Consolidated financial statements based on OAO "Mashtorf"

Reporting template (1-5) according to PBU 4/99 "Accounting of the organization."

Reports on intercompany sales:

- The movement of resources for the period;

- On debts within the group;

- On investments within the group and dividends;

- On the execution and receipt of other income within the group;

- The acquisition within the group;

- Cash flow within the group.

Although the system has a built form of reports, there is an opportunity to develop new forms and modify existing ones.

Reconciliation. To eliminate the VGO to implement cross, counter check intercompany sales performance reports of each entity of the group.

Then there will be a divergence. For example, the same VGO presented in reports by various subsidiaries amounts or at one of the companies of this turnover is specified as internal, and in other reports this fact is not reflected.

Reconciliation of VGO (Table.) Is the testing procedure. She performed automatically by comparing subsidiaries:

- The sale of goods and services within the group receiving other income from intercompany transactions (from the "Performance Reports and Other income within the group"), and data on the acquisition of goods, works and services within the group, and other expenses from intercompany transactions (of reporting counterparties to purchase within the group);

- For receivables and payables between group entities (based on the "Reports on debts within the group" - for certain categories of debt, including issued and received loans, the latter included in the calculation, excluding accrued interest payable);

- For cash payments within the group and the income funds within the group (based on the statements of cash flows within the group);

- On receivable and payable dividend within the group (according to the "Reports on investments within the group and dividends");

- Availability of investments within the group of investors in the financial statements and on the contribution of Group companies in share capital - as reported by their counterparts ("Report on Investment Group and dividends").

In this case, for each position you can get additional disclosure statements, which shows what kind of company accounts because there was discrepancy in the data.

Settlement of VGO. This procedure is a decision in favor of a certain amount of VSV, which is considered reasonable and accurate. You must find out the reasons for discrepancies, correct data in the original report and to reconcile again, or an adjustment to the data in the report for reconciliation in disclosure of relevant indicators.

The second option for a large number of initial reports and the relatively small percentage of differences is more preferable.

A report with a collated data to save by setting its status to "Prepared" (or "Approved").

Calculation of unrealized profit. Unrealized profit (NFP) - is profit from intercompany transactions, which results in the value of assets in the financial statements of subsidiaries at the end of the reporting period. For the group as a whole, these operations are moving resources, while from the point of view of an individual company is the realization or acquisition of assets (Figure 5).

Calculation of unrealized gains (losses) on intercompany transactions are accounted for by the rest of assets at the end of the reporting period and to be excluded from the consolidated statements made by each of the Group for which consolidation method as you see the "Full consolidation." Calculation itself is done in two stages.

At the first step the input data and compare sellers of goods and services on the profit (loss) from operations of intragroup sales (this information is contained in the "Report on the implementation and receipt of other income in the group") with data buyers to purchase the goods, works and services (from "Reports on the acquisition within the group").

Analytical data for earnings (loss) from intra-group transactions are entered with a breakdown by counterparty criteria - separately for material values, separately for work and services.

Next is the direct calculation of unrealized gains (losses) on intercompany transactions at the end of the reporting period, by type of asset:

- Unfinished capital investments;

- Fixed assets;

- Raw materials and supplies;

- The goods;

- Prepaid expenses;

- The balance of work in progress;

- Finished products;

- Goods shipped.

Method of calculation of unrealized gains of assets is not regulated by Russian legislation. Therefore, the calculation is carried out consistently NPF on movement of assets, taking into account the type of the sequence of their transformation.

Thus, raw materials can be used in production (that is transformed first into the cost of work in progress, and then in the finished product, then shipped goods) and in construction (their value can be treated in the capital investment, then - in the fixed assets).

Therefore, the calculation of unrealized profits from VGO to be carried on the balance of material is the first and only then are counted capital investments, fixed assets, etc.

The remains of the unrealized profit from VGO in assets at beginning of period obtained from a similar report for the previous period.

Elimination. At the stage of elimination of VSV in the program completed the report "Elimination from intercompany transactions" based on data that have been pre-reconciliation. This automatically made retest differences, in particular, accounts receivable and payable, income and expenses, the movement of material and financial resources between group companies.

In the case of minority shareholders or affiliated companies for which the group represented by the parent (management) of the investor, adjustments are checked and minority equity.

Data on elimination of intragroup transactions are then used to build the report forms are eliminated by organizational unit: balance sheet, income statement, statement of cash flows, statement of changes in equity. They line are the indicators that have been eliminated in the process of consolidation.

The data in the reports of the organization is eliminated as freezing, since the formation of the consolidated financial statements, they are deducted in line by summation. Adjustments for special assignment eliminates organizational units can increase the visibility of the adjustments and the audited statements.

