Analytical accounting for account 08. Accounting for investments in non-current assets

Account 08 “Investments in non-current assets” is intended to summarize information about the organization’s costs in objects that will subsequently be accepted for accounting as fixed assets, land plots and environmental management facilities, intangible assets, as well as about the organization’s costs for the formation of the main herd of productive and working livestock (except for poultry, fur-bearing animals, rabbits, bee families, service dogs, experimental animals, which are taken into account as part of funds in circulation).

Sub-accounts can be opened for account 08 “Investments in non-current assets”:

08-1 “Acquisition of land”;

08-2 “Acquisition of natural resources”;

08-3 “Construction of fixed assets”;

08-4 “Acquisition of individual fixed assets”;

08-5 “Acquisition of intangible assets”;

08-6 “Transfer of young animals to the main herd”;

08-7 “Acquisition of adult animals”;

08-8 “Performing research, development and technological work”, etc.

Subaccount 08-1 “Acquisition of land plots” takes into account the costs of the organization’s acquisition of land plots.

Subaccount 08-2 “Purchase of environmental management facilities” takes into account the costs of the organization’s acquisition of environmental management facilities.

Subaccount 08-3 “Construction of fixed assets” takes into account the costs of construction of buildings and structures, installation of equipment, the cost of equipment transferred for installation and other expenses provided for in estimates, financial estimates and title lists for capital construction (regardless of whether it is carried out This is construction by contract or economic method).

Subaccount 08-4 “Purchase of individual fixed assets” takes into account the costs of purchasing equipment, machinery, tools, inventory and other fixed assets that do not require installation.

Subaccount 08-5 “Acquisition of intangible assets” takes into account the costs of acquiring intangible assets.

The debit of account 08 “Investments in non-current assets” reflects the actual costs of the developer, included in the initial cost of fixed assets, intangible assets and other relevant assets.

The generated initial cost of fixed assets, intangible assets, etc., accepted for operation and registered in the prescribed manner, is written off from account 08 “Investments in non-current assets” to the debit of the accounts “Fixed Assets”, “Profitable Investments in Tangible Assets”, “Intangible assets”, etc.

Subaccount 08-6 “Transfer of young animals to the main herd” takes into account the costs of raising productive and working livestock transferred to the main herd in the organization.

Subaccount 08-7 “Purchase of adult animals” takes into account the cost of adult and working livestock purchased for the main herd or received free of charge, including the costs of its delivery.

Young animals transferred to the main herd are valued at actual cost. Young animals of all types of productive and working livestock transferred to the main herd are written off during the year from account 11 “Animals for growing and fattening” to the debit of account 08 “Investments in non-current assets” at the cost recorded at the beginning of the reporting year, with the addition of the planned cost weight gain or growth for the period from the beginning of the reporting year until the transfer of animals to the main herd. When transferring young animals to the main herd, account 01 “Fixed assets” is debited and account 08 “Investments in non-current assets” is credited. At the end of the reporting year, after drawing up the reporting calculation, the difference between the indicated cost of young livestock transferred during the reporting year and its actual cost is written off additionally or reversed from account 11 “Animals for growing and fattening” to account 08 “Investments in non-current assets” while simultaneously clarifying the assessment livestock on account 01 “Fixed assets”.

Purchased adult animals are debited to account 08 “Investments in non-current assets” at the actual cost of their acquisition, including delivery costs. Adult animals received free of charge are accepted for accounting at market value, to which the actual costs of delivering them to the organization are added.

Subaccount 08-8 “Performance of research, development and technological work” takes into account expenses associated with the implementation of research, development and technological work.

Expenses for research, development and technological work, the results of which are subject to use in the production of products (performance of work, provision of services) or for the management needs of the organization, are written off from the credit of account 08 “Investments in non-current assets” to the debit of account 04 “Intangible assets".

Expenses for research, development and technological work, the results of which are not subject to use in the production of products (performance of work, provision of services), or for management needs, or for which positive results are not obtained, are written off from the credit of account 08 “Investments in non-current assets" to the debit of account 91 "Other income and expenses".

Costs for completed operations of forming the main herd are written off from account 08 “Investments in non-current assets” to the debit of account 01 “Fixed assets”.

The balance of account 08 “Investments in non-current assets” reflects the amount of the organization’s investments in construction in progress, unfinished transactions for the acquisition of fixed assets, intangible and other non-current assets, as well as the formation of the main herd.

