FEDERAL LAW OF THE RUSSIAN FEDERATION

of December 6, 2011 No. 402-FZ

About financial accounting

Accepted by the State Duma of the Russian Federation on November 22, 2011

Approved by Council of the Russian Federation on November 29, 2011

Chapter 1. General provisions

Article 1. Purposes and subject of this Federal Law

1. The purposes of this Federal Law are establishment of single requirements to financial accounting, including accounting (financial) records, and also creation of legal mechanism of regulation of financial accounting.

2. Financial accounting - forming of the documentary systematized information on the objects provided by this Federal Law according to the requirements established by this Federal Law and creation on its basis of accounting (financial) records.

Article 2. Coverage of this Federal Law

1. Operation of this Federal Law extends to the following persons (further - economic actors):

1) commercial and non-profit organizations;

2) state bodies, local government bodies, governing bodies of state non-budgetary funds of the Russian Federation and territorial state non-budgetary funds;

3) Central bank of the Russian Federation;

4) individual entrepreneurs, and also on the lawyers who founded lawyer offices, the notaries and other persons who are engaged in private practice (further - persons who are engaged in private practice);

5) the branches which are in the territory of the Russian Federation, representations and other structural divisions of the organizations created according to the legislation of foreign states, the international organizations, their branches and representations which are in the territory of the Russian Federation if other is not provided by international treaties of the Russian Federation.

2. This Federal Law is applied taking into account provisions of the budget legislation of the Russian Federation when conducting budget accounting of non-financial and financial assets and obligations of the Russian Federation, subjects of the Russian Federation and municipalities, the transactions changing the specified assets and liabilities and also in case of creation, representation, consideration and approval of budget reports. The provisions of this Federal Law established concerning the organizations of the budget sphere extend to other organizations regarding the powers performed by them according to the budget legislation of the Russian Federation for conducting budget accounting and (or) creation and submission of budget reports.

3. This Federal Law is applied when conducting by the trustee financial accounting of the property delivered to it in trust management and the related objects of financial accounting, and also when maintaining, including one of the legal entities participating in the agreement of particular partnership, financial accounting of common property of companions and the related objects of financial accounting.

4. This Federal Law is applied when conducting financial accounting in the course of agreement performance about the Section of products if other is not established by the Federal Law of December 30, 1995 No. 225-FZ "About production sharing agreements".

5. This Federal Law is not applied during creation of information necessary for creation by the economic actor of the reporting for the internal purposes, the reporting represented to credit institution according to its requirements and also the reporting to other purposes if the legislation of the Russian Federation and rules of creation of such reporting accepted according to it do not provide application of this Federal Law.

Article 3. The basic concepts used in this Federal Law

For the purposes of this Federal Law the following basic concepts are used:

1) accounting (financial) records - information on financial position of the economic actor on reporting date, financial result of its activities and cash flow for the accounting period systematized according to the requirements established by this Federal Law;

2) authorized federal body - the federal executive body authorized by the Government of the Russian Federation to perform functions on development of state policy and normative legal regulation in the field of financial accounting and accounting records;

3) accounting standard - the document establishing minimum necessary requirements to financial accounting, and also admissible methods of conducting financial accounting;

4) the international standard - accounting standard which application is custom in the international business conduct irrespective of the specific name of such standard;

5) the chart of accounts of financial accounting - the systematized list of accounts of financial accounting;

6) the accounting period - the period for which the accounting (financial) records are constituted;

7) the head of the economic actor - person, being sole executive body of the economic actor, or person responsible for business management of the economic actor, or the managing director to whom functions of sole executive body are transferred;

8) the fact of economic life - the transaction, event, transaction which exert or are capable to exert impact on financial position of the economic actor, financial result of its activities and (or) cash flow;

9) the organizations of the budget sphere - the public (municipal) institutions, state bodies, local government bodies, bodies of local administration, governing bodies of state non-budgetary funds of the Russian Federation and territorial state non-budgetary funds.

Article 4. Legislation of the Russian Federation on financial accounting

The legislation of the Russian Federation on financial accounting consists of this Federal Law, other Federal Laws and regulatory legal acts adopted according to them.

Chapter 2. General requirements to financial accounting

Article 5. Objects of financial accounting

Objects of financial accounting of the economic actor are:

1) facts of economic life;

2) assets;

3) obligations;

4) sources of financing of its activities;

5) income;

6) expenses;

7) other objects if it is established by federal standards.

Article 6. Obligation of conducting financial accounting

1. The economic actor shall keep financial accounting according to this Federal Law if other is not established by this Federal Law.

2. Financial accounting according to this Federal Law can not be kept:

1) the individual entrepreneur, person who is engaged in private practice - if in accordance with the legislation of the Russian Federation about taxes and fees they record the income or the income and expenses and (or) other taxation objects or physical indicators characterizing certain type of business activity;

2) the branch which are in the territory of the Russian Federation, representation or other structural division of the organization created according to the legislation of foreign state if in accordance with the legislation of the Russian Federation about taxes and fees they record the income and expenses and (or) other taxation objects according to the procedure, established by the specified legislation.

3. Financial accounting is kept continuously from the date of state registration before date of the termination of activities as a result of reorganization or liquidation.

4. The simplified methods of conducting financial accounting, including the simplified accounting (financial) records having the right to apply if other is not established by this Article, the following economic actors:

1) small business entities;

2) non-profit organizations;

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