Notes on the balance sheet. Explanatory note sample

Until 2013, the explanatory note was part of financial statements. But after certain legislative changes, it ceased to be part of the reporting, although the law states that taxpayers can submit Additional information which they find useful.

According to the current legal regulation financial statements also have applications. As attachments, you can specify a statement of changes in equity, a statement of the intended use of funds, explanations for and. And what features have explanations and how should they be compiled?

General provisions

As mentioned above, they are part of the annual financial statements. At the same time, they may not be presented by non-profit organizations and public associations that are not engaged in entrepreneurial activities and do not have turnover for the sale of products or goods.

Explanations can be presented both in text form and in tables. At the same time, companies have the opportunity to independently determine the content. But in the corresponding order of the Ministry of Finance of the Russian Federation (N 3 of 07/02/2010) recommended forms are presented.

During their registration, certain requirements must be met:

• all must be numbered;
• the number must be indicated in the column on the appropriate lines.

You need to be aware that, according to the current legal regulation, they are not considered a separate reporting form, but are only an appendix to the financial statements. In fact, this is a decoding to it. Explanations for balance sheet and income statement consist of certain sections.

These include:

• financial investments;
• estimated liabilities;
• production costs;
• reserves;
• securing obligations, etc.

Each section consists of one or more tables. Explanation lines are to be encoded. Compilation of explanations can be carried out using the word program.

The legislative framework

According to the current legislative requirements, the financial statements must reflect reliable data that make it possible to draw up a provision on:

• the financial position of the enterprise;
• financial results of its economic activity;
• behind reporting period.

This sphere of legal relations received its regulation in the Federal Law “On Accounting”.

When compiling explanations, it is necessary to take into account the relevant provisions of RAS 4/99 (paragraphs 24-27). It is also necessary to be guided by the norms of other accounting provisions and subparagraph “b” of paragraph 4 of order No. 66n.

For example, in the explanations it is necessary to disclose information that relates to the accounting policies of organizations. Basically, they relate to the numerical indicators of financial statements.

At the same time, it is necessary to take into account the fact that the financial statements do not include information that is related. The composition and content of such information are provided for in paragraph 39 of PBU 4/99. In particular, an enterprise may provide additional information if, in the opinion of its executive body, such data is useful to interested parties.

Related information may include information such as:

• the dynamics of the financial performance of the enterprise;
• planned development of the company;
• proposed investments;
• risk management policy, etc.

Law “On audit activity” states that audit procedures are also carried out in relation to the explanations. And additional information, as a rule, is not subject to evaluation.

An example of registration of explanations to the balance sheet by sections

The explanations are divided into several sections.

In particular, there are the following sections:

Section 1	Dedicated to intangible assets and expenses of the enterprise for R&D, including those for operations in progress.
Section 2	This part contains information on fixed assets, profitable investments in tangible assets, and other non-current assets.
Section 3	Dedicated to the financial investments of the enterprise.
Section 4	Contains information about the company's inventory.
Section 5	It discloses information about the accounts receivable and accounts payable of the enterprise.
Section 6	Dedicated to production costs.
Section 7	It contains information about estimated liabilities.
Section 8	Dedicated to securing obligations.
Section 9	Dedicated to data related to government assistance.

These are the main sections that must be completed. To have a better idea of ​​how to fill them out, you can see an example of the design of explanations for the balance sheet.

Required information

There is certain information that must be filled in without fail. What information should be filled in?

