Sometimes an accountant has a question: how can all this be documented? Of course, bills and invoices are provided along with the bank guarantee itself, but sometimes the guarantee is provided in the form of an electronic message. What to do with this option of providing a bank guarantee?
The fact is that in accordance with paragraph 3 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation No. 14 “On certain issues in the practice of dispute resolution .....” a bank guarantee issued in the form of an electronic message using the SWIFT telecommunication system is identical to a bank guarantee in writing.
And if, when issuing a bank guarantee, certain requirements, sometimes imposed by the beneficiary or guarantor on the form of the guarantee, were not met, then this is not a reason not to accept it for accounting. Interested parties can, quite legally, provide various evidence that can confirm this transaction.
A bank, credit institution or insurance organization always acts as a guarantor. Naturally, a bank guarantee is not issued to the principal free of charge, which means that the accountant will need to take into account the transactions carried out on the accounting accounts. A bank guarantee cannot depend on the underlying obligation. In addition, this guarantee cannot be revoked, that is, it is irrevocable. Rights under a bank guarantee cannot be transferred to another person, unless, of course, otherwise provided in the document itself.
The bank guarantee must indicate the period for which it is issued. If the period is not specified, then it (bank guarantee) in accordance with Art. 432 of the Civil Code of the Russian Federation is considered not to have arisen. In this case, the guarantee period may be equal to, greater than, or less than the period for fulfillment of obligations.
Typically, the guarantee specifies who the beneficiary is, but due to established dispute resolution practices, if the beneficiary is not indicated in the document, the bank guarantee is still considered valid.
If a guarantor issues a bank guarantee to a beneficiary without a prior written agreement between the principal and the guarantor, the guarantee is not considered invalid. However, before issuing a bank guarantee to the beneficiary, the principal may enter into an agreement with the guarantor, which will stipulate the conditions under which the bank guarantee will be concluded. In the contract, the guarantor may stipulate, in particular, the right to demand from the principal, by way of recourse, a certain remuneration if he pays the beneficiary a certain amount of money in connection with the demands made.
Neither the guarantor nor the beneficiary pays VAT when the guarantor fulfills obligations under the bank guarantee. That is, there is no need to pay VAT when performing such operations as payment under a guarantee, issuance and cancellation of a bank guarantee, and so on.
Transactions that are carried out in connection with the repayment of obligations under a loan agreement are also not subject to VAT, since in accordance with current legislation all loan transactions are exempt from taxation.
The exception is transactions that arise when issuing bank guarantees by insurance organizations - these services are subject to VAT.
The guarantor is obliged to reflect the accounting entries when fulfilling obligations under the bank guarantee.
As soon as the beneficiary receives money from the guarantor (in connection with the fulfillment of obligations), the accountant makes a corresponding entry in a special book in the debit of account 51 “Current accounts” and the credit of account 76 “Settlements with various creditors and debtors”. The principal's debt is recorded in accounting depending on the type of obligation. This may be subaccount 58-3 “Loans provided,” account 62 “Settlements with buyers and customers,” account 76 or 58 “Financial investments.”
The beneficiary's accounting for the receipt of funds from the guarantor
The beneficiary, upon receipt of funds from the guarantor (using the cash method), must recognize the proceeds from the sale of goods (work, or services), since the payment was secured by a guarantee. When securing obligations to pay interest under an irrevocable bank guarantee, the beneficiary reflects non-operating income in the form of interest on the loan.
Methods for reflecting accounting records by the beneficiary when fulfilling obligations under a bank guarantee
If the principal fails to fulfill the main obligation (or performs it improperly), the beneficiary makes a demand to the guarantor for payment of funds in accordance with the guarantee agreement (in writing). This requirement must indicate what exactly the principal violated during the execution of the contract. The bank guarantee expires when the beneficiary receives the amount due to him under the agreement, or if the validity period of the bank guarantee expires.
The guarantee itself is accounted for in off-balance sheet account 008 “Securities for obligations and payments received.” The amount in the account is equal to the figure specified in the contract.
The amount is debited from the off-balance sheet account gradually as the debt is repaid.
Simplified taxation system - features of bank guarantee accounting
Under the simplified taxation system, the beneficiary who received funds from the guarantor is obliged to reflect in accounting the proceeds from the sale of goods and/or non-operating income in the event of receipt of funds from interest on the loan.
As soon as the beneficiary receives funds from the guarantor (in accordance with the execution of the agreement), the accountant records entries in a special book in the debit of account 51 “Current accounts” and the credit of account 76 “Settlements with various creditors and debtors”. In this case, the principal’s debt is reflected in the debit of account 76 - in the credit of (58-3, 62, 76.78) accounts, depending on the type of obligations. This may be subaccount 58-3 “Loans provided,” account 62 “Settlements with buyers and customers,” account 76 or 58 “Financial investments.”