When selling, transferring free of charge and other investments accounted for in account 08 “Investments in non-current assets”, their value is written off to the debit of account 91 “Other income and expenses”.

Analytical accounting for account 08 “Investments in non-current assets” is carried out:

• for costs associated with the construction and acquisition of fixed assets - for each fixed asset object being built or acquired. At the same time, the construction of analytical accounting should provide the ability to obtain data on the costs of: construction work and reconstruction; drilling operations; installation of equipment; equipment requiring installation; equipment that does not require installation, as well as for tools and equipment provided for in capital construction estimates;
• design and survey work;
• other capital investment costs;
• for costs associated with the acquisition of intangible assets - for each acquired object;
• by costs associated with the formation of the main herd - by type of animal (cattle, pigs, sheep, horses, etc.);
• for expenses related to the implementation of research, development and technological work - by type of work, contracts (orders).

Some of the most significant assets of an organization are non-current ones, which often occupy a significant place in the balance sheet structure. The acquisition of property is carried out using accounting account 08 - “investments in non-current assets”. In the article we will consider the composition of non-current assets, accounting accounts for their replenishment, accounting account 08 and its accounting.

Composition of non-current assets

Section 1 of the balance sheet reflects information about the organization's possible assets available.

Reflection of non-current assets in reporting

The presented detailed list of non-current assets is used by organizations that prepare financial statements on a general basis. In a simplified reporting form, non-current assets are considered only according to two criteria: tangible and intangible. Their estimated value is reflected in the balance sheet at the end of the reporting period.

Replenishment of non-current assets (Account 08 and its subaccounts)

Account 08 accumulates all costs taken into account for the creation of fixed assets. The purchase of expensive property, components for it, and other fixed assets is recorded on account 08. The subaccounts used depend on the characteristics of the property:

• Account 08-1 - acquisition of land plots.
• Account 08-2 - purchase of other environmental management facilities.
• Account 08-3 - construction of OS. This includes the construction of buildings, the procedure for installing and assembling equipment, and other costs for capital construction provided for in the estimate documents.
• Account 08-4 - purchase of fixed assets (expensive property). Purchase of machines, equipment, tools that do not require subsequent installation.
• Account 08-5 - purchase of intangible assets (intangible assets).
• Account 08-6 - accounting of young cattle and other animals as the main herd. This includes expenses necessary to care for young animals for the purpose of raising them.
• Account 08-7 - acquisition of livestock, adults. Delivery and transportation costs are also taken into account here.
• Account 08-8 - implementation of design and research activities, which are subsequently used in the production of products or in the management sphere of the organization.

Acquired property and other expenses reflected on account 08 may bear the characteristics of fixed assets, that is, participate in activities for more than 1 reporting period. The total cost of the subject must be at least 100,000 rubles (from January 1, 2016).

Account 08: acceptance for accounting from the account

The receipt of goods or intangible assets on the balance sheet of the organization is carried out taking into account all the costs of their acquisition. This may include installation, delivery and other related costs.

The total resulting value of non-current assets is not subject to change, with the exception of possible cases of revaluation, completion, reconstruction and others.

Acceptance of fixed assets or intangible assets for accounting is accompanied by the determination of their useful life. Depending on the decision made, depreciation is calculated monthly, which reduces the initial cost of the object.

When registering intangible assets, there are options for determining and not determining the useful life. The useful life must be determined annually. The same applies to depreciation charges for intangible assets.

If fixed assets are considered in the future as an additional source of income reflected in account 03, then depreciation on them is accounted for separately in the general account for fixed assets - 02.

Tangible and intangible exploration costs involved in the development of deposits of natural minerals and other activities related to the development of natural resources are assessed based on the amount of actual costs incurred, which include:

• amounts paid to suppliers and intermediaries under the terms of contracts;
• consulting fees;
• customs payments;
• non-refundable taxes;
• remuneration of employees involved in development;
• depreciation of operating systems used to create search assets;
• other costs associated with activities of this kind.

The listed types of expenses do not include amounts of refundable taxes, as well as general business expenses, with the exception of situations where they are directly involved in the development of deposits and for performing other operations with minerals.

If the feasibility of development is subsequently confirmed, non-current exploration assets are transferred to the category of fixed assets or intangible assets on a general basis. Otherwise, further costs are stopped and the resulting assets are written off or disposed of.

Video lesson. “Account 08 – investment in non-current assets”, 7 examples, typical transactions

In this video lesson, Natalya Vasilyevna Gandeva, an expert on the “Accounting for Dummies” site, explains accounting for account 08 “Investment in non-current assets”, standard postings and 7 accounting examples are discussed. To watch, click on the video below.

