How to write an explanatory note. How to write an explanation in the tax sample According to the explanatory note

Andrey Sokolov

Articles written

Information and reference documentation, which includes an explanatory note, must be drawn up in accordance with the established standards. In particular, you should pay attention to GOST 6-30.2003, which describes in detail the rules for unifying and organizing the circulation of such papers.

Answering the question of what an explanatory note is, it should be said that this is a paper that sets out in detail the material that relates to individual sections or blocks of a specific document, and provides an explanation for this or that fact. It can be supported by a draft order, planning, regulatory legal act, estimate, application and many other certificates. Some cases require the document to indicate the results of studying a specific issue, expert opinions, calculations performed, forecasts of socio-economic significance and other proposed solutions.

Introductory information

The corresponding term is usually understood as a document that provides general information regarding the study of scientific work or official documentation, in particular papers related to tax or accounting reporting. The information described in it must strictly correspond to the topic of the main paper. It is recommended to present the contents of the explanatory note in an official business style. Not only the present and future place of work, but also a person’s career and his promotion depend on the correct execution of documentation.

In the legal, diplomatic, administrative and economic spheres, they usually adhere to an official business style, which is characterized by the following points:

• lack of emotional coloring, use of collective nouns, mainly generic concepts;
• extreme precision and conciseness of speech, correct selection of terms, their competent use;
• constructing a text using clericalism and language cliches;
• the use of classic figures of speech, including phrases: enters into legal force, is carried out in the prescribed manner, upon completion of work, etc.

To draw up business documents, it is advisable to have a sample of them on hand. To write this paper correctly, you will first need to study GOST 6-30.2003. The document can be drawn up by hand or on a standard form. Each company or organization may have different rules for writing papers, including certain requirements for how to write appropriate notes.

Design features

Labor legislation describes many options for papers, which in a number of situations have to be drawn up both at the initiative of the employer and at the request of the employee. It is important to understand how an explanatory paper differs from an explanatory note, what needs to be indicated in it and to whom it should be sent. Often you have to write both the first and second documents in the name of the director of the organization. The last version must necessarily contain conclusions and suggestions.

In the form of an explanatory note, the author can explain the situation that has arisen from his point of view, give a personal conclusion and, possibly, recommendations. An explanatory note often becomes a stage of proceedings when untimely, incomplete or poor-quality completion of a task, violations of labor regulations, harsh statements addressed to another employee, etc. were discovered. An explanatory document allows you to give an explanation of a specific paper and comment on its content. It is often written for a completed project, report, developed plan, estimate, etc.

Large public and private enterprises use an example of an explanatory note, which allows them to prepare a complete package of documents regarding a specific case. Therefore, legal experts recommend that you first study information on how to write an explanatory note and how to present it. Typically, the text of the document must contain all the arguments and information about the problem under consideration. They write an explanatory document for tax authorities, for diploma and other works and projects.

Many people do not understand how to write an explanatory note correctly, or how best to do it. When preparing it, it is advisable to use dry clerical language and state the essence of the problem as briefly and succinctly as possible.

Formatting a note

The paper can be written by hand or typed on a PC. At the bottom is the visa of the person who compiled it. The document must contain all the necessary details, as required by GOST 6-30.2003. When it consists of more than one sheet, it is recommended to use a binding, as well as a cover with mandatory numbering (transparent). It is important that the title is not marked. On other pages, numbers are placed at the bottom center.

To write this paper correctly, it is better to prepare in advance by considering numerous examples. An explanatory note - a sample can always be downloaded on our website. It is usually used as accompanying paper to the main document. With its help, it is possible to justify the content of certain provisions according to the established requirement. All necessary data is entered on a special letterhead of the organization with the relevant details.

When the need to draw up an explanatory note is caused by any incident, unusual situation or atypical event, it can be drawn up on a regular A4 sheet. After signing, it is sent to the superior official. If the written text will be transmitted horizontally, it is recommended to format it as an official document. It will need to be assigned a corresponding outgoing number.

If you are puzzled by the problem of how best to write an explanatory note, it is important to pay attention to the following details:

• company name;
• information about the addressee (his position and full name);
• title of the document “explanatory note”;
• date of registration and outgoing registration number;
• a subtitle to the text, for example “about the case” or “about the question”;
• brief information to the point;
• last name, first name and patronymic of the author with a personal signature.

The current GOST 6-30.2003 recommends compiling paper in two parts. The first provides basic information, setting out all the facts that prompted its compilation. The second part describes the background to what happened and justifies the reason for writing the note. Having figured out how to write an explanatory note - our specialists will help you find a sample - it is important to understand that it should be submitted to make amendments to the reporting documentation.

