Franchising: Accounting and tax accounting of operations under a commercial concession agreement. What accounting entries for insurance and franchise should be used in accounting?

As a rule, even when starting their own business, novice entrepreneurs face a lot of problems. There is unequal competition, understandable consumer distrust of the new name, and much more. However, the risks associated with entering the market can be minimized if you start a business under an already well-known brand. A franchise agreement will allow you to do this.

The cost of the franchise in accounting must be reflected in an off-balance sheet account, since we're talking about not about the intangible asset itself, but only about the right to use it (clause 39 of PBU 14/2007). To do this, the accounting policy must provide for a special off-balance sheet account, for example 012 “Intangible assets received for use,” since it is not mentioned in the Chart of Accounts.

The total cost of the franchise can be determined as the sum of all payments under the agreement. If the agreement provides for monthly payments, the amount of which depends on revenue or profit, and therefore is not constant, the off-balance sheet value of the “leased” intangible asset can be recognized as equal to the initial one-time payment. In this case, the amount of such payment is reflected in account 97 “Deferred expenses” and written off in equal shares throughout the entire term of the commercial concession agreement (clause 39 of PBU 14/2007, Chart of Accounts). Periodic payments under the agreement are recognized as expenses for common types activities of the reporting period (clause 39 PBU 14/2007, clause 5 PBU 10/99).

In fact, tax accounting for remuneration paid to the franchisor is structured in a similar way. According to subparagraph 37 of paragraph 1 of Article 264 Tax Code Periodic payments for the use of rights to the results of intellectual activity reduce the income tax base as part of other expenses associated with production and sales. Moreover, in accordance with subparagraph 3 of paragraph 7 of Article 272 of the Code, they are taken into account in the expenses of the period for which they were paid.

As for the down payment or one-time payment, this kind of tax expense is not directly mentioned in the Tax Code. However, since its validity is not difficult to confirm, then this type The remuneration paid can be taken into account when calculating income tax on the basis of subparagraph 49 of paragraph 1 of Article 264 of the Tax Code. Since this payment applies to the entire agreement as a whole, it must be included in expenses evenly throughout the entire duration of the agreement (clause 1 of Article 272 of the Tax Code).

The problem in this case could be a situation where the terms of the contract begin to be fulfilled even before its state registration. Does the franchisee then have the right to reduce the income tax base for the remuneration paid to the franchisor?

One might assume that the Ministry of Finance would answer this question in the negative. Indeed, in the absence of a properly registered contract, there is no documentary evidence of costs. Moreover, as already mentioned, without registration, a commercial concession agreement is considered void.

However, the financiers, in letter dated September 4, 2008 No. 03-03-06/1/509, turned out to be more than loyal to taxpayers. They noted that in Article 1028 Civil Code nothing is said about the fact that the terms of the concession agreement apply only from the moment of its state registration. In this regard, experts from the Ministry of Finance decided that accounting for expenses on it is possible from the moment the complex of exclusive rights received begins to be used. True, this option will only work if, in accordance with paragraph 2 of Article 425 of the Civil Code, the contract stipulates that its provisions apply to the period from the moment of the actual transfer of rights.

Example

Vkus LLC uses entrepreneurial activity trademark, commercial designation and know-how of JSC Bogema, received for use under a franchise agreement concluded in September 2008. The agreement was signed for a period of five years.

The amount of the one-time payment was 283,200 rubles, including VAT – 43,200 rubles.

The amount of monthly periodic payments is fixed and amounts to 59,000 rubles, including VAT – 9,000 rubles.

The agreement was registered on October 30, 2008. On the same day, the franchisor issued an invoice for a one-time payment, and Vkus LLC paid a one-time payment. It must pay periodic payments starting in November.

The accountant of Vkus LLC needs to make the following entries:

012 “Intangible assets received for use”

– 3,283,200 rub. – the rights to use an intangible asset are taken into account (RUB 50,000 x 12 months x 5 years + RUB 283,200);

Debit 60 Credit 51

– 283,200 rub. – a one-time payment has been made;

Debit 97 Credit 60

– 240,000 rub. – the amount of a one-time payment is reflected in deferred expenses;

Which accounting entries for insurance and franchise apply in accounting.?

