This course work consists of two tasks. The first task is a presentation of theoretical material on the topic: accounting abroad, using the example of the United States.

The relevance of this topic: knowledge of the order of organization and accounting in foreign countries expands our knowledge, allows us to work better and understand accounting around the world. In addition, studying the experience and practice of organizing accounting in foreign countries allows us to solve one of the urgent problems of our economy - bringing the existing accounting and reporting system in line with the requirements of a market economy and international standards.

Introduction 3

1. Theoretical part 4

1.1 Fundamentals of US Accounting 4

1.2 Features of accounting in the USA 6

1.3 US business charts of accounts 8

1.3 US financial reporting 10

2. Practical part 13

Conclusion 30

References 31

The work contains 1 file

MINISTRY OF EDUCATION AND SCIENCE OF THE RUSSIAN FEDERATION

State educational institution higher vocational education

Siberian State Aerospace University

named after academician M.F. Reshetnev

Department of Accounting

Course work

By discipline: "Accounting"

Topic The procedure for conducting accounting abroad

Option 30, coefficient - 1.3

Krasnoyarsk 2010

Introduction 3

1. Theoretical part 4

4

6

1.3 US business charts of accounts 8

1.3 US financial reporting 10

2. Practical part 13

Conclusion 30

Bibliography 31

Introduction

This course work consists of two tasks. The first task is a presentation of theoretical material on the topic: accounting abroad, using the example of the United States.

The relevance of this topic: knowledge of the order of organization and accounting in foreign countries expands our knowledge, allows us to work better and understand accounting around the world. In addition, studying the experience and practice of organizing accounting in foreign countries allows us to solve one of the urgent problems of our economy - bringing the existing accounting and reporting system in line with the requirements of a market economy and international standards.

Factors that determine the level of development of accounting are interrelated. Thus, in most countries with a strict legal regulation of economic activity, banks or the government have historically been considered as the main creditors, while in common law countries, reliance was more on the expansion of equity ownership and securities markets to meet the financial needs of business. Thus, if we consider the idea of ​​the influence of the "environment" on the accounting system correct, we can expect that in countries with similar socio-economic conditions and accounting systems have much in common. Accounting is carried out by business entities around the world. Its main function is the accumulation of financial information. However, accounting information can serve different purposes. Thus, in some countries, such as the United States, such information is aimed at meeting the needs of investors and creditors. One thing is certain, the purpose of accounting around the world is to standardize the reflection of the operations of a company, regardless of its type, as well as who the user of the information is.

The second task is the preparation of a balance sheet for these business transactions, a profit and loss account and a balance sheet.

Target present work:

1. Consideration of accounting procedures in the United States.
2. Learn how to prepare a balance sheet and income statement.

Tasks:

1. Learn the features of accounting in the USA
2. Outline the basics of accounting in the United States
3. Show an example of accounting for the operations of a US joint-stock company.

1. Theoretical part

1.1 Fundamentals of US Accounting

Accounting, as defined by the American Association of Accountants, is "the process of obtaining, processing and using economic information to make informed decisions and estimates by its owners." US accountants can work in one of the following areas:

• Public (independent accounting);
• Production (industrial accounting);
• Government (state accounting).

In the United States, 4 groups of accounting and independent firms have developed and are functioning:

• National Firms of Chartered Professional Public Accountants;
• Regional Firms of Chartered Public Accountants;
• Small local firms of Chartered Public Accountants.

Many accountants, after gaining the necessary practical experience, prefer to work as private entrepreneurs as independent professionals.

In the USA, as in many other, especially English-speaking, countries, there is no single chart of accounts. Employees of each corporation themselves form the plan that they consider acceptable to themselves. This decision makes accountants more independent in choosing methodological solutions, but complicates the comparability of data, makes it difficult for specialists to move from one enterprise to another. Similarly, in the United States there are no uniform reporting forms that are mandatory for all forms. The balance sheet and the Profit and Loss Statement are more compact, the indicators are enlarged compared to our reporting forms, and that is why they are less visual, but perhaps more analytic. An essential feature of accounting in the West should be recognized as the preparation of consolidated financial statements. Consolidated reporting should not be confused, as is sometimes done, with consolidated reporting. The differences between them stem from the peculiarities of the ownership of certain forms. Consolidation is due to the fact that the mother company has invested certain funds in the company-daughter. When the parent company draws up its balance sheet, it must include in it those funds that it controls in the daughter company (there can be many such daughter companies and granddaughter companies), i.e. part of the balance of the daughter company is added to the balance of the mother company. On the contrary, the reporting set assumes mechanical aggregation of individual balance sheets (balance sheets of structural subdivisions of the same legal entity). Turning to a comparison of purely accounting procedures, first of all, it is necessary to highlight the compilation of a transformation statement. Its goal is the complete closure, in Russian terminology, of resultant and partial closure of financial and distribution regulatory accounts. Such statements are completely unknown to us, either in theory or in practice, because such records are compiled in ordinary registers of synthetic accounting. In Russian accounting, all records related to the calculation of financial results can be clearly traced; on the contrary, the use of a transformation statement deprives many, many interested parties of this possibility, because an accountant, in the case when the amount of profit (loss) received does not satisfy him, can destroy an already compiled statement and, using other methods of regulation, get slightly different results. For example, the firm received a very large profit under the first option and therefore must pay a large amount of taxes. In this case, the head of the company may instruct the accountant to revise the life of the truck in the direction of reducing it and thereby increase depreciation. In this version of the transformation sheet, expenses will increase and profits will decrease. Based on the results of the statement, entries are made in accounting registers. The American approach is more convenient, but ours is stricter. It is also interesting to note that in the United States they do not strive to ensure that account turnover adequately reflects real turnover in the legal and economic sense, because double entry, from the point of view of our colleagues, is only a technical device and nothing more. In this regard, abroad they do not know the "red reversal" method, which, with the help of reversal entries, allows you to reduce either erroneous or artificial turnovers.

The features of Western methodology in general, and not just the Anglo-American school, include the widespread use of mixed transactions, when several accounts are debited and credited at the same time. This is also a very convenient solution, but a Russian accountant cannot "give up his principles", because in this case the correspondence between specific accounts is destroyed. Some organizational and methodological features associated with management accounting, which to a large extent includes what we include in cost accounting and costing of finished products and services:

• deviations of actual costs from the estimated ones, where they are written off immediately to the debit of the "Implementation" account, in Russian accounting - to direct accounts to which these deviations relate;
• expenses for overhaul in the USA they are written off to the account of accumulated depreciation of fixed assets, in our country they are charged to the account "General business expenses";
• indirect costs are taken at a certain percentage rate from each fixation of direct costs, in our case, indirect costs in the total amount at the end of the month are written off to the "Main production" account, where they are distributed among analytical accounts.

The American approach is stricter, because it limits the amount of indirect costs to a predetermined rate. First of all, the main, and almost all professional issues in the United States are decided by the accountants themselves. To do this, they, and not the government, created the Institute of Chartered Accountants. The essence of this organization is to develop and distribute certain accounting rules. State bodies and courts, when considering cases, compare the circumstances with these decisions of the Institute, and thus the profession asserts itself in the eyes of public opinion. It is no coincidence that the accounting profession there is incommensurable in popularity with what we are facing.