Accounting entries for investments in non-current assets (Account 08)

The acquisition of non-current assets for an organization can be carried out in several ways: acquisition for a fee, gratuitous receipt. The accounting entries look like this:

Dt 08 - Kt 60, - the organization acquired fixed assets (intangible assets, other non-current assets)

Dt 19 - Kt 68 - allocated VAT on the purchase of property.

Dt 01 (03, 04) - Kt 08 - the object was accepted for registration (put into operation).

Example. The company purchased equipment for production needs for a total cost of 637,200 rubles, including 18% VAT. The equipment has been registered. What will the wiring look like?

Dt 08 - (RUB 540,000) purchase of fixed assets.

― Kt 60 (RUB 97,200) reflects VAT upon purchase.

― Kt 08 (RUB 540,000) equipment put into operation.

― Dt 19 (RUB 97,200) accrued VAT payable.

Before accepting fixed assets and intangible assets for accounting, information on the costs of such objects is summarized on the active synthetic account 08 “Investments in non-current assets” ().

Subaccounts to account 08

The chart of accounts and the Instructions for its application to account 08 require the opening, in particular, of the following sub-accounts:

In debit 08 of the accounting account, the initial value of assets is formed, and in the credit, this formed value of objects is written off when they are accepted for accounting as part of fixed assets, intangible assets, as well as when non-current assets are disposed of.

Analytical accounting

Analytical accounting on account 08 is organized, first of all, by type of assets accounted for. So, in particular, accounting on account 08 is carried out

• for each fixed asset item under construction or acquisition;
• for each acquired intangible asset;
• by animal type (cattle, pigs, sheep, horses, etc.);
• by type of research, development and technological work.

Typical accounting entries for account 08

Here are some standard entries for accounting for investments in non-current assets (Order of the Ministry of Finance dated October 31, 2000 No. 94n). For convenience of presentation in tabular form, subaccounts to account 08 are not given:

Account 08 “Investments in non-current assets” is intended to summarize information about the organization’s costs in objects that will subsequently be accepted for accounting as fixed assets, land plots and environmental management facilities, intangible assets, as well as about the organization’s costs for the formation of the main herd of productive and working livestock (except for poultry, fur-bearing animals, rabbits, bee families, service dogs, experimental animals, which are taken into account as part of funds in circulation).
Sub-accounts can be opened for account 08 “Investments in non-current assets”:
08-1 “Acquisition of land”,
08-2 “Purchase of environmental management facilities”,
08-3 “Construction of fixed assets”,
08-4 “Acquisition of fixed assets”,
08-5 “Acquisition of intangible assets”,
08-6 “Transfer of young animals to the main herd”,
08-7 “Acquisition of adult animals”, etc.
Subaccount 08-1 “Acquisition of land plots” takes into account the costs of the organization’s acquisition of land plots.
Subaccount 08-2 “Purchase of environmental management facilities” takes into account the costs of the organization’s acquisition of environmental management facilities.
Subaccount 08-3 “Construction of fixed assets” takes into account the costs of construction of buildings and structures, installation of equipment, the cost of equipment transferred for installation and other expenses provided for in estimates, financial estimates and title lists for capital construction (regardless of whether it is carried out This is construction by contract or economic method).
Subaccount 08-4 “Purchase of fixed assets” takes into account the costs of purchasing equipment, machinery, tools, inventory and other fixed assets that do not require installation.
Subaccount 08-5 “Acquisition of intangible assets” takes into account the costs of acquiring intangible assets.
The debit of account 08 “Investments in non-current assets” reflects the actual costs of the developer, included in the initial cost of fixed assets, intangible assets and other relevant assets.
The generated initial cost of fixed assets, intangible assets, etc., accepted for operation and registered in the prescribed manner, is written off from account 08 “Investments in non-current assets” to the debit of accounts 01 “Fixed assets”, 03 “Income-generating investments in tangible assets”, 04 “Intangible assets”, etc.
Subaccount 08-6 “Transfer of young animals to the main herd” takes into account the costs of raising productive and working livestock transferred to the main herd in the organization.
Subaccount 08-7 “Purchase of adult animals” takes into account the cost of adult and working livestock purchased for the main herd or received free of charge, including the costs of its delivery.
Young animals transferred to the main herd are valued at actual cost. Young animals of all types of productive and working livestock transferred to the main herd are written off during the year from account 11 “Animals for growing and fattening” to the debit of account 08 “Investments in non-current assets” at the cost recorded at the beginning of the reporting year, with the addition of the planned cost weight gain or growth for the period from the beginning of the reporting year until the transfer of animals to the main herd. When transferring young animals to the main herd, account 01 “Fixed assets” is debited and account 08 “Investments in non-current assets” is credited. At the end of the reporting year, after drawing up the reporting calculation, the difference between the indicated cost of young livestock transferred during the reporting year and its actual cost is written off additionally or reversed from account 11 “Animals for growing and fattening” to account 08 “Investments in non-current assets” while simultaneously clarifying the assessment livestock on account 01 “Fixed assets”.
Purchased adult animals are debited to account 08 “Investments in non-current assets” at the actual cost of their acquisition, including delivery costs. Adult animals received free of charge are accepted for accounting at market value, to which the actual costs of delivering them to the organization are added.
Costs for completed operations of forming the main herd are written off from account 08 “Investments in non-current assets” to the debit of account 01 “Fixed assets”.
The balance of account 08 “Investments in non-current assets” reflects the amount of the organization’s investments in construction in progress, unfinished transactions for the acquisition of fixed assets, intangible and other non-current assets, as well as the formation of the main herd.
When selling, transferring free of charge and other investments accounted for in account 08 “Investments in non-current assets”, their value is written off to the debit of account 91 “Other income and expenses”.
Analytical accounting for account 08 “Investments in non-current assets” is carried out:
for costs associated with the construction and acquisition of fixed assets - for each fixed asset object being built or acquired. At the same time, the construction of analytical accounting should provide the ability to obtain data on the costs of: construction work and reconstruction; drilling operations; installation of equipment; equipment requiring installation; equipment that does not require installation, as well as for tools and equipment provided for in capital construction estimates; design and survey work; other capital investment costs;
for costs associated with the acquisition of intangible assets - for each acquired object;
by costs associated with the formation of the main herd - by type of animal (cattle, pigs, sheep, horses, etc.).

