Features of accounting and tax accounting of financial provision of state contracts

The system of state or municipal procurement and carrying out contract works or rendering services for state and municipal customers is now widely spread and is a profitable business activity. However, the accountant often faces the question of how to correctly reflect in accounting and tax accounting the transfer and refund of funds deposited as financial security for the execution of a state contract? Should these amounts be included in income or expenses in tax reports? This article reveals the current issues of accounting and tax accounting for securing applications for participation in procurement - a necessary component of procurement activities and ways to solve them, namely: 1. What laws and regulations govern the provision and accounting of contract security; 2. What you need to know accountant about the security of applications for participation in tenders and auctions; 3. How to reflect in accounting and tax accounting operations related to securing the application and execution of the contract, depending on the method of providing such security.