The preparation of an explanatory note, as well as an official note, regarding the indication of details are identical, which is enshrined in GOST 6-30.2003. If the management of a company needs to convey information about ongoing events related to ensuring its livelihoods, it will be necessary to draw up a report. This is also correct from the point of view of the absence of a logical component in which it is necessary to present conclusions and make proposals.

Explanatory document for the project

Information included in the explanatory document can be both recommendatory and mandatory. Usually, the authors adhere to a clearly defined structure in the content, that is, it is necessary to split the text into sections (subsections), paragraphs (subparagraphs, lists.

All information presented is presented in the same style, concise, as clear and precise as possible, the possibility of double interpretation is not allowed. Abbreviations (special terms) are used in accordance with current requirements and standards. Many explanatory notes are compiled for various projects with additional, revealing ones including detailed transcripts of the calculations made (methods), as well as a list of references (a list of information sources used in the work).

When preparing explanations for diplomas, for example, technical ones, it is recommended to initially study the current regulations and state standards. Educational institutions often use special calculation standards of their own design, which it is advisable to adhere to. Deviation from existing methods in the preparation of such notes is unacceptable. Students can obtain the necessary reference data and other useful information from specialized libraries.

A regular note for a project should include a title page that contains basic information regarding the performer of the work and its name. The topic must correspond to what the researcher gives, according to the annotation, which provides information on the content of the sections and briefly discusses the topic.

It is important to present the information in an accessible manner, dividing the work into the main part and the conclusion (conclusions), as well as a list of references and applications. A similar document is prepared in a similar way for the tax authorities and other authorities. With the help of such explanations, a balance sheet report can be prepared. Each document is drawn up in accordance with the developed form.

Documentary support of the project

The body of the document usually contains information that allows you to reveal the essence. The information provided is structured, that is, divided into paragraphs. However, they should not be less than 5 pages. In the main block, in addition to analyzing the specified data, it is recommended to also provide comments and state your vision of the problem. It is allowed to briefly cover the history of the issue, describe its specifics, solution options and research methods.

The presentation of the material should end with its own conclusions arising from the facts identified and considered. It is necessary to note the success in achieving the goal. A conclusion that does not occupy more than 1 page is considered quite normal. At the end of the explanatory note (according to the established formal template) there is a list of literature used and other sources of information.

Here it is appropriate to indicate magazines, newspapers, encyclopedias, scientific works, electronic resources in alphabetical order. Information regarding the author, publication, number of pages and year of its publication will not be superfluous. The total number of resources must be more than 6.

The project submission can be provided in the form of an electronic document such as Word, PowerPoint, etc. It is allowed to use videos and local links to the resource. The situation is considered normal when the project is downloaded to a removable medium, an Internet portal with access rights. It is important that the font used in the design is Times New Roman, size 14. The formatting must be aligned in width and indented from the left edge by 1.25 cm. It is advisable to use heading styles that match the layout of the document. Headings should be placed on a new line, and sections should be placed on a new page.

How to write an explanatory note correctly

An explanatory note is a document that allows you to obtain general information about a research project, accounting, tax and other documentation.

General writing rules

An explanatory note is usually prepared in printed form on a standard A4 sheet.

The document may include several pages that are bound with a transparent cover.

The pages of the note are numbered: the numbering starts from the title page (but is not written on it), the number is indicated in the center of the bottom margin of each page.

How to write an explanatory note. General requirements

When writing an explanatory note, it is important to ensure compliance with the formal business style of the narrative. It is necessary that the information in the document is presented unambiguously, briefly, clearly and concisely.

Don't know your rights?

The terminology and abbreviations used in the text must strictly comply with established standards.

It is allowed to submit attachments to the explanatory note. Typically, annexes contain information about the tables, diagrams, drawings and graphs contained in the explanatory note. The application may also contain justifications, methods, calculations and a list of additional papers used in developing the document.

Explanatory note to the diploma project. Registration according to GOST

Students of technical universities can find a sample explanatory note for their thesis in GOST standards.

Educational institutions usually publish their own guidelines for writing diplomas and explanatory notes for them, so students can also find an example of an explanatory note and other background information on this matter in the library of the educational organization.

A typical explanatory note for a thesis has the following structure:

• title page, which contains basic information about the name of the project and its performer;
• the task that the performer receives from the supervisor;
• an abstract summarizing the sections of the research work;
• table of contents with pagination;
• list of symbols and abbreviations;
• introduction, where the performer of the work provides a brief overview of the issue under consideration;
• the main part of the work is with the analysis of key concepts;
• conclusion with conclusions about the study;
• list of sources used;
• applications that contain tables, drawings, graphs or diagrams.