Based on the text of the question, we can conclude that the organization has received non-exclusive rights under a franchising agreement (commercial concession), and also insures property, civil liability and other insurance objects. In accounting, expenses under a franchising agreement are accounted for in account 97 of the Chart of Accounts and are written off over the entire term of the agreement. In tax accounting, such expenses are also taken into account evenly throughout the duration of the contract. Under the insurance contract, a one-time payment is accounted for in account 76 of the Chart of Accounts as an advance. Further, during the validity of the contract, the advance is “closed” monthly and written off to the accounts of production or other expenses.

The rationale for this position is given below in the Glavbukh System vip version

Exclusive and non-exclusive rights

An organization can purchase or develop a trademark (service mark) independently. At the same time, she has rights to this sign. Rights to a trademark (service mark) may be exclusive or non-exclusive.

Possessing exclusive rights, the organization becomes the only one who can use the mark, dispose of it and prohibit its use by others. In this case, she is considered the copyright holder.

Non-exclusive rights give an organization the opportunity to use a mark with the permission of the copyright holder on the basis of a license agreement.

This procedure follows from Articles 1229, 1235 and 1236 of the Civil Code of the Russian Federation.

Both exclusive and non-exclusive rights to a trademark (service mark) must be registered (Clause 2 of Article 1232, Articles 1479 and 1480 of the Civil Code of the Russian Federation).

If an organization receives a non-exclusive right to a trademark (service mark), the copyright holder issues a license to it. The basis for this is a license agreement, which must also be registered with Rospatent. This procedure follows from paragraph 2 of Article 1232 and paragraph 2 of Article 1235 of the Civil Code of the Russian Federation. In addition, the right to use a trademark (service mark) can be transferred to an organization under a commercial concession agreement (Article 1027 of the Civil Code of the Russian Federation)*. This agreement is also registered with Rospatent (Article 1028 of the Civil Code of the Russian Federation).

Accounting: rights received for use

The costs associated with obtaining intangible assets for use should be reflected as follows:

Deferred expenses if for the right to use the object intellectual property the organization pays a fixed amount at a time;

Current expenses, if the organization makes periodic payments for the right to use an object of intellectual property.

This procedure follows from paragraph 39 of PBU 14/2007, paragraph 18 of PBU 10/99.

In accounting, take such assets into account on the balance sheet (clause 39 of PBU 14/2007). The chart of accounts does not provide for a separate account for accounting for intangible assets received for use. Therefore, the organization needs to independently open an off-balance sheet account and secure it in its accounting policies for accounting purposes. For example, this could be account 012 “Intangible assets received for use.”

Reflect the cost of the object received for use by posting:

Debit 012 “Intangible assets received for use”

– the cost of non-exclusive rights to an intellectual property object is taken into account.

Reflect the costs of acquiring non-exclusive rights with the following entries:*

Debit 97 Credit 60 (76)

– a fixed one-time payment for the right to use an intellectual property object is taken into account;

Debit (20, 23, 25, 26, 44...) Credit 60 (76)

– periodic payments for the right to use the intellectual property are taken into account;

Debit 19 Credit 60 (76)

– VAT is reflected on expenses associated with the use of the right to an object of intellectual property.

Costs for the acquisition of a non-exclusive right to intellectual property, included as deferred expenses, begin to be written off immediately after the start of use of the object. The organization establishes the procedure for writing off expenses independently. For example, an organization can write off a one-time one-time payment evenly over a period approved by order of the manager. Fix the chosen option for writing off deferred expenses in the accounting policy for accounting purposes (clauses 7 and 8 of PBU 1/2008). Write off the costs of acquiring the right to use an object of intellectual property, taken into account as part of deferred expenses, reflect the following entries*:

Debit 20 (23, 25, 26, 44...) Credit 97

– expenses for acquiring the right to use an intellectual property object were written off.

Taking into account exclusive and non-exclusive rights to intellectual property when calculating taxes depends on the taxation system that the organization applies.

The procedure for accounting for expenses for the acquisition (receipt) of rights to intellectual property when calculating income tax depends on the nature of these rights.

