PJSC Kubanenergo Accounting (Financial) Statement

The accounting statement of PJSC Kubanenergo for 2015 is compiled based on the standards and provisions in force in the Russian Federation governing accounting and reporting (RAS):

  • Federal Law No. 402-FZ of 06.12.2011 On Accounting;
  • Order of the Ministry of Finance of the Russian Federation No. 66n of 02.07.2010 On the Forms of Accounting Reporting of Organizations;
  • Order of the Ministry of Finance of the Russian Federation No. 124n of 05.10.2011, On Amendments to Forms of Accounting Reporting of Organizations approved by Order of the Ministry of Finance of the Russian Federation No. 66n of 02.07.2010,
  • Order of the Ministry of Finance of the Russian Federation No. 34n of 29.07.1998, On Approval of Regulations on Accounting and Reporting in the Russian Federation, 
  • 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 31.10.2000,
  • Accounting Regulations on Accounting Policies of an Organization, AR 1/2008, approved by Order of the Ministry of Finance of the Russian Federation No. 106n of 06.10.2008.

The annual financial statements of PJSC Kubanenergo for 2015 compiled according to the Russian Accounting Standards (RAS) include*:

  • Balance sheet.
  • Statement of Financial Results.
  • Statement of Changes in Equity.
  • Cash Flow Statement.
  • Notes.
  • Auditors’ Report.

Basic Provisions of the Company’s Accounting Policy:
According to the Company, the assets and obligations in the statement are considered short-term if their maturity does not exceed 12 months after the reporting date. All other assets and obligations are represented as long-term in the annual statement.

Accounting of fixed assets of the Company is performed in accordance with the Accounting Regulations on Accounting of Fixed Assets (AR 6/01) approved by Order of the Ministry of Finance of the Russian Federation No. 26n   of 30.03.2001.   Assets in respect of which the conditions described in § 4 of the above Regulations are met, and which have the value of no more than RUB 40,000 per unit, are classified as a part of inventories in the accounting.

Depreciation of fixed assets is accrued linearly based on their useful life. Depreciation is not accrued on fully depreciated items of fixed assets.

Accounting of property acquired under leasing agreements is performed in accordance with Federal Law No. 164-FZ of 29.10.1998, On Finance Lease.    

Work in progress is assessed at its actual 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 the understanding of the time factor of the possibility of obtaining economic benefits from the asset by the Company in the future and sufficiently reliable evaluation of its value.    

The Company has established that account balance of deferred expenses shall be displayed in the lines of Other Non-Current Assets and Other Current Assets.

Prepayments related 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 line 1150, Fixed Assets.

Revenue from the sales of products and services was recognized for the purpose of accounting after the products shipment to customers (or services rendering) and accounting documents presentation. Revenues are shown in the profit and loss statement net of VAT.

Revenues from the sales of products and services was recognized for the purpose of taxation in the reporting (tax) period of the actual sale or rendering regardless of the actual time of funds receipt.

Revenues from products and services with prolonged production cycle are recognized upon completion.

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 according to the standard procedure on the first day of the month following the month of commissioning.

The Company established a reserve for 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, as well as a provision for tax disputes, a provision for litigation, a provision for these future employee benefits, as well as other valuation reserves, in accordance with AR 8/2010 on Estimated Liabilities, Contingent Liabilities and Contingent Assets, approved by Order No. 167n of the Russian Ministry of Finance of 13.12.2010.

The Company has a reserve for doubtful accounts receivable which have not been repaid or will not be paid with a high degree of probability in due time stipulated by the agreement and are not secured by warrants.  The reserve is corrected on a quarterly basis.

The Company establishes a reserve for devaluation of financial investments in case of a constant significant reduction of their cost. 

According to the Accounting Regulations on Accounting Policies of the Organization, AR 1/2008, approved by Order of the Ministry of Finance of the Russian Federation No. 106n of 06.10.2008, PJSC Kubanenergo established accounting policies of the organization containing the approved methods of assets evaluation (fixed assets, investments, inventories, etc.). Accounting Regulations of the Russian Federation governing the issues of accounting and reporting were used for the development of these assets evaluation methods.

Assets and liabilities of the Company were evaluated in the accounts on the basis of the actual purchase costs.

Corrections Related to Previous Periods

In 2015, the Company made no corrections related to the significant errors in the accounting (financial) statements for the previous reporting periods.
The Company also prepared the consolidated financial statements in accordance with the requirements of Federal Law No. 208-FZ of 27.07.2010 No 224 - FZ On Consolidated Financial Statements**.


* Appendix No. 1

** Available on the official website of the Company in the section For Shareholders and Investors / Information Disclosure / Financial Information and Statements / Financial Statements under International Financial Reporting Standards.