In this case, the bank guarantee is accounted for in off-balance sheet account 008 “Securities for obligations and payments received.” The amount in the account is equal to the amount specified in the agreement. This amount is debited from the off-balance sheet account gradually as a result of debt repayment.
Accounting of a bank guarantee from the principal
First of all, you need to know that such a service as the provision of a bank guarantee by a bank or credit organization is a banking transaction, and in accordance with Federal Law No. 395-1 such a service is not subject to VAT taxation. But if the bank guarantee was issued by an insurance company, then such a service is subject to mandatory VAT taxation. In this case, the principal must accept VAT for deduction, having previously reflected this service in accounting. But at the same time, a bank guarantee must be provided to carry out transactions that are subject to tax.
The principal cannot deduct input VAT if the transactions carried out in connection with the issuance of a guarantee do not incur VAT.
If the bank guarantee is issued by a bank or credit organization, the amount of income tax is taken into account as part of non-operating expenses. When a bank guarantee is issued by an insurance organization, this operation is accepted for accounting for income tax.
Accounting for guarantor remuneration
This accounting will depend on the type of obligations. For example, if, when purchasing property, the buyer provides the seller with a bank guarantee, then this will be considered an expense that is associated with the acquisition of the property.
The costs in this case will include the cost of acquiring property, interest paid on a loan provided for the purchase of property, various markups (surcharges), commissions, customs duties and payments, and so on. The amounts of remuneration to the guarantor are included in the actual cost of the acquired assets if the guarantee was issued before the assets were accepted for accounting.
The wiring in this case is as follows:
The amount of remuneration to the guarantor included in the actual value of the asset - debit of account (01/07/08/10/41...) - credit of account 76.
Payment of remuneration to the guarantor:
Debit account 76 – credit account 51.
If the bank guarantee is issued after the actual value of the assets has been formed, the accountant must reflect the following entries:
Debit account 91.2 - credit account 76.
Borrowing costs are recognized as other expenses if a guarantee is issued to secure debt obligations.
Additional costs are included, if desired, evenly as part of other costs throughout the entire term of the contract. The accounting policy must reflect the chosen method of accounting for additional loan costs, either accounting evenly throughout the entire loan period, or at a time during the period when they arose.
As a result, the following entries will appear in accounting:
Debit of account 91.2 – Credit of account 76 (the amount of remuneration to the guarantor is reflected).
Debit of account 76 - Credit of account 51 (reflects payment of remuneration to the guarantor).
Bank guarantee issued to secure other obligations
In this case, the tax amount is included either in non-operating expenses or in expenses associated with production and sales. Moreover, the organization itself decides which group of expenses to include this amount of remuneration (payment for guarantor services). Typically, in practice, other expenses include, for example, the customer’s obligation to pay for work (services), the supplier’s obligation to supply products, etc.
As part of non-operating expenses, the amount of remuneration is taken into account, for example, to apply the application procedure for VAT refund, to ensure payment of customs duties, taxes, etc.
Guarantee expenses are recognized for income tax purposes provided that these expenses are economically justified and confirmed, and they must be aimed at generating income. In this case, the remuneration is taken into account for tax purposes in full.
A bank can act as a guarantor of timely repayment of monetary obligations. Due to its high reliability, this financial instrument is used to reduce the risk of non-payment to a minimum. For example, when collecting taxes and customs duties or in the field of procurement under state and municipal contracts.
Companies always take a certain risk when concluding a transaction with a counterparty, because he may refuse to fulfill his obligations. As a result, such a refusal may result in financial losses. To protect themselves, companies use a bank guarantee. Let's take a closer look at what it provides.
A bank guarantee is a document issued by a bank and addressed to a specific creditor of your company. In it, the bank undertakes to repay the company’s possible debt to the creditor at his request under certain conditions. We are talking about paying the creditor a fixed, pre-agreed amount. The peculiarity of this agreement is that at the time of issuing the bank guarantee, the company’s obligation itself does not yet exist, that is, the creditor is a potential one. Moreover, in the future the debt may not arise.
Example 1 Contracts for state and municipal needs are concluded on the basis of competitions and auctions. Applications of participants must be secured by the deposit of funds or a bank guarantee. If the participant violates the conditions, the customer will use the security funds to compensate for the losses caused to him. Contracts are enforced in similar ways in this area. Details are in the Federal Law of April 5, 2013 No. 44-FZ “On the contract system in the field of procurement in the field of procurement of goods, works, services to meet state and municipal needs.”So, a bank guarantee is a transaction that involves three parties:
The guarantor, at the request of the principal, gives a written obligation to pay the beneficiary a sum of money upon submission by the beneficiary of a written demand for its payment (). The beneficiary must indicate what the principal’s violation of the main obligation to secure which the guarantee was issued () is.