BASIS: non-exclusive rights

Non-exclusive rights to intellectual property do not apply to intangible assets (Articles 256 and 257 of the Tax Code of the Russian Federation). Therefore, the costs of obtaining (purchasing) them are included in other expenses (subclause 37, clause 1, article 264 of the Tax Code of the Russian Federation, letter of the Federal Tax Service of Russia for Moscow dated January 23, 2006 No. 20-08/3582).*

If an organization uses the accrual method, take into account payments for the right to use an object of intellectual property*:

As they accrue - if the organization makes periodic payments;

Evenly over a certain period (or in another way chosen by the organization) - if the organization transfers a one-time one-time payment.

This procedure follows from paragraph 1 of Article 272 of the Tax Code of the Russian Federation.

If the organization uses the cash method, reduce the tax base after acquiring the non-exclusive right and paying for it (clause 3 of Article 273 of the Tax Code of the Russian Federation). It does not matter what payments (one-time or periodic) the organization makes for the right to use the intellectual property.

After recognizing the costs associated with obtaining a non-exclusive right to use an object of intellectual property, and if you have an invoice, take the “input” VAT for deduction (clause 1 of Article 172 of the Tax Code of the Russian Federation).

Elena Popova, State Advisor to the Tax Service of the Russian Federation, 1st rank

In accounting, calculations for car insurance (both compulsory and voluntary) are reflected in account 76-1 “Calculations for property and personal insurance.” Regardless of the type of contract, costs associated with car insurance are considered expenses for ordinary activities and are included in the cost of products (goods, works, services) (subclauses 5, 7 of PBU 10/99).*

Today - information from experts about some features of the accounting and legal side of franchising activities.

Dmitry Gudovich, head of accounting customer support serviceModulbank

A franchise agreement (or commercial concession) provides for the transfer by the copyright holder of a set of exclusive rights for use by the other party in business activities. Under a franchise, the rights to use a trademark, commercial designation, secret and production methods, etc. can be transferred. Naturally, the right is transferred on a paid basis, that is, for a certain fee.

Payment for rights under a franchise agreement consists of two parts. The first is a one-time payment in fixed amount(also called a lump sum payment), it can be paid either in one lump sum or in installments. The second part of the payments is royalties, these are periodic payments that can be either fixed or depend on the amount of revenue of the franchise user. Royalties are usually paid on a monthly basis. In addition to the lump sum payment and royalty, one of the parties also bears the costs of state registration of the commercial concession agreement. The obligation to pay these costs may be imposed on both the copyright holder and the user.

For tax accounting activities of the copyright holder under a franchising agreement, it will be important to classify income from the sale of a franchise as income from ordinary activities or non-operating income. Considering that there are no clear criteria for assigning income to one group or another, one should adhere to the principle of the main type of activity of the copyright holder. If the main activity for him is the sale of rights and franchises, then the income will belong to the category of income from sales. In all other cases, the sale of rights will be non-operating income.

A one-time (lump sum) payment is determined as income in tax accounting based on the principle of uniform recognition of income and expenses. This means that its amount must be evenly distributed over the entire period of validity of the franchise agreement. If the agreement does not have a validity period, then the entire amount is recognized as income at the time of transfer of non-exclusive rights to the user.

When receiving royalties from the copyright holder, everything is somewhat simpler. These payments are periodic in nature and income from them is reflected in tax accounting at the end of the month for which the copyright holder receives the next payment.

The franchise owner also bears certain costs. These can be both costs associated with registering an agreement and depreciation costs for the object of exclusive rights. The fact is that the exclusive rights themselves remain with the copyright holder as part of intangible assets, which means they are subject to amortization throughout their entire validity period.

For the user, payment of lump sum payments and royalties are expenses and similar rules for recognition in tax accounting apply. In the case of a lump sum payment, the costs must be evenly distributed over the term of the commercial concession agreement. If the contract is open-ended, then the costs are distributed over 5 years. Royalties are expensed in the month in which they were accrued for payment. In the case of a franchise agreement, royalties for the user will be other expenses.

In the same way, other expenses will be payments for state registration agreement, if the latter obligation to pay such payments is assigned to the user. These expenses are taken into account in the period in which they were actually paid.

