Document from CIS Legislation database © 2003-2022 SojuzPravoInform LLC

Registered by

Ministry of Justice

Russian Federation

On August 2, 2002 No. 3655

ORDER OF THE MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION

of July 2, 2002 No. 66n

About approval of the Accounting regulation "Information on the Stopped Activities" PBU 16/02

(as amended on 06-04-2015)

In pursuance of the Program of reforming of financial accounting according to international accounting standards approved by the order of the Government of the Russian Federation of March 6, 1998 N283 (The Russian Federation Code, 1998, N 11, to the Art. 1290), I order:

1. Approve the enclosed Accounting regulation "Information on the Stopped Activities" PBU 16/02.

2. Enact this order since January 1, 2003.

Minister

A. L. Kudrin

Approved by the Order of the Ministry of Finance of the Russian Federation of July 2, 2002 No. 66n

The accounting regulation "Information on the stopped activities of PBU 16/02

I. General provisions

1. This Provision establishes procedure for disclosure of information on the stopped activities in accounting records of the commercial organizations (except credit institutions), being legal entities by the legislation of the Russian Federation.

This Provision is also applied by the organization in case of creation of summary accounting records.

2. This Provision determines requirements for disclosure of information on the stopped activities in accounting records of the organization.

3. This Provision is not applied by the organization in case of the termination of activities owing to the circumstances having extreme character (natural disaster, the fire, accident, etc.) owing to forced withdrawal of property on the bases, stipulated by the legislation, and also owing to the address of property to state-owned property (nationalization).

3.1. This Provision can not be applied by the organizations which have the right to apply the simplified methods of financial accounting, including the simplified accounting (financial) records.

II. The stopped activities, its recognition and assessment

4. For the purposes of this provision information on the stopped activities is understood as information opening part of organization activity (such as operating or geographical area, its part or set of segments) on production, sales of goods, performance of works, rendering services which can be allocated is operational and (or) is functional for the purposes of creation of accounting records and according to the decision made by the organization is subject to the termination.

Suspension of part of organization activity without intention to stop it is not considered and does not reveal in accounting records as the stopped activities.

5. The stopped activities can be allocated are operational and (or) are functional for the purposes of creation of accounting records if assets, obligations, the income and expenses on regular types of activity of the organization (or their main part) have or can be carried to the stopped organization activity direct reference.

Assets, obligations, income, expenses belong or can be carried to the stopped activities if they will be sold, extinguished or otherwise are disposed as a result of implementation of the termination of part of organization activity.

6. The termination of part of organization activity can be performed:

a) by the sale of property complex (company) or its part representing set of the assets and liabilities relating to the stopped activities as a result of the conclusion of the single transaction;

b) by sale of separate assets and the termination (execution) in the procedure for the separate liabilities relating to the stopped activities established by the legislation;

c) by refusal of continuation of part of activities.

Besides, the termination of activities can be performed by reorganization of the organization in the form of allocation from its list of one or several legal entities.

7. For the purposes of this provision activities are recognized to the part of organization activity and development of the single program of the termination stopped on condition of adoption by authorized body of the organization of the decision on the termination for date of emergence of the earliest of the next events:

the conclusions the organization of purchase and sale agreements of assets without which the activities allocated as stopped, are almost impracticable;

bringing information on the solution of the termination of activities to data of legal entities and physical persons whose interests will be directly infringed (to shareholders, employees of the organization, suppliers, etc.).

8. Owing to recognition of the activities stopped at the organization, as a rule, there are obligations caused by requirements of the legislation, conditions of agreements, or voluntarily assumed by the organization before physical persons and legal entities which interests will be infringed in result of the termination of activities.

For settlement of similar obligations concerning size or completion date of which there is uncertainty, the organization forms reserve.

In relation to this Provision recognition of the reserve connected with the activities termination has the following features:

a) in case of the termination of activities by the sale of property complex (company) or its part representing set of the assets and liabilities relating to the stopped activities as a result of the conclusion of the single transaction reserve is recognized financial accounting only after the conclusion of the purchase and sale agreement;

b) in case of the termination of activities by sale of separate assets and the termination (execution) in the procedure for the separate liabilities relating to the stopped activities established by the legislation and also by refusal of its continuation the reserve is formed only if the expected completion date of obligations under which it is planned to form reserve falls on the period following for reporting;

c) the reserve is created in the amount of the costs arising owing to the termination of activities for dismissal of workers, payment of penalties, penalty fee, penalties for violation of conditions of agreements, etc. and is recognized financial accounting as of the end of accounting year.

Costs which are connected with the activities which are not subject to the termination, such as: on retraining or movement of employees of the organization, investment into new systems and networks of distribution of products (goods, works, services), etc., are not considered when forming the amount of reserve.

The reserve shall be used concerning only that obligation under which it was originally created.

9. Recognition of the activities stopped according to Item 7 of this provision requires refining of the asset cost of the organization reflected in the balance sheet, belonging to the stopped activities, proceeding from possible decrease in their cost.

The procedure for recognition and assessment of size of reduction in cost of assets are determined according to the rules established by the accounting regulations applied to these assets.

In relation to this Provision reduction in cost of assets is determined taking into account the following features.

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