Recognition of Bad Debts in Tax Accounting

The article is devoted to the study of practical aspects of the recognition of losses in the form of bad debts in tax accounting. From time to time, any organization faces unreliable counterparties and the problem of accumulating bad debts, which cannot be collected. In the course of entrepreneurial activity, companies periodically have situations related to the inability of counterparties to pay off their debts. In this regard, the management and accounting department of the company faces the problem of writing off bad debts. The recognition of bad debts in the expenses of an organization can indeed be a complex process that affects the financial position of the company. The purpose of the work is to analyze the provisions of regulations defining the procedure for recognizing and writing off bad debts of counterparties, as well as their application in the activities of organizations faced with this problem to ensure the reliability of accounting financial statements. The authors have studied in detail the grounds for recognizing counterparty debts as bad and the possibility of their inclusion in the company's expenses that affect the formation of taxable profit. The application of the obtained results will allow Russian companies to generate the most correct information that will be useful to users for assessing their financial situation.