Accounting records at Kubanenergo for 2011 were drawn up on the basis of the following rules and standards for financial accounting and reporting in force in the Russian Federation:
- Federal law of 21.11.1996 N 129-FZ On Accounting Records;
- Order by the Ministry of Finance of the Russian Federation of 02.07.2010 N 66n Of Forms of Financial Accounting for Organisations;
- Order by the Ministry of Finance of the Russian Federation of 05.10.2011 N 124n On Changes to the Forms of Financial Accounting for Organisations, approved by Order of the Ministry of Finance of the Russian Federation of 02.07.2010 N 66n;
- Order by the Ministry of Finance of the Russian Federation of 29.07.1998 N 34n On Approval of the Statement on Financial Accounting and Reporting in the Russian Federation;
- chart of accounts for bookkeeping of the financial and operational activities of businesses, approved by Order of the Ministry of Finance of the Russian Federation of 31.10.2000 N 94n;
- Statement on financial accounting Accounting Policy of Organisations PBU 1/2008 approved by Order of the Ministry of Finance of the Russian Federation of 06.10.2008 N 106n.
The annual accounts of Kubanenergo include:
- Balance sheet,
- Profit and loss account,
- Statement of changes in equity,
- Cashflow statement,
- Notes to balance sheet and profit and loss account,
- Auditors report.
The annual accounting report for Kubananergo for 2011 and the auditors report are provided in the appendices to this annual account:
- Appendix N 1 — Auditors report on the veracity of Kubanenergo annual accounting reports for 2011.
- Appendix N 2 — Kubanenergo annual accounting report for 2011.
Main provisions of Kubanenergo accounting policy
In the records assets and obligations are treated as current if their circulation period is not longer than 12 months from the date following the reporting date. All other assets and obligations are presented in the records as long term.
Assets accounting in the Company is carried out in accordance with the Statement on financial account Assets Accounting (statement on financial statements 6/01) approved by order of the Ministry of Finance of the Russian Federation of 30.03.2001 N 26 n. Assets in relation to which conditions in point 4 of this Statement relate and whose cost is not more than 40 000 rubles per one are considered to be stocks.
Depreciation of fixed assets is compounded in a straight line method on the basis of their useful life. No fixed assets were compounded to full depreciation.
Accounting of property acquired by leasing contracts is carried out in accordance with Federal law of 29.10.1998 N
Work in progress is assessed according to actual cost.
Declaration of expenses incurred as deferred expenses and their equiparation to an asset with an entry in the financial statement fall under the principled approach set by the Company. This approach is based on an understanding of the provisional fact of the likelihood of the organisation gaining an economic benefit in the future from this asset and the assessment of its value with a sufficient level of reliability. .
The Company has established that the balance of deferred expenses is entered in Other
Advances related to acquiring
Revenue from sales of product and provision of services is recognised for financial recording according to shipment of product to customers (or provision of services) and presentation by them of accounting documents. In the statement on profit and loss revenue is entered net of valued added tax.
Revenue from sales of product and provision of services is recognised for tax purposes in that accounting (tax) period in which it took place regardless of the actual receipt of monetary assets.
Revenue from completed works and provision of services with a prolonged manufacturing cycle is recognised in the financial statement when completed.
Real estate property in practice in operation for which capital investment has been totally completed and supporting primary documentation has been drawn up are entered in the financial statement as fixed assets in a separate subaccount Real Estate Title to Which is not Registerd. For this real estate depreciation is calculated according to standard procedure from the first day of the month following the month the facility is brought into operation.
In 2011 the Company formed a reserve against estimated liability arising from possible payments in compensation for carried over vacation and a reserve is also entered for unsettled claims by electricity suppliers to compensate losses and services in electricity transmission.
The Company made provision for doubtful accounts which have not been settle or are very likely not to be settled within the deadlines stated in contracts and do not have the corresponding guarantees. The reserve is amended quarterly.
The Company forms a reserve for devaluation of financial investments in the event of substantial decrease in their value. The reserve is drawn up once a year as of 31 December of the accounting year.
In accordance with the Statement on financial accounting Accounting Policy of the Organisation statement on financial accounting 1/2008 confirmed by order of the Ministry of Finance of the Russian Federation of 06.10.2008 N 106n, an accounting policy for businesses has been drawn up at Kubanenergo in which methods for valuing assets (fixed assets, financial investment, inventory and others) have been approved. In developing the methods for valuing assets the Statement on Financial Accounting in the Russian Federation was used, which regulates questions of financial accounting and reporting. The assets and obligations of the Company are assessed in the statement according to actual expenditure on their acquisition.