First section	Dedicated to intangible assets and should reflect information on the value of intangible assets, their movement. At the same time, it is also necessary to indicate information about the assets that the company created on its own, as well as those that are fully depreciated, but the company continues to use them. This section should also contain data on investments in R&D, including on unfinished operations. In this case, the data must be indicated both for the current and for previous reporting periods.
Section 2	It is necessary to indicate information on fixed assets, profitable investments in material assets, as well as on other non-current assets. In this case, the data must be indicated both for the current and the previous reporting period.
Section 3	Data on the initial cost of long-term and short-term investments, as well as their changes, must be filled in. It should also reflect information about investments that are pledged by third parties.
Section 4	Dedicated to the costs of the enterprise. In this case, it is mandatory to indicate information about unpaid reserves, as well as about those objects that are the subject of pledge.
Section 5	Is quite large and is dedicated to receivables and payables. It must disclose information about: borrowed funds; other obligations; borrowed funds provided by the company to other entities; The section should contain information about doubtful debts. At the same time, it is also necessary to indicate data not only at the end of the year: it is also necessary to reflect changes for the reporting period.
Section 6	Dedicated to production costs. It contains information about the cost of sales, selling expenses, etc. Data must be specified both for the reporting and for the previous period of time.
Section 7	It is necessary to reflect data on the amounts of estimated liabilities. In this case, it is necessary to indicate data both at the beginning and at the end of the reporting period. It is also necessary to provide information on the amount of recognized, settled and excess liabilities.
Section 8	Dedicated to securing obligations. Here it is necessary to fill in data on both received and issued security obligations. In this case, it is necessary to fill in these data for each type of collateral (pledge, guarantee, etc.).
Section 9	Dedicated to state aid. Here you need to disclose data on the received budgetary funds. At the same time, their intended purpose must be indicated. Data must be filled in for both the current and previous reporting periods.

These are the basic details that must be filled in. In addition to them, you can specify additional information that is not included in the financial statements, but which may contain useful data.

Below is a description of several tables by section.

Section 1 consists of 5 tables that are dedicated to:

And section 2 consists of the following tables, which are devoted to:

• the presence and movement of fixed assets;
• capital investments in progress (lines 5240, 5250);
• change in the value of fixed assets (lines 5260, 5270);
• other use of fixed assets (line lines 5280-5286).

For example, section 4 consists of tables devoted to:

Each section of the explanations has its own tables with certain lines that must be filled in in accordance with the requirements of the current legislation. A sample of filling out explanations in 2019 can be viewed on the Internet.

Explanatory note to the balance sheet is not always necessary, but its presence in a competent design will save the enterprise from many claims from regulatory agencies and from problems during the audit, so its value is difficult to overestimate.

An explanatory note to the balance sheet is a full disclosure of figures in the annual report, detailed description their origin, as well as data on the financial annual activities of the organization. The presence of this document fully ensures the transparency of the enterprise and protects its reputation.

In fact, this is a separate reporting document, which contains explanations for the annual reporting.

This document is important not only for regulatory authorities, but also for investors who need to see the completeness of the financial condition.

The note indicates the complete data on the balance sheet and on the report - it is usually not compiled for one document.

Important: in 2017, an explanatory note is not required for an LLC, which, according to the criteria, fits the criteria of a small business.

What forms of explanatory note should be used in accounting - see here:

Who draws up the document and when

The document is compiled by an accountant who was involved in the formation of annual reports and balance sheets.

The formation takes place immediately after the preparation of the annual documentation, since for organizations that are required to compile it, it is necessary to submit a note along with annual papers.

Form and details of the note

According to the current legislation, there is no approved explanatory note form, it is only necessary that when drawing up in form 5, all data and explanations should be taken into account, which will fully give an idea to shareholders and other owners of the enterprise about the financial condition.

According to PBU 4/99, the paper must contain the following:

• Details of the subject;
• Information about him;
• Assessment of financial and economic activities;
• Comparison of indicators of the current year and the previous one;
• Methods for assessing assets and liabilities;
• Significant financial statements.

Important: if accounting was not performed during the year for good reasons, then this should be mentioned in a note indicating the reasons for such behavior, otherwise the company will be responsible for evading its direct duties.

The document also reflects the forthcoming changes in the accounting policy of the enterprise next year.

Among other things, you must specify information important for the enterprise:

• Analysis of the dynamics of economic progress over the past few periods;
• Take into account the figures that had a significant impact on the activities of the enterprise;
• Describe plans and forecasts for future events;
• Planned financial investments;
• Use of loans;
• Other data.

Sample explanatory note to the balance sheet.

Step by step instructions for filling

Each company develops its own form, but in in general terms it is composed of text and a table.

You should start the formation of the document by specifying information about the enterprise:

• The name of the company;
• The volume of sales of products in the context of nomenclature units of goods, services or works;
• The main items of material and production costs;
• The size of the formed reserves for future spending, their dynamics in comparison with previous years;
• Other expenses.

In this part, you can analyze in detail the factors on which current costs depend.