1.2 Features of accounting in the USA

The principles and rules of accounting and reporting are regulated in the United States by generally accepted standards developed by professional organizations of accountants. These standards are the Generally Accepted Accounting Principles (GAAP). Standards are developed by several professional accounting bodies, the most influential of which are: The American Institute of Chartered Public Accountants - AICPA; Financial Accounting Standards Authority - FASB; Government Accounting Standards Authority - GASB; Securities and Exchange Commission - SEC; American Accounting Association - AAA. All financial accounting tasks in the United States are covered in detail in the Letter on Financial Reporting Tasks. According to this document, the financial statements must:

• be useful to current and potential lenders for rational investment and

making decisions about loans;

• be understandable to those who understand the economic activity of the enterprise and study information about this activity;
• provide data on the economic resources of the enterprise, the requirements for them and the impact of business transactions and events that directly change the resources and requirements for them;
• provide information on the financial results of the enterprise during a certain period;
• help users estimate the amounts, timing and likelihood of expected inflows Money on dividends and interest, as well as proceeds from the sale or repayment of loans or securities.

The reporting of US enterprises is compiled at a certain point in time. Between the reporting dates, business transactions are recorded on accounts and then summarized for the preparation of new financial statements. In order to correctly reflect transactions in the accounts, the accountant must solve three problems: when the transaction occurred - the problem of recognition; what is the valuation of the operation - the problem of valuation; on which accounts to record the operation - the problem of classification. These problems are solved during the accounting cycle. Registration of business transactions is carried out in three stages:

1. analysis according to primary documents;
2. entry in the journal of operations or the Main journal (the book of the initial entry);
3. transfer to the general ledger.

Typically, a US firm for registration has several journals and Main magazine. The process of transferring from the General Journal to general ledger called posting, and this procedure is performed in the following sequence:

1. In the General Ledger, a debit account is found;
2. Put down the date of the transaction and in the column "Confirmation of posting" write down the page number of the journal from which this entry was transferred;
3. In the "debit" column, they write the amount recorded in the journal, and at the same time display the balance after each operation;
4. Repeat the same procedure for the credit of the account.

The general ledger consists of accounts of assets, liabilities, capital, income, expenses. It can be maintained in the form of a book, file, folder, etc. All business transactions are recorded in the appropriate General Ledger accounts. And since such records are not sufficiently informative about the transactions that have occurred, transaction logs are kept, where, as transactions are carried out, they are registered with a detailed description of their nature and correspondence of accounts. The general ledger is a detailed version of the balance sheet, where the condition of balance sheet equality must always be met. After posting the data of all journals, the balance is displayed at the end of the reporting period for each account of the General Ledger and a trial balance is made. Almost all posting actions are carried out automatically after entering information about business transactions. At the end of each month (as a rule) and at the end of the year (mandatory), a trial balance (train balance) is drawn up to reconcile the total debit turnover and the total credit turnover of the General Ledger accounts. The trial balance is a table that lists all the accounts in the General Ledger and the closing balance for each account (in fact, it is similar to the turnover sheet). If the result is correct, then theoretically you can start preparing the balance sheet and income statement. The five components of financial reporting (assets, liabilities, capital, income, expenses) form an accounting, or balance sheet, equality that characterizes the financial position of an enterprise and reflects the relationship between two main forms of reporting: balance sheet and income statement. The main form of balance equality is as follows:

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Coursework in the discipline:

"Accounting and audit"

On the topic: "Peculiarities of accounting in foreign countries"

St. Petersburg - 2013

ATconducting

Accounting, like politics and ideology, knows no national boundaries. Accounting technologies are exported and imported, which proves the similarity of existing accounting systems in different countries. This allows a classification of national accounting systems.

Factors that determine the level of development of accounting are interrelated. Thus, in most countries with a strict legal regulation of economic activity, banks or the government have historically been considered as the main creditors, while in common law countries, reliance was more on the expansion of equity ownership and securities markets to meet the financial needs of business.

Accounting is carried out by business entities around the world. Its main function is the accumulation of financial information. However, accounting information can serve different purposes. Thus, in some countries, such as the United States, such information is aimed at meeting the needs of investors and creditors. In most countries in South America, the provision of reliable information to government agencies that oversee the proper implementation of tax laws can be put in the first place. In some countries, the accounting system is formed on the basis of the priority of macroeconomic goals.

One thing is certain, the purpose of accounting around the world is to standardize the reflection of the operations of a company, regardless of its type, as well as who the user of the information is.

Chapter1. Ofeaturesaccountingaccountingperabroad.

1.1 Generalharacteristicsaccountingaccounting

Accounting is carried out by business entities around the world. Its main function is the accumulation of financial information. At the same time, accounting allows you to standardize the reflection of the company's operations, regardless of its type, as well as who is the user of the information.

Accounting information is used by a large number of people: investors and creditors (external users), company managers (internal users), employees government agencies, competitors, etc.

The main goals and objectives of financial reporting are to provide information that would be useful for making decisions on investments and granting loans, would help users assess future cash flows, and reflect changes in economic resources.

Accounting principles around the world vary considerably. These differences are due to both the variety of existing forms of economic activity organization and the impact on the practice of accounting for external factors (economic, political, social, geographical, etc.).

In some countries, such as the United States, information generated by accounting is primarily aimed at meeting the needs of investors and creditors. In other countries, the role of accounting and priorities may be different. Thus, the provision of reliable information to state bodies exercising control over the proper implementation of tax legislation can be put in the first place. This approach is typical for accounting in most countries of South America.

In some countries, the accounting system is formed based on the priority of macroeconomic goals, in particular: achieving the specified growth rates of the national economy, reducing inflation, the usefulness of accounting information for tax authorities, as well as for investors and creditors.

Among the factors influencing the content of accounting practices in a particular country, the following can be distinguished:

* type of creditors and investors as the main users of accounting information;

* number of individuals and legal entities involved in the process of investing capital;

* participation of investors in business management;

* the degree of development of the financial market and the securities market;

* degree of participation in international business.

The influence of these factors can be analyzed on the example of the development of individual countries.

For example, the industrial revolution in the United States and Great Britain led to sharp increase wealth, mainly due to the emergence of medium-sized businesses. It was this process that had a significant impact on the development of financial accounting, as the number of investors and creditors grew, their composition became more and more diverse. Many companies have grown into a corporate form of ownership. The owners of companies, investors were increasingly separated from the operational management of their capital, transferring these functions to professional managers. In this situation, financial accounting information becomes the most important source of data on the welfare of the company. And it is no coincidence that the practice of providing financial reports to shareholders by management personnel to control the efficient use of resources has appeared. It is this circumstance that predetermined the focus of financial statements on the information needs of investors and creditors. This orientation of financial accounting has been characteristic of the US and UK for many years. In these countries, markets and stock exchanges were created. As a result, the financial statements of companies in these countries are analytic, and determining the profitability of economic activity is the goal of financial accounting. In other countries (Germany, Switzerland), financial policy is determined by a small number of banks that satisfy a significant part of business needs. At the same time, there is also a concentration in corporatization of companies. This path is easier and more efficient because the company has a limited number of owners and creditors (for example, one large bank). The government of these countries requires the publication of some information about companies, so companies are also forced to prepare financial statements, but in a less detailed form than, for example, American companies.

In France and Sweden, accounting has a slightly different orientation. Here the government plays a decisive role in the management of national resources. Businesses are required to adhere to government economic policy, in particular within the framework of macroeconomic planning. The government in these countries not only controls the financial capabilities of the business, but also acts as an investor or lender, if necessary.

Thus, the fundamental factor determining the organization of the accounting system in certain countries is the need for state planning bodies, and firms are forced to follow unified standards in the field of accounting and reporting.

1.2 Modelsaccountingaccounting

There are an extremely large number of accounting models in the world. The differences between these models are due both to historical reasons and to differences in the environmental conditions in which enterprises in different countries operate. It is impossible to classify them according to all parameters, and it is hardly necessary. It is possible, however, to distinguish two classifications that are quite simple, but at the same time interesting in their own way.

