BASIC APPROACHES TO THE FORMATION OF ACCUMULATIONS ON ORGANIZATIONS’ ACCOUNTS FOR IRRIGATION SYSTEMS RENOVATION AND MODERNIZATION TO ENSURE WATER SUPPLY TO AGRICULTURAL CONSUMER

Abstract

Nowadays the majority of state reclamation systems have a high obsolescence and physical deterioration (70–90 %), which degrades the quality of provision of water supply services to on-farm irrigation systems. Irrigation systems are operated by Federal State Budgetary Institution for Land Reclamation and Agricultural Water Supply (hereinafter referred to as the). In accordance with the law norms of the Russian Federation on non-profit organizations fixed assets objects, no depreciation is allocated, therefore the FSBI for Land Reclamation does not have an expenditures compensation mechanism for renovation and modernization of land reclamation systems, that determined the relevance of this work. The aim of the research was to study the possibility of creating a mechanism for the formation of financial resources on accounts of the FSBI for Land Reclamation necessary for technical improvement of irrigation systems, their modernization and renovation, at the expense of non-budgetary sources of receipts. As a result of the study, the possibility of including measures on technical improvement of irrigation systems, their modernization and renovation into operation directly related to the provision of water supply services to irrigation systems to agricultural producers under fee based service contracts has been proved. At the same time, the amount of funds must be determined on the basis of necessary level of financing of the designated measures for technical improvement of irrigation systems. The accumulation of these funds is advisable to make on the sub-account of the account 96 “Reserve for provisions for liabilities and charges” in accordance with the Chart of Accounts for accounting the financial and economic activities of enterprises and organizations of the agro-industrial complex. In this case, the sub-account may be entitled as “Reserve of Funds for Technical Improvement of Irrigation Systems, Their Modernization and Renovation”. On the basis of the requirements and recommendations of the tax and budget law of the Russian Federation, a method for calculating the amount of funds allocated for technical improvement of fixed assets of the FGBU on land reclamation directly related to the provision of water supply services to irrigation systems, based on their total book value (or part of fixed assets requiring the specified types of work) is proposed.

Keywords

• operation of irrigation systems
• federal state budgetary institution for land reclamation
• water consumer
• provision of paid services (works)
• calculation of expenses
• estimated method
• provisions for liabilities and charges.