Among them may be:

• Cost optimization;
• Increasing sales;
• Improvement of the production process;
• Changes in storage and transportation conditions.

• Solvency;
• liquidity;
• Profitability.

Based on these data, draw conclusions about the economic activity of the enterprise.

In the following part of the note, you must provide a transcript of the accounting documentation:

• When decoding data on fixed assets, it is necessary to indicate the terms and methods of depreciation. How depreciation is calculated in a linear way - read;
• According to the MPZ, it is necessary to indicate all the essential details, including the methods for their assessment;
• For financial investments, it is necessary to indicate their structure and methods for their evaluation.

Important: accounts payable are taken out separately, indicating the volume of loans and borrowings, the timing and dates of their receipt, as well as forms of security. In what order is carried out with an expired limitation period, you will find out in the publication at the link.

It is impossible to bypass the accounting policy of the company, it also needs to devote a certain part of the explanatory document.

An example of filling out an explanatory note.

Here you should disclose data on depreciation, valuation of assets and liabilities, features of recognition of income and expenses. If there are changes in this direction, it is necessary to indicate this with the rationale for the expediency of such changes.

Also, a separate paragraph should indicate options for economic activity that were not taken into account in the previous sections, for example, information about the termination of activities, about affiliates, obtaining and applying state assistance, facts of conditional management.

Thus, this document consists of several sections, the development of which the enterprise performs independently, however, the main information in the document must be included.

Compilation errors

It follows from everything that the note should be formed for each enterprise individually, since any given example will be tailored to the management of a particular company, taking into account its characteristics.

However, when developing, in order to avoid mistakes, it is necessary to rely on the basic requirements for information disclosure.

It is important to consider the following nuances:

• General information about the company itself and about the results of the annual activity;
• Disclosure of the values ​​of indicators of financial statements and features of accounting;
• Analysis of receivables and payables with a detailed indication of the credit funds of the enterprise;
• Information about the accounting policy of the enterprise;
• Other information must be added depending on the degree of its impact on the financial and economic application of the enterprise.

An example of an explanatory note

Explanatory note to the balance sheet

Industry LLC for 2017

1. General information

Industry LLC was registered by IFTS No. 8 for the city of St. Petersburg on August 25, 2001. Next, you should specify the full details, registration number, TIN, KPP, PSRN and others.

The balance sheet is formed in accordance with the rules of balance sheet and reporting in force in Russia.

• Authorized capital - 1,200,000 rubles;
• The number of shares is 1,200 pieces with a par value of one 1,000 rubles;
• The main activity is manufacturing metal parts indicating the code according to OKVED;

Composition of affiliated persons:

• Adreev Alexander Alekseevich - Member of the Board of Directors;
• Ilyin Vladimir Aleksandrovich – Member of the Board of Directors.

1. The main provisions of the accounting policy

Approved by the order of the director No256 dated 10/30/2001 - further, in a concise form, it is necessary to describe the provisions with an indication of and other data.

1. Balance structure - it is necessary to indicate for each line the % change ratio for the year. you will learn how to prepare a statement of changes in equity.
2. Cost estimate net assets it is necessary to indicate their size in relation to the authorized capital.
3. Analysis of basic financial information - financial ratios are indicated.
4. Composition of fixed assets.
5. Estimated liabilities and reserves:

• As of December 31, 21017, an estimated reserve for vacations was formed in the amount of 500,000 rubles for 56 unpaid vacation days, execution has been postponed to 2018;
• For doubtful debts, a reserve in the amount of 1.5 million rubles as a result of overdue debts without collateral from PJSC Almaz.

1. Labor and its pay

Accounts payable to the salary is 2,000,000 rubles for December 2017, the due date is January 5, 2018. Staff turnover in the past period amounted to 36.76%, payroll- 256 people. The average monthly salary is 36,000 rubles.

1. Issued and received collateral and payments - a complete list.
2. Other information.

Director of Industry LLC Nikonov I.I. 02/26/2018

Conclusion

This document is mandatory for all enterprises, with the exception of small businesses, budgetary and non-profit companies, a responsible approach to its preparation ensures the submission complete information for regulatory bodies and the board of directors.