The purpose of account 08 is summarizing indicators property funds, financial costs used for property with unformed value, as well as not ready for operation. This also includes the transfer of livestock to the rest of their representatives that are part of the main herd.

Definition and characteristics

In account 08, investments are entered relative to non-current resources of long periods. Its purpose is to enter final information on the costs of the enterprise for property objects, land areas, natural objects, intangible property, the formation of domestic animals in the herd, excluding birds, rabbits, bees, dogs included in working capital.

Costs for non-current assets are formed according to reasons: basic, new construction, restoration work, development and equipping of existing assets in the company with appropriate equipment. These measures, excluding the construction of new facilities, make it possible to change the goals for which they are carried out.

Costs may be associated with:

• acquired buildings, equipment, vehicles, agricultural technical equipment;
• purchased land areas, natural resources;
• purchase or production of intangible property;
• purchasing domestic animals for exploitation or breeding that are part of the main herd;
• directing grown young cattle into the herd;
• planting and caring for perennial vegetation.

Accounting for investments relating to property not involved in turnover serves to:

• timely, complete, accurate display of various types of property carried out for construction work;
• measures to control the construction process, the introduction of means of production, fixed assets;
• correct calculation, as well as display of price indicators for putting into use, acquired assets of property reserves, land areas, natural resources, intangible property.

Types of postings and features of correspondence

According to the plan of correspondent accounts of the balance sheet, a number of the following subaccounts:

• 08.01 – general data on investments in land plots;
• 08.02 - accounting of natural resources used;
• 08.03 - re-formed property funds;
• 08.04 - about fixed assets acquired by the company;
• 08.05 - purchase of intangible objects from third-party companies;
• 08.06 - direction of young cattle to the main herd;
• 08.07 - registration of adult animals included in the main herd;
• 08.08 – about the results of work in the scientific field.

When an organization acquires property, it must in fact reflect its price, taking into account account 08 in the debit line, and 60 in the credit area. We must not forget about value added tax, reflected by posting debit 19 credit 60.

Registration of the refund of this tax is made by recording: in debit write transactions by , in credit - by. Debit 08 together with account 23 indicate the amount of costs of additional workshops for the independent creation of an asset.

The costs associated with materials, together with wages, are recorded using postings: in debit there will again be 08 account, and in credit - , or.

