Document from CIS Legislation database © 2003-2020 SojuzPravoInform LLC

Registered by

in the Ministry of Justice

Republic of Tajikistan

of May 7, 2002 No. 64

ORDER OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF TAJIKISTAN

of April 15, 1999 No. 48

About approval of the Accounting regulation of long-term investments

For the purpose of reduction according to international accounting standards and the reporting I order:

1. Approve the Accounting regulation of long-term investments.

2. Enact this Provision since January 1, 1999.

3. With the edition of this provision to consider invalid the Basic provisions on accounting of capital investments approved by the Ministry of Finance of the USSR and TsSU the USSR on December 12, 1986 No. 219/6-2-14.

 

Minister A. Muzafarov

 

Approved by the Order of the Ministry of Finance of the Republic of Tajikistan of April 15, 1999 No. 48

Accounting regulation of long-term investments

1. General provisions

1.1. This Provision establishes accounting rules of long-term investments and determination of inventory value of subjects to these investments at the companies and in the organizations.

The provision is obligatory for all companies and the organizations (further the companies) performing long-term investments irrespective of patterns of ownership.

1.2. Long-term investments for the purposes of this provision are understood as costs for creation, increase in the sizes, and also acquisition of non-current assets of long-term use (over one year), not held for sale, except for the long-term financial investments in Government securities, the valuable and authorized capital of other companies.

Long-term investments are connected with:

implementation of capital construction in the form of new construction, and also reconstruction, expansion and modernization (further construction) operating plants and objects of the non-productive sphere. The specified works (except new construction) lead to change of essence of objects on which they are performed, and the costs made at the same time are not costs of the accounting period for their content;

acquisition of buildings, constructions, equipment, vehicles and other separate objects (or their parts) fixed assets;

acquisition of the parcels of land and objects of environmental management; acquisition and creation of assets of intangible nature.

1.3. The purposes of long-term investments are:

timely, complete and reliable reflection of all made expenses when constructing facilities by their types and the considered objects;

ensuring control of the course of accomplishment of construction, commissioning of production capacities and fixed asset objects;

the correct determination and reflection of inventory value of the enacted and acquired fixed asset objects, the parcels of land, objects of environmental management and intangible assets;

control of availability and use of financing sources of long-term investments.

1.4. The organization of construction of facilities, control of its course and conducting financial accounting of the costs made at the same time are performed by builders.

Builders for the purposes of this provision are understood as the companies specializing in accomplishment of the specified functions, in particular the companies for capital construction in the cities, the directorate of the companies under construction (DCUC), etc. and also the operating plants performing capital construction.

Expenses on content of builders (on operating plants workers of the office of division of capital construction) are made at the expense of the means intended on financing of construction and join in inventory value of the objects put into operation.

In case of accomplishment of construction works by contract method the builder in relation to the contract construction organization acts as the customer.

2. Organization of accounting of long-term investments

2.1. Account of long-term investments is kept on actual expenses:

in general on the construction and its separate objects (to the building, construction, etc.) entering it;

on acquired separate fixed asset objects, the parcels of land, objects of environmental management and intangible assets.

2.2. When constructing facilities the builder records costs the accruing result since the beginning of construction by the accounting periods before input of objects in action or full production of the corresponding works and costs.

Along with the cost accounting on actual cost the builder irrespective of method of production of construction works records the made capital investments at contractual cost.

Under the organization of the cost accounting for construction of facilities the builder needs to provide receipt of information on the reproduced and technology cost structure, method of production of construction works, and also purpose of objects under construction and other acquisitions.

2.3. Financial accounting of long-term investments is kept on the account "Capital investments" (08). On this account investments by their types are reflected in specially opened sub-accounts of the corresponding name: "Acquisition of the parcels of land", "Acquisition of objects of environmental management", "Construction of facilities of fixed assets", "Acquisition of separate fixed asset objects" and "Acquisition of intangible assets", irrespective of sources of their financing.

3. Costs on construction of facilities

3.1. Construction in progress accounting.

3.1.1. Before completion of works on construction of facilities of costs on their construction, the "Capital investments" considered on the account, constitute construction in progress. In financial accounting of costs on construction of facilities are grouped in the technology expense structure determined by estimate documentation. Account is recommended to be kept on the following expense structure:

a) on construction;

b) for works on installation of equipment;

c) on acquisition of the equipment which is handed over in installation;

d) on acquisition of the equipment which is not requiring installation: tool and stock; the equipment requiring installation, but intended for inventory;

e) on other capital costs;

e) on the costs which are not increasing the cost of fixed assets.

3.1.2. The cost accounting on construction works and works on installation of equipment. The accounting treatment for costs on these works depends on method of their production - contract or economic.

In case of contract method of production the construction works and works on installation of equipment executed and drawn up in accordance with the established procedure are reflected at the builder - the customer on the account "Capital investments" at contractual cost agrees to the bills paid or accepted for payment to contract organizations.

Warning!!!

This is not a full text of document! Document shown in Demo mode!

If you have active License, please Login, or get License for Full Access.

With Full access you can get: full text of document, original text of document in Russian, attachments (if exist) and see History and Statistics of your work.

Get License for Full Access Now

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

Effectively work with search system

Database include more 40000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system

Get help

If you cannot find the required document, or you do not know where to begin, go to Help section.

In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.

You also may open the section Frequently asked questions. This section provides answers to questions set by users.

Search engine created by SojuzPravoInform LLC. UI/UX design by Intelliants.