In the first division is carried out according to the "geographical" principle. It is perhaps the oldest attempt at classification, dating back to the 1920s. Naturally, countries belong to each of the models not by the degree of geographical proximity, but by the degree of similarity of their accounting practices:

1. British-American model - based on meeting the needs of small and medium investors in highly developed stock markets. It is characterized by the maximum degree and quality of information disclosure, as well as a relatively low degree of government intervention.

2. Continental model - the main financial donors in most European countries are banks. The lower relevance of publicly available information for banks, which usually take part in the management of the enterprises they lend to, leads to the fact that the quality of information disclosure in these countries is lower, and the state is making certain efforts to increase it.

3. The Latin American model - the difference between this model is that it is clearly focused on the needs of the state, primarily tax. The countries of this model are characterized by greater uniformity and less complexity of reporting. They are also characterized by developed mechanisms for accounting for inflation. This model, as the name implies, primarily includes the countries of Latin America. Russia corresponds to most of the features that are characteristic of this model.

Another interesting model, in which typing is carried out not only by highlighting characteristic types and traits, but also by their hierarchical subordination to each other, is shown in Figure 1.

Rice. 1. Classification of accounting models.

The top level of the hierarchy determines which economic goals the country's accounting system is guided by - macro- or microeconomic. Then a gradation is carried out depending on what the country is guided by in building an accounting system - on theoretical developments, or on the practical needs of either the business world or legislation. Finally, in practice-oriented systems, a division can be made according to how regulation is carried out - by means of legislation (British system and Germany), or by-laws play the main role. In the macroeconomic branch, these are primarily the features of taxation, and in the American branch, these are the decisions of private organizations.

Thus, the applied accounting models are focused on the main consumers of financial information and take into account the interests of structures that influence economic processes in a particular country.

Chapter2. NationalsisTopicsaccountingaccounting

2.1 british americanmodel

accounting reporting national

The underlying principles of this model were developed in the UK and the US. Holland made a great contribution to its development, therefore it is more correct to call this model the British-American-Dutch model. And at present the role of these countries continues to be extremely active. The main idea of ​​this model is the orientation of accounting to the information requests of investors and creditors. The top three countries using this model have well-developed securities markets, where most companies find additional sources of financial resources. The system of general and vocational education also meets high standards, which fully applies to both accountants and users of accounting information. Many MNCs are headquartered in these countries. These three countries have extended their influence in the field of accounting to many countries of the world.

British-American countries include: Australia, Bahamas, Barbados, Benin, Bermuda, Botswana, United Kingdom, Venezuela, Ghana, Hong Kong, Dominican Republic, Zambia, Zimbabwe, Israel, India, Indonesia, Ireland, Cayman Islands, Canada, Kenya, Cyprus, Colombia, Liberia, Malawi, Malaysia, Mexico, Nigeria, Netherlands, New Zealand, Pakistan, Panama, Papua New Guinea, Puerto Rico, Singapore, USA, Tanzania, Trinidad and Tobago, Uganda, Fiji, Philippines , Central American countries, South Africa, Jamaica.

In the United States and Great Britain, initially there was no clear division into financial (external) and internal (production) accounting.

The first British costing systems appeared in the 1920s. of the last century at enterprises of key industries in the coal and steel industries. At first, the system of budgetary control (auxiliary position) was spread for planning and control in the enterprise. Then (50-60s) standard cost accounting was widespread, and later, in parallel with the USA, the controlling system also developed. There were reasons for this - a comparable focus on accounting, the cultural closeness of the two states, and last but not least - a common language.

In the UK, the accounting system has developed independently of the state, based on the interests and requirements of business. The formation of the national accounting system took place under the influence of such factors as the economic situation in the country, national characteristics and business traditions, the legal environment, tax legislation, communication with other countries and accounting and reporting systems. There is another factor that is of great importance for the British accounting system. This is the influence of professional accounting organizations. Currently, the 6 largest associations of chartered accountants in this country are united in the CAB - Advisory Committee of Accounting Councils, within which the Accounting Standards Committee (ASB) operates - a body that develops and establishes national accounting and reporting standards.

Although the traditions and principles of British accounting have a long history, the changes taking place in Europe and in the world over the past decades could not but affect the activities of British professional accountants. The UK's accession to the European Union necessitated the introduction of provisions in company laws that reflect the relevant EU directives. However, the authority of British professional accounting institutions in Europe is so great that they managed to infiltrate EU Directive No. 4 itself, concerning the provision of accounting data by European companies, provisions reflecting one of the main concepts that the UK accounting and reporting system is based on - the concept of "true and fair view" - reliable and conscientious (true and unbiased) presentation of data on the financial position of companies. At the same time, in the country itself, at the insistence of professional accounting organizations, the requirement that the reporting of large firms comply with accounting standards was introduced by the Companies Act of 1985 and became a mandatory norm.

However, the development of the global financial system and recent trends in the reflection of accounting information have led to the fact that professional accountants in the UK are also inclined to a utilitarian view of the nature of information disclosed in financial statements: the official statements of British companies are increasingly in line with the requirements of financial and, above all, , stock markets. This reflects the growing influence of the International Standards Committee (IASC) and its documents.

We will also consider the features of the British-American model using the example of the US accounting system.

The US accounting system in our country is known as GAAP (General Accepted Accounting Practice), or generally accepted accounting principles, which, in fact, serve as accounting standards. Initially, the US GAAP system included documents covering accounting policies and accounting techniques.

The American system has been developing for quite a long time in a competitive capitalist economy. Accordingly, the concept of financial accounting has grown there from intra-company accounting in small enterprises, during their transformation into large joint-stock companies. During their development, there was no single concept of accounting. Thus, development proceeded gradually, and all concepts were developed as the need for them arose. This happened, for example, with the concept of depreciation, which entered the circle of concepts of accountants and entrepreneurs only with the advent of large capital structures, such as railways, when the problem arose of distributing their value over the period of time during which they are used.

In American accounting theory, there are three periods of development:

Informal period - until the beginning of the 30s of our century;

Problem solving period;

The emergence of FASB - Financial Accounting Standards Board (Accounting Standards Board) in 1973;

And the development of the conceptual framework of financial accounting.

The fundamental difference between the Russian and American accounting systems can be noticed immediately, as soon as we take a closer look at their definition. The generally accepted American definition of financial accounting states that “Financial accounting is the process resulting in the preparation of financial statements regarding the enterprise as a whole, which are used by both external and internal users ... This reporting provides a consistent and continuous monetary history of economic resources and obligations of the enterprise and economic activity that changes these resources or obligations”

The definition of accounting according to the Russian tradition is somewhat different: “Accounting is the formation of documented systematized information about the objects provided for by this Federal Law, in accordance with the requirements established by this Federal Law, and the preparation of accounting (financial) statements on its basis.”

The main difference can be distinguished in what the main attention of the determinant is directed to. In the first case, accounting is a process leading to a result (financial reporting), the correct presentation of which is the purpose of accounting. The main thing is not the process itself, but the result. In the second case, accounting is considered as a system in which all its components are equivalent, and the purpose of the system is determined separately.

On the one hand, the situation with the United States is more simple: literally several laws serve as the legislative basis for the general regulation of financial accounting and reporting, primarily laws on securities and stock exchanges. However, not only and not so much laws and regulations regulate financial accounting in the United States. In each auditor's report, there is a mention that the reporting provided complies with GAAP - Generally Accepted Accounting Principles - generally accepted accounting principles. However, not only does there not exist a single document or set of documents in which these principles would be formulated, there is not even a single generally accepted definition of what it is. Determining whether a particular principle is generally accepted or not is still not the most elementary task. Even the criteria for classifying this rule as generally accepted have not been established. The SEC requirements themselves are only a subset of GAAP.