What is a balance sheet and how to draw up all the documents necessary for it, you will learn in this video:

INFORMATION ACCOMPANYING REPORTING (FOR EXPLANATORY NOTE) WITH EXAMPLE OF COMPLETION

As you know, when preparing annual accounting (financial) statements, an organization may provide additional information related to accounting statements that it considers useful for making economic decisions. This information will be discussed in this article.

Before considering the topic of this article, let us recall the deadlines for the organization to submit annual accounting (financial) statements to the statistics department and tax authorities, what these statements are, and what is included in it.

Deadlines for submission of annual accounting (financial) statements

By general rule the organization must submit a mandatory copy of the annual accounting (financial) statements to its territorial department of statistics no later than three months after the end of the year, this is indicated by the norms of Article 18 federal law dated December 6, 2011 N 402-FZ "On Accounting" (hereinafter - Law N 402-FZ). If the reporting is subject to mandatory audit, then the organization must submit an audit opinion on it together with such reporting or no later than 10 business days from the day following the date of the audit report, but no later than December 31 of the year following the reporting year.

Within the same period - no later than three months after the end of the reporting year, the organization must submit annual accounting (financial) statements to its tax office, as indicated by subparagraph 5 of paragraph 1 of Article 23 tax code Russian Federation. Note that this does not apply to cases where the organization is not required to keep accounting records or if it is a religious organization that did not have an obligation to pay taxes and fees for the reporting (tax) periods of the calendar year.

The concept of accounting (financial) reporting and requirements for it

Accounting (financial) statements are information about the financial position of the organization at the reporting date, the financial result of its activities and the movement Money for the reporting period, compiled in accordance with the requirements of Law N 402-FZ in the prescribed forms (clause 1 of Article 3 of Law N 402-FZ).

At the same time, the reporting should give a reliable idea of ​​the financial position of the organization at the reporting date, the financial result of its activities and the cash flow for the reporting period, which is necessary for users of this reporting to make economic decisions (clause 1 of article 13 of Law N 402-FZ).

Composition of accounting (financial) statements

In the general case, the annual financial statements consist of a balance sheet, a statement of financial results and annexes to them, which is established by paragraph 1 of Article 14 of Law N 402-FZ.

But since such a standard has not yet been approved, then on the basis of paragraph 1 of Article 30 of Law N 402-FZ, organizations (with the exception of credit institutions, state (municipal) institutions) form their reporting in accordance with the forms approved by Order of the Ministry of Finance of Russia dated July 2, 2010 N 66n "On the forms of financial statements of organizations" (hereinafter - Order N 66n), and the main normative documents used in its formation are:

As you can see, the explanatory note is not included in the annual accounting (financial) statements of the company.

Note! It should be clear from the information presented accompanying the financial statements that it is not included in the financial statements. To fulfill this requirement, the following conditions must be met: - in the financial statements there should be no references to the information accompanying it; - from the name of such information, the user should not get the erroneous impression that it is part of the financial statements; - such information should be separated from the financial statements. Such clarifications are given in the Recommendations to audit organizations, individual auditors, auditors on auditing the annual financial statements of organizations for 2012 (hereinafter referred to as the Recommendations), set out in the Letter of the Ministry of Finance of Russia dated 01/09/2013 N 07-02-18 / 01.

The composition of the information included in the information accompanying the financial statements

If the reporting is prepared by a joint-stock company, then the following information is entered in the information accompanying the financial statements:

On the number of shares issued by the joint-stock company and fully paid;

On the number of shares issued, but not paid or paid in part;

On the nominal value of shares owned joint-stock company, its subsidiaries and affiliates;

dynamics of the most important economic and financial indicators of the organization's activities over a number of years.

In particular, the main performance indicators of the organization are given, indicating changes in the property and financial situation, the reasons that influenced the reporting year on the financial results of the organization and so on.

planned development of the organization;

prospective capital and long-term financial investments;

borrowing policy, risk management;

activities of the organization in the field of research and development work;

environmental protection measures.

For environmental protection measures, the main ongoing and planned activities in the field of protection are given. environment, the impact of these measures on the level of long-term investments and profitability in the reporting year, a description of the financial consequences for future periods, data on payments for violation of environmental legislation, environmental payments and payments for Natural resources, current costs for environmental protection and the degree of their impact on the financial performance of the organization;

other information.