Alexander Khaminsky, Chairman of the Board of the NP "Republican Legal Society"

If remuneration (royalties) is paid in the form of deductions from the organization’s revenue, and the organization has several types of activities, including those not related to the use of a set of rights received under a commercial concession agreement, it is necessary to keep separate records of revenue from these types of activities in order to avoid unreasonable overstatement of the amount of remuneration (royalty), since otherwise the tax authority does not recognize these expenses as expenses within the meaning of clause 37 of Article 264 of the Tax Code of the Russian Federation.

In addition, the tax authority often recognizes as a form of unfair tax optimization the creation of several affiliated companies using the simplified tax system (simplified taxation system) and having commercial concession agreements with the copyright holder, if the only economic meaning of such fragmentation is tax evasion.

An important question is whether it is possible to take into account payments under a commercial concession agreement as expenses if the procedure for registering the agreement as provided for in Part 2 of Article 1028 of the Civil Code of the Russian Federation is not followed?

Financial authorities and arbitrage practice today they adhere to two directly opposite positions on this issue. In particular, in a letter from the Ministry of Finance of Russia dated July 12, 2006 N 03-03-04/2/172, the financial department indicated that the established clause 2 of Art. 9 Federal Law dated November 21, 1996 N 129-FZ “On Accounting”, the procedure for preparing primary accounting documents provides for an indication of the content of a business transaction determined by the terms of agreements concluded between the parties. Thus, expenses for non-concluded in the prescribed manner contracts cannot be taken into account as a reduction tax base for corporate income tax, as not meeting the conditions contained in paragraph 1 of Art. 252 of the Tax Code of the Russian Federation.

However, the courts often take the position that the mere fact of the absence of registration of commercial concession agreements does not matter for tax purposes, since the services were actually provided, documented and economically justified (Resolution of the Federal Antimonopoly Service of the North-Western District dated July 12, 2007 in case No. A56-19610/2006, Resolution of the Federal Antimonopoly Service of North Kazakhstan Region dated December 13, 2010 in case No. A53-7659/2010).

Elena Bektemirova, expert of the Kontur service. Standards of the SKB Kontur company

In accounting, transactions under a franchise agreement are reflected in the following entries:

Debit 012 (or any other off-balance sheet account in accordance with the working chart of accounts allocated for such an operation) - Receipt of an intangible asset;

Debit 60 (76) Credit 51 - Payment under the franchise agreement

Debit 97 Credit 60 (76) - Reflects a one-time one-time payment

Debit 20 (44) Credit 97 - Write-off of a one-time one-time payment evenly during the validity of the agreement (or during the period fixed by the accounting policy - see above);

Debit 20 (44) Credit 60 (76) - Periodic payment under the franchise agreement is written off

Debit 19 Credit 60 (76) - Reflects “input” VAT on payments under the franchise agreement

Debit 68 Credit 19 - VAT was deducted on payments under the franchise agreement

Increasingly, companies are entering into commercial concession agreements (franchising). They give the right to use intangible assets of other organizations, for example, a trademark or know-how, in the company’s activities. We will tell you in this article how to reflect such transactions in accounting.

Intangible assets play important role in the company's work process. For example, in order to establish efficient production, new technologies, computer programs, and know-how are needed. It is much easier to expand your sales market by using a well-known trademark or business name. And this is only a small part of the intangible assets that can affect the activities of the company.
Transactions with intangible assets are not limited to their creation or purchase and sale. They can be obtained and transferred for temporary use under a commercial concession (franchise) agreement.

We conclude a franchise agreement

A commercial concession (franchise) agreement is provided for in Articles 1027-1040 of the Civil Code. According to the agreement, one organization (the copyright holder) allows another (the user) to use its exclusive right in its business activities. For example, a trade name, protected trade information, trademark, service mark, goodwill, etc. The contract also specifies the period during which the organization can exercise the right and specifies the remuneration it must pay to the copyright holder.
Forms of remuneration can be very different: fixed, one-time or periodic payments, percentages of revenue or a markup on the wholesale price of goods that the user organization will buy from the copyright holder, etc.
In practice, remuneration most often consists of two parts: an “entrance fee” for obtaining the right and subsequent periodic payments for its use (royalties). They are determined in a fixed amount or as a percentage of revenue.