There are four levels of documents in the GAAP system:

1) Level A: Financial Accounting Standards (issued by the FASB), Interpretations (issued by the FASB), Opinions (published by the APB), Accounting Research Bulletins (published by the AICPA);

2) level B: technical bulletins (issued by FASB), sectoral accounting and auditing manuals (published by AICPA), explanations (published by AICPA);

3) level C: general opinions of the working group, practice bulletins (published by AICPA);

4) level D: accounting commentaries (published by AICPA), application guidelines (published by FASB), accounting industry generally accepted practice.

The basis of GAAP is Level A documents, which are given preference in the event of discrepancies and disagreements.

Several professional organizations are currently involved in the standards development process in the US: the Financial Accounting Standards Board (FASB); Securities and Exchange Commission (SEC); American Institute of Certified Public Accountants (AICPA); American Accounting Association (AAA); Government Accounting Standard Board (GASB).

The basis on which the principles are based are the objectives of accounting. We can say that the goals of accounting in Russia and the United States are quite different. If we single out the main requirement for reporting, then we can say that if in the United States the main requirement is the reasonableness and usefulness of information for the user to make commercial decisions, then in Russia the main requirement is compliance with various accounting rules, providing formally correct information of a control nature. And this difference of ends must not be overlooked, since the application of a principle that is identically named and defined can be quite different in its application to different ends.

Although it may seem strange, the basic principles of accounting declared in the new Russian system and in the American one practically coincide, although, of course, not verbatim and their significance is different. But there is an important problem of hierarchical subordination of goals, principles and specific methods, which must be taken into account.

In the US, the purposes of accounting and reporting are dominant. They are subject to principles, which in turn are subject to accounting methods. In Russia, the tasks and principles of accounting are also the basis, but if a specific methodology prescribed by law contradicts the tasks or even the principles of accounting, then priority is still given to this methodology, and not to the principles. This leads especially to big problems in cases where the application of this methodology contradicts the specific circumstances of economic activity.

The American system has its own specifics. There really is no regulation and the company is practically unlimited in the way of maintaining accounting registers. The most common way is the journal system. This system provides for the registration of source documents in journals (journals), from which transactions are transferred to the general ledger or separate books for special types of transactions (for example, a separate book can be created to account for settlements with suppliers). Usually a general journal is created, plus several journals for frequently performed operations. This system is simpler than the memorial-order system, and more flexible than the magazine-order system, since it allows the compilation of complex entries (compound entries).

In the United States, the principle of double entry is regarded as a purely technical technique; accordingly, it pays much less attention to the correspondence of accounts, at least, it does not recognize any special economic meaning (unlike in Russia). The rejection of the concept of correspondence somewhat impoverishes analytical capabilities, but it allows you to make complex transactions when several accounts are credited and debited at the same time. This possibility, which is completely unrecognized in Russia, not only simplifies the work of an accountant, but also allows you to more accurately track the economic meaning of the operation, allowing you not to split it into several amounts, depending on which account the corresponding amount was received.

Reporting is a natural result of the accounting process. In the US, financial reporting is inextricably linked with the process of financial accounting, but the reporting of only a limited number of organizations is regulated, primarily joint-stock enterprises whose shares are listed on the stock exchange, and enterprises of regulated industries. For other companies, financial accounting and reporting is a purely voluntary process, and the form of reporting may be determined by the firm. Further, almost always, when a firm is required to provide financial statements, it is required to obtain an auditor's report on these statements.

In principle, the composition of financial statements in the US and Russia is quite close, the differences are noticeable mainly when comparing the methodology underlying them.

In the US, the composition of financial statements is less clearly defined. The number of types of mandatory disclosures is small, but in general their structure is similar. It may also be noted that it is not uncommon for the equity statement to be replaced with a Retained Earnings Statement if there has been no change in equity.

The level of importance of different reports differ from each other. The US is currently maximizing the value of the income statement and increasing the value of the cash flow statement. In Russia, the greatest importance is given to the balance sheet.

In the US, it is mandatory to provide financial statements to shareholders and the SEC (Securities and Exchange Commission). In the IRS (Inland Revenue), financial reporting is not automatically provided, and reporting to organizations that carry out its statistical compilation is the business of the enterprise itself.

In both countries, the timing of reporting (publication) is regulated. In the US, they are tied to the end of the financial year and the shareholders' meeting. In Russia, reports must be submitted by April 1 for annual reports and within 30 days after the end of the reporting period for current reports.

In the United States, it is not the format of the reports that are provided, but the amount of information that must be disclosed in them. Even such generally accepted things that are contrary to Russian practice, such as sorting assets in descending order of liquidity, and liabilities in descending order of demand, as well as the allocation of own capital (owners "equity) from the composition of liabilities as a separate source of resources along with liabilities (liabilities) in the American sense of this words (i.e. accounts payable) do not change the fact that the form of reporting is determined by the firm.If the enterprise deems it necessary, it can completely change the form of reporting. useful information combined with the freedom to determine the true nature of the disclosures, results in the disclosure of truly relevant information, and the analyticity of reports containing less information is higher.

The UK has the oldest professional accounting organizations established in the last century, such as the Institute of Chartered Accountants of Scotland (1854), the Institute of Chartered Accountants of England and Wales, founded by decree of the Queen in 1894. These organizations have a long history of accounting regulation and the development of their own national accounting standards, which these organizations started even before the advent of the first IFRS. They are independent, not subordinate to any state bodies and are actively working on the development of accounting and reporting methodology, training of audit personnel. The development of accounting standards in the UK began in 1969.

However, although the titles of many British and International Standards (IFRS) are similar and address common issues, they are addressed in different ways. And large international British companies are forced to reform their reporting in accordance with international standards in cases of raising capital on international markets and quoting shares on stock exchanges in other countries.

To date, discrepancies between British and international standards have persisted, in particular, on the accounting and valuation of property, plant and equipment, investments, financial instruments, research and development costs, inventories, construction contracts, foreign currency assets and liabilities, expenses on loans, as well as the recognition of income, pension contributions and the preparation of consolidated financial statements. The differences between British and international standards are most clearly manifested in approaches to the valuation of various assets, primarily fixed assets.

2.2 Continentalmodel

The countries of continental Europe and Japan are considered to be the ancestors of this model. Here, the specificity of accounting is due to two factors: business orientation to large banking capital and compliance with the requirements of fiscal authorities. Attracting investments is carried out with the direct participation of banks, and therefore the financial statements of companies are intended primarily for them, and not for participants in the securities market. In the continental model, state bodies have a significant influence on the reporting procedure. This can be explained by the priority task of the state to collect taxes. In general, countries with this model are also guided by the principle of immutability of the initial assessment. Russia belongs to the continental model of accounting, Germany and France had a certain influence on our accounting.

This model is used by: Austria, Algeria, Angola, Belgium, Burkina Faso, Ivory Coast, Guinea, Germany, Greece, Denmark, Egypt, Zaire, Spain, Italy, Cameroon, Luxembourg, Mali, Morocco, Norway, Portugal, Russia, Senegal, Sierra Leone, Togo, France, Switzerland, Sweden, Japan.

For example, the system of accounting and audit regulation in France differs significantly from the British-American model.