Gratuitous acquisition of property is taken into account dt. 08, ct. 76 And 98.02 (regarding the results of the inventory). The tariff is set in accordance with the average cost on the market. The entry of assets into the authorized capital in the balance sheet is reflected by postings where the accounts are indicated: in debit 08 and credit 75.

When it is necessary to carry out installation or adjustments of the received equipment, the associated costs are recorded with a mark in which the invoices are noted: in the debit line - 08, and in the credit line - 07.

Postings relating to livestock are generated in next order:

• if it is necessary to take into account the price indicator of grown cattle transferred to the rest of the herd, then 08.06 is recorded in the debit area, indicating the transfer of young animals, and in credit 11 (about animals that are raised and fattened);
• reflection of the increase in the price of all animals in the main herd is written off according to the entry where transaction 07 is entered in the debit line, where the credit is noted on 06/08.

Accounting for fixed assets put into use is necessarily indicated by a posting in which accounts 01, 03, 04 are recorded in the debit line, and 08 in the credit line.

This entry allows you to avoid claims from tax authorities related to a reduction in the amount of tax on property accepted for use.

Asset or liability

Investments in long-term non-current funds when reflected in the balance sheet are considered active operations, taking into account the overall indicator of the company’s financial costs associated with fixed assets.

Its task is to register movements and changes in property objects in accordance with their types. It denotes data on the financial capital possessed by the enterprise. Maintaining an analytical system of accounting records relating to account 08 is carried out according to costs for ready-made property objects under construction.

Generated analytical accounting allows you to obtain information on the costs of restoration work and the formation of fixed assets. These costs may relate to:

• drilling, installation, tools, equipment, which are taken into account in the estimate of the main construction;
• acquisition of intangible property;
• creating a herd of working, productive livestock, which can consist of horses, representatives of the cattle family, sheep, pigs, and so on;
• costs of carrying out research, technological, experimental and design work.

Reflection of the reverse balance sheet

Schematic reflection of 08 account does not have a closing or opening balance, except for objects requiring long-term production or installation work. It is best that during the reporting period each amount reflected in the debit of account 08 should be closed.

Primary tariffs for property and intangible assets already in use are drawn up in accordance with accepted standards: debit 01 or 04(about present property or intangible assets), credit 03(about payment for raw materials, including materials).

As for the tariffs for young animals sent to the rest that make up the herd, then their size is calculated according to fact. When transferring any young representatives of the animal world into the herd for production and exploitation, write-off within 12 months on account 11- on keeping livestock for feeding and breeding.

The price size is taken into account according to the indicators at the beginning of the current year, including the planned cost of growth, from the first stage of the past year, ending with the period in which young representatives of livestock are sent to the herd. This process is accompanied by wiring: on the debit line indicate account 01, reflecting the main property, and on the credit line - account 08.

At the end of the past year, when the accounting calculation has been compiled, accountants write off the difference formed between the established price of young livestock, the transfer of which occurred during the current year, and the real price. Write-offs are carried out from account 11 for raised and fattened representatives of the fauna using account 08 for non-current assets, and at the same time, the cost indicators of livestock are clarified using information relating to fixed assets.

The purchase of adult animals by the organization is recorded by debiting account 08 at the real price, which coincides with the initial price, along with payment for delivery. Free receipt of already raised livestock taken into account in accordance with market cost, including additional actual investments for delivery to the enterprise.

Expenses of completed operations for the formation of a herd of domestic animals are written off in debit 01 of the fixed assets account. Subaccount 08-8 on the performance of work regarding science, research, technology, designs and technologies helps to take into account the costs of performing the work.

Research and development activities related to technological processes require costs, because in accordance with their results, products are produced or an organization is managed.

Expenses are deducted by posting in which for the loan indicate 08 account on the transfer of capital to funds that do not participate in turnover, and the debit value will be the account value 04 about intangible property. Costs of modern technological equipment, scientific research, design services, the results of which will not be beneficial for the release of the product and the implementation of certain types of work, services, enterprise management, in the balance sheet needs to be written off.

The results of the above activities may also be negative. In both cases, costs are written off with an entry in which credit is account 08, debit - account 91, characterizing additional profit, including costs.

The balance on account 08 expresses the enterprise's payments for the necessary unfinished construction, unfinished operations on acquired intangible and non-current assets, including a herd of livestock. Sales, free provision of property or other costs are reflected on account 08, written off as a debit, disclosing other expenses along with profit.

Account 08 for accounting has important, because it provides information about the possible property of the enterprise that it possesses. Fixed assets are critical to successful operations, including production cycles.

Additional information is provided in this video.