes 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Financial Reporting Standards in Russia – Moscow: Perspektiva, 2009 79 Valouch P Účetní a daňové odpisy (Accounting and tax depreciation) 6.edition Prague: GRADA Publishing, 2011.144 pp ISBN 9788024738031 Valouch P Účetnictví (Accounting) edition Brno: Mendel Agricultural and Forestry University, 2005 102 p ISBN 8071579165 Wild J., Shaw K., Chiappetta B Financial and Managerial Accounting: information for decisions edition Boston: McGraw – Hill/ Irwin, 2009 xxxii, 589, 698 p ISBN 97800733605601113 Yeleneva Y.A.Экономика машиностроительных предприятий (Economics of machinebuilding) – Moscow: Finance and Statistics, 2007 The accounting policies and Explanatory Notes of the concern “Izhmash” by the year 2009 approved by the Order of General Director of the concern “Izhmash” no.89 of 29March 2009 IFRS compared to Russian GAAP: An overview Available at www: Laws of the Czech Republic in English language Available at www: The classification of the fixed assets Available at www: The official website of the enterprise group “Izhmash” Available at www: Fundamental differences of the accounting in the Russian Federation in comparison with international practices Available at www: 80 List of Tables Table no – Key strengths and drawbacks of the concern “Izhmash”………………………45 Table no - Net balance of the concern “Izhmash”………………………………………….46 Table no – Financial stability of the concern “Izhmash”………………………………… 48 Table no – The profitability ratio analysis of the concern “Izhmash”…………………… 49 Table no – Specification of the concern “Izhmash” fixed assets………………………… 52 Table no.6 – Fixed assets age composition at the concern “Izhmash”……………………… 54 Table no.7 – Calculation of the equipment time distribution efficiency at the concern “Izhmash”…………………………………………………………………………………………… 57 Table no.8 – The factorial analysis of the equipment productivity in terms of time and its capacity……………………………………………………………………………………………… 59 Table no.9 – The concern “Izhmash” equipment analysis…………………………………….59 Table no.10 – Fixed assets utilization efficiency at the concern “Izhmash”………………….62 Table no.11 – The influence of first-order and second-order factors on return on fixed assets ratio…………………………………………………………………………………………………….63 Table no 12 – Summarizing table…………………………………………………………….65 Table no 13 –The depreciated fixed assets classification according to the Russian Federation Government Resolution no 1, 01.01.2002 (Appendix no.1) Table no 14 – Positive impact of feedback events on productive possibilities and fixed assets of the concern “Izhmash” in the medium-term period (Appendix no.2) Table no 15 – Comparison table of differences between RAS and IFRS accounting (Appendix no.3) Table no 16 – Expenses minimization influence on the return on productive assets ratio during their useful life at the concern “Izhmash” (Appendix no.4) Table no 17 – The equipment average useful life at the concern “Izhmash” (Appendix no 5) 81 List of Abbreviations AAC – the acquired assets costs; ACB – the fixed assets costs at the beginning of the year; ACE – the fixed assets costs by the end of the year; AD – the accumulated depreciation; AE – the actual equipment; AEI – the amount of the equipment items; AF - the amortization factor; AFWT – the actual fund of working time; AHW – actual hours worked; ANW – the average number of workers AO – the actual output (per the item of equipment per unit of time); AP– the machine average price; APISC – fixed assets put into service costs; AT – the actual time; AUPISC – fixed assets in use put into service costs; AUC – fixed assets in use costs; AUR – fixed assets in use ratio; B – the number of hours worked by one machine per year; BWT – base work time; CAL – the coefficient of aggregated load; CEL – the coefficient of the equipment extensive load; CIL – the coefficient of the equipment intensive load; CLR – the capital labour ratio; COR – the capital output ratio; D – the average useful life of equipment; DA – the depreciation yearly amount; DR – the depreciation ratio; DT – the deadtime; DV – the depreciation value; EAO – the expected amount of the assets output; EC – assets entry costs; EFWT – the expected fund of working time; EP – the equipment productivity; FAAC – fixed assets average annual costs; FASAC – fixed assets and supplies annual costs; FAT – fixed assets turnover; FAUAC – fixed assets in use average annual costs; FAUE – the fixed assets utilization efficiency; FAUT – fixed assets in use turnover; IR – the increase ratio; LE – the labour efficiency; 82 MPCE – marketable product change due to extensive load change; MPCI – marketable product change due to intensive load change; N – the number of the machines; NMS – the number of machine shifting; OKUD - All-Russia Classifier of Management Documentation; PAT – productive assets turnover; PO – the planned equipment output; PS – the performance schedule; PT – the productive (effective) time; R – the average output per hour; RAS (RAP) – Russian Accounting Standards (Russian Accounting Principles); RenewR – the renewal ratio; RenewRU – the renewal ratio for fixed assets in use; RetireR – the retirement ratio; ROFA – the return on fixed assets ratio; ROFAU – the return on fixed assets in use ratio; ROPA – the return on productive assets ratio; ROS – return on sales; S – sales; SR – the start-up ratio; ST – stock-in-trade; STMP – the schedule time of the machine performance; SUR – the shift utilization ratio; T – the equipment working time; TSDP – the time spent on the defective product; U – the specific weight of fixed assets in use; UR – the utilization ratio of the equipment; URQ – the utilization ratio in terms of quantity; WAC – the written-off fixed assets costs; Wdn – the weight of equipment items with service life of n years; WR – the workability ratio 83 List of Appendices Appendix no The depreciated fixed assets classification according to the Russian Federation Government Resolution № 1, 01.01.2002 Appendix no Positive impact of feedback events on productive possibilities and fixed assets of the concern “Izhmash” in the medium-term period Appendix no Comparison table of differences between RAS and IFRS accounting Appendix no Expenses minimization influence on the return on productive assets ratio during their useful life at the concern “Izhmash” Appendix no.5 The equipment average useful life at the concern “Izhmash” 84 Appendix no.1 The depreciated fixed assets classification according to the Russian Federation Government Resolution no 1, 01.01.2002 Assets group Assets useful life, years 1-2 Fixed assets (examples) All short-life assets (abrasive tools, medical instruments and devices, etc.) 2-3 Water well pumps, non-mechanized equipment and computer hardware, etc 3-5 Elevators, truck tractors, optical instruments, motorcars, motorcycles, service dogs, etc 5-7 Facilities, transmission facilities, lifting tools, clock (except for technical ones), draft animals and productive livestock, trolleybuses, etc 7-10 Sports and hunting weapons, facilities (except for residential buildings), radio communications, electric ovens, fire machines, capitalized improvements in land, perennial plantings, etc 10-15 Sea platforms, entertainment wagons, recreation parks, planes, crafts and goods and helicopters, etc 15-20 Railroad bridges, furnace, electric open-hearth transformers, locomotives, etc 20-25 Safes, cashboxes, armoured doors, blast furnaces, subway lines, etc 25-30 Water and wastewater treatment facilities, air strips, nuclear-power reactors, sea crafts, etc 10 Over 30 Habitations, escalators, dockage facilities, landing places Source: original work of authorship Appendix no Positive impact of feedback events on productive possibilities and fixed assets of the concern “Izhmash” in the medium-term period Feedback event Influence on the company Profit compared with 2009 Fixed assets renewal possibilities The Olympic Games in Increase in sporting Expected profit increase Necessary modernization Sochi 2014 rifles sales in the approx 25% and re-equipment, new medium-term period kinds of equipment to (Russian national reach the competitive biathlon team) ; higher advantages demand for sports and hunting weapons Agreement on arms Big defence orders: the Expected profit increase New potential investors supplies to Venezuela and expansion of foreign- approx 20% and eventual buyers: Lybia economic activity sources for introducing new technologies, sharing best practice with large multinational companies Fight against terrorism High demand for high- Expected profit increase Necessary re-equipment accuracy military approx 15% and technical renovation (combat) weapon (upgrading) Production (security service, army diversification (assets and law enforcement expansion due to a certain authorities) government product orientation) defence orders (the concern production sniper rifles, assault rifles, automatic weapon “Bizon” and “Vityaz”) Growth of technology Production of new Expected profit increase High-tech equipment unique types of weapon approx 15 % Potential consolidation and military equipment with other defence (UBGL- under-barrel companies New eventual grenade launcher GP-34 buyers: sources for getting and pilotless aircrafts) the next generation equipment Source: original work of authorship Appendix no Comparison table of differences between RAS and IFRS accounting Comparison criterion Components statements of financial Form of financial statements Basis of financial statements Classification between current and non-current assets Fixed assets recognition Fixed assets costs of future dismantling Fixed assets depreciation Fixed assets useful life and depreciation methods review Fixed assets residual value Subsequent expenditures on fixed assets Fixed assets revaluation 127 The Russian Federation legislation (RAS) Balance sheet (form no 1); income statement (form no 2); statement of changes in equity (form no 3); statement of cash flows127 (form no 