The foundation of the accounting and auditing system in France is the Commercial Code (Code de Commerce), which legislates the need for accounting and reporting. The key element of this system is the National Accounting Code (National Accounting Code, better known as the Plan comptable general). This foundational document is over 400 pages long and includes a unified chart of accounts. The code in France performs the same functions as the standards in the UK, its tasks are closely related to the tasks of national statistics and taxation. The development of this document and the necessary methodological guidelines for it was entrusted to the National Accounting Council (Conseil national de la comptabilite - CNC), created in 1947 under the Ministry of Finance of France, which had the status of a government agency.

Germany has a long tradition of accounting that influenced the formation of accounting in pre-revolutionary Russia. The legal basis for accounting and reporting in Germany is the Commercial Code, which, along with other issues, regulates reporting; it discusses in detail the rules relating to the content and preparation of the balance sheet and income statement. Germany has a unified chart of accounts, on the basis of which sectoral plans for industry, trade, and financial organizations have been developed.

Tax legislation has a huge impact on accounting and reporting in Germany, which practically prohibits the use of tax benefits if they are not reflected in accounting.

Due to the lack of officially formulated generally accepted accounting principles in Germany, many contentious issues of reporting and accounting data are resolved in court. The Institute of Accountants (Institut der Wirtschaftspufer), established in 1931, is developing recommendations on accounting and reporting that are not mandatory, but nevertheless taken into account in the development of legislation.

If you try to rank the various German sources that regulate the issues of accounting and reporting, then the following groups of documents can be distinguished in terms of importance:

1) commercial regulations;

2) tax legislation;

3) tax instructions;

4) materials of accounting practice;

In German law, much more attention is paid to information about the activities of companies, i.e. reporting than accounting organizations. In the book of J. Bethge "Balance Science" the following definition of reporting is given: "Reporting is a reflection of the entrusted capital in the sense that external users of the reporting, as well as its compiler, receive such a complete, clear and relevant idea of ​​​​the economic activities of the organization that they can make your own judgment about the managed property and the result obtained with its help.

Also, Italy is rightfully considered the birthplace of accounting, since at the end of the 15th century. the Franciscan monk-mathematician Luca Pacioli formulated the principles of double entry in his Treatise on Accounts and Records, published in Venice in 1494. However, later Italy's leadership in the development of accounting was lost.

The legal basis of the Italian accounting system is the Civil Code, as well as decrees of the President of the Republic and orders of the Ministry of Finance, including recommendations from professional organizations.

In Italy, there is a professional organization - the National Council of Commerce and Accountants (Consiglio Nazionale dei Dottori Commercialisti e dei Ragionaieri - CNDCR), which publishes accounting standards that are very broadly interpreted. However, these standards are used by the Italian National Exchange Commission - CONSOB (Commissione Nazionale per le Societa e la Borsa - an analogue of the American SEC). This Commission influences the reporting of joint-stock companies whose shares are listed on the stock exchange.

In the Netherlands, as in the UK, accounting and reporting has been heavily influenced by company law and professional bodies rather than tax law or stock market requirements. Prior to the adoption of the Organization Accountability Act in 1970, accounting and reporting in the Netherlands was practically not regulated by law. The provisions of this Law were later incorporated into the Civil Code and further harmonized with EU directives. At the behest of the government (1970), an Annual Reporting Council was established to issue accounting instructions, which included both employers and employees, as well as accounting specialists.

Companies do not have to necessarily follow its instructions, which are regarded only as the opinions of an influential private group, and auditors are not required to state the facts of non-compliance with the recommendations of the Board.

Tax legislation, like the requirements of the stock exchange, has only an indirect impact on accounting in the Netherlands.

2.3 Latin Americanmodel

With the exception of Brazil, whose official language is Portuguese, these countries share a common language - Spanish, as well as a common past. The main difference between this model and those described above is the permanent adjustment of the impact of accounting data on inflation rates. Inflation accounting is traditional in Latin American countries, while Argentina, Brazil, Uruguay and Chile have introduced inflation accounting standards and national legislation. In these countries, the official index of the general price level is used as the main adjustment index, on the basis of which data on equity capital and fixed (non-current) assets are recalculated, inventories are revalued at replacement cost. Liabilities in foreign currencies are recalculated at the exchange rate at the end of the reporting year.

In general, accounting is focused on needs state taxes and planning bodies, and the accounting methods used at enterprises are quite unified.

State bodies in these countries practically regulate the accounting methodology. Professional bodies of accountants do not have any significant influence on the methodology and practice of accounting.

The South American model is used by: Argentina, Bolivia, Brazil, Guyana, Paraguay, Peru, Uruguay, Chile, Ecuador.

Thus, in countries with similar socio-economic conditions, accounting systems have much in common.

In the USA, Great Britain, the Netherlands, the "British-American" accounting model is used, which is focused on the needs of investors and creditors of the company. From a technical point of view, it is the most liberal - each company forms a chart of accounts on its own, there is no single approved numbering of accounts. At the same time, there are general requirements for the organization of accounting, described by the system of “generally accepted accounting principles” (GAAP). Such requirements are developed by professional associations of accountants.

In France, Germany, Japan and some other countries, a “continental model” is used, focused on the needs of the tax authorities. It is more formalized, since it is based on a single chart of accounts approved by the state.

In countries with high inflation rates, the “Latin American model” is used, which is characterized by constant adjustment of indicators for inflation rates.

3. Practical part.

1. Balance at the beginning of the month

Name of articles		Name of articles
fixed assets		Authorized capital
		Depreciation of fixed assets
Raw materials
		Calculations for taxes and fees
Primary production
Finished products
Checking account		Settlements with creditors
Settlements with debtors
		Extra capital
		Reserves for future expenses
		Profit and loss

2. Business transactions for the month

Conv. units

1. According to the capital investment plan, new equipment was purchased and accounted for as fixed assets
2. Received from suppliers of raw materials and supplies: a) purchase price (excluding VAT)
3. Raw materials and materials transferred: a) in the main production b) to auxiliary production d) for general business needs
4. Accrued wages: a) workers in the main production b) auxiliary production workers c) workers engaged in the maintenance and repair of equipment d) general production personnel e) enterprise management personnel
5. Unified social tax has been charged in accordance with the established tariff
6. Fuel released to the main production
7. Received a short-term loan from the bank and credited to the current account
8. Cash received from the current account and credited to the cashier
9. Income tax withheld from wages individuals
10. Wages issued from the cash desk to employees of the enterprise
11. Issued from the cash desk for a report on travel and household expenses
12. Cash returned from the cash desk to the current account
13. Spent by accountable persons for the needs of the main production
14. Depreciation accrued: a) production equipment b) fixed assets for general production purposes c) fixed assets for general business purposes
15. Received to the current account: a) from debtors b) from buyers and customers
16. Written off at the end of the month for the costs of the main production: a) overhead costs b) general business expenses
17. Transferred from the current account to pay off the debt: a) bank loan b) suppliers c) social insurance fund d) pension fund e) fund of obligatory medical insurance f) budget g) creditors
18. Finished products released from production
19. Returned from the workshops of the main production of unused materials
20. Settlement and payment documents for sold products (including VAT) were presented to buyers
21. VAT accrued to the budget for products sold
22. The actual production cost of goods sold is written off
23. Accepted for payment invoice of the transport organization for the delivery of finished products a) the cost of the service
24. Paid the invoice of the transport organization for the delivery of finished products
25. Selling expenses related to products sold are written off
26. The financial result from the sale of products is revealed
27. Unpaid wages were deposited

3. Turnover balance sheet

4. Balance at the end of the month

Name of articles		Name of articles
fixed assets		Authorized capital
Investments in non-current assets		Depreciation of fixed assets
Raw materials		Settlements on short-term loans
		Calculations for taxes and fees
VAT on purchased assets		Social insurance payments
Primary production		Pension payments
Finished products
		Settlements with personnel for payroll
Checking account		Settlements with creditors
Settlements with debtors		Settlements with suppliers and contractors
Settlements with buyers and customers		Extra capital
Auxiliary production		Reserves for future expenses
Calculations for compulsory health insurance		Profit and loss

Conclusion

Since the factors influencing the formation of an accounting system are interrelated, in countries with similar socio-economic conditions, accounting principles have much in common. The most common classification of accounting models is based on the legal system and the various effects of inflationary processes. In countries of common law or case law (England, USA), legislation is built on court decisions that regulate specific relations and form a unified system of law. Accounting standards are determined primarily by various non-governmental professional associations of accountants.