Accounting with the copyright holder

As a rule, the copyright holder does not have to dispose of intangible assets under franchising agreements. They continue to be on its balance sheet and are depreciated. This is indicated in paragraph 25 of the Regulations on accounting“Accounting for intangible assets” PBU 14/2000, approved by Order of the Ministry of Finance dated October 16, 2000 No. 91n (hereinafter referred to as PBU 14/2000).
Since the other organization only uses the assets, the amount of remuneration is not sales proceeds. It is included in operating income.
In the accounting records of the copyright holder, transactions under the franchising agreement are reflected depending on the type of payments.
If the payment is one-time in nature, then its amount is recorded in account 98 “Deferred income”. Then, during the period for which the right is received, the consideration is included in operating income in equal shares. Expenses associated with the transfer of a set of exclusive rights to the user are reflected in accounting as operating expenses.
Another situation may arise: payments are periodic in nature and are received by the copyright holder according to the schedule established in the contract. In this case, they are taken into account in the period of their accrual.
Another option - combined calculations. First, the copyright holder receives a one-time payment, then periodic payments (royalties) within the time specified in the contract. In this case, a one-time payment is included in operating income at a time and in full, and royalties are included as they accrue.
Example
Under a commercial concession agreement, the trading company Sputnik LLC (copyright holder) transferred the non-exclusive right to use its trademark to CJSC Meteor (user) from January 3 to December 31, 2003 (the exclusive right remained with Sputnik LLC). According to the terms of the agreement, Sputnik’s remuneration is 144,000 rubles. (including VAT - 24,000 rubles). CJSC Meteor paid for it in full on January 3, 2003. The accountant of Sputnik LLC must make the following entries in the accounting:
January 3, 2003:
Debit 76 Credit 98-1
- 144,000 rub. – the debt of Meteor CJSC to Sputnik LLC under the contract is reflected;
Debit 91-2 Credit 68 subaccount “VAT calculations”
- 24,000 rub. – VAT is charged;
Debit 51 Credit 76
- 144,000 rub. - arrived cash from JSC "Meteor";
Debit 98-1 Credit 91-1
- 12,000 rub. (RUB 144,000: 12 months) – part of the remuneration is included in operating income.

User account

The value of the rights acquired from the user is reflected in off-balance sheet account 002 “Inventory assets accepted for safekeeping” in the valuation determined in the agreement. This follows from paragraph 26 of PBU 14/2000. Analytical accounts are opened for account 002 by type of rights received. They must be reflected in the working Chart of Accounts, approved by the head of the company.
Payments under the concession agreement are reflected in accounting depending on the terms of the agreement.
If it provides for a one-time payment, then it is reflected in account 97 “Deferred expenses”. Then these costs are written off as expenses evenly over the period of validity of the right established by the franchise agreement.
Periodic payments are taken into account as part of the organization's expenses in accordance with the schedule established in the contract. This is indicated in paragraph 18 of the Accounting Regulations “Expenses of the Organization” PBU 10/99, approved by Order of the Ministry of Finance dated May 6, 1999 No. 33n.
If the agreement provides for a combined form of payment (a one-time payment at the time of obtaining the rights and periodic payments during the period of their use), then the one-time payment is written off at a time at the time of acquisition of the right, and the royalty is written off in accordance with the schedule.
Example
Let's use the data from the previous example. The accountant of Meteor CJSC reflected the transactions under the concession agreement with the following entries:
January 3, 2003:
Debit 002
- 144,000 rub. – cost taken into account trademark received for use;
Debit 97 Credit 60
- 120,000 rub. (144,000 – 24,000) – the amount of remuneration is reflected;
Debit 19 Credit 60
- 24,000 rub. – VAT included;
Debit 60 Credit 51
- 144,000 rub. – money was transferred to Sputnik LLC;
Debit 68 subaccount “VAT calculations” Credit 19
- 24,000 rub. – accepted for VAT deduction;
monthly from January to December 2003:
Debit 44 Credit 97
- 10,000 rub. (RUB 120,000: 12 months) – part of the expenses of future periods is taken into account in the expenses of the reporting period.
At the end of the term of use of the trademark, the following entry is made in accounting:
Credit 002
- 144,000 rub. – the cost of the trademark received for use has been written off.