A bank guarantee ensures proper fulfillment by the principal of his monetary obligation to the beneficiary. For issuing a bank guarantee, the principal pays a fee to the guarantor (). It is not subject to VAT ().
Note that the role of a bank guarantee can be played by a letter of guarantee from a bank in which a specific beneficiary is not named (clause 8 of the information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated January 15, 1998 No. 27).
Not only a bank, but also an insurance company can act as a guarantor. But the guarantee will still be called a bank guarantee. The payment itself under a bank guarantee resembles the payment of an insurer upon the occurrence of an insured event. This similarity is confirmed by an alternative: in some cases, the company, at its choice, can either provide the counterparty with a bank guarantee or insure its liability to it. Examples:
What is the difference between a guarantee and insurance? The fact is that the insurer does not have any claims against the insured in connection with the payment of insurance compensation (in the absence of intent). And the guarantor, who has paid for the principal’s obligation, may make recourse claims against him when this is provided for in the agreement between them ().
A bank guarantee is one of the ways to secure obligations (along with a pledge, surety, etc.).
Let's consider the features of accounting and tax accounting in different business situations for the principal company.
The cost of a bank guarantee includes the cost of the asset for the purpose of purchasing or creating which it was acquired:
DEBIT 76 CREDIT 51
— remuneration was transferred to the bank for issuing a guarantee;
DEBIT 08, 10, 20, 41, etc. CREDIT 76
— a guarantee of payment under a contract or supply agreement has been received from the bank.
This is a general rule for the formation of the cost of all inventory items.
Example 2 As security for payment obligations for a real estate transaction worth 10 million rubles, the company provided the seller with a bank guarantee. The bank's remuneration for the guarantee is three percent of the transaction amount, that is, 300,000 rubles (10,000,000 rubles x 3%), the guarantee period is one month. The principal company did not make the payment within the period stipulated in the purchase and sale agreement. The bank, which repaid the company's obligation to the beneficiary seller, demanded reimbursement of this amount from it. In this situation, the accountant will make notes: DEBIT 76 CREDIT 51- 300,000 rub. – funds were transferred to the guarantor bank for providing a guarantee; DEBIT 08 CREDIT 76- 300,000 rub. - warranty costs are included in the initial cost of the non-current asset; DEBIT 08 CREDIT 60- 10,000,000 rub. - the property was accepted under the transfer deed (clause 1 of Article 556 of the Civil Code of the Russian Federation); DEBIT 01 CREDIT 08- 10,300,000 rub. – the fixed asset is accepted for accounting; DEBIT 60 CREDIT 76- 10,000,000 rub. – the bank’s recourse claim is recognized; DEBIT 76 CREDIT 51- 10,000,000 rub. – the obligation to the bank has been repaid.What if the principal’s expenses turned out to be fruitless? Let's say a company provided a bank guarantee to the organizer of a competition, but lost the competition. In this case, no asset arises. The following expenses should be recognized in accounting:
DEBIT 91-2 CREDIT 76
— expenses that did not produce results are written off.
The issuance of bank guarantees relates to banking operations (clause 8 of Article 5 of the Federal Law of December 2, 1990 No. 395-1 “On Banks and Banking Activities”).
The costs of paying for bank services can be taken into account:
a) as part of other expenses associated with production and sales (subclause 25, clause 1, article 264 of the Tax Code of the Russian Federation);
b) as part of non-operating expenses as costs of carrying out activities not directly related to production and (or) sales ().
In any of the options, the date of expenditure is determined based on.
Which of these articles should you prefer and what will be the difference? The decision must be made based on the essence of the specific situation. Please note that non-operating expenses are recognized at a time in full, that is, they cannot be distributed over time periods. This rule is set in .
This position is not difficult to challenge if the company has fulfilled its obligations to the beneficiary. After all, there was no borrowing, that is, the involvement of the guarantor’s funds in the economic activities of the principal with their subsequent return. What if the guarantor made a payment to the beneficiary and filed a recourse claim against the principal?
Just such a case is presented in example 2. The debt relationship with the bank is obvious. According to interest, any pre-declared (established) income received on a debt obligation of any type is recognized (regardless of the method of its execution). In such circumstances, the remuneration to the bank is “tax” interest on the debt obligations. And this is the third option for classifying expenses - . And the point here is not at all that the remuneration is set as a percentage of the size of the principal’s main obligation.