In addition, the information accompanying financial statements may include the following information:

On the cost of energy resources;

On the ecological activity of the organization.

Such clarifications are contained in the Information of the Ministry of Finance of Russia N PZ-10/2012 "On the entry into force on January 1, 2013 of the Federal Law of December 6, 2011 N 402-FZ "On Accounting", in the Letter of the Ministry of Finance of Russia N PZ-7 /2011 "About accounting, formation and disclosure in the financial statements of information on the environmental activities of the organization".

Energy cost information

As follows from the Letter of the Ministry of Finance of Russia dated January 28, 2010 N 07-02-18 / 01, the following indicators can be reflected in the information accompanying financial statements:

Aggregate costs for the acquisition and consumption of all types of energy resources;

Costs for the acquisition and consumption for the purpose of production (performance of work, provision of services) of energy resources by type of energy (nuclear, thermal, electrical, electromagnetic, others).

The specified indicators for the reporting year can be compared with the corresponding planned indicators, by types of products (works, services), taking into account the seasonality of the organization's activities.

Information about the environmental activities of the organization

Based on the Letters of the Ministry of Finance of Russia N PZ-7 / 2011 "On accounting, formation and disclosure in the financial statements of information on the environmental activities of the organization", dated January 27, 2012 N 07-02-18 / 01 in the information accompanying the financial statements, the following information may be provided:

A list of the main activities carried out and planned by the organization and a description of the financial implications for future periods;

An example of filling in information related to financial statements

(data are conditional).

Example

Related Information
to the annual financial statements of LLC X for 2017

I. General information about the organization

1.1. Full corporate name of the company: Society with limited liability"X".

Type of ownership: LLC, private.

1.2. The company was established in accordance with the Civil Code of the Russian Federation and Federal Law No. 14-FZ of February 8, 1998 "On Limited Liability Companies".

Date of state registration "___" ______20____.

OGRN:_______________

TIN: ________________

Registered with the Federal Tax Service of the Russian Federation N _______ on _________________ "___" _________ 20____: certificate N _______

Legal address of the Company _______________________________________________

Mailing address ___________________________________________________________

1.3. The main activity of LLC "X" is the wholesale trade of refrigeration equipment, its installation and service.

A related activity is retail spare parts for refrigeration equipment. As of December 31, 2017, the Company has a separate division that is not allocated to a separate balance sheet - a store retail, located at: ______________________________

1.4. Management of the current activities of the Company is carried out by the sole executive body companies - General Director

__________________________________________________________________(FULL NAME)

1.5. The number of employees in the Company as of December 31, 2017 is XXX people.

1.6. The financial statements of LLC "X" for 2017 were formed on the basis of the accounting and reporting rules in force in Russia and the Federal Law of December 6, 2011 N 402-FZ "On Accounting". There were no significant deviations from the accounting rules in 2017.

II. Financial result obtained from the main activities

3.1. The financial result of LLC "X", received from the main activities in 2017, amounted to X XXX XXX rubles. Retail trade received a loss in the amount of XXX XXX rubles.

Data on the financial results of LLC "X" for previous years.

The financial results of the Company's activities are presented in the table:

2014 __________________________________________________________________

2015 __________________________________________________________________

2016 __________________________________________________________________

III. Information on discontinued operations

By decision of the General Director dated 12/15/2017, X LLC ceases retail trading activities. Termination of retail trade is carried out by selling the property used for these purposes and fulfilling unliquidated obligations in terms of retail trade.

The carrying value of the assets scheduled for sale as of December 31, 2017 is X XXX XXX rubles, and the amount of liabilities is X XXX XXX rubles.

The decision to terminate retail trading activities has been brought to the attention of all third parties whose interests are affected, including the laid-off employees of the organization.

In connection with the reduction in the number of employees in the number of XX people, the amount of severance pay in the amount of XXXX rubles is planned to be paid.

Payments in favor of counterparties with whom it is planned to terminate relations will amount to X XXX rubles.

In connection with these expenses, LLC X recognizes the following estimated liabilities:

under the payment of severance pay in the amount of XXXX rubles;

for the repayment of obligations related to the termination of contracts - X XXX rubles.

Estimated liabilities are reflected in the balance sheet of the organization as of December 31, 2017.

