This webinar is intended for heads of companies, heads of legal departments, accounting specialists, and lawyers practicing commercial law.

You can watch the webinar recording on YouTube and download presentations (in Russian).


0:00 Start of the webinar
1:50 Procedure for applying FSBU 5/2019 “Inventories”
2:00 From what moment is FSBU 5/2019 applied?
2:17 What organizations are required to apply FSBU 5/2019?
2:53 PBUs 5/01, 119-n, and 135-n of the Ministry of Finance of the Russian Federation are no longer valid
3:32 Changes in inventory accounting methods
3:52 Method for distributing transportation costs for the delivery of different inventories
4:20 What overall changes have occurred in inventory accounting?
5:18 2 ways of applying the new inventory accounting standard
5:32 Prospective way of applying FSBU 5/2019
5:46 Retrospective way of applying FSBU 5/2019
6:45 Definition and conditions for recognizing inventories
7:23 Definition of inventories in the new FSBU 5/2019
7:44 What is the operating cycle?
8:26 Examples of organizations with an operating cycle longer than 12 months
9:06 Conditions for recognizing inventories in the new FSBU 5/2019
10:00 Examples of types of inventories in the new FSBU 5/2019
11:13 Examples of differences between FSBU 5/2019 and old standards
11:36 Differences between inventories and fixed assets
12:44 Low-value fixed assets
13:50 Conditions for discontinuing the recognition of inventories
14:44 Types of cost assessments for inventories used
15:00 Actual cost of inventories according to FSBU 5/2019
15:12 Fair value of inventories according to FSBU 5/2019
15:53 Net realizable value of inventories according to FSBU 5/2019
16:25 Balance sheet value of inventories according to FSBU 5/2019
16:33 What does the actual cost of inventories include?
17:58 Correction of the cost of inventories – the actual cost method
18:43 General rule for subsequent evaluation of inventories
18:55 What is the write-down of inventories?
19:37 Procedure for creating a provision for the write-down of inventories
20:55 Comparison of the reserve amounts for PBUs 5/01 and FSBU 5/2019
21:37 Formula for calculating the net realizable value
24:02 Scheme for calculating the provision for the write-down of inventories
25:47 Signs of inventory write-down
28:43 Procedure for creating a provision for the write-down of inventories
29:37 Features of the assessment of certain types of inventories
29:48 “Biological assets” and goods traded on organized markets
30:30 Inventories received during the liquidation of non-current assets
31:15 Net realizable value of inventories other than goods and finished products
31:50 Costs in progress and finished products
34:11 Additional requirements of FSBU 5/2019 compared to PBU 5/01

34:46 Tax clause
35:10 Definition of tax clause
37:22 Purpose of tax clause
38:14 Due diligence (commercial diligence)
42:16 Inclusion of tax clause in contract
43:37 Interests of parties and tax authorities when working with tax clause
48:18 Execution of tax clause
49:22 Confirmation of circumstances and compensation for damages (Art. 431.2 of the Civil Code of the Russian Federation)
53:25 Compensation for losses in case of certain circumstances specified in the contract (Art. 406.1 of the Civil Code of the Russian Federation)
56:42 Recovery of damages caused by falsity of confirmations of circumstances
57:02 Compensation for property losses by withholding from payment under the contract
1:01:19 Possibility of recovering damages from a counterparty without a tax clause
1:04:17 Risks not covered by tax clause
1:07:55 Answers to participants’ questions
1:08:15 Are there any tools in 1C for automatic calculation of reserves for inventory write-offs?
1:09:34 Is the tax clause applicable to all types of contracts and are there any exceptions?
1:10:27 How to confirm that a party has exercised due diligence?
1:13:38 Who is responsible for fulfilling the tax clause if a subcontractor appears?
1:16:03 Who is responsible for paying VAT if the counterparty is a foreign company?
1:19:15 For which companies (by turnover) is the formation of reserves relevant?
1:21:40 Thank you for your attention!

Speakers and topics

Denis maiorov 0
Denis Maiorov
Senior Auditor, Seniror Tax advisor

New accounting rules for allowance for impairment and other changes in inventory accounting

  • Rules for estimating inventory in accounting and reporting.
  • Accounting procedure for allowance for impairment and rules for switching to the new accounting procedure.
  • Inclusion of work-in-progress in inventory and procedure for its accounting.
  • New requirements for calculating cost of inventories (additional and general business costs, storage costs, reductions, discounts, etc.)
  • Accounting of inventory from disposal of fixed assets.
  • Use of fair value to estimate individual types of inventories.
  • Procedure for switching to new rules.
Maksim Dmitriev
Senior Lawyer

Tax clause to protect property interests from unlawful actions from counterparties

  • Content and purpose of tax clause, due diligence when choosing a counterparty.
  • Civil law instruments to include a tax clause in contracts.
  • Case law on recovery of losses, damages from counterparties based on a tax clause.
  • Risks despite the inclusion of a tax clause in contracts (cases where losses/damages cannot be recovered from counterparties).