Account 58: financial investments. Example, wiring

In the process of financial and economic activity, enterprises strive to make financial investments, using temporarily free funds for this. Such actions are taken in order to prevent inefficient use of available resources and maximize company profits.

Within the framework of this topic, we will talk about the concept and types of securities, about the work of position 59, consider the correspondence of accounts, standard accounting entries, and also focus on one of the practical examples.

Scope of application

To display information about which funds should be regarded as financial investments, account 58 is used in the chart of accounts.

Structure of Article 58

Through this PBU article you can display:

• government securities;
• municipal central banks;
• bills, bonds of other companies;
• investments in the authorized capital of other companies;
• interest-bearing loans provided to other companies;
• deposit investments;
• receivables received on the basis of assignment of claims.

Financial investments account 58, subaccounts and other items corresponding to the specified item are used.

Important! Investments in a company's own securities cannot be considered financial investments. This does not include bills issued for manufactured products, purchased “jewelry,” or objects of art.

Application of account 76: non-tax payments

There are types of budget payments that do not relate to taxes (customs duties and fees, recycling fees, etc.), and therefore it is not practical to reflect them on account 68 “Calculations for taxes and fees”.

To account for such non-tax amounts, you can use account 76. For example, when registering an imported car, the postings look like this:

• Dt 76 Kt 51 - fees and duties are transferred to the budget;
• Dt 08 Kt 76 - fees and duties are included in the initial cost of the imported car.

In the case under consideration, subaccounts corresponding to the type of fee or duty paid can be opened to account 76.

Tags: asset, balance sheet, accountant, disposal, capital, loan, tax, expense

What are the subaccounts?

Account 58 is not used in accounting in its “pure” form. This article acts as the main one, which takes into account data from all existing sub-accounts.

Picture 4. Subaccounts

To separately account for amounts received in different currency units, an enterprise accountant can open sub-accounts:

• 58 1 - statutory contributions, contributions to joint-stock companies;
• 58 2 — investing in securities;
• account 58 3 - loans provided to citizens to companies in any form. It is 58 subaccount 03 that is often used in accounting;
• 58 4 - contributions to common property under a simple partnership agreement.

On a note! The number of subaccounts is not limited to those indicated, since it is necessary to maintain analytical accounting for each group of objects. An accountant can open additional sub-accounts if this is specified in the company's accounting policies. The most commonly used count is 58 03.

Account 58: account transactions using examples

In order to clearly understand all aspects of accounting for account 58, we use examples.

Account 58. Operations involving the provision of loans

According to the agreement concluded on August 1, 2015, Spectr JSC provides Etude LLC with a loan on the following terms:

• loan amount – 1,415,300 rubles;
• Refund deadline – November 30, 2015;
• interest on borrowed funds is 28% per annum.

Based on the agreement, the accountant of Spektr JSC recorded the following transactions:

About account 51 (current account) is written in detail in the article: “Account 50, 51. Accounting for cash and non-cash funds at the enterprise. Postings."

Account 58. Accounting for bonds with coupon income

Hidden text

• nominal value - 1241 rubles;
• purchase price – 1315 rubles.

The issuer of the bond is Megapolis JSC.

For this bond you must receive two coupon payments, each of which is 15% of the bond's par value (1,240 rubles * 15% = 186 rubles).

The accountant of Stolitsa JSC carried out the following accounting operations:

If the agreement provided for the purchase of a bond at a price of 1063 rubles, then the entries in the accounting of JSC Stolitsa would be as follows:

Account 58. Placing a foreign currency deposit

On September 12, 2015, an agreement was concluded between Kvartal JSC and Stolichny Bank for the placement of a deposit:

• deposit amount – USD 54,300;
• placement period – 2 months;
• interest rate – 9.5% per annum.

The conventional US dollar exchange rate was:

• as of September 12, 2015 – 61.47 rubles/dollar. USA;
• as of September 30, 2015 – 61.72 rubles/dollar. USA;
• as of 10/31/2015 – 61.66 rubles/dollar. USA;
• as of November 12, 2015 – 61.22 rubles/dollar. USA.