Direct consolidation. Consolidated reporting is formed using a special algorithm consolidation perimeter, the essence of which is as follows:

- Produced by-line summation of indicators reporting companies that are enrolled in full consolidation, and "eliminated" company (ie consolidation adjustments);

- Shows the reporting organizations on which provides consolidation under the equity method in the consolidated financial statements do not include (korrektirovkastoimosti investment in such enterprises accounted through "eliminated" the company (through a special procedure adjustments);

- Shows the reporting organizations on which provides proportional consolidation, are reported in proportion to the percentage of control over the enterprise.

Thus, a logical algorithm of the program on consolidation of financial statements corresponds to the algorithm logic of consolidation.

3.2 Development of methodological recommendations on the formation of the consolidated accounts

The objectives of developing guidelines for the formation of the consolidated financial statements are:

- Automate the collection of information for the purposes of consolidated accounts;

- Reducing the time for preparing the consolidated financial statements;

- Improving the quality of reporting;

- Improvement of the system of internal controls;

- Regulation of procedures for the preparation and presentation of the consolidated accounts;

- Preparation of the consolidated financial statements on the basis of full and accurate information on the activities of related companies as a single economic activities of the organization.

The main objectives of the development of guidelines for the formation of the consolidated financial statements are as follows:

- A clear division of responsibilities, authority, and define measures of responsibility in the formation of the consolidated financial statements;

- Effective collaboration between actors prepare consolidated accounts;

- Ensuring compliance with the principles and methods of identity accounting policies used in the preparation of inter-related companies and the preparation of the consolidated financial statements;

- The establishment of the unity of form and content of the consolidated financial statements;

- Adoption of internal controls.

Guidelines to establish the consolidated financial statements are developed by specialists of JSC "CB", depending on regulatory required to compile the consolidated financial statements:

- In accordance with the rules of RAS

- For reporting purposes in accordance with IFRS,

- For the purposes of the consolidated tax reporting,

- For management purposes.

Guidelines to establish the consolidated financial statements in accordance with the rules of RAS address issues the following areas:

- The rationale for the application of IFRS in the consolidated accounts in accordance with the rules of RAS;

- Determination of the membership of the Group of companies for the purposes of consolidated accounts;

- Procedure for registration information from the subsidiaries for the purpose of the consolidated financial statements;

- Approval of the forms (forms) used in the preparation of the consolidated financial statements and instructions for their completion;

- Drawing up a list of additional information to the reporting forms software used for total exclusion from consolidation of data related to intercompany transactions;

- Procedure for the formation of the statement of cash flows "direct method";

- Method of determining the level of significance in deciding not to include organizations in the consolidation perimeter;

- Explanation approaches JSC "CB" to the exclusion methodology unrealized profit from the cost of assets acquired within the group;

- Formation of the Annex to the consolidated balance sheet (form number 5).

An additional advantage in the development of guidelines for the formation of the consolidated financial statements is also a knowledge of the consolidation of reporting in such software products as SAP, «1C: Consolidation", etc., as well as the experience of cooperation in implementation of ERP-class, including purposes of consolidated accounts, in large holdings. There are positive reviews of the results of similar projects.

3.3 International Financial Reporting Standards and the European Community Directive on consolidated accounts

Getting acquainted with the statements, we use the term 'accountability', referring to the statements of the companies, organizations, companies or firms, without disclosing the features of their organizational structure. Modern large companies can combine several companies with different systems of participation. Under one name is not one company but a group of related companies.

Disregard of participation, and close long-term relationships between them in reporting would lead to its distortion and getting false information. As a result, the company is home to the subsidiaries (for this and other necessary concepts we'll cover later), has fallen to the consolidated financial statements (consolidated reports), which received the name of our country in the consolidated accounts.

At the turn of the XIX-XX centuries. the first to use the consolidation of U.S. companies, a «United States Steel Company», recorded in New Jersey in 1901, was the first company that published the consolidated financial statements. More rapid spread of the consolidated financial statements in the U.S. compared to other countries due to a larger process of concentration and centralization of capital, the emergence of holdings, lack of legal and other barriers to the introduction of a new accounting methodology.

In Europe, the consolidated financial statements was prepared later. In UK law the first mention of the consolidated financial statements refers to 1947 in West Germany - to 19b5-mu, and in France - by 1986, however, the first publication on the subject appeared in the UK in the 20's, and the London Stock market began to demand that the consolidated accounts in 1939 Only 22 French companies have published the consolidated balance sheet in 1967., but only in 1986, the requirements for such publications became mandatory in France. Still less common in the consolidated statements of other European countries - Spain, Italy and Greece. This problem is particularly acute because of the integration processes in Western Europe and the adoption of the Seventh EU Directive.

The emergence of transnational corporations (TNCs), which have a high proportion of foreign assets, exports and labor abroad, the establishment of enterprises with foreign capital, the emergence of various forms of commercial, industrial and financial relations between the companies be required to submit information on their activities in the form of consolidation.