4); annex to a balance-sheet (form no 5) Recommended formats (generally followed) Historical cost basis; limited revaluations (homogeneous items no more than once a year) Presented in the balance sheet Initially at cost but is based on nominal contract price Costs of future dismantling and site restoration are not capitalized (liability reserves are built up) Depreciation is suspended in cases when fixed asset is idle or being restored Useful life is reviewed only when the asset is enhanced or useful life is reduced No requirement to review the method of depreciation Residual values are not taken into account in determining depreciation Capitalized only when it gives rise to future economic benefits in excess of the originally assessed standard of performance of the asset Groups of similar fixed assets may be revalued only if all items in the same class are revalued and revaluations are IFRS Balance sheet; income statement; statement of changes in equity (or statement of recognized income and expense); statement of cash flows; notes, including accounting policies No prescriptive formats Modified historical cost basis; annual review of useful life and residual value estimates required Revaluation of fixed assets to market value is permitted if market value is reliably determined Generally is presented in the balance sheet Initially at cost Costs of dismantling and removing the asset and restoring the site are capitalized (included in fixed assets cost) Item of property, plant and equipment is depreciated even if it is idle Useful life, residual value and depreciation method must be reviewed (at least at each balance-sheet date) Estimated residual values reflect prices at the balance sheet dates Capitalized in case of probability that future economic benefits flow to the entity Property, plant and equipment may be revalued to fair value if all items in the same class are sometimes in practice the statement of cash flows is not included in consolidated financial statements The gain or loss on fixed assets disposal Revaluation surplus Intangible assets recognition Measurement of fixed assets intangible costs Goodwill Depreciation assets of intangible Subsequent expenditures on intangible assets Intangible assets revaluation carried out on a regular basis (may be revalued using entity-developed indices that not necessarily result in fair value) Difference between the proceeds received and the carrying amount of the asset (proceeds are not measured on a net basis) Must be recognized in additional capital Prescriptive list of items that must be recognized as intangible assets if the relevant criteria are met Cost of a separately acquired intangible asset is based on the price stated in the contract Cost of an intangible assets acquired in an acquisition is its previous carrying amount in the financial statements of the subsidiary Cost of an internally generated intangible asset includes certain expenditure that would not be capitalized under IFRS Difference between cost of acquisition and the nominal value of the acquired shares (“business reputation”) All intangible assets (including goodwill) are depreciated, generally over their expecting useful lives Assets are not subject to impairment testing Can not be capitalized Assets can not be revalued Source: original work of authorship revalued at the same time and the revaluations are kept up to date Difference between the net proceeds received and the carrying amount of the asset Generally recognized in the equity Asset must have future economic benefits in case of probability it is realized and its cost is reliably measurable Depends on whether it has been acquired separately, acquired as a part of a business combination or was internally generated Represents future economic benefits arising from assets that are not capable of being identified individually and recognized separately Assets with indefinite lives (including acquired goodwill) are not depreciated but must be tested for impairment at least annually Assets with finite lives are depreciated over their expected useful lives Capitalized rarely Assets may be revalued to fair value only if there is an active market Appendix no Expenses minimization influence on the return on productive assets ratio during their useful life at the concern “Izhmash” Fixed assets item The return on productive The return on productive assets ratio (as a result of fixed assets ratio in 2009 assets utilization efficiency increasing measures) Buildings 0,16 0,17 Facilities and 0,09 0,11 0,13 0,14 Transport facilities 0,08 0,09 Productive and 0,13 0,13 0,13 0,15 transmissive units Machines and equipment household equipment Total Source: original work of authorship Appendix no.5 The equipment average useful life at the concern “Izhmash” Equipment groups The equipment useful life Manufacturing equipment 11,65 Service equipment 11,94 Lifting and transporting equipment 11,91 Power engineering equipment 10,74 Total 11,64 Source: original work of authorship