Elsewhere (Continental Europe, Japan) historical basis legislation are the substantive norms of Roman law, where the main source of law - the law. Legal norms regulate the general range of relations; private law is codified and subdivided into civil and commercial. Unlike the first group of countries, this legal system rigidly and in detail regulates the rules of accounting.

In the third, a distinctive characteristic is the method of adjusting reporting indicators, taking into account changes in the general price level. An inflation adjustment is necessary to ensure the reliability of current financial information (especially for long-term assets). Adjustment of reporting is focused on the needs of the state in the execution of the revenue part of the budget.

The Russian model of accounting in its principles is closest to the continental one. This is due to the fact that initially it was formed to function in a planned economy.

As domestic and world experience shows, the development of accounting and reporting should take place in close connection with changes in the economic situation in the country and correspond to the nature and level of development of the economic mechanism. Delaying the processes of transformation of accounting and reporting or forcing changes in accounting and reporting without regard to changes in the economic mechanism and the actual functioning of market institutions can lead to a decrease in the quality of financial information in the economy, as well as a weakening of financial discipline.

Listliterature

1. Theory of accounting / Kiriyanova Z.V.: textbook. -M.: Finance and statistics, 2001

2. Accounting / Kondrakov N.P.: textbook. -M.: INFRA-M, 2001

3. Accounting in foreign countries: Study guide

4. Bakaev A. S., Bezrukikh P. S., Vrublevsky N. D. et al. Accounting: textbook. 5th ed., revised. and additional / ed. P. S. Bezrukikh. - M.: Accounting, 2008

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Bashkir Academy of Public Administration and Administration under the President of the Republic of Bashkortostan

Department of professional retraining

“Enterprise (business) valuation”

Coursework on the subject “Accounting and audit”

On the topic: “Accounting in foreign countries”

Completed:

Abubakirova N.N.

Checked:

Art. pr. departments

"Accounting

and audit” UGNTU

Kireeva O.A.

The purpose of the course work is to summarize the principles of accounting in various national systems.

In the process of work, various research methods were used: generalizations, comparative analysis, systematization, methods of logical data linking.

The course work consists of three chapters. The first chapter discusses the concept of accounting and reporting in foreign countries. The second chapter contains the basic requirements for reporting. The third chapter provides an analysis of national accounting systems, and considers in more detail the French chart of accounts as the closest to the Russian one.

Chapter 1accounting in foreign countries

Abroad, the basis for determining the financial result is the use of the method input-output recommended for use by the standards of the International Committee on Accounting Standards and the Fourth Directive of the European Economic Community in 1978.

The basis for this is the determination of the financial result commensuration costs with release in financial accounting, costs are taken into account only by elements, which makes it possible to determine the newly created value and financial result in accounting.

The overall financial result is established by two options, ensuring the preservation of the features of the French and Anglo-Saxon accounting systems. In the French version, the overall result of the enterprise is determined by summing up the operational, financial and extraordinary results.

Financial accounting is designed to determine the financial position of the company by zones (risk, constant attention, normal operation, expansion) depending on the share of own sources of balance and turnover rate working capital, financial result then in for the period and the level of liquidity of funds and sources of the firm. It is mandatory and regulated by the state. Mandatory financial accounting in the countries of Eastern Europe arises when the following three indicators are exceeded: the number of employees - 50 people, the balance sheet total - 1 million ECU, the annual sales volume - 2 million ECU. A simplified version is used by firms that, at the balance sheet date, do not exceed two wow of these three limits.

• application of IFRS as national standards. These countries include: Cyprus, Kuwait, Latvia, Malta, Pakistan, Trinidad and Tobago, Croatia;
• use of IFRS as national standards, but with the condition that national standards are developed for issues not covered by international standards. Such countries are Malaysia and Papua New Guinea;
• the use of IFRS as national standards, but in some cases it is possible to modify them in accordance with national characteristics. These are Albania, Bangladesh, Barbados, Zambia, Zimbabwe, Kenya, Colombia, Poland, Sudan, Thailand, Uruguay, Jamaica;
• national standards are based on IFRS and provide additional clarifications. Among such countries are China, Iran, Slovenia, Tunisia, the Philippines;
• national standards are based on IFRS, however some standards may be more detailed than IFRS. Such countries are Brazil, India, Ireland, Lithuania, Mauritania, Mexico, Namibia, the Netherlands, Norway, Portugal, Singapore, Slovakia, Turkey, France, Czechoslovakia, Switzerland, South Africa;
• national standards are based on IFRS, except that each national standard includes a provision comparing the national standard with IFRS. (Australia, Hong Kong, Denmark, Italy, New Zealand, Sweden, Yugoslavia.)

The issue of adoption of IFRS by the EU countries is now being discussed, at least in relation to companies whose shares are listed on stock exchanges. Because these standards are a system that allows new financial institutions apply an internationally recognized accounting framework, many developing countries have begun to use them.

Consider the positive and negative features of International Financial Reporting Standards.

Their objective advantages over national standards in individual countries are:

• clear economic logic;
• generalization of the best modern world practice in the field of accounting;
• ease of perception for users of financial information around the world.

At the same time, international standards make it possible not only to reduce the costs of companies preparing their financial statements, especially in the context of consolidating the financial statements of enterprises operating in different countries, but also to reduce the cost of raising capital.

However, the shortcomings of IFRS should also be noted. These include, in particular:

• the generalized nature of the standards, providing for a fairly large variety of accounting methods;
• lack of detailed interpretations and examples of application of standards to specific situations.

In addition, the implementation of standards around the world is hindered by such factors as national differences in the level of development and traditions, as well as unwillingness national institutions to give up their priority in the field of regulation and accounting methodology.

The International Accounting Standards Committee takes these negative factors into account and is actively working to eliminate them. Thus, on January 1, 1989, the Committee published document E32 “Comparability of financial statements”, which contains 29 proposals to limit the choice of accounting methods allowed by current IFRS. This document is considered by many experts as one of the best drafts of the IASB. It allows, to a certain extent, to eliminate a number of differences in the content of reporting and simplify the procedures for its transformation when conducting a comparative analysis in an international context.

Chapter 2. National Accounting Systems

2.1. Types of national accounting systems

National principles governing record keeping differ significantly. But it is possible to single out groups of countries that adhere to the same type of approaches to building an accounting system, and there are no two states where the accounting rules would be absolutely identical. One of the most common is the three-model classification of accounting systems. It includes:

1. British-American model (Great Britain, USA, Netherlands, Canada, Australia, etc.);
2. Continental model (Germany, Austria, France, Switzerland, Italy, etc.);
3. South American model (Brazil, Argentina, Bolivia, etc.)