Example 3 Let's use the conditions of example 2. The company repaid the debt it incurred to the bank in two months. On the date of raising funds from the guarantor bank, the refinancing rate was eight percent. Therefore, as part of income tax expenses, the principal company has the right to take into account only 146,667 rubles (10,000,000 rubles x 8% x 1.1 x 2 months: 12 months).It turns out that the amount of expense depends on the duration of the debt to the bank. The conclusion suggests itself: the expense can be recognized no earlier than the principal completes settlements for the amount of the obligation specified in the guarantee. The problem is that the Tax Code does not provide for such an approach to determining the date of expenditure. The incorrectness of letter No. 03-03-06/1/7 lies precisely in this...
However, in practice the situation is completely different. As a rule, the guarantee provides that from the moment the money is transferred to the beneficiary until the debt to the bank is repaid, the principal additionally (in addition to the remuneration) pays interest at the agreed rate. The absence of such a condition does not encourage the principal to return the money to the guarantor. And the procedure for accounting for such expenses does not cause disagreement. They are indeed accepted taking into account the norms. So example 3 is unrealistic. It should be supplemented with wiring:
DEBIT 91-2 CREDIT 76
— interest is accrued to the guarantor for the use of his funds (at the rate established by the bank guarantee).
As a result, letter No. 03-03-06/1/7 is not worth challenging. You just need to understand that the recommendation it contains is not universal. It refers to a special case, which Example 3 explains. The author did not find any arbitration practice on these issues.
note
Expenses are recognized in the reporting (tax) period in which these expenses arise based on the terms of transactions ().
A bank guarantee provides for two independent “stages”: before and after the guarantor repays the obligation to the beneficiary. The remuneration for the first stage is set in a fixed amount, for the second - in the form of interest for the time of use of the funds. Therefore, two types of expenses arise in tax accounting.
The remuneration for a transaction with a guarantor relates to the period for which the guarantee is issued (). This period may cover more than one reporting (tax) period when the guarantee ensures the fulfillment of the principal's obligations under a long-term agreement aimed at generating income. At the same time, the connection between the warranty expense and the corresponding income of the principal company is indirect. This situation falls under .
In the letter of the Ministry of Finance of Russia dated January 11, 2011 No. 03-03-06/1/4, a company carrying out the construction of oil and gas complex facilities under a contract for a period of 2 years appears as a principal. Financiers indicated that expenses in the form of fees for the provision of a bank guarantee purchased in order to ensure the fulfillment of obligations under the contract must be taken into account evenly over the period for which it is purchased. A similar conclusion is contained in letters from the Ministry of Finance of Russia dated July 19, 2012 No. 03-03-06/4/75 and the Federal Tax Service of Russia dated June 4, 2013 No. ED-18-3/606. It is noteworthy that in all of the letters listed, not a word is said about the interest nature of expenses.
Is it possible to reflect the costs of a bank guarantee under long-term contracts in account 97 “Deferred expenses” in accounting?
Here you need to clearly understand the following. The costs of guaranteeing an independent asset do not form (clauses 7.2 and 7.2.1 of the Concept of Accounting in the Market Economy of Russia, approved by the Methodological Council on Accounting under the Ministry of Finance of the Russian Federation and the Presidential Council of the IPB RF on December 29, 1997). But they can be taken into account as part of inventories as costs incurred in connection with upcoming work, and gradually transferred from account 97 to account 20 “Work in progress”. This is precisely the approach implied by paragraph 16 of PBU 2/2008 “Accounting for construction contracts.”
Example 4 The company acquired a bank guarantee for obligations related to the execution of a construction contract. The guarantor's remuneration is 30,000 rubles, the guarantee period is equal to the contract term and is 6 months. The accountant reflects the current costs of performing work on account 20 “Main production”. He accepted the bank guarantee as part of deferred expenses under this agreement and wrote it off evenly as the work was completed: DEBIT 97 CREDIT 97- 30,000 rub. – the bank guarantee has been accepted for accounting; DEBIT 20 CREDIT 97- 5000 rub. (RUB 30,000: 6 months) – monthly warranty costs are included in the cost of construction work. In the balance sheet, the accountant will reflect the balances of accounts 20 and 97 on line 1210 “Inventories”.What if a bank guarantee was purchased by a trading company in order to ensure settlements under a real estate lease agreement? Regardless of the duration of the contract, the costs of the guarantee must be written off as expenses at a time (DEBIT 44 CREDIT 76). But this amount needs to be distributed in tax accounting. An example will show you how to act.