Explanatory note to the tax service

In some cases, taxpayers are required to draw up explanatory notes for tax reporting documentation.

For example, tax authorities may require responsible employees of a legal entity to write a note about losses in tax reporting.

In such an explanatory note, the employee will have to indicate:

• the name of the tax service unit to which the note is addressed;
• TIN of a legal entity;
• details of the requirement that became the basis for drawing up the note;
• details of the document for which explanations are provided;
• indicators of expenses and income of the organization;
• losses and expenses;
• information about discrepancies between accounting and tax accounting.

In accordance with the order of the Ministry of Finance of the Russian Federation dated July 6, 1999 No. 43n, accounting employees prepare a balance sheet, profit and loss statement with an explanatory note for submitting financial statements.

Explanations to reporting documents must fully disclose all information relating to the organization's policies necessary to assess its financial position and performance results.

In the explanatory note, the accountant records information about the availability during the reporting period:

• intangible assets;
• fixed assets;
• financial investments;
• issued shares;
• costs and profits;
• accounts receivable and accounts payable.

Thus, each explanatory note (to a graduation project, to the tax service, to the balance sheet) has its own specifics depending on its recipient and the purpose of its preparation.

The explanatory note is the same independent part of the financial statements as its other forms. The content of the explanatory note consists primarily of mandatory information, the disclosure of which is provided for by the Regulations on accounting and financial reporting in the Russian Federation, the Accounting Regulations (PBU) and orders of the Ministry of Finance of Russia. In addition, it may include a formation number that clarifies and supplements the information presented in other forms of financial statements. So, the explanatory note should include:

• indicators that are not reflected in the annual and financial reporting forms (for example, information on sales volumes of products, works, services by type of activity and geographical sales markets);
• decoding of other assets and liabilities, creditors, other liabilities, certain types of profits and losses if they are significant in the total sum of the results of forms No. and No. 2 (remember that a significant amount is the amount whose ratio to the total total of the relevant data is less than 5% );
• the main performance indicators of the organization and the factors that influenced the economic and financial results of the organization in the reporting year, as well as decisions based on the results of considering the annual financial statements and the distribution of profits remaining at the disposal of the organization;
• data on income, expenses and liabilities identified after the date of preparation of the annual reporting before its submission and significantly affecting the assessment of the property and financial position of the organization;
• indicators of the condition of fixed assets (the share of their active part, depreciation rates, renewal, disposal, etc.), financial investments, accounts receivable and payable, intangible assets;
• the procedure for calculating analytical financial indicators: product profitability, liquidity, solvency of the organization, etc.;
• assessment of the organization’s business activity;
• accounting policies that differ from the previous year.

In accordance with the Federal Law “On Accounting” (clause 4 of Article 6), “changes in accounting policies can be made in cases of changes in the legislation of the Russian Federation or regulations of bodies regulating accounting, the development by an organization of new methods of accounting, or a significant change conditions of its activities. In order to ensure comparability of accounting data, changes in accounting policies must be introduced from the beginning of the financial year."

• In the explanatory note, the organization announces changes in its accounting policies for the next reporting year, discloses those that significantly affect the assessment and decision-making of users of financial statements in the reporting year;
• data on tax payments due to the budget, calculated using two methods (for organizations that apply the taxation method for determining revenue from the sale of products as they are paid): based on the presented tax calculations and based on information about sales and financial results reflected (accounting based on the assumption of temporary certainty of the facts of economic activity. Data on tax payments should be presented in the context of significant types of taxes: profit deposit, VAT, road user tax, etc.) reflecting the amounts of deviations. In this case, information is provided only for those taxes for which the taxable turnover changes using the indicator of revenue from the sale of products (works, services);
• information on the existence, location, name of subsidiaries and dependent companies and types of their activities;
• the main activities carried out by the organization in the field of environmental protection, the impact of these activities on the level of capital investments of the organization and profits in the reporting year, as well as their financial consequences for future periods.

The explanatory note reflects those conditional facts that are significant and occur as of the date of signing the annual report.

The explanatory note must fulfill the following main tasks:

• disclose material information contained in the items in the financial statements;
• ensure information unloading of accounting reporting forms

The explanatory note must disclose the essential methods of accounting. The explanatory note can be divided into three main parts:

• general information about the organization;
• deciphering the most important items of financial reporting forms;
• analytical indicators characterizing the activities of the organization.

When changing the accounting policy in the new year, the explanatory note must contain an assessment in monetary terms of the consequences of the change in accounting policy that had or could have a significant impact on the financial position, cash flow or financial performance of the organization. The organization must provide information subject to the requirement to provide figures for at least two years.

Each organization independently determines the amount of information provided in the explanatory note and the form of presentation of the material - in the form of text, tables, diagrams, diagrams, etc., and current regulations set out only general requirements for its content. In addition, the organization has the right to independently determine the frequency of presentation of the explanatory note as part of the financial statements.

An explanatory note may not be drawn up:

• small businesses that apply, in accordance with the legislation of the Russian Federation, a simplified system of taxation, accounting and reporting and are not obliged (obliged) to conduct an independent audit of the reliability of financial statements in accordance with the legislation of the Russian Federation;
• public organizations (associations) that do not carry out entrepreneurial activities and, apart from disposed property, do not have turnover in the sale of goods (work, services).

The process of drawing up an explanatory note can be divided into three main stages:

1) analysis of the requirements for the content of the note, established by current regulations;

2) selection of the necessary sections (information blocks) of the note; collecting, processing and editing information for inclusion in relevant sections; choosing a form for presenting information, preparing graphic material;

3) drawing up and signing the final version of the note; its approval as part of the annual reporting by the highest management body of the organization.

In addition to the explanatory note and auxiliary reporting forms, the explanations should also include transcripts and comments on individual forms of financial statements.

Currently, organizations are given the right to independently choose the method of generating explanations: they can be included either directly in reporting forms or in the form of separate transcripts and explanations.

Options for disclosing information in financial statements:

• the organization uses the reporting forms contained [in the appendix to the order of the Ministry of Finance of Russia dated January 13, 2000 4n. Information included in reporting forms is presented in detailed form. In this case, the organization must disclose detailed information on significant reporting items in the explanatory note;
• the organization uses reporting forms developed independently based on the proposed reporting tables in Order No. 4n of the Ministry of Finance of Russia. It is allowed to disclose items that are similar in economic content in a combined form, for example, items of short-term receivables (lines 231-235 of the balance sheet) within the group of items “Accounts receivable (payments for which are expected within 12 months after the reporting date)” (line 230). In this case, the explanations are drawn up in the following form: comments are drawn up on individual reporting items. The tables included in the appendix to the balance sheet can be presented in the form of separate reporting forms (explanations of balance sheet items). Comments on individual items of the main forms (balance sheet and profit and loss statement), as well as on auxiliary reporting forms, are included in a separately formed section of explanations “Decoding of financial reporting indicators”.

All commercial organizations (with the exception of credit institutions) are required to provide information in the explanatory note to ensure comparability of data for the reporting and preceding years.

Joint-stock companies (except for credit institutions) fill out the subsection “Earnings per share” in the explanatory note.

The explanatory note is also included in the annual consolidated (consolidated) accounting report.

Joint-stock companies (except for credit institutions), if they have subsidiaries (dependent) companies, when preparing consolidated financial statements, are required to provide information about affiliated persons in an explanatory note.

Organizations (except credit institutions) that have subsidiaries (dependent) companies are required to provide in an explanatory note data on the most important reporting indicators by type of activity and geographic markets.

Order of the Ministry of Finance of Russia dated July 2, 2002 No. 66n approved PBU 16/02 “Information on discontinued activities,” which regulates the procedure for reflecting in accounting and financial statements transactions in connection with the termination of the organization’s activities (comes into force on January 1, 2003. ).

Termination of activities should be understood as a reorganization of an enterprise, as a result of which one or more new organizations appear; termination of any type of activity or complete cessation of the organization’s activities (for example, in the event of its sale).

If the manager approves a special program for terminating the activities of the organization, then the accounting records reflect operations to create a special reserve for losses from the termination of activities (D-t subaccount 91-2 K-t account 96), writing off expenses associated with the cessation of activities, for reserve funds account (D-t account 96 K-t account 70,69,76) and other transactions related to the termination of activities (for example, property transactions).

Information about discontinued activities must be deciphered in the explanatory note.

V.D. Novodvorsky, L.V. Ponamoreva

An explanatory note to the balance sheet is a document that was previously part of the annual financial statements of organizations. Now “Explanations” are mandatory: let’s figure out what the difference is and how to fill out the required document.

Currently, current legislation does not provide for the mandatory provision of such a form as an explanatory note to the balance sheet for 2019 as part of the annual reporting. However, in most cases you cannot do without it. There are no special requirements for this document, but it is advisable to compile it without errors. Indeed, if the data does not correspond with those indicated in the report itself, the tax service may have questions. Let's see who, when, why and in what form should draw up notes to the balance sheet?

Explanations to the balance sheet and a note are not the same thing

The explanatory note to the 2019 balance sheet, a sample of which can be seen in this article, does not replace the explanation to the balance sheet. By virtue of PBU 4/99 “Accounting statements of an organization”, “Explanations” are a breakdown of the balance sheet items, as well as clarification of individual reporting forms:

• statement of changes in equity;
• cash flow statement;
• other reporting forms and applications as part of the financial statements.

Whereas the note is an arbitrary transcript of the entire financial situation in the organization. It can contain both general information and detailed explanations of the lines of the balance sheet and income statement. According to Article 14 of Federal Law No. 402 dated December 6, 2011 and paragraph 4 of Order No. 66n of the Ministry of Finance of Russia dated July 2, 2010, this document is included in the annual financial statements. In particular, paragraph 28 of PBU 4/99 stipulates that business entities are required to draw up explanations for the balance sheet and Form No. 2 in the form of separate reporting forms and a general explanatory note. Although officials do not put forward any specific requirements for the form and content of this document, all organizations must submit an explanatory note with a balance.

An exception to the general rule are representatives of small businesses, who have the right to prepare and submit accounting reports in a simplified form. They must provide only two mandatory forms: a balance sheet and an income statement. They do not have to decipher the meanings and describe their financial situation. However, if such a desire arises, it is not forbidden to draw up this document.

Who needs an explanatory note to the annual report for 2019 and why?

A sample explanatory note to the balance sheet is necessary for all users of financial statements to obtain more complete additional information about the financial and economic activities of a legal entity. Such information, as a rule, cannot be provided in other reporting forms, but it is important and is of interest both to the founders or creditors of the company, and to regulatory authorities. Data in this document can be included based on specific wishes, for example, the board of directors, as well as based on the characteristics of the current economic situation at the enterprise by the end of the year. For example, if the income tax for the reporting period turned out to be significantly lower than the previous one, it makes sense to describe the reasons for this in an explanatory note, since the tax authority, having received such data, will still ask for an explanation. By anticipating this desire, you can avoid not only unnecessary questions from tax authorities and calls to the “carpet” of the inspectorate, but also an on-site inspection, which can be scheduled as part of a desk audit.

What information can be included in a sample explanatory note to the balance sheet for 2019

There are no legal requirements for the contents of this document. Each accountant independently determines not only the composition and completeness of the data in it, but also the form in which it is more convenient to provide it:

• plain text;
• diagrams;
• tables;
• schemes;
• graphs.

There is a general outline of this document. Based on this, you can get an idea of ​​what information is appropriate to provide. The most complete note may contain, in particular, the following sections:

• general data of the organization (address, average annual number of employees, types of economic activities, management personnel, etc.);
• general information about the accounting policies applied;
• analysis of the current financial performance of the organization;
• text and tabular explanations for financial statements.

In order for the inspectors to have as few questions as possible, the document must include at least brief information about accounting methods. This especially applies to areas such as:

• valuation of goods, inventories and finished products;
• assessment of work in progress;
• depreciation of fixed assets;
• recognition of sales revenue.

In addition, if changes have been made to the organization’s accounting policies, you need to not only report this in a note, but also justify their reasons and necessity. There must be an assessment of the result of changes in monetary terms, namely the amount by which the assessment of financial reporting items has changed due to a change in the accounting method. If the plans for the current year include actions that affect the facts of the organization’s economic activities or its continuity, for example, the upcoming liquidation of the organization, then this must be written in a note.

It is advisable to provide the transcripts of the balance sheet lines and Form 2 in the form of tables, in particular:

• data on changes in the organization’s capital (authorized, reserve, additional, etc.);
• on the composition and movement of reserves for upcoming expenses and payments;
• the organization's estimated reserves;
• changes in the structure and volume of intangible assets and fixed assets;
• information about the leased property of the organization;
• information on financial investments, receivables and payables;
• composition of production costs and other expenses;
• volumes of sales of products, goods, works, services by type of activity of the organization and sales markets;
• data on securing the organization’s obligations;
• all extraordinary facts of the organization’s economic activity in the reporting period and their consequences.

In addition to dry facts and figures, the explanatory note welcomes an analysis of the organization’s financial indicators. Such information is primarily of interest to founders, shareholders and investors, but this data will also tell tax specialists a lot. In particular, information about the organization’s business activity and its position in the market will be useful when applying for VAT deductions or when opening foreign economic activity. If the work is not going as quickly as desired, and the results of the year’s activities are losses, a well-written explanatory note with a detailed analysis of all factors will help avoid suspicion from the tax authorities of using illegal methods of reducing taxes. If the document can provide answers to all questions of interest to tax authorities, then it will be easier to avoid additional methods of supervision.

Explanatory note to the financial statements

The sample shows what a document might look like, the more precise name of which is “Explanations for the Balance Sheet.” We took the notional organization LLC “Horns and Hooves,” which has been operating since 2005 and is engaged in the production and sale of dairy products. Its chief accountant compiled this document as follows:

Explanations to the balance sheet of Horns and Hooves LLC for 2018

1. General information

Limited Liability Company (LLC) “Horns and Hooves” was registered by the Federal Tax Service No. 1 for St. Petersburg on March 29, 2005. State registration certificate No. 000000000, INN 1111111111111111, KPP 22222222222, legal address: St. Petersburg, Nevsky Prospekt, 1.

The organization's balance sheet was formed in accordance with the rules and requirements of accounting and reporting in force in the Russian Federation.

1. Authorized capital of the organization: 5,000,000 (five million) rubles, fully paid.
2. Number of founders: two individuals O.M. Kurochkin and I.I. Ivanov and one legal entity "Moloko" LLC.
3. Main activity: milk processing OKVED 15.51.
4. The number of employees as of December 31, 2018 was 165 people.
5. There are no branches, representative offices or separate divisions.

2. Basic accounting policies

The accounting policy of Horns and Hooves LLC was approved by order of director Ivanov I.I. dated December 25, 2013 No. 289. The straight-line depreciation method is used. Valuation of inventories and finished products is carried out at actual cost. The financial result from the sale of products, works, services, goods is determined by shipment.

3. Information about affiliates

Ivanov Ivan Ivanovich is the founder, 50% of the ownership share in the management company, holds the position of general director.

Kurochkin Oleg Mikhailovich - founder, 30% share of ownership in the management company.

LLC "Moloko" - founder, 20% ownership share in the management company, Russian organization (founders V.P. Petrov and Yu.K. Sidorov).

During the reporting period, the following financial transactions were carried out with related parties:

• On March 12, 2018, the general meeting of the founders of Horns and Hooves LLC reviewed and approved the financial statements of the organization for 2017. The meeting decided to pay a profit in the amount of 3,252,000 rubles to the founders based on their share in the authorized capital based on the results of 2017. The payment (including personal income tax withholding for two individuals) was made on April 1, 2018;
• On May 25, 2018, Horns and Hooves LLC entered into a contract with the founder of Moloko LLC, Yu.K. Sidorov, an agreement for the purchase of non-residential premises worth 5,102,000 rubles. The cost of the transaction is determined by an independent assessment of the value of the property. Payments under the agreement were made in full on June 6, 2018, and the transfer and acceptance certificate of the real estate was signed.

4. Key performance indicators of the organization for 2018

In the reporting year, the revenue of Horns and Hooves LLC amounted to:

• for the main type of activity “production and sale of dairy products” - 385,420,020 rubles;
• for other types of activities - 650,580 rubles;
• other income: 170,800 rubles (sale of fixed assets).

Costs of production and sales of products:

• acquisition of fixed assets: 1,410,500 rubles;
• depreciation of fixed assets: 45,230 rubles;
• purchase of raw materials: 110,452,880 rubles;
• wage fund: 137,580,040 rubles;
• travel expenses: 238,300 rubles;
• rental of premises: 8,478,190 rubles;
• other expenses: 532,458 rubles.

5. Explanation of balance sheet items as of December 31, 2018 (using accounts payable as an example)

Availability and movement of accounts receivable

Indicator		Period	At the beginning of the year						Changes over the period						At the end of the year
			Accounted for under contracts					Provision for doubtful debts	Received			Dropped out			Remainder
In thousands of rubles with decimal places									Under contracts (transactions)	Fines, penalties, penalties		Redeemed	Written off in Finnish result	Written off to reserve for doubtful debts	Current	Overdue
Total short term accounts receivable, including:		2018	25 489,3					(200,0)	15 632,7	300,4		(25 023,2)	(102,1)	(48,9)	15 726,1	522,1
buyers			20 409,0					(200,0)	10 015,5	300,4		(17 315,3)	(87,7)	(48,9)	12 750,9	522,1
suppliers			5080,3					-	5617,1	-		(7707,9)	(14,4)	-	2975,2	-
Total long-term accounts receivable, including:		2018	50 000,0					-	-	-		-	-	-	50 000,0	-
for interest-free loans			40 000,0					-	-	-		-	-	-	40 000,0	-
TOTAL accounts receivable			30 489,3					(200,0)	15 632,7	300,4		(25 023,2)	(102,1)	(48,9)	65 726,1	522,1

6. Estimated liabilities and provisions

As of December 31, 2018, the organization formed an estimated liability to pay for regular vacations of employees in the amount of 7,458,000 rubles, the number of unpaid vacation days is 67, the deadline is 2020.

The reserve for doubtful debts was formed in the amount of RUB 600,000. due to the presence of overdue and unsecured debt of Girya LLC in the amount of 522,000 rubles.

The organization did not create a reserve for reducing the value of inventories in 2018, since inventories do not show signs of depreciation.

7. Salary

Payables for wages as of December 31, 2018 for the organization as a whole amounted to RUB 3,876,400. (payment for December 2018, due date: 01/12/2019). Staff turnover in the reporting period was 14.88%. The number of employees as of December 31, 2018 is 165 people. The average monthly salary is 25,675 rubles.

8. Other information

(In this section you need to describe all extraordinary facts in the business and economic activities of the organization for the reporting period, describe their consequences. You can also describe all other significant facts that affected the balance sheet in general and, in particular, you can list major transactions and counterparties for them for the reporting period, as well as write a forecast or events that have already occurred after the reporting date and are of significant importance.)

Director of LLC "Horns and Hooves" /signature/ Ivanov I.I. 03/19/2019.

When drawing up an explanatory note, special attention must be paid to information about affiliated persons. It is advisable to document this data in a separate section, as required by paragraph 14 of PBU 11/2008. By law, it is necessary to disclose information not only about the founders of the organization itself, but also about persons associated with them, therefore, if the founders (as our example of an explanatory note to the balance sheet shows) includes a legal entity, its participants or shareholders must be indicated. In addition, information on transactions carried out with related parties during the reporting period must be indicated, as well as, regardless of the transactions, on those legal entities and citizens that are recognized as affiliated.

Obviously, competent preparation of an explanatory note to the financial statements can save the manager and accountant from additional communication with regulatory authorities. It is important to remember that the detail of information in this document depends only on its compiler - on the intention of the organization itself to disclose or not certain indicators for the year. The main and only requirement that the legislator makes for this document is that the information contained in the explanations must be reliable. The person who signed the document is responsible for its correctness.

An explanatory note to the Federal Tax Service is a document in which the taxpayer explains the current circumstances. Representatives of the Federal Tax Service quite often request clarification, especially in cases where the enterprise’s reporting shows a significant decrease in fiscal payments. We tell you how to correctly write an explanatory note.

When to Provide Explanations

When conducting an inspection, the inspector has the right to request written explanations. Situations in which it is mandatory to provide an explanatory note to the tax office upon request (we offer a sample for NPOs) are specified in clause 3 of Art. 88 Tax Code of the Russian Federation:

1. Errors in submitted reports. For example, inaccuracies or inconsistencies are identified in the declaration. In this case, tax authorities require you to provide justification for these discrepancies or send a corrective report.
2. In the adjusting statements, the amounts payable to the budget are significantly lower than in the initial calculations. In such a situation, the inspector may suspect a deliberate understatement of the tax base and payments and will demand an explanation for the changes.
3. The submitted income tax return reflects losses. In any case, you will have to justify unprofitable activities to the Federal Tax Service, so you can prepare an explanatory note on losses in advance.

The inspection’s request must be responded to within 5 working days from the date of official delivery of the request - such norms are enshrined in clause 3 of Art. 88, paragraph 6 of Art. 6.1 Tax Code of the Russian Federation. In special cases, the Federal Tax Service will have to notify the receipt of a tax request (Letter of the Federal Tax Service of the Russian Federation dated January 27, 2015 No. ED-4-15/1071).

Some requests may not have an official seal. You will still have to respond to such demands - such explanations are given in the Letter of the Federal Tax Service of the Russian Federation dated July 15, 2015 No. ED-3-2/2739@.

How to compose

When drawing up an explanatory note, we are guided by the following rules:

1. We compose a response on the organization’s letterhead. If there is no such form, in the header of the document we indicate the full name of the institution, INN, KPP, OGRN and address.
2. We indicate the number and date of the requirement for which the explanatory note is being drawn up. It is permissible to write a response to several tax requests at once.
3. If there are errors or inconsistencies in the report, double-check the report to eliminate typos or typos.
4. In the descriptive part of the explanatory note, we reveal in detail and consistently the circumstances of the situation that needs to be explained.
5. When answering a request, rely on the facts and document the circumstances. Attach copies of documents to the answer, if any. For example, attach to the explanatory note a copy of the additional agreement to the contract with the provision for increasing prices.