Theory and practice of consolidated financial statements in different countries vary considerably in the following main points:

- The varying extent of the consolidated financial statements;

- Different approaches to understanding the category of "group of companies" in terms of consolidation;

- Not the same amount of information published by the companies;

- Different methods of consolidation.

Transformation and consolidation under IFRS. Statements prepared under Russian accounting rules, does not contain all the required information, its data are not comparable in many respects with the reporting of foreign companies, which prevents investors to make informed economic decisions.

In the specialized system "1C: Consolidation TRAC 8" integrated methodology of transformation, containing a set of source, transformation and final form, provide reporting in accordance with IFRS. The model includes 60 transformational adjustments to reflect typical differences between the accounting policy of RAS and IFRS. The important point is to analyze the transformation of the statements of accounting policies used and the ability to define its basic parameters.

IFRS parent companies to prepare consolidated financial statements, which include the accounts of all subsidiaries. An exception is provided under the following conditions:

The Parent Company is in turn 100% owned subsidiary company, or if the owners of minority interests have been informed and do not object to the parent company was not consolidated, with the securities of the parent company is not publicly traded;

The parent company is in the process of production of its securities on the open market securities;

If the direct or ultimate parent publishes consolidated financial statements in accordance with IFRS.

U.S. GAAP does not provide for exceptions to general purpose financial statements. The consolidated financial statements are more informative, and its preparation is mandatory for public companies. Special rules apply to certain industries.

RAP Overall comparable to IFRS, but the number of exceptions to the rules of consolidation may be greater than the IAS. Thus, apart from a 100% subsidiary of the company, the parent company of which does not require the preparation of consolidated financial statements of a subsidiary company can not prepare consolidated financial statements, if ninety percent or more of its voting stock or share capital is owned by its parent company and other shareholders (participants) are not require preparation of consolidated financial statements. Consolidated statements can be made either by Russian rules, or IFRS. If the company is reporting in accordance with IFRS, it may not be consolidated in accordance with Russian regulations. In practice, many parent organizations are consolidated. Russian accounting rules focus primarily on individual reporting entity.

Definition of subsidiary for the purpose of consolidation is an important distinction between the three accounting systems.

IFRS key in determining whether the relationship characteristic of the relationship between parent and subsidiary companies, is the notion of control. Control - the ability of the parent to govern the financial and operating policies of the subsidiary for the purpose of economic gain. It is believed that control exists when the parent company directly or indirectly through subsidiaries, owns 50% of the vote (voting shares). The control is also present when the property of the parent company are half or less than half of the voting rights, but it has a legal or contractual rights to which they are able to control a majority of votes or the Board of Directors of the company. The parent can have control over the company even if it owns less than 50% of the voting shares of the company, and it has neither the treaty nor the legal rights, under which it would control the majority of the voting rights or the Board of Directors of the Company (effective control) . Purchase (sell) the company are included (excluded) from the consolidated financial statements from the date of change of control. It is also necessary to take into account the existence of potential voting rights that can be used at the moment, in determining the existence of control. Controlled special purpose entities subject to consolidation (see below).

U.S. GAAP is used bipolar consolidation model. All decisions relating to the consolidation in the first place should be estimated using a model with a variable interest in the company. If a company is a company with a variable interest entity (CPA), management must use the instructions in "special purpose entities" (see below). Companies controlled through voting shares, are consolidated as subsidiaries. In U.S. GAAP, there is a concept analogous to the concept of de facto control, referred to as «effective control» - effective control. In practice, this concept is rarely used. Accordingly, there may be situations in which the company consolidated in accordance with IFRS based on the concept of de facto control. In this case, the consolidation in accordance with U.S. GAAP and the concept of effective control is not possible.

RAP Definition subsidiary based on the ability to influence the decisions taken by the company's prevailing share in the authorized capital of the company, by contract or otherwise. Unlike IFRS consolidation model based on formal attributes.

IFRS IFRS special purpose entities (SPEs) are consolidated when the substance of a relationship with them shows that the company controls the SPE. Signs of control arise when:

PSN operates in the interests of the company;

The Company may determine the decisions in order to obtain the majority of the economic benefits the SPE;

The company has other rights to the majority of the economic benefits of the SPE or its assets;

The Company is majority of the residual or ownership risks related to the SPE or its assets.

Pension plans and other long-term plans, employee compensation to account for that use IFRS (IAS) 19, "Employee Benefits", are an exception to this rule.

U.S. GAAP SPE should be consolidated its primary beneficiary, provided that the SPE meets the definition of efficiency and the main beneficiary has a variable interest in a company, as a result he takes on most of the expected losses of efficiency, gets most of the revenues expected efficiency or both and more. There are some exceptions to this rule, such as pension plans and post-employment activities. Specific criteria also allow the transfer of financial assets to special purpose, which is not included in the consolidation of the company, transferring the assets. Such a special purpose entity to be a qualifying SPE (as defined), and the assets are to be financial assets (as defined).

RAS Corresponding rules are missing.