Example 5 The tenant provided the landlord with a bank guarantee for the obligation to pay rent on time for a period of five months. The bank's remuneration amounted to 15,000 rubles. Three months later, due to the tenant-principal missing the payment deadline, the bank made payment to the beneficiary landlord. Thus, the guarantee is terminated (subclause 1, clause 1, article 378 of the Civil Code of the Russian Federation). In accounting, the principal attributed rental costs monthly to account 26 “General business expenses.” The remuneration for the bank guarantee should also be written off to the same account, but at a time: DEBIT 26 CREDIT 76- 15,000 rub. – a bank guarantee that does not form an asset is recognized. In tax accounting, expenses for the guarantee (subclause 25, clause 1, article 264 of the Tax Code of the Russian Federation) for the first three months were recognized monthly in the amount of 3,000 rubles (15,000 rubles: 5 months). The accountant will attribute the unwritten part of the remuneration in the amount of 6,000 rubles (15,000 rubles - 3,000 rubles x 3 months) to expenses at the end of the guarantee.The participation of the guarantor in the calculations does not create any special problems for the beneficiary creditor. This will not affect the taxation of his profits in any way. And the accounting procedure is illustrated by another example.
Example 6 Let's use the conditions of example 2 again. But now let's consider the situation from the seller's point of view. Let’s assume he uses the “simplified” system, and the property is included in the list of goods. The accountant will make the following entries: DEBIT 008- 10,000,000 rub. - a bank guarantee was received to ensure payment by the buyer under the real estate purchase and sale agreement; DEBIT 68 CREDIT 51- 15,000 rub. - the state fee for state registration of the transaction is transferred; DEBIT 44 CREDIT 68- 15,000 rub. - duty is included in sales costs; DEBIT 62 CREDIT 90 10,000,000 rub. – the debt of the buyer-principal is reflected; DEBIT 90 CREDIT 41- 8,000,000 rub. - the property is deregistered; DEBIT 76 CREDIT 62- 10,000,000 rub. – a demand was presented to the guarantor bank for payment under the contract due to non-receipt of money from the buyer; DEBIT 51 CREDIT 76- 10,000,000 rub. – payment has been received from the guarantor; CREDIT 008- 10,000,000 rub. – the used guarantee has been written off (subclause 1, clause 1, article 378 of the Civil Code of the Russian Federation).
for reference
Bank guarantees are a very popular product among companies. Here are real figures for some banks that issued bank guarantees in the amount of:
10,000,000 rub. – St. Petersburg branch of GLOBEX Bank (Vnesheconombank Group);
790,000,000 rub. (including guarantees in US dollars and euros) – Irkutsk branch of VTB Bank;
RUB 3,600,000,000 – Penza branch of Sberbank
A bank guarantee - accounting entries when applying it are determined by each participant in legal relations according to separate rules - is drawn up in accordance with the norms of the Civil Code of the Russian Federation. There are many factors that determine which approach in terms of organizing the accounting of the guarantee in question is optimal for a particular taxpayer.
A bank guarantee (independent bank guarantee) is a documented obligation of a financial institution (guarantor) to repay a certain amount of debt of a third party (principal) to its creditor (beneficiary). This obligation is accepted at the request of the principal (clause 1 of Article 368 of the Civil Code of the Russian Federation). It is subject to execution upon the occurrence of the circumstances specified in the guarantee.
The bank agrees to be a guarantor not for free, but in exchange for the principal paying a commission. Almost always, the bank guarantee specifies a mechanism by which the guarantor recovers from the principal the amount paid under the guarantee to the beneficiary.
As a rule, the bank issues a guarantee against some security from the principal. For example, this could be a deposit or pledge of any assets.
The document may stipulate other conditions for interaction between the parties, for example, the undisputed write-off of a bank guarantee under 44-FZ (that is, the right of the beneficiary, without any other conditions, to give the guarantor an order to repay the principal’s obligations).
Thus, the legal relations in which a bank guarantee is applied involve:
A separate issue is the definition in the specified scheme of the role of the agreement for the purpose of securing which a bank guarantee is issued.
On the one hand, under a contract secured by a guarantee (let it be a contract for the supply of goods), the beneficiary and the principal are ordinary parties acting in accordance with Art. 420 Civil Code of the Russian Federation. They conduct settlements among themselves outside the jurisdiction of legal relations involving the obligated party (the principal under the guarantee) and the bank issuing the guarantee.
On the other hand, within the framework of the relevant legal relations, a title document is drawn up (in general, a bank guarantee agreement), which states that the guarantor will make payments only if the principal is unable to repay the obligations to the beneficiary - indicating such obligations.
At the same time, it is unacceptable to include terms on a bank guarantee in a contract for the supply of goods if there is no reason to believe that it will definitely be received from a certain guarantor on known conditions (determination of the RF Armed Forces dated January 30, 2017 in case No. 305-ES16-14210).
Thus, it is legitimate to talk about a complex legal mechanism of interaction between the guarantor, the principal and the beneficiary, in which 2 legal relationships will be reflected in accounting:
Let's study how each of these parties to legal relations - the guarantor, the principal and the beneficiary - keeps records of the bank guarantee in accounting and tax accounting.
The principal's first financial transaction is the payment of funds to the guarantor as compensation under an independent guarantee. In accounting, to reflect the commission for issuing a bank guarantee, the following accounting entries are used:
A bank guarantee should be reflected in accounting based on its intended purpose. In many cases, it is aimed at repaying the principal’s debt, which is associated with his acquisition of any assets (for example, fixed assets).
In such cases, when accounting for a bank guarantee from the principal, an entry is used that reflects the fact that the principal purchased the object for which the guarantee was provided and at the same time the fact that the commission was included in the cost of the object: Dt 08 (if fixed assets are purchased) Kt 76 for the amount of the commission.
The receipt of an object at the enterprise is reflected by posting Dt 08 Kt 60 (in an amount corresponding to the cost of the object). Placement on the balance sheet - by posting Dt 01 Kt 08 (the initial amount indicates the cost of the object and the amount of the commission).
If the principal does not pay the beneficiary on his own, then the bank does it. Afterwards, it issues a claim to the principal for reimbursement of expenses. To reflect the acceptance of the requirement to pay for the bank guarantee, the principal applies the following entry: Dt 60 Kt 76.
When repaying the debt to the bank, the principal records the entry Dt 76 Kt 51.
These are the principal's transactions related to the bank guarantee. Now about the features of accounting for a guarantee by the authorized party - the beneficiary.
The beneficiary, in relations with the principal, may or may not apply the bank guarantee in practice, depending on the fact that the latter has made payment for the goods supplied. Let's look at the wiring for both scenarios.
Within the framework of legal relations with the practical use of a bank guarantee, the beneficiary usually acts as neither an authorized nor an obligated party in relation to the principal, since settlements between them, as a rule, are regulated by a separate agreement (supply of fixed assets). At the same time, the beneficiary is a beneficiary under an independent guarantee: the bank has obligations to him until all settlements are completed (clause 1 of Article 378 of the Civil Code of the Russian Federation).
This feature of the role of the beneficiary in interaction with the participation of the guarantor and the principal necessitates the partial application of off-balance sheet accounting of the bank guarantee.
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The postings in the case where the guarantee is applied in practice will be as follows:
After the principal fails to pay for the delivery of an asset under the contract (and, as a consequence, the bank guarantee is invoked):
Now the second option, when the guarantee is not applied in practice (written off).
In this scenario, the beneficiary applies the following entries:
Now let’s study what accounting entries are used under the bank guarantee by the guarantor himself.
The main feature of the procedure in question is the use by the guarantor of special accounting accounts, those established by Bank of Russia Regulation No. 579-P dated February 27, 2017. The most typical transactions when applying a bank guarantee include:
If the security as a condition for issuing a guarantee is represented by a deposit, then the fact of its acceptance is reflected by the posting Dt (principal account) Kt (passive account for accounting for receipts from clients, for example 43001).
If a bank guarantee is written off as required by law, the following posting is applied: Dt 91315 Kt 99998. The reserve is immediately reduced: Dt 47425 Kt 70601.
If the principal does not pay the beneficiary, then the bank does this and reflects it by posting Dt 60315 Kt (beneficiary’s account). The payment is immediately written off by the bank from the guarantee: Dt 91315 Kt 99998. The reserve is similarly reduced using the above account correspondence. A new reserve is immediately formed for possible losses in the amount to be recovered from the principal: Dt 70606 Kt 60324.
Reimbursement of bank expenses from a previously credited deposit: Dt 99998 Kt 91312. Reduction of the reserve due to partial reimbursement of bank costs: Dt 60324 Kt 70601.
Reimbursement of the balance of bank expenses by the principal: Dt (principal's account) Kt 60315. Reduction of the reserve: Dt 60324 Kt 70601.
The most important nuance of a bank guarantee is taxation.
When accounting for taxes within the framework of legal relations related to the use of bank guarantees, you need to keep in mind that:
Of course, this rule does not apply to the accrual of VAT on goods supplied by the beneficiary if this is assumed by law (when working under the OSN) or by agreement of the parties.
Regardless of the chosen option, expenses should be recognized evenly over the period of validity of the independent guarantee (letter of the Ministry of Finance of Russia dated January 11, 2011 No. 03-03-06/1/4).
The way in which the principal, subject to this requirement, reflects the costs of the bank guarantee in the accounting records is nuanced. Let's look at them.
With a “uniform” approach to accounting for payment of the commission for issuing a bank guarantee, the following entries are applied:
Let us note that the procedure for transferring the commission to the guarantor - one time or in equal parts in relation to the validity period of the guarantee - must be defined in the accounting policy as a condition for ensuring completeness of accounting (clause 6 of PBU 1/2008). The main factor in choosing the option of uniform distribution of expenses is the dynamics of income generation associated with the corresponding expenses. If such income is distributed over several reporting periods, then expenses must be reflected in accounting simultaneously (clause 19 of PBU 10/99).
You need to focus, first of all, on the characteristics of assets. If these are sequential supplies of raw materials and materials, the “uniform” approach in question is justified.
Much depends on the principal’s field of activity. For example, a type of deferred expenses is expenses for upcoming work, which can be recognized by construction organizations (clause 16 of PBU 2/2008). Let's look at examples of such dependencies.
In construction, it is possible to use a “uniform” approach with wiring:
If remuneration for a bank guarantee is included in expenses, debit entries may be different, depending on the type of business transaction (for example, 23 - when placing an acquired asset in an auxiliary production facility).
Another notable scenario is where the principal initially duly paid for the beneficiary's supplies and then stopped (while the guarantee remained in effect). Such situations are quite common in legal relations related to the lease of commercial real estate.
Renting real estate is a type of other expenses (subclause 10, clause 1, article 264 of the Tax Code of the Russian Federation). Lease payments made on time are reflected in accounting using entry Dt 26 Kt 76 - in relation to the frequency of their transfer to the lessor (for example, once a month).
In turn, it makes sense to take into account the commission:
This approach makes it possible to synchronize the reflection in accounting and tax accounting of the use of a bank guarantee in lease legal relations.
Accounting for bank guarantees using separate rules is carried out by the principal, beneficiary and guarantor. The procedure for maintaining accounting and tax records of bank guarantees depends, first of all, on the content of the legal relationship between the principal and the beneficiary and on the characteristics of the assets transferred from one party to another under an agreement using a bank guarantee.
– an indispensable financial tool of the modern business world. However, every operation carried out by an economic entity of any form of ownership and organizational and legal structure must be reflected in the reporting documentation, which is submitted to the tax authorities of the Russian Federation within strictly defined deadlines. Receiving and issuing a guarantee is a financial transaction, so you need to carefully consider the question of what constitutes accounting for bank guarantees.
One of the most important engines of business relationships in business is, of course, an agreement (contract). This document contains all the basic rules and requirements that the parties put forward to each other. By signing a contract, the subject automatically assumes full responsibility for compliance with the obligations assigned to him. However, not everything can be taken into account in such a paper. Sometimes counterparties resort to the use of various levers of influence, which are also referred to as:
To carry out competent accounting of a bank account, you need to know that bank guarantee documents come in several types. Organizations throughout all their development cycles face the following:
You may have heard of each of these types, but do you know how bank guarantee accounting is done? It's simple.
Are you planning to acquire the right to use BG? First, you need to choose a trustworthy bank with a decent reputation and submit documents to receive the required service. Remember that issuing such documentation is a costly and responsible process.
The lending institution may refuse to apply to you if for some reason you do not qualify. Moreover, the guarantee amount can reach from 1% to 30% of the total contract value of the contract for the purchase of goods or the provision of works and services. A third of the cost - this can be a colossal amount of money that the bank is instructed to pay for you in the case specified in the contract.
Reflecting a bank guarantee in an organization's accounting records is not a complex or incomprehensible issue for accountants. The bank will not issue money to just anyone, so the recipient will be subject to a high-quality check. After its completion, the guarantor will give you the final decision. If the answer is positive, then the entity applying for guarantees will be required to submit the necessary documents and pay the fee for the service.
The use of a bank guarantee is not uncommon today. In some situations it is simply necessary. We’ll talk about what such a guarantee is and how to take it into account.
A bank guarantee reduces the lender's risks in the transaction. Since the financial interests of the creditor will not suffer even if the obligation is not fulfilled.
Bank guarantee- this is a written obligation of the guarantor bank to pay the client’s creditor the amount specified in the guarantee if the client fails to fulfill his obligations and Art. 368 Civil Code of the Russian Federation.
You cannot do without a guarantee if you decide to use the application procedure for VAT refund subp. 2 p. 2 art. 176.1 Tax Code of the Russian Federation. In this situation, strict requirements are imposed on the guarantee:
In addition, you may need a guarantee, for example:
To obtain a bank guarantee, you need to contact the bank with a certain set of documents. It is different for each bank and is installed by them independently. As a rule, the package of documents includes:
Accounting statements (balance sheet, profit and loss statement), certified by the tax office;
Decoding of receivables and payables;
Bank certificate on monthly account turnover for the last 6 months;
In addition to the package of documents, the bank may also require:
Usually amount of remuneration for issuing a guarantee is from 1 to 10% from the security amount.
If you, as a debtor, arrange a bank, it will enter into an agreement with you to issue a guarantee. You are the principal in this agreement.
The agreement defines the terms of the guarantee, in particular:
The agreement also defines the documents that the beneficiary (your creditor in the transaction) must present to the bank if you fail to fulfill your obligation. To avoid controversial situations, the list of these documents should be clearly stated.
