3. Accounting policy
3.1. The present accounting report of the Company is prepared on the basis of the accounting policy confirmed by order from 12.04.2011 №
The accounting policy is generated according to the requirements of:
- The civil code of the Russian Federation;
129-FZ “About the business accounting” from 21.11.96:- Provisions on conducting the business accounting and accounting reporting in the Russian Federation (order of MF of the Russian Federation from 29.07.1998 №
34-n). - RAS 1/2008 “Company accounting policy”, RAS 3/2006 “Accounting of assets and the obligations, which cost is expressed in foreign exchange”, RAS 4/99 “Company accounting statements”, RAS 5/01 “Accounting of inventories”, RAS 6/01 “Accounting of fixed assets”, RAS 7/98 “Events after the reporting date”, RAS 8/01 “Conditional facts of economic activities”, RAS 9/99 “Company Income”, RAS 10/99 “Company expenses”, RAS 11/2008 “Information on affiliated parties”, RAS 12/2000 “Information on segments”, RAS 13/2000 “Accounting of the state support”, RAS 14/2007 “Accounting of intangible assets”, RAS 15/2008 “Accounting of expenses under loans and credits” RAS 16/02 “Information on ceased activity”, RAS 17/02 “Accounting of expenses on R&D”, RAS 18/02 “Accounting of accounts on the profit tax of the company”, RAS 19/02 “Accounting of financial investments”, RAS 20/03 “Information on participation in joint activity”, RAS 21/2008 “Change of estimate values”, RAS 22/2010 “Correction of mistakes in the business accounting and reporting”, RAS 23/2011 “Cash flow report”.
- Federal Law № 261 of 23.11.2009 “On energy saving and energy efficiency increase and amendments to separate legislative acts of the Russian Federation”;
- Order of the Ministry of Finance of Russia № 10n, FCSM of Russia № 03-6/pz of 29.01.2003 “On approval of the estimation procedure of net assets of joint stock companies”;
- Order of the Ministry of Finance of Russia № 29n of 21.03.2000 “On approval of the Methodic recommendations on disclosure of information about the profit per share”;
3.2. The Company’s accounting policy is generated proceeding from assumptions that:
- assets and obligations of Company exist separately from assets and obligations of proprietors and assets and obligations of other companies (assumption of property isolation);
- Company will continue the activity in the foreseeable future and it does not have intentions and necessity of liquidation or essential reducing of activity and, hence, the obligation will be repaid when due hereunder (assumption of continuity);
- the accounting policy adopted by the Company is applied in succession from one accounting year to another (assumption of sequence of application of accounting policy);
- the facts of economic activities of the Company concern that accounting period in which they took place, irrespective of actual time of receipt or payment of the money funds connected with these facts (assumption of time definiteness of the facts of economic activities).
The accounting policy of the Company was formed, taking into account changes in the regulatory and legal acts on accounting, in particular, Order of the Ministry of Finance of Russia № 186n of 24.12.2010. Changes aimed at clarifying the existing procedure of accounting of individual accounting items: fixed assets, expenses and deferred income, reserves for future expenses.
Effects of changes in the legislation and accounting policy of the Company’s annual statements are included retrospectively. The adjustments related to changes in the accounting policy are included in the notes to the accounting balance-sheet and in the profit and loss statement in table 3.2 and in Form 1 “Balance sheet” in the following lines:
| Line Name of Form 1 | Line of Form 1 before adjustment | Line of Form 1 after adjustment | Revised amount 2010 | Revised amount 2009 |
|---|---|---|---|---|
| Advances issued for capital construction and acquisition of fixed assets (without VAT) | 1,230 | 1,135 | 39,458 | 54,900 |
| Advances issued for capital construction and acquisition of fixed assets (with VAT) | 1,230 | 1,260 | 7,103 | 9,882 |
| Deferred expenses | 1,216 | 1,260 | 4,074 | 49,557 |
| Deferred expenses | 1,216 | 1,230 | 37,622 | 66,478 |
| Deferred expenses | 1,216 | 1,370 | -11,576 | -20,833 |
| Deferred expenses | 1,370 | 1,170 | 66,831 | 79,210 |
| Deferred expenses | 1,170 | 1,230 | 11 | 4,040 |
| VAT from advance payments received | 1,230 | 1,260 | 365,283 | 262,231 |
| Estimated liabilities | 1,430 | 1,540 | 222,929 | 188,259 |
| Deferred income | 1,530 | 1,370 | 48,241 | 49,484 |
| Estimated liabilities | 1,370 | 1,540 | 0 | 646,786 |
| Deferred tax assets | 1,160 | 1,370 | 7,055 | 139,337 |
| Borrowed funds | 1,410 | 1,510 | 1,166,003 | 3,920,373 |
3.3. Methods of estimation of inventories:
Inventories are estimated in the sum of an actual cost on acquisition. Write-off of inventories in production was performed under the average cost value.
3.4. Methods of charge of depreciation charges on separate groups of items of fixed assets:
Depreciation of fixed assets is added by linear method within rates of the Russian Federations established by Resolution of the Government №1 from 01.01.2002 “About classification of the fixed assets included in amortisation groups”.
Methods of estimation of items of the fixed assets received under contracts, providing execution of obligations (payment) by non monetary funds:
The items of fixed assets received by the Company under contracts, providing execution of obligations (payment) not by money funds (in particular under exchange contracts), are estimated at cost of the values which are transferred or subject to transfer by the Company. Cost of the values, which are transferred or subject to transfer by the Company, is established from the price on which in comparable circumstances the Company usually determines cost of similar values.
The terms of useful use of items of fixed assets recognized by the company (by primary groups) are included in the notes to the accounting balance-sheet and in the profit and loss statement in table 5.3.2.
3.5. The terms of useful use of intangible assets recognized by the company:
| Intangible Assets Group | Term of useful use (number of years) of items, which transfer of ownership was accepted |
|---|---|
| Exclusive rights on a trade mark | 9 — 10 years |
| Exclusive rights on computer programs, DB | 3 — 10 years |
| Exclusive rights on an invention, industrial pattern, useful model | 10 years |
Methods of estimation of the intangible assets acquired not for money funds:
The intangible assets received by the Company under contracts, providing execution of obligations (payment) not by money funds (in particular under exchange contracts), are estimated at cost of the values which are transferred or subject to transfer by the Company. Cost of the values, which are transferred or subject to transfer by the Company, is established from the price on which in comparable circumstances the Company usually determines cost of similar values.
Methods of determination of depreciation of intangible assets:
The sum of depreciation charges on intangible assets is determined on the rates calculated proceeding from their original cost and term of useful use (linear method).
Changes of terms of useful use of intangible assets:
Term of useful use of an intangible asset is annually checked by the Company on necessity of its specification. In case of essential change of duration of the period during which the Company assumes to use the assets, term of its useful use is specified. Arisen in this connection adjustments are recognized in the business accounting and the accounting statements at the beginning of an accounting year as changes in estimate values.
Changes of methods of determination of intangible assets depreciation:
The method of determination of depreciation of an intangible asset is annually checked by the Company on necessity of its specification. If calculation of expected receipt of the future economic gains from an intangible asset use has essentially changed, the method of determination of depreciation of such assets changes accordingly. Arisen in this connection adjustments are recognized in the business accounting and the accounting statements at the beginning of an accounting year as changes in estimate values.
3.6. Order of recognition of revenue of the company:
The company subdivides income into income of usual types of activity and other income.
Income of usual types of activity are the receipts connected with rendering of services, accomplishment of works, from sale of goods and products to third party companies.
All income, which is not connected with realisation of works and services in usual types of activity is recognized as other income. The revenue is recognized for the business accounting in the sum estimated in money terms, equal size of receipt of money funds and other property and (or) debt receivable size.
3.7. Order of recognition of commercial and administrative expenses:
General economic expenses are recognized in full amount as administrative expenses and recognized in the cost value of the rendered services, the executed works completely in the reporting year of their recognition as expenses on usual types of activity.