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Kubanenergo PJSC Accounting (Financial) Statements

Inna Viktorovna Skiba, Chief Accountant and Head of Financial Records, Accounts and Tax Returns Department:

The accounting statement of Kubanenergo PJSC for 2016 is prepared based on the applicable standards and provisions of the Russian Federation regulating accounting and reporting (the “RAS”):

  • Federal Law “On Accounting” No. 402-FZ of 12/6/2011;
  • Order of the Ministry of Finance of the Russian Federation “On Forms of Accounting Statements of Organizations” No. 66n of 7/2/2010;
  • Order of the Ministry of Finance of the Russian Federation “On Amendments to Forms of Accounting Statements of Organizations Approved by Order of the Ministry of Finance of the Russian Federation No. 66n of 7/2/2010” No. 124n of 10/5/2011;
  • Order of the Ministry of Finance of the Russian Federation “On Approval of Regulations on Accounting and Reporting in Russian Federation” No. 34n of 7/29/1998;
  • Chart of accounts of financial and economic activities of organizations approved by Order of the Ministry of Finance of the Russian Federation No. 94n of 10/31/2000;
  • Accounting Regulations “Company’s Accounting Policy”, PBU 1/2008 approved by Order of the Ministry of Finance of the Russian Federation No. 106n of 10/6/2008.

The annual financial statements of Kubanenergo PJSC for 2016 prepared in accordance with the Russian Accounting Standards (RAS) include:

  • Balance sheet;
  • Statement of Financial Results;
  • Statement of Changes in Equity;
  • Cash Flow Statement;
  • Notes;
  • Audit Report.

Basic Provisions of Kubanenergo PJSC Accounting Policy:

Accounting of the Company’s fixed assets is performed in accordance with the Accounting Regulation “Accounting of Fixed Assets” (PBU 6/01) approved by Order of the Ministry of Finance of the Russian Federation No. 26n of 3/30/2001. Depreciation of fixed assets is accrued linearly based on their useful life. Depreciation is not accrued on fully depreciated items of fixed assets.

Work in progress is assessed at its actual cost of production.

Recognition of expenses as deferred expenses and equating them to assets with posting them in accounts and statements are in accordance with the principal approach approved by the Company. This approach is based on understanding of the time fact of probability of obtaining economic benefits from the asset by the Company in the future and sufficiently reliable evaluation of its value.

Advances relating to the acquisition of a non-current asset in the future as well as raw materials and supplies intended to the creation of fixed assets are stated in Fixed Assets (line 1150).

Actually commissioned real estate facilities with capital investments completed in full and primary documents duly executed are entered into accounts as fixed assets in a separate sub-account of Real Estate Facilities without Registration of Title. Depreciation of these facilities is accrued pursuant to the standard procedure on the first day of the month following the month of commissioning.

Accounting of the Company’s revenues and other income is performed in accordance with the Accounting Regulations “Company Income” (PBU 9/99) approved by Order of the Ministry of Finance of the Russian Federation No. 32n of 5/6/1999.

The Company established the estimated liabilities resulting from the possible payment of compensation for unused vacations, outstanding claims of power suppliers to compensate for losses and electric power transmission services, provisions for litigations and other employee benefits, in accordance with PBU 8/2010 on “Provisions, Contingent Liabilities and Contingent Assets”, approved by Order of the Ministry of Finance of the Russian Federation No. 167n of 12/13/2010.

The Company has a provision for doubtful accounts receivable which have not been repaid or with a high degree of probability will not be paid in due time stipulated by the agreement and are not secured by warrants. The provision is corrected on a quarterly basis.
The Company establishes a provision for devaluation of financial investments in case of a constant significant reduction of their cost.

Corrections relating to previous periods.

Due to the change of administrative expenses accounting procedure in the Accounting Policy for 2016, the corrections are introduced to Administrative Expenses (line 2220) and to Cost of Sales Figures (line 2120) of the Statement of Financial Results amounting to 76,485 RUB thou over the corresponding period of 2015.

The Company prepared the consolidated financial statements in accordance with the requirements of Federal Law “On Consolidated Financial Statements” No. 208-FZ of 7/27/2010.

 FINANCIAL RESULTS Kubanenergo PJSC Accounting (Financial) Statement