IFRS All subsidiaries subject to consolidation, other than those that are not controlled by the owner of the majority of shares. If the acquisition of a subsidiary meets the criteria of the company, "held for sale", as provided IFRS (IFRS) 5 "Non-current Assets Held for Sale and Discontinued Operations", the parent company of the procedures for the consolidation allowed for assets held for sale ( that is held for sale assets and liabilities separately) and not the usual breakdown of the consolidation.

U.S. GAAP Similar to IFRS. Unconsolidated subsidiaries recorded under the equity method except when the alleged significant influence exists.

RAP In general, the rules are comparable to IFRS, but the exclusion of subsidiaries from consolidation is possible in certain cases. Thus, the data of the subsidiary may not be included in the consolidated financial statements:

If the subsidiary acquired in the short term with a view to resale. In this case, the valuation of the participation of the parent company in the subsidiary is recognized in the consolidated financial statements in order to reflect the established term investments (at cost, as reflected in the balance sheet of the parent organization.)

If the data on the subsidiary does not have a significant effect on the formation of the financial position and financial performance of the group, ie if the value of the share capital of the subsidiary does not exceed three per cent of the Group's equity, and the amount of capital other unconsolidated subsidiaries - ten percent of the capital value of the group.

The valuation of the participation of the parent organization in a subsidiary that is a bank or other credit organization may be reflected in the consolidated financial statements in order to reflect the established investments in associates.

IFRS in the consolidated financial statements of uniform accounting policies primenenyaetsya all companies of the group.

U.S. GAAP Similar to IFRS, but there are some exceptions. The consolidated financial statements are prepared on the basis of uniform accounting policies for all companies within the group, except when the subsidiary applies industry-specific regulations. Deviations in the accounting policy on consolidation due to industry-specific permitted.

RAP Similar to IFRS.

The consolidated financial statements of the parent company and the statements of the subsidiary are generally prepared on the same date. However, IFRS allow the consolidation of a subsidiary, which statements are prepared on a different reporting date provided that the period between the balance sheet dates do not exceed three months. Adjustments should be made in respect of significant transactions carried out in the period between the balance sheet dates.

U.S. GAAP Similar to IFRS, but usually amendments on operations for the period between the balance sheet dates are not made.

RAP Consolidated statements and statements of subsidiaries are prepared only on the same calendar date (end of the year or quarter).

IAS Associate - is an entity in which the investor is able to exercise significant influence, ie has the opportunity to participate in determining the financial and operating policies of an associate (but not control it.) Participation in the financial and operating policies of the company through representation on the Board of Directors indicates a significant impact. Possession of investor interest in the company, which provides at least 20% of the voting rights, requires a material impact.

U.S. GAAP Similar to IFRS, despite the fact that the term "affiliated company" uses the term "equity investments". GAAP does not include unincorporated companies (created without a legal entity), although, as a rule, companies are recognized in a similar way.

RAP Similar to IFRS.

IFRS investor should consider the investment in the associate under the equity method. The investor is a share in the profits and losses of associates (after tax) in the profit and loss account. In the capital the investor recognizes its share of changes in equity of the associate, which were not reflected in the profit and loss of the associate. An investor should reflect an acquisition of investment difference between the purchase price and the investor's share in the fair value of identifiable net assets as goodwill. Goodwill included in the carrying amount of the investment. The capital invested in the associate is carried at cost plus its share of the profits and losses after the acquisition, plus its share of post-acquisition movements in provision, net of dividends received. Losses that reduce the value of the investment below zero, are the (reduced) other long-term assets, which, in fact, form the net investment in the associate, such as preferred stock, long-term receivables and loans. Losses in excess of investment in the ordinary shares of the investor are the other components in reverse order of priority of debt claims. Further losses are recorded as a liability only to the extent that the investor has a legal obligation or liability arising out of the practice, in respect of payments on behalf of the associate. Disclosure of the results, assets and liabilities of associates.

U.S. GAAP Similar to IFRS.

RAP In general, the rules are comparable to IFRS. However, lack of RAP some detailed rules provided by IFRS, may lead to differences in the classification and evaluation of investments in the financial statements. For example, RAP does not provide the inclusion of long-term loans to related company, the cost of investment in associates and appropriate allocation of losses in excess of investment equity investors, to reduce long-term assets, which under IFRS are effectively an investment in an associate.

IFRS financial statements prepared on the basis of the investor uniform accounting policies for like transactions and events, amendments are made to the accounting policies of the associate in order to bring it in line with the accounting policies of the investor.

U.S. GAAP financial statements of the investor does not necessarily make the amendments, if of associated company follows an alternative method that is permitted under U.S. GAAP, but such amendments are allowed.

RAP Similar to IFRS.

