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Registered by

 Ministry of Justice

Russian Federation

On December 31, 1998 No. 1674

ORDER OF THE MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION

of November 25, 1998 No. 56n

About approval of the Accounting regulation "Events after Reporting Date" (PBU 7/98)

(as amended on 06-04-2015)

According to 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 N 283, and in pursuance of the order of the Government of the Russian Federation of May 22, 1998 I order to N587-r:

1. Approve the enclosed Accounting regulation "Events after Reporting Date" (PBU 7/98).

2. Enact this order since January 1, 1999.

Minister

M. M. Zadornov

Approved by the Order of the Ministry of Finance of the Russian Federation of November 25, 1998 No. 56n

Accounting regulation "Events after Reporting Date" PBU 7/98

1. General provisions

1. This Provision establishes procedure for reflection in accounting records of the commercial organizations (except credit institutions), being legal entities by the legislation of the Russian Federation, events after reporting date.

2. Ceased to be valid according to the Order of the Ministry of Finance of the Russian Federation of 06.04.2015 No. 57n.

2. Concept of events after reporting date

3. The event after reporting date admits the fact of economic activity which exerted or can exert impact on financial condition, cash flow or results of organization activity and which took place during the period between reporting date and signature date of accounting records for accounting year.

Event after reporting date also the announcement of annual dividends by results of activities of joint-stock company for accounting year is recognized.

4. Signature date of accounting records the date specified in represented to the addresses determined by the legislation of the Russian Federation, accounting records in case of its signing in accordance with the established procedure is considered.

5. After reporting date treat events:

the events existing on reporting date confirmatory economic conditions in which the organization conducted the activities;

the events testifying to the economic conditions which arose after reporting date in which the organization conducts the activities.

The approximate list of the facts of economic activity which can be recognized as events after reporting date is given in appendix to this Provision.

3. Reflection of events after reporting date and their consequences in accounting records

6. The essential event after reporting date is subject to reflection in accounting records for accounting year irrespective of positive or its negative nature for the organization.

The event after reporting date is recognized essential if without knowledge of it users of accounting records reliable assessment of financial condition, cash flow or results of organization activity is impossible.

The organization determines materiality of event after reporting date independently proceeding from general requirements to accounting records.

7. Event consequences after reporting date are reflected in accounting records by refining of data on the corresponding assets, obligations, the capital, the income and expenses of the organization or by disclosure of the relevant information.

8. In case of creation of accounting records the organization estimates event consequences after reporting date in terms of money. For assessment in terms of money of event consequences after reporting date the organization makes the corresponding calculations. Confirmation of such calculation shall be provided with the organization.

9. Data on assets, obligations, the capital, the income and expenses of the organization are reflected in accounting records taking into account the events after reporting date confirming the economic conditions existing on reporting date in which the organization conducted the activities, or witnessing about the economic conditions which arose after reporting date in which the organization conducts the activities and by that impossibility of application of going concern assumption to organization activity in general or its any essential part. At the same time events after reporting date are reflected in synthetic and analytics by final turnovers of the accounting period before signature date of annual accounting records in accordance with the established procedure.

Example. Based on data synthetic and analytics in accounting records of the organization as of December 31 of accounting year the accounts receivable for the total amount of 10 million rubles are subject to reflection. In March of the year following for reporting the organization obtained information that one of debtors which debt as of December 31 of accounting year constituted 4 million rubles is declared in accordance with the established procedure at the end of February by bankrupt. In this situation the organization shall reduce the accounts receivable amount by 4 million rubles and to recognize in accounting records as of December 31 of accounting year loss from write-off of accounts receivable. Necessary records in financial accounting of the organization for write-off of the corresponding accounts receivable shall be made by final turnovers of the accounting period.

The procedure of payments and reflections in financial accounting and the reporting of tax effects of the events after reporting date provided by this Item is established by the separate accounting regulation.

In case of approach of event after reporting date in financial accounting of the period following reporting record on the amount reflected in financial accounting of the accounting period according to this Item is made stornirovochny (or the return). At the same time in financial accounting of the period following for reporting in general procedure the entry reflecting this event is made.

10. The event after reporting date testifying to the economic conditions which arose after reporting date in which the organization conducts the activities reveals in explanations to the balance sheet and the report on financial results. At the same time in the accounting period no records in accounting (synthetic and analytical) accounting are made.

In the same procedure the annual dividends recommended or announced in accordance with the established procedure by results of work of the organization for accounting year are reflected in accounting records.

Example. In the balance sheet as of December 31 of accounting year considerable investments of the organization are reflected in the share of other organization. In March of the year following for reporting the organization obtained information that market price of these shares in March considerably decreased. In this situation the organization shall open in explanations to the balance sheet and the report on financial results the relevant information.

In case of approach of event after reporting date in financial accounting of the period following for reporting in general procedure the entry reflecting this event is made.

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