The first model is characterized by a focus on the needs of a wide range of investors (it is due to a highly developed securities market, the lack of legislative regulation of accounting, which is regulated by standards developed by professional organizations of accountants), the flexibility of the accounting system, the high educational level of both accountants and users of financial information.

The second model is distinguished by the presence of legislative regulation of accounting, close ties between enterprises that are the main suppliers of capital, the orientation of accounting to the state needs of taxation and macroeconomic regulation, and the conservatism of accounting practice.

Third model. Its main feature is the orientation of the accounting methodology to a high level of inflation.

The presence of different approaches to the formation of accounting systems makes it difficult for national enterprises to “communicate” at the international level. Since the rules for the preparation and publication of financial statements differ from country to country, it becomes necessary to study these differences.

One of the factors that determine significant differences in the financial statements of different states is, of course, the legal system. Depending on the type of legislation and the degree of state influence on various aspects of life, most countries can be conditionally divided into two groups:

1. those countries that have legislation of general legal orientation;

2) countries that have an extensive code of laws.

In the states belonging to the first group, the laws, as it were, indicate the limits within which individuals and legal entities have freedom of action. Such a common law system was originally formed in the UK and is present in many countries that traditionally have close ties with it (US federal law, the legal system of Ireland, India, Australia and a number of other countries). The activities of companies are not regulated in detail, and the rules for the preparation and publication of financial statements are not specified. Accounting standards in these countries are not regulated by the state, but are determined by various professional organizations of accountants.

In the countries of the other group, legislation is based on Roman law. This legal system determines the laws of a strictly determined nature, individuals and legal entities must follow the letter of the law. Most countries introduce into the rank of law and accounting standards; all activities in the field of accounting are detailed and fairly strictly regulated. The main task of accounting in such countries is the calculation of state taxes and control over their payment. These states include Germany, France, Argentina and others.

Differences in the preparation and publication of accounting reports are greatly influenced by the existing financial system in the country, as well as the forms of companies and types of ownership in which they are located. For example, in Germany, Japan, Switzerland, financial policy is determined by a small number of very large banks. The latter not only satisfy a significant part of the financial needs of the business, but are often the owners of the companies. Thus, in Germany, the majority of the shares of a number of joint-stock companies of an open type are under the control or significant influence of banks, especially such as Deutsche Bank, Dresdner Bank, Commerce Bank and others.

In France, Italy, Sweden and a number of other countries where small family businesses predominate, accounting has a slightly different orientation. The main providers of capital in their markets are both banks and government bodies, which not only control the financial capabilities of the business, but also act (if necessary) as an investor or lender. In the above countries, firms must follow unified accounting standards, which is due to the influence of government bodies on the processes of preparing and compiling financial statements. In a number of countries (Germany, France and Italy) companies are required by law to issue detailed audited financial statements. In France and Italy, the government has established special bodies to regulate and control the securities markets, which may mean significant shifts in the development of financial reporting associated with the Anglo-American experience.

Another factor in the existence of differences in international financial reporting is the tax system. An example of such an impact is the practice of "deferred" taxation used in the British accounting model. It lies in the fact that the income of companies, measured according to general accounting rules, often differs from the income on which taxes are levied. The most common reason for this discrepancy is that the accelerated depreciation tax credit is deductible from income regardless of the depreciation method chosen. It should be noted that within the British-American model there are some differences in tax calculations. You can consider the tax on the entire amount of income from which it will be charged, and the difference between the amount received and that which will actually be paid in this reporting period, be considered as a long-term debt, or you can limit tax deductions to the amount of the current payment. In the USA and Canada, the first option is applied, that is, “full tax distribution”. This approach contrasts with the practice in the UK, which uses a “partial distribution of the tax”, which is, as it were, an intermediate position between the two alternatives. Such differences significantly affect the comparability of after-tax earnings between US and UK companies. In this regard, in the US, UK and other countries using the British-American accounting model, the issue of deferred taxation has caused considerable discussion and has led to a large amount of standardized documentation.

In countries that use the continental accounting model, the taxation rules are basically the same as the accounting rules, and therefore there is no problem of deferred taxation as such. For example, in Germany, tax legislation establishes depreciation rates based on the expected useful life and applied to strictly defined assets. However, in some cases, accelerated depreciation is allowed, for example, for industries that produce energy-saving and environmentally friendly products. However, depreciation charges that reduce profit before taxes, although they are reflected in the financial statements, do not cause deferred tax problems.

Significant differences in financial reporting arise when accounting for inflation. There are currently two widely used financial reporting methods:

1. current value accounting;

2) accounting for the total purchasing power.

There are also some differences in approaches to the problem of reflecting inflationary processes in financial statements. UK in the late 1960s. the economy underwent significant changes associated with rising prices, and between 1971 and 1974 a number of documents were developed on this issue, based on the general purchasing power method. However, in the annual balance sheets of companies that provide additional financial statements based on changes in total purchasing power, there was conflicting information regarding the meaning of the adjusted indicators.

In continental Europe, inflation accounting has not received sufficient development. After numerous discussions among EU accountants, an agreement was reached to account for rising prices at acquisition prices, although EU countries were allowed to allow or prohibit companies from inflation-adjusted asset valuation based on inflation-adjusted data at their own discretion. In general, it can be noted that European countries are not inclined to deviate from the principles of accounting based on historical cost.

Depending on the country of application, there are also significant differences in the theory and practice of consolidated accounting. These differences relate to the extent to which consolidated financial statements are used; definitions of the term “group” (association of companies) for the purposes of applying the consolidated financial statements; the nature of the information provided by the external user; and methodological issues.

Consolidated accounting reports first appeared in the United States at the beginning of the century and were widely developed. In the UK, the need to maintain single accounts, most often in the form of consolidated financial statements, was enshrined in law in 1947 and is currently regulated by national standards. In continental Europe, the process of introducing consolidated reporting has developed more slowly, and there are still different approaches to solving this issue.

Since the Companies Act in 1989, British law has treated the group as a unit that controls the activities of subsidiaries and entities under significant influence. American practice is based on the concept of the parent company and on the method of accounting for equity; the fusion method is widely used. The legislation and legal practice of Germany on the issues of consolidation used to be quite seriously at odds with the British and American counterparts, but approached them as a result of the implementation of the foundations of the 7th EU Directive adopted in 1983. In France, enterprises are singled out under the sole control of the consolidating company (fully consolidated); entities under joint control (consolidated in an appropriate proportion) and entities over which significant influence is exercised. Dutch practice is similar to that of the UK and provides that financial information relating to subsidiaries must be included in the group's annual report prepared on a consolidated basis. The method of accounting for equity is also widely used, and, unlike other EU countries, the named method is used both in subsidiaries and in the financial statements of holding companies; thus, the profit of the latter is equal to the consolidated profit. In Belgium and Spain, consolidation before the 1980s was rare, leaving outside investors and lenders, especially foreign nationals, with inadequate information about even large groups.

Thus, despite the fact that international accounting practice has not yet been brought to a common denominator, in most developed countries of the world it is increasingly clear that differences in national accounting systems become a brake on the development of economic cooperation between them, narrowing opportunities for integrating their economies. In this regard, their efforts are becoming more noticeable, if possible, to bring national accounting systems together, to level the differences between them.

3.2. French Chart of Accounts

The transition to separate financial and managerial accounting requires making significant adjustments to the current Chart of Accounts. The French Chart of Accounts can be taken as the basis as the closest to ours and at the same time providing separate financial and management accounting.

The French chart of accounts includes 10 classes (sections). Of these, 7 classes are allocated for financial accounting accounts:

• class 1 - capital accounts;
• class 2 - fixed asset accounts;
• class 3 - inventory and work in progress accounts;
• class 4 - accounts of third parties;
• class 5 - financial accounts;
• class 6 - expense accounts;
• class 7 - income accounts.