For issuing a guarantee you pay the bank a fee clause 2 art. 369 Civil Code of the Russian Federation. It can be paid in the form of a fixed fee, as a percentage of the guarantee amount, in installments depending on the guarantee period.
There is a common misconception that the principal has a bank guarantee in accounting should be accounted for in off-balance sheet account 008 “Securities for obligations and payments received” Chart of accounts, approved. By Order of the Ministry of Finance dated October 31, 2000 No. 94n. But you received a guarantee not for yourself, but for your creditor (beneficiary). And it is he who takes into account the guarantee on account 008. At the same time, you should not take into account the guarantee on account 009 “Securities for obligations and payments issued.” After all, it was not you who issued the guarantee, but the bank. The principal does not keep any records of the bank guarantee itself.
Chief Accountant of JSC Russian Utility Systems
“The issue of reflecting or not reflecting a bank guarantee from the principal on the balance sheet is not so simple.
When using a bank guarantee as collateral, it is possible to change the creditor, when instead of the beneficiary the guarantor becomes the creditor (in case the principal fails to fulfill his obligation). In addition, the agreement with the guarantor may provide for special conditions, such as, for example, additional penalties for late fulfillment of obligations to the guarantor. The absence of information about the bank guarantee in the principal's accounting will not give external users of the financial statements a complete picture of the status of the principal's accounts payable.
Alternatively, you can reflect two entries simultaneously in the principal’s accounting:
- 008 “Securities for obligations and payments received” - a bank guarantee was received to ensure the fulfillment of an obligation to the beneficiary (creditor);
- 009 “Securities for obligations and payments issued” - security was issued to the beneficiary (creditor) from the guarantor (bank).
I think many auditors will agree that the bank guarantee should still be reflected in the principal’s accounting accounts, especially if the transaction is large for the organization and is subject to disclosure in the financial statements.”
The costs of obtaining a guarantee are taken into account as follows:
Moreover, if the remuneration is paid to the bank at a time, in the opinion of the regulatory authorities, expenses should be taken into account evenly over the period for which the guarantee is issued Letters of the Ministry of Finance dated July 19, 2012 No. 03-03-06/4/75, dated January 11, 2011 No. 03-03-06/1/4; Federal Tax Service for Moscow dated August 29, 2011 No. 16-15/ [email protected] .
In addition, the Ministry of Finance previously explained that if the bank’s remuneration is set as a percentage, then the costs of purchasing a guarantee must be normalized in the same way as expenses in the form of interest on debt obligations. Letter of the Ministry of Finance dated January 16, 2008 No. 03-03-06/1/7. However, later clarifications do not mention the application of such a procedure. In addition, the relationship between the principal and the bank under the agreement on the provision of a bank guarantee is not a debt obligation. clause 1 art. 807 Civil Code of the Russian Federation.
If your company acts as a beneficiary, that is, the one to whom the guarantee is provided, then it should be taken into account as the debit balance of account 008 “Security for obligations and payments received” in the amount specified in the guarantee.
When the debtor fulfills the obligation, the amount of the guarantee recorded in account 008 is written off.
If the debtor has not fully or partially fulfilled his obligations, then during the validity period of the guarantee the beneficiary can contact the bank with a written request to pay him money. In it, the beneficiary must indicate what the principal’s violation of the main obligation for which the guarantee was issued is. Art. 374 Civil Code of the Russian Federation. The request must be accompanied by the documents specified in the guarantee. The bank decides whether to make payment or not only after it has examined the claim and determined whether it complies with the terms of the guarantee and Art. 375 Civil Code of the Russian Federation.
After paying the claim, the bank is obliged to notify the principal about the termination of the guarantee and subp. 1 clause 1, clause 2 art. 378 Civil Code of the Russian Federation and may apply to him for reimbursement of the amounts paid under the guarantee.
When the guarantor bank recognizes the amount of the claim, the beneficiary makes an entry in accounting: debit account 76-2 “Settlements on claims”, sub-account “Guarantor Bank”, - credit account 62 “Settlements with buyers and customers”, sub-account “Buyer (principal)” .
The principal, at the time of receiving a notification from the guarantor bank about the termination of the guarantee, makes an entry in accounting: debit account 60 “Settlements with suppliers and contractors”, subaccount “Seller (beneficiary)”, - credit account 76 “Settlements with various debtors and creditors”, subaccount "Bank-guarantor".
If you purchase a bank guarantee to participate in tenders, then you can take into account the costs of it even if the tender is lost Clause 2 Letter of the Ministry of Finance dated January 16, 2008 No. 03-03-06/1/7.
And simplifiers can take into account the costs of a bank guarantee as costs of services provided to credit institutions and subp. 9 clause 1 art. 346.16 Tax Code of the Russian Federation.