IFRS Impairment testing is carried out in accordance with IFRS (IAS) 36 (IFRS (IAS) 28.33) in the case in respect of investment, there is objective evidence of impairment of one of the specified in IFRS (IAS) 39.59 (IFRS (IAS) 28.31 ). In assessing the future cash flows for the purpose of impairment testing, the investor can use its share of the net future cash flows associated company, or cash flows expected as a result of dividends. In respect of goodwill To invest directly tested for impairment Investors are organized.

U.S. GAAP Impairment of investment in associated company is recognized if the decline in its value is constant. Similar to IFRS, the goodwill To invest directly tested for impairment Investors are organized. If there is evidence of permanent impairment of an investment is written down to its fair value.

RAP impairment test is performed.

IFRS IFRS define a joint venture as a contract whereby two or more parties undertake an economic activity that is subject to joint control. Joint control - is a joint exercise control over an economic activity, due to the contract.

U.S. GAAP U.S. GAAP defines corporate joint venture as a corporation owned and controlled by a small group of companies as a separate and specific business or project for the mutual benefit of all members.

RAS Joint activity is defined as the activities of the organization (reporting segment), carried out in order to reap economic benefits or income, together with other organizations and (or) individual entrepreneurs by combining deposits and (or) joint actions without legal entity.

IFRS are three groups of joint ventures:

Jointly controlled entities - the activity is carried out by a separate entity (company or partnership);

Jointly controlled operation - each party uses its own assets to the special project;

Jointly controlled assets - are jointly implementing a project on the basis of assets held in joint ownership.

U.S. GAAP consider only jointly controlled entities where the activity is carried out through a separate legal entity.

RAP There are three types of joint ventures. Depending on how the economic benefit and the associated allocation of responsibilities among the participants of activities implemented jointly under the terms of the relevant agreements, RAP define three ways to participate in joint activities:

Joint activities - carried out by forming a partnership (the company is not a legal entity) to combine the contributions of participants and joint action for a profit;

Jointly carry out operations - is by performing each of the participants a certain stage (specific part) production (works, services);

Shared assets - activities carried out through the cooperation of the participants owned them on common property.

IFRS IFRS requires the use of proportionate consolidation or the equity method. Under the proportional consolidation of participants in the assets, liabilities, income and expenses shall be summarized by line with similar items or financial statements of the reflected in the financial statements of the separate line.

U.S. GAAP, the proportionate consolidation method is not normally allowed, except for jointly controlled activities without forming a legal entity in certain sectors. Participants apply the equity method for the recognition of investments in jointly controlled entity.

RAP is allowed only proportional consolidation.

IFRS participant who invests non-cash assets, such as shares or fixed assets, jointly controlled entity in exchange for a share in its capital, must be reflected in the profit and loss account of the profit or loss on disposal of assets introduced in the proportion of other participants, except in cases where:

The significant risks and rewards to the contributed assets have not been transferred

Jointly controlled entity;

The gain or loss is taken on the asset can be measured reliably;

Asset similar assets made by other participants.

U.S. GAAP does not provide any guidance on the basis of contributions to the reflection of a jointly controlled entity. For joint ventures whose financial statements are presented in the SEC (or when one or more participants of the joint venture is registered with the SEC), a reflection of the contribution at its fair value is only allowed under certain strict criteria.

RAP reflect any gains or losses in the making of investments in a partnership rules are not provided. Assets contributed to the deposit account under the contract include the organization of the party's financial investments amount for which they are reflected in the balance sheet at the date of entry into force of the Treaty partnership.

IFRS requirements are similar to the requirements applicable to jointly controlled companies, unincorporated. Participant must include in its financial statements:

Assets that it controls;

Emerging from his obligations;

Emerging his expenses, and

Its share of the income from sales of goods and services provided by the joint venture.

U.S. GAAP Equity method used to account for investments in companies without legal personality. The corresponding share of the assets, liabilities, profits and losses are included in the financial statements of the investor, if the investor owns undivided share of each asset in the joint venture.

RAP Similar to IFRS.

IFRS participant must reflect its share of the jointly controlled assets and any liabilities arising from it.

U.S. GAAP No specific requirements. However, in some industries is used to reflect the proportionate consolidation of investments in jointly controlled assets.

RAP on shared data assets to participate in joint activities in the assets, liabilities, income and expenses for each participant formed indicators itemized accounting by summation. Thus, in the following statements of the recorded data associated with the joint activity:

Of participants in the shared assets;

Liabilities directly incurred by the party in connection with the contract;

The percentage of participants in the obligations arising from it, together with other parties to the treaty;

Costs directly incurred by the party in connection with participation in the contract;

The share of the costs incurred in conjunction with the other parties to the treaty;

Equity income obtained together with other parties to the treaty.

Plans to purchase shares of its employees. The basis of information contained in this section, guidance is FAS 123 (revised), "Share-based Payments", which became effective for public companies for annual periods beginning on June 15, 2005, and for non-public companies, ranging from the annual reporting periods after December 15, 2005, while encouraging the adoption of the standard in the earlier periods. Often the payments based on the shares made through trusts that acquire shares held for sale or transfer employees.