In each class of accounts, the correspondence of accounts is strictly regulated and ordered. Two classes of accounts (eighth and ninth) are allocated for management accounting. There is no strict regulation of accounts here, each company solves these issues on its own. One class of accounts (zero) is allocated for off-balance sheet accounts.

The added value created by the organization is calculated as the difference between the proceeds from the sale of products (accounts 70-74) and expenses (accounts 60-62). From an economic point of view, accounts 60, 61 and 62 accumulate all settlements with third parties, which can be considered as “exchange transactions” between economic entities that do not lead to the creation of added value.

According to the definition, value added is the contribution of a particular organization to the process of production and sale of products. The contribution of the organization directly depends on the number and qualifications of personnel, as well as on the availability of equipment necessary for the production and sale of products. Value added reflects the real economic weight of the organization. It allows you to compare performance and acts as an indicator of economic growth.

As defined in the French chart of accounts, operating balances are resources generated in the course of operating activities to a) replenish and increase working capital, and b) pay financial remuneration for the use of borrowed or equity funds. The balance of operating activities is the main source of income for the organization, ensuring its liquidity. The share of the balance of operating activities in value added depends on the specific sector of the economy.

It should be emphasized that the standardized codification of accounts facilitates the calculation of all intermediate results. This advantage is of particular importance in the analysis of economic activity at the state level.

The Bureau financial analysis The Bank of France analyzes the annual accounts of companies and draws up a report that contains analytical data on the financial performance of each company. Companies voluntarily submit their balance sheets and income statements to the Bureau.

The Bureau's report can be viewed as a comparative analysis that allows you to quickly examine various aspects of the company's financial situation. The indicators reflect the strengths and weaknesses of the enterprise, which helps to focus on the most pressing problems that require serious analysis. The main purpose of accounting is to provide information for decision making. As for the Bureau's financial report, it helps entrepreneurs develop business strategies.

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Application

Table 1.The main comparative characteristics of financial and management accounting

Areas of comparison	Financial Accounting	Management Accounting
1. Mandatory record keeping	Required by law	By decision of the administration
2. Accounting purposes	Compilation of financial reports for users outside the organization	Assisting the administration in planning, management and control
3. Main consumers of information	Individuals and organizations outside the enterprise	Different levels of enterprise management
4. Types of accounting systems	Double entry system	Any system that satisfies the information needs of management
5. Freedom of choice	Mandatory adherence to generally accepted accounting principles	The main criterion is the suitability of information
6. Used meters	Currency at the exchange rate in effect at the time of the transaction	Monetary and natural units of measurement calculated at current or future value
7. The main object of analysis	Business unit as a whole	Degree of detail required for management purposes
8. Frequency of reporting See: Marenkov N.L. Kravtsova T.I. International accounting, auditing and accounting policies of firms. - M., URSS, 2000, p. 56 - 70. See: Fedotova G.A., Tsyplenkova I.G. Accounting in foreign countries // Proceedings / Kuban State Agrarian University - 1996. - Issue 351, p. 75 - 93. See: Litvinenko M.I. Review of International Financial Reporting Standards// Glavbukh.-1998.-No.1.-S.69-75. See for example: Garifullin K.M., Mansurov R.R. On the preparation of consolidated financial statements in Germany//Accounting.-1997.-№5.-S.80-83. See: Pankov D. A. Accounting and analysis in foreign countries. - Minsk, Ecoperspective, 1998.

The principles of construction and the structure of accounting models used in different countries depend on the level of its organization. The organization of accounting in the generally accepted sense includes an established system of regulation, strict legal regulation, the primacy of accounting procedures in the formation of information, the formulation and observance of the conceptual Principles of accounting, the availability of methodological developments of basic accounting provisions (which will be studied in this chapter) with relevance, reliability and comparability of information generated within the framework of the adopted design and scheme for building an accounting and financial reporting model.

The main content of the construction of an accounting model, as practice shows, always corresponds to public policy in the field of accounting, the national needs of the country's economy and the relationship of companies in the world economic space, accounting rules and standardization of their application adopted in a particular country. Recently, specialists in the field of accounting have meaningfully confirmed the need to conduct research on the directions for building accounting models that adequately reflect the characteristics of national, sectoral, functional, institutional structures of companies in today's dynamically changing external conditions of their management.

In the UK, the accounting system has developed independently of the state, based on the interests and requirements of business. For a long time, the British government did not consider it necessary to regulate accounting and reporting in companies at all, however, having joined the European Community, the UK, in accordance with the EU Directives, included in its Companies Laws of 1985 and 1989. prescriptions regarding forms of accounting reporting and methods of evaluation of various items.

The formation of the national accounting system took place under the influence of such factors as the economic situation in the country, the national identity and traditions of business, the legal environment, tax legislation, communication with other countries and accounting and reporting systems.

A separate factor that is of great importance for the British accounting system is the influence of professional accounting organizations. Currently, the 6 largest associations of chartered accountants in this country are united in SSLV - Advisory Committee of the Accounting Societies (1974) (see fig. 1 1).

Rice. eleven.

SSLV collaborates with the Financial Reporting Council (FRC) an institution independent of the profession and the state that determines policy in the field of financial reporting methods. It should be emphasized that the authority of the British professional accounting institutions in Europe is very high, and, as a result, they managed to achieve the introduction of provisions in the Fourth EU Directive that reflect one of the main concepts on which the UK accounting and reporting system is based - the concept “true and fair view” - reliable and conscientious provision of data on the financial condition of the company.

Since the legislative system of Great Britain does not have a clear structure, the main doctrines of its law are: "the binding nature of judicial precedent", "the rule of law". As a result, British lawyers require the establishment of strict rules and unified reporting forms, while accountants believe that the priority of substance over form is one of the main principles of the British accounting system. The principle of the priority of content over form implies the possibility (and in some cases even the need) to deviate from the generally accepted and legislative norms and rules for keeping records and compiling financial statements, if these norms and rules do not reflect the true state of affairs.

The development of the global financial system and recent trends in the reflection of accounting information in financial statements have led professional accountants in the UK to tend to a utilitarian view of the nature of information disclosed in financial statements: the official reporting of British companies is increasingly in line with the requirements of financial and, before just the stock markets. This is reflected in the growing influence of the International Standards Committee ( IASC) and his documents.

From this we can conclude that the normative regulation of accounting in the UK until 1981 practically did not exist. When the Companies Law was adopted in 1981, which included the requirements of the Fourth EU Directive regarding the forms of financial reporting, and in 1985 the “generalizing” Companies Law came into force, which contained the rules and forms of financial reporting and the requirement for mandatory verification auditors, then rules were established that govern some degree of accounting.

The Companies Law 1985 was amended and supplemented by the Companies Law 1989, 2006, which took into account the requirements of the Seventh (consolidated reporting) and Eighth (audit) EU Directives (as amended in 2006) . These laws determined the requirements for the content of the balance sheet and income statement. In addition, the Law of 1989 prescribed the obligatory use of accounting standards developed by professional organizations. In addition to these laws, public companies listed on the stock exchange have to comply with the Rules established by the Securities Exchange, which require greater disclosure of information in financial statements and more frequent presentation (preparation of interim, and not just annual reports).

Features of accounting regulation in the UK can be represented as follows:

Rice. 12.

The professional accounting organizations depicted in the diagram are developing national Financial Accounting Regulations and Standards (Regulations on Standard Accounting Practices (SSAP); Recommended Practice Statements ( