FAS 26/2020: we take into account capital investments in a new way

Starting from 2022, the procedure for accounting for capital investments will change significantly in connection with the new standard FAS 26/2020 “Capital investments” (Order of the Ministry of Finance of Russia dated September 17, 2020 No. 204n).

Consider the main innovations:

• The new standard sets out the conditions for the recognition of capital investments in accounting;
• Capital investments include only those costs that are associated with fixed assets, namely, with their acquisition, creation, improvement or restoration. In addition, capital investments now include repairs and maintenance of fixed assets;
• The moment of recognition of capital investments was determined;
• Now estimated liabilities are included in the cost of capital investments;
• And etc.

All organizations, except budget ones, should apply the new standard. In turn, organizations that maintain simplified accounting may not use some of the provisions of the new standard.

Also, it will be necessary to make appropriate changes to the accounting policy for 2022.

If you have any questions about how to switch to the new standard, you can contact us by e-mail info@sterngoff.com and our specialists will promptly answer you.