The accountant of Kvartal JSC recorded the following entries in the accounting:

Account 58. Accounting for transactions with bills of exchange

As of November 1, 2015, the debt of Revansh JSC to the thermal energy supply company Teplovik amounted to 12,954 rubles, VAT 1,976 rubles. In November 2015, Revansh JSC acquired a bill of exchange from Teplovik at a price of RUB 9,340. (nominal value - 12,954 rubles). The promissory note was purchased to pay off the debt of Revansh JSC to the Teplovik company, which was done on November 30, 2015.

The accountant of Revansh JSC made the following entries in the accounting:

How does Article 58 correspond to other accounts?

In addition to the main characteristics of the article, it is worth having an idea of ​​which accounting accounts it corresponds with.

There are several accounts that enter into a “relationship” with the 58th account in debit and credit. We are talking about the following articles.

The main purpose of account 58 is to collect and summarize data on invested funds and other assets of the company in profitable activities.

Posting account 58 in accounting

The PUB also shows the transactions used to display all operations using account 58. Let's look at the transactions for account 58 in more detail in the table:

The presented entries were compiled using not the main financial investment account, but sub-accounts opened in the accounting of the enterprise. In the table presented, the debit of account 58 shows that the assets of the enterprise were transferred to another organization, and the passive position of the sub-accounts reflects the assets received by the company.

On a note! Every accountant must know that account 58 in the balance sheet is indicated on lines 1170 and 1240.

Count 58 – active or passive?

The placement of the organization's investments is carried out in the debit of account 58 in correspondence with cash or other accounts - 50, 52, 51, 80, 76, 75, 98, 91. The credit of account 58 reflects the repayment of loans, the excess of the purchase price of securities over the nominal, redemption and sale Central Bank, return of assets on deposits of a simple partnership and other operations. Correspondence is carried out with accounts - 52, 51, 76, 90, 80, 91, 99. The balance of active account 58 shows the balance of financial investments as of a given date.

Important! 58 account in the balance sheet is displayed together with the account. 73 and 55 (in terms of loans to staff and deposits) on lines 1170, 1240, depending on the validity period minus the account balance. 59, where reserves for impairment of investments are formed.

Posting examples

The final paragraph provides a specific example of using postings with subaccounts 58 accounts for beginners. The Cactus company sells exotic plants.

Example of a balance sheet for account 58

During the first quarter of this year, the company bought shares for 10 thousand dollars and issued a loan to another company that supplies them with turf for infrastructure development in the amount of 200 thousand rubles. At the end of the reporting period, the loan was returned to the current account. The accountant revalued the shares, with an increase of 10% at the market rate. Let's create the entries that the accountant of the Cactus company must make.

1. Dt. 58-1 - Kt.52 - $10,000 - shares purchased for foreign currency.
2. Dt. 58-3 - Kt.51 - 200,000 rubles - loan to another company engaged in the supply of turf.
3. Dt. 91—Kt. 58-1 - $1000 - revaluation of shares with an increase of 10%.
4. Dt. 51—Kt. 58-3 - 220,000 rubles - loan repayment with interest.

In conclusion, Article 58 is used mainly by companies that work closely with third parties and often make various financial investments. The accounting department keeps records of open sub-accounts, and the final indicators are formed on the main account - 58.

https://www.youtube.com/watch?v=eRVeCaNt6hs

Wiring cannot be done: D 60 K 58

Financial investments"

58.1 - “Units and shares”;

58.2 - “Debt securities”;

58.3 - “Loans provided”;

58.4 - “Deposits under a simple partnership agreement”, etc.

UNIT - a share of the capital of a company, which gives the right to participate in general meetings of shareholders, to receive dividends and part of the company’s property upon its liquidation. P. is expressed in a specific document - a certificate, to which coupons for receiving dividends are attached.