IFRS assets and liabilities of the trust, based on the shares of employees, consolidated sponsored by compliance with the criteria set out in SIC-12. In thresholds and IFRS (IAS) 32 "Financial Instruments: Disclosures" company considers its own shares held in the plan staff participation in the capital (ESOP), as treasury shares.

U.S. GAAP Reflection trusts associated with the shares of employees, other than the ESOP, are generally identical to IFRS. In accordance with SOP 93-6 special instructions apply to the ESOP.

RAP rules are not set.

Thus, the formation of the consolidated financial statements is a rather laborious process. Therefore, with appropriate use of information systems.

For these purposes, you can use the system "1C: Consolidation of 8", which provides for the collection, processing and presentation in a common format of financial information of all subsidiaries and affiliated companies, allowing to apply the necessary methodology and understand the requirements of international standards.

Logical performance and quality in the consolidation of financial statements corresponds to the algorithm logic of consolidation.

The objectives of developing guidelines for the formation of the consolidated financial statements are:

- Automate the collection of information for the purposes of consolidated accounts;

- Reducing the time for preparing the consolidated financial statements;

- Improving the quality of reporting;

- Improvement of the system of internal controls;

- Regulation of procedures for the preparation and presentation of the consolidated accounts;

- Preparation of the consolidated financial statements on the basis of full and accurate information on the activities of related companies as a single economic activities of the organization.

In the specialized system "1C: Consolidation TRAC 8" integrated methodology of transformation, containing a set of source, transformation and final form, provide reporting in accordance with IFRS. The model includes 60 transformational adjustments to reflect typical differences between the accounting policy of RAS and IFRS. The important point is to analyze the transformation of the statements of accounting policies used and the ability to define its basic parameters.



CONCLUSION

In a market economy any commercial organization seeks to reap economic benefits. It is this goal orientation in the work is essential in business organization, it is recognized as the most important factor in terms of the conditions of formation of the financial resources of any organization, its financial capital.

The main source of useful (clear, transparent, credible, substantial, reliable) information should be the financial statements.

Of consolidated financial statements is primarily associated with large transnational corporations (TNCs), whose shares are listed on stock exchanges and transactions are international. Numerous small and medium-sized companies in most cases exempt from creating it.

In accordance with the concept of accounting and reporting in the medium term, approved by Order of the Ministry of Finance of Russia from July 1, 2004 № 180 consolidated financial statements as a variety of accounting information is intended only as a function and is interested external users. These statements should be one of the main sources of financial information for economic decision-making by these users. [10]

The main task in the area, the consolidated financial statements is to provide interested users with secure access to high-quality, reliable and comparable information on the group of economic entities.

In accordance with international standards, the consolidated statements should be based on certain principles and methods (to meet certain requirements).

OJSC "Mashtorf" is the largest enterprise in the development, design, equipment for oil, power, gas, petrochemical and other industries and the economy.

OJSC "Mashtorf" is the consolidated financial statements to the extent and in the manner established by the Accounting Regulations "Accounting Organization" (PBU 4/96), according to the forms developed by the parent organization on the basis of standard forms of accounting. Leading organization preferred to form a consolidated balance sheet, consolidated income statement and disclosures from one reporting period to another. Changing the selected form of a consolidated balance sheet, consolidated income statement and the Notes to be disclosed in the notes to the consolidated balance sheet and the consolidated report on the financial results, indicating the causes of this change.

Enterprise accounting of "Mashtorf" accounting is headed by the Chief Accountant. Accounting Enterprise is an independent unit. At present JSC "Mashtorf" applies journal-order form of accounting. Technical and economic indicators show a decline in activity at JSC "Mashtorf" in the period under study, as a significant decrease in sales profit and all indicators. The main reason for this phenomenon - the decline in production.

The structure of "Mashtorf":

- "Liquid Instruments" produces equipment for tank farms, refineries, oil storage tanks;

- LLC "tool" makes molds, dies, tooling, special. tools, measuring tools, measuring tanks, barriers;

- LLC "Livenka" produces equipment for gas stations;

- LLC "Metallurg" produces castings, spare parts (casting, assembly product), etc.;

- LLC "Electromash" produces electric motors and pumps;

- LLC "Promservice" produces metal, mobile complex tank cleaning, drip. repair and modernization of machine tools, construction of buildings;

- "Measurement Techniques" makes counters, metering units, filters, gas separator.

Prior to the consolidated financial statements to reconcile and resolve all settlements and other financial relationship the parent company and its subsidiaries, and between subsidiaries.

Pay attention to the valuation of a balance sheet items and to make adjustments if necessary. The changes here may be necessary for foreign subsidiaries, as well as for domestic, if they used different accounting policies from the policy of the parent company.

Final point - the conversion of balance sheet items of foreign operations are consolidated into the currency of the parent company.

Consolidation, in fact, is the substitution statements of the parent company, "the book value of investments" in each subsidiary of the fact that these investments are really at the moment, that is, the share of the parent company in the fair value of the net assets of the subsidiary at the balance sheet date and the remainder arising on acquisition investments. Consolidation should provide an exception again of mutual operations of the companies of the group.

Depending on the nature of the transaction for the investment and establishment of control are two of the primary method by which the consolidated financial statements: the method of purchase (acquisition) and the method of merger (absorption). These methods differ procedurally and have a great impact on the aggregate financial results presented in the consolidated financial statements.

The consolidated statement of income may be a situation where enterprises groups use different methods of cost accounting - full cost method or the method of direct costs. Therefore, during the preparation of the consolidated financial statements to account for all profit and loss statements of the individual companies on one of these two methods.

Formation of the consolidated financial statements is a fairly time-consuming process. Therefore, with appropriate use of information systems.

For these purposes, you can use the system "1C: Consolidation of 8", which provides for the collection, processing and presentation in a common format of financial information of all subsidiaries and affiliated companies, allowing to apply the necessary methodology and understand the requirements of international standards.

Logical performance and quality in the consolidation of financial statements corresponds to the algorithm logic of consolidation.

The objectives of developing guidelines for the formation of the consolidated financial statements are:

- Automate the collection of information for the purposes of consolidated accounts;

- Reducing the time for preparing the consolidated financial statements;

- Improving the quality of reporting;

- Improvement of the system of internal controls;

- Regulation of procedures for the preparation and presentation of the consolidated accounts;

- Preparation of the consolidated financial statements on the basis of full and accurate information on the activities of related companies as a single economic activities of the organization.

In the specialized system "1C: Consolidation TRAC 8" integrated methodology of transformation, containing a set of source, transformation and final form, provide reporting in accordance with IFRS. The model includes 60 transformational adjustments to reflect typical differences between the accounting policy of RAS and IFRS. The important point is to analyze the transformation of the statements of accounting policies used and the ability to define its basic parameters.



LIST OF USED LITERATURE

1. Federal Law "On Accounting and Reporting" of 21.11.1996 № 129-FZ.

2. Order of the Ministry of Finance May 7, 2003 N 38N "On amendments and changes to the Chart of Accounts for the financial and economic activities of organizations and instructions for its use."

3. Order of the Ministry of Finance on July 22, 2003 N 67n "On the forms of accounting reports."

4. Order of the State Statistics Committee of Russia and the Ministry of Finance on November 14, 2003 № 475/102n "on the codes in the annual financial statements of the organizations for which data are to be processed in government statistics."

5. Blinov, RV Accounting: Tutorial / RV Blinov, VN Zhuravlev. - M.: Forum: INFRA-M, 2005. - 272.

6. Bogachenko, VM Correspondence accounts. 5000 accounting leash: a training manual / VM Bogachenko. - Ed. 2nd, ext. and rev. - Rostov-on-Don: Publishing "Phoenix", 2005. - 448.

7. Financial statements of the organization. Regulations 4/99 (Order of the Ministry of Finance from July 6, 1999 N43n).

8. Accounting: tutorial / PS Armless, AS Bakaev, ND Wroblewski and others, ed. PS Armless. - Ed. 4th, revised. and add. - M.: Accounting, 2005. - 719s.

9. Accounting: Textbook ed. A. Babaev, IP Komisarova. Ed. 2nd, revised. and add. - M.: UNITY - Dana, 2007. - 527 p.

10. Veshchunov, NA Accounting: tutorial / NA Veshchunov, LA Fomin. - Ed. Third, revised. and add. - Moscow: Finance and Statistics, 2006. - 624 p.

11. Dmitriev, IM Accounting and auditing: a manual / Ed. M.I Bakanova. - Moscow: Finance and Statistics, 2006. - 272.

12. Kerimov, VE Accounting: tutorial / VE Kerimov. - M.: Publishing house Penguin Books, 2005. - 688 p.

13. Lukin VP, Angelica T. Enterprise economics: the manual / VP Lukin, TA Angelica. - Orel State Technical University, 2000. - 123 p.

14. IFRS and the problems of automation of reporting / CFO - June. - 2009 / Access mode: http://rarus.ru/press/publications/89826/

15. How to consolidate the financial statements [electronic resource]: Access mode: http://www.buhgalteria.com.ua/Hit.html?id=190.

16. Rogulenko, P.M. Accounting: Tutorial / PM Rogulenko, VP Kharkiv. - Moscow: Finance and Statistics - 2005. - 352 p.

17. Sidorova, ES Salary calculation, payment and taxation: a practical guide / ES Sidorov. - 3rd ed., Rev. - Moscow: Omega-L, 2007. - 263 p.