If the inspector requires an explanatory note regarding inconsistencies in the value added tax return, the response will have to be sent electronically. An exception to the rules is reserved for organizations that report VAT on paper. If the institution reported electronically, but provided a response to the request on paper, then the tax office will consider such explanations not provided. Such norms are prescribed in the Letter of the Federal Tax Service dated January 27, 2017 No. ED-4-15/1443.

What happens if you don’t respond to the Federal Tax Service’s requirement?

No matter how much the inspectorate threatens punishment, tax officials cannot fine or issue an administrative penalty for the absence of an explanatory note:

• Article 126 of the Tax Code of the Russian Federation is not a basis for punishment, since the provision of explanations does not apply to the provision of documents (93 Tax Code of the Russian Federation);
• Article 129.1 of the Tax Code of the Russian Federation is not applicable, since a request for written explanations is not a “counter check” (93.1 Tax Code of the Russian Federation);
• Article 19.4 of the Code of Administrative Offenses is not an argument; punishment is applicable only in case of failure to appear at the territorial inspection.

Similar explanations are given in paragraph 2.3 of Letter No. AS-4-2/12837 of the Federal Tax Service of Russia dated July 17, 2013.

Form and ready-made samples for different situations

So, we offer a general form of an explanatory note that is suitable for almost any situation:

Now let’s present several ready-made samples of an explanatory note that an institution will need in certain circumstances.

Personal income tax accrued incorrectly

The error occurs infrequently, but still occurs. If the tax authorities have discovered an incorrectly calculated tax, the organization will have to not only prepare an explanatory note, but also generate corrective reporting (certificate 2-NDFL).

For such a situation, an explanatory note in any form is suitable. If you don’t know how to write an explanatory note correctly, a sample will help you cope with the task.

Errors and discrepancies regarding VAT

Value added tax is the fiscal liability where accountants make the most mistakes. As a result, discrepancies and inaccuracies in reporting are inevitable.

The most common mistakes are when the amount of tax accrued is less than the amount of the tax deduction claimed for reimbursement. In fact, the reason for this discrepancy can only be the inattention of the person responsible for issuing invoices. Or a technical error when uploading data.

In the explanatory note, please include the following information: “We inform you that there are no errors in the purchase book, the data was entered correctly, timely and in full. This discrepancy occurred due to a technical error when generating invoice No.____ dated “___”______ 20___. Tax reporting has been adjusted (indicate the date the adjustments were sent).”

Reporting discrepancies

Quite often there are situations when the same economic indicator has different values ​​in the presented forms of fiscal reporting. Such discrepancies are caused by the fact that for each tax, fee, contribution, individual rules for determining the taxable base are established. And if tax authorities require you to provide an explanatory note on this issue, provide explanations in free form. In the text, indicate specific reasons why the discrepancies arose.

Also, the reason for such inconsistency may be different norms and rules of tax accounting in relation to a number of specific situations. Write down the circumstances in an explanatory note.

It is welcome to provide explanations with references to the norms of the current fiscal legislation. Even if the company is wrong (incorrectly interpreted the norms of the Tax Code of the Russian Federation), the Federal Tax Service will provide detailed explanations, which will help avoid larger mistakes and fines in future activities.

Reducing the tax burden

This issue is of particular interest to tax authorities. Thus, representatives of the Federal Tax Service constantly monitor the volume of revenues to the state budget. If they decrease, the reaction is immediate: demands with the provision of an explanatory note, an invitation to the manager to a personal meeting with a representative of the Federal Tax Service, or an on-site desk audit (a last resort).

In such a situation, you cannot hesitate; you must immediately provide explanations to the Federal Tax Service. In the explanatory note, describe all the circumstances and facts that influenced the reduction in tax payments. Confirm the facts with documents or provide economic justification. Otherwise, the Federal Tax Service initiates an on-site inspection, which may take several months.

What to write in an explanatory note:

1. Reduction of salary taxes. The reasons may be staff reduction, enterprise restructuring, or reduction in wages.
2. A decrease in profits may occur due to termination of contracts with customers. A copy of the additional agreement on termination of the contract should be attached to the explanatory note.
3. Increased costs as a result of decreased profits. The justification may be expansion of activities (increasing production volumes, opening a new branch, division, retail outlet), changing suppliers or increasing prices for inventories and raw materials (attach copies of contracts).

There can be quite a few reasons for reducing the tax burden. We will have to look into each specific case.

Ask questions and we will supplement the article with answers and explanations!