Strictly speaking, franchising (franchise) is a word of English origin in our country this definition not legally defined. In modern Russian conditions By this, as a rule, they mean a commercial concession agreement, since in fact it presupposes a similar system of relations between economic entities.

So, under a commercial concession agreement, one party (the franchisor), for a fee, provides the other (the franchisee) with the opportunity to use in business activities such exclusive rights as the rights to a trademark, service mark, commercial designation, trade secret, etc. (clause 1 Article 1027 Civil Code). Moreover, such an agreement provides for the use by the company of the complex of acquired rights, as well as business reputation and commercial experience of the copyright holder.

The secret to the success of a commercial concession relationship is that it allows the franchisor to effectively expand its business into new markets, while the franchisee can minimal risks and costs of working under the wing of a “promoted” brand. It is clear that the first role is usually played by large companies, who have already achieved recognition, and in the second - small start-up companies and entrepreneurs.

Please note that the franchising agreement must be concluded in writing and registered with Rospatent (Article 1028 of the Civil Code, clause 5.2 of the Regulations, approved by government decree No. 299 of June 16, 2004). If any of these requirements are not met, the agreement is void. According to subparagraph 5 of paragraph 1 of Article 333.33 of the Tax Code, the state duty for registration of commercial concession agreements is 1000 rubles for each contract. Who should pay for it - the franchisor or the franchisee - is usually specified in advance in the agreement.

As a rule, the cost of the franchise in the contract is divided into one-time and periodic payments, but only one of these types of “payment” can be established. In this case, the amounts of periodic payments can be expressed either in a fixed amount or in another form, for example, as a percentage of revenue.

Accounting

The cost of a franchise in accounting must be reflected in an off-balance sheet account, since we are not talking about the intangible asset itself, but only about the right to use it (clause 39 of PBU 14/2007). To do this, the accounting policy must provide for a special off-balance sheet account, for example 012 “Intangible assets received for use,” since it is not mentioned in the Chart of Accounts.

The total cost of the franchise can be determined as the sum of all payments under the agreement. If the agreement provides for monthly payments, the amount of which depends on revenue or profit, and therefore is not constant, the off-balance sheet value of the “leased” intangible asset can be recognized as equal to the initial one-time payment. In this case, the amount of such payment is reflected in account 97 “Deferred expenses” and written off in equal shares throughout the entire term of the commercial concession agreement (clause 39 of PBU 14/2007, Chart of Accounts). Periodic payments under the agreement are recognized as expenses for ordinary activities of the reporting period (clause 39 of PBU 14/2007, clause 5 of PBU 10/99).

Tax accounting

In fact, the remuneration paid to the franchisor is structured in a similar way. According to subparagraph 37 of paragraph 1 of Article 264 of the Tax Code, periodic payments for the use of rights to the results of intellectual activity reduce the income tax base as part of other expenses associated with production and sales. Moreover, in accordance with subparagraph 3 of paragraph 7 of Article 272 of the Code, they are taken into account in the expenses of the period for which they were paid.

As for the down payment or one-time payment, this kind of tax expense is not directly mentioned in the Tax Code. However, since its validity is not difficult to confirm, this type of remuneration paid can be taken into account when calculating income tax on the basis of subparagraph 49 of paragraph 1 of Article 264 of the Tax Code. Since this payment applies to the entire agreement as a whole, it must be included in expenses evenly throughout the entire duration of the agreement (clause 1 of Article 272 of the Tax Code).

However, the financiers, in letter dated September 4, 2008 No. 03-03-06/1/509, turned out to be more than loyal to taxpayers. They noted that Article 1028 of the Civil Code does not say anything that the terms of the concession agreement apply only from the moment of its state registration. In this regard, experts from the Ministry of Finance decided, it is possible from the moment the complex of exclusive rights received begins to be used. True, this option will only work if, in accordance with paragraph 2 of Article 425 of the Civil Code, the contract stipulates that its provisions apply to the period from the moment of the actual transfer of rights.

Example

Vkus LLC uses in business activities the trademark, commercial designation and know-how of Bogema CJSC, received for use under a franchising agreement concluded in September 2008. The agreement was signed for a period of five years.