18. Utkin, EA Financial management: a textbook EA Utkin. - M.: Mirror, 1998. - 256s.

19. Hendriksen, ES Accounting Theory: A tutorial ES Hendriksen. - Moscow: Finance and Statistics, 2000. - 576s.

20. Sheremet, AD Management accounting: a manual AD Sheremet. Ed. 2nd, revised and enlarged. - Moscow: Foreign FBC-Press, 2002 - 236 p.



APPENDIX A

EXPLANATORY NOTES TO THE ANNUAL REPORT FOR THE YEAR 2009

1. Information about the Company

Open Joint Stock Company "Mashtorf" INN 5702000191, KPP 5702201001, KPP 570250001 as the largest taxpayer.

Registered office of OJSC "Mashtorf": 303858, Orel, Livny, st. Peace, 40.

Society assigned state registration number 1025700514300.

OJSC "Mashtorf" is a legal successor to the July 17, 2002 JSC "Mashtorf." Open Joint Stock Company "Mashtorf", abbreviated JSC "Mashtorf" established in accordance with the Decree of the President of the Russian Federation of 17.11.1992, № 1403 and from July 1, 1992 № 721 is the successor of state-owned enterprises "Mashtorf", commissioned in 1961.

2. Characteristics of the company for the year

OJSC "Mashtorf" belongs to the sector of the economy, in which the production of the instruments of control and process control. The main activity - OKVED (33.20.6) - manufacture of instruments and appliances for measuring, monitoring and testing.

OJSC "Mashtorf" provides the design, manufacture, supply and maintenance: equipment for the assembly of tank farms, oil companies, gas stations, process control systems for tank farms, oil production and refineries, gas stations, process control systems for tank farms, oil production and refineries, gas stations and chemical plants, equipment monitoring road and rail transport for freight and operations of loading and unloading.

According to the average number of employees for 2009. equal to 875 people.

3. Changes to the reporting date

In accordance with the Federal Law of 26.11.2008 N 224-FZ of the income tax rate from 01.01.09. is assumed to be 20%.

In accordance with AR 18/02 deferred tax assets (DTA) are equal to the value determined by the product of the deductible temporary difference arising in the reporting period on the rate of corporate income tax, the legislation of the Russian Federation on taxes and fees, and the balance sheet date. Deferred tax liabilities (DTL) a value is defined as the product of the taxable temporary differences arising in the period and the rate of corporate income tax, the legislation of the Russian Federation on taxes and fees, and the balance sheet date. In the case of changes in rates of income tax in accordance with the legislation of the Russian Federation on taxes and fees, the value of IT and IT are translated with such arising from translation differences at the expense of excluding retained earnings. These necessary accounting entries decorated in the accounting of "Mashtorf."

Also, based on the requirements of paragraph 10 PBU 4/99 "Accounting organization" accounting data for 2008 and 2009 should be comparable.

Based on this value it and it is reflected in the balance sheet for the year 2009 in the column "At the beginning of the year" and "at the end of the year" in view of the changed conversion rate of income tax in the following graphs (Table 1).

In the "Profit and Loss" for 2009. In the column "For the same period of the previous year" reflects data generated with the conversion rate of income tax of 20%. This leads to a change in on line 190 "Net profit (loss) for the year for 2008. (Table 2). Recalculation of the amount of tax and net profit shows what financial result of 2008. could now be obtained if, in 2008. by rules of 2009.

4. Financial analysis

Analysis of solvency and financial stability

In general, the solvency of any company is the external manifestation of its financial stability.

Company is insolvent, if respected regulatory disparity.

The analyzed enterprise reference pay inequality at the beginning of the period observed (199419.0> = 165687.0).

At the end of the period - observed (218470.0> = 114937.0).

Therefore, it should be considered insolvent at the beginning of the period.

And solvency of the end of the period.

Based on the actions of various financial processes, a large number of financial indicators, their differences in levels of critical assessments, the actual values of the calculated financial ratios, causing difficulty in assessing the overall financial stability of the company, many domestic and foreign analysts are encouraged to implement an integrated ball-assessment of the financial stability of the company. The essence of this technique is to classify companies by risk level, ie Any company can be attributed to a class based on the estimated number of points obtained on the basis of actual values ??of financial stability.

Enterprises of this class are characterized by the fact that it shows a certain level of risk in debt and liabilities and reveals a weak financial performance and creditworthiness. However, the company can not yet be analyzed is seen as risky.

Comparative analytical balance

Based on a comparative analytical balance can assess the financial condition of the company.

Credit rating of the enterprise (the method of Sberbank)

In assessing the creditworthiness of the borrower (legal entity) used rating, at which analyzed five factors and their dynamics. This is such indicators as: cash ratio, the intermediate coverage ratio, current ratio, ratio of debt to equity, return on core activities.

CONCLUSION

The analysis lead to the following main conclusions.

The analyzed enterprise reference pay inequality at the beginning of the period observed (199419.0> = 165687.0).

At the end of the period - observed (218470.0> = 114937.0).