SHARES are securities issued by a joint-stock company, the owners of which are granted all property and personal rights associated with the ownership of a share: a) the right to receive dividends, depending on the size of the corporation’s profit; b) the right to participate in the management of the corporation by voting at meetings; c) the right to receive part of the property after the liquidation of the corporation. Rights are exercised in an amount proportional to the size of the shares.

D 58 K 51 –

the emergence of a financial investment object is reflected (when transferring or paying for this object from a current account);

D 58 K 76 –

the occurrence of debt to counterparties is reflected (if payment for financial investment objects will be made after obtaining ownership rights to them, for example, in the case of securities).

D 76 K 91 —

D 91 K 58

– reflects the negative difference between the purchase and par value (or between the par and purchase value) of the acquired debt securities.

In account 58, investments are accounted for at actual cost (in the amount of costs incurred for their acquisition).

Financial investments are the second most liquid after cash in hand and in current accounts.

Account 59 “Reserves for the impairment of financial investments” is intended to summarize information on the availability and movement of reserves for the impairment of the organization’s financial investments.

The reserve is formed at the expense of financial results (as part of operating expenses), which is reflected in the accounting entry as a debit to account 91 “Other income and expenses” and a credit to account 59 “Provisions for impairment of financial investments.” A similar entry is made when increasing reserves in the event of a further decrease in the estimated value of financial investments.

The reserve is reduced (used) in the following cases: if the estimated value of the relevant assets in the reporting period has increased, if their value is no longer subject to a sustained significant decrease, as well as upon disposal of these assets. In this case, an entry is made in the debit of account 59 “Provisions for impairment of financial investments” in correspondence with the credit of account 91 “Other income and expenses”.

In the financial statements, financial investments for which an impairment reserve has been created are reflected at their book value less the amount of the reserve.

In the net balance sheet, when reflected in the asset, the difference between 58 and 59 accounts is reflected. Those. There is no account in the liabilities side of balance 59!

Reserve for depreciation of financial investments” (passive, contractual to account 58).

If we have a large number of shares of one company, and its shares have sharply decreased in price, we cannot reflect these changes in account 58, because this will lead to misstatement of the financial statements.

The reserve for impairment of financial investments is created by the following entry:

D 91.2 K 59

D 59 K 91.2 –

reserve amount restored

As soon as financial investments are disposed of, the corresponding reserve amounts are written off to other income of the enterprise (91.1).

Regulatory regulation of the accounting of bills of exchange is carried out by the “Regulations on promissory notes and bills of exchange” dated August 7, 1937.

When purchasing bills of exchange, they are accounted for at actual cost on account 58, disposal is reflected through account 91.

D 60 K 91

– we pay the supplier with a bill of exchange.

If we purchased a bill with a face value of 1000 rubles, and with a discount it was transferred to us for actually 900 rubles, then we will reflect the acquisition price in accounting - 900 rubles.

Upon disposal of this bill, we will make the following entries:

D 60, 76 K 91.1 1000

D91.2 K 58 900

A credit balance of 100 rubles is formed, and income tax is paid on it.

If we provide a loan, we make the following entries:

D 58 K 51

If our main activity is the purchase and sale of financial investments, then income and expenses are charged to account 90, otherwise - to account 91.

When transferring shares, bills, i.e. When they are disposed of and sold, the following entry is made:

D 90.1, 91.2 K 58

Wiring cannot be done: D 60 K 58

D 76 K 91.1

– interest accrued on loans is reflected;

If the loan is provided to an employee, then interest will be accrued to account 73.

D 73 K 91.1

If we have been accrued dividends on the objects of any financial investments, then we will reflect their receipt by posting:

D 51 K 91.1

58.4 — “Deposits under a simple partnership agreement”

(joint activity of enterprises, which is carried out on the books of one of the enterprises);

When depositing assets, account 58 is used.

Under the simple partnership agreement, funds were deposited from the current account:

D 58 K 51

The following materials were included under the simple partnership agreement:

D 58 K 10

And if we contribute them at a higher price, then the transfer of materials will have to be reflected as follows:

D 58 K 91.1