Planned maturity of liabilities:

with staff - March 2018;

with counterparties - April 2018

General Director _____________________ (full name)

Chief Accountant _____________________ (full name)

Soloveichik S.F.

One of the conditional forms of financial statements is an explanatory note. As the name implies, it contains a kind of decoding of the statements, that is, in fact, it describes in words the financial position of the company at the end of the year and the changes that have occurred in it during the reporting period.

First of all, we note that the explanatory note and the explanations to the balance sheet should not be confused. The latter, in accordance with paragraphs 5 and 28 of PBU 4/99 “Accounting statements of an organization”, are separate reporting forms, such as a cash flow statement, a statement of changes in equity and other forms in the financial statements, which are actually considered appendices to the balance sheet and statement of financial results. The explanatory note itself also refers to the explanations in the reporting set.

Is an explanatory note to the balance sheet required? Of course, the company must compile it and submit it to the IFTS as part of the financial statements. However, there is one exception here. If the characteristics of the company's activities allow it to carry the status of a representative of a small business, then such a company can draw up financial statements in a simplified form. This involves the submission of financial statements as part of only two forms: a balance sheet and a statement of financial results. A small business will also not have an explanatory note to the financial statements.

How to write an explanatory note: sample

The content of the explanatory note, in cases where it is necessary to draw up, should provide the regulatory authorities with information about the company's activities in the reporting period. It indicates the main characteristics of the business as a whole, as well as factors affecting changes in certain indicators. There is no strict format for an explanatory note. That is, an accountant can compile it in text form and use various tables, summaries, graphs or charts in it, in a word, use in this report all methods of presenting information that he deems necessary. The data set for the explanatory note is also determined by the accountant himself. At the same time, he must be guided by the very purpose of this form, in other words, disclose in it the information necessary for the formation of the controllers' understanding of the company's activities.

An example of an explanatory note

Explanatory note to the balance sheet for 2017 (sample)

Alpha LLC

1. General information

1. Alpha Limited Liability Company
1. Legal and actual address: Moscow, st. Profsoyuznaya d. 99.
1. Date of registration: August 21, 2013.
1. PSRN: 1077077077077
1. TIN: 7727077700
1. Gearbox: 772701001
1. Registered with the Federal Tax Service of Russia No. 27 for Moscow, State Registration Certificate No. 77 No. 000000077.
1. Authorized capital: 10,000 (ten thousand) rubles, paid in full.
1. Main activity: 70.3 - Provision of intermediary services related to real estate.
1. The number of employees as of December 31, 2017 was 65 people.
1. Branches, representative offices and separate divisions missing.
1. The balance sheet is formed in accordance with the accounting and reporting rules in force in the Russian Federation.

2. Accounting policy

The accounting policy for accounting purposes for 2017 was approved by order CEO No. 2016-12/28. The accounting policy did not change during the reporting period.

2. According to the approved document, the organization applies the straight-line method of depreciation of fixed assets and intangible assets.
2. Cost of inventories, finished products carried out at actual cost;
2. the write-off of inventories into production is carried out at an average cost.
2. The financial result from the sale of products, works, services, goods is determined by shipment.

3. Key performance indicators (here you can give the main figures on the income and expenses of the company, reflected for accounting purposes)

3. In the reporting year, the revenue of Alfa LLC amounted to:

1. For the main activity for the provision of intermediary services related to real estate - 158,456,120 rubles
2. For other types of activities - 1,000,580 rubles.

3. Other income: 670,800 rubles.

3. Costs associated with production and sale:

1. Acquisition of fixed assets: 3,480,780 rubles,
2. Depreciation: 44,118 rubles,
3. Purchase of materials: 110,880 rubles,
4. Payroll fund: 37,520,130 rubles,
5. Travel expenses: 458,690 rubles,
6. Rent: 5,420,180 rubles.

3. Other expenses: 980,456 rubles.

4. Breakdown of balance sheet items as of December 31, 2017

Here, individual balance sheet items are deciphered with more detailed information and explanations that may be of interest to auditors. Let us give an example of such an explanation for the line “Capital and reserves”.

4.1. Capital and reserves.

In 2017, the capital ratio and reserves were increased at the expense of a part of retained earnings of previous years, remaining after the payment of dividends to the founders of Alfa LLC in 2016. Thus, the cost of capital and reserves amounted to RR 880,000 as at 31 December.

5. Estimation of the value of net assets (data on net assets calculated on the basis of accounting indicators as of December 31 of the reporting year are provided).

6. The composition of fixed assets (the indicator of the corresponding line of the balance sheet is deciphered).

7. Accounts payable (including it is advisable to indicate the debt to the budget at the end of the year).

8. Other information.

General Director of Alpha LLC Ivanova T.N.

As already mentioned, the legislation does not offer a clear list of information related to the financial activities of the company, which the accountant would be required to include in the explanatory note to the balance sheet. The main thing when compiling it is to adhere to general principle compliance with financial statements.

Related parties in the explanatory note

However, special attention should be paid to information about related parties when drawing up an explanatory note. It is recommended to indicate it in this document as a separate section (clause 14 PBU 11/2008).

The company has the right to determine the list of related parties, the data on which it will reflect in the note. The data themselves must be disclosed in the context of information on transactions with related parties, and also, regardless of the transactions, for those organizations and individuals that are recognized as affiliates.

Related parties in the explanatory note, example:

1. Information about affiliates as of December 31, 2017:
1. Ivanova Tatyana Nikolaevna - founder of a 50% share of ownership in the management company, holds the position of general director.
1. Ekaterina Borisovna Petrova - founder of a 50% share in the management company, holds the position of Deputy General Director.

2. Transactions conducted in the reporting period with related parties.

2.1. On March 20, 2017, the general meeting of the founders of Alfa LLC reviewed and approved the financial statements for 2016. The meeting decided to pay a profit in the amount of 7,800,000 rubles at the end of 2016 to the founders based on their share in the management company. The payment (including withholding personal income tax) was made on 1504.2017.
2.2. In July 2017, Alfa LLC entered into an agreement with the founder Petrova E.B. an agreement on the acquisition of non-residential premises worth 1,250,000 rubles. The value of the transaction is determined by an independent appraisal of the value of the property by an independent appraiser. Settlements for the completed transaction were made in full in August 2017, at the same time the act of acceptance and transfer of the premises was signed.

An integral part of the financial statements is an explanatory note, which is attached to the annual. The text of the document provides basic information about the results of the organization's activities for the reporting period, characteristics of indicators and a description of their dynamics.

It is also necessary to justify the accounting policy of the enterprise, the effectiveness of its application, in connection with which, the note indicates:

• vault separate rules accounting for assets and liabilities assumed by the accounting policy;
• the reasons for its change and the results;
• comparative analysis the previous period with the reporting;
• the consequences of adjustments in accounting policies compared with the previous reporting period;
• the results of adjustments for previous periods.

The note contains information and brief description directions and types of activity - current, financial and investment. The document must indicate the main financial indicators that are of great importance and influence on the final result of the activity for the reporting period, as well as the amount of profit and its distribution.

When submitting annual reports, small-scale enterprises do not need to draw up explanatory notes to the general set of documents. In accordance with the law, such an obligation to the tax authorities is not provided for them. If an organization uses common system taxation (when revenue is determined from the volume of sales of goods or services), then in this case it is necessary to separately bring the amount that is payable to the budget.

The characteristic of indicators should contain:

• data on fixed assets of the enterprise: their receipt, initial and residual value, period of use and disposal;
• data on intangible assets;
• information about investments and investments;
• information about the general technical level of products or services provided.

The dependence and dynamics of their indicators can be reflected in graphical form, tabular or supported by diagrams.

An important part of the explanatory note is the analytical studies of the actual performance indicators, a description of how exactly the property and financial situation of the enterprise has changed.

For short-term planning of activities, financiers reflect in the document the coefficients: current liquidity, solvency, and the ability to manage with their own funds. In long-term planning, investment flows, their volume, investment period, payback periods are evaluated and the time point is calculated when the invested funds begin to make a profit, and external investors are also evaluated.

Business activity is a serious indicator, since sales volumes and income directly depend on the company's reputation, customer base, availability of export supplies, the degree of use of own funds and the level of implementation of planned indicators.

The final part of the note describes the dynamics of the main indicators for several recent years, planned long-term and short-term investments, as well as other financial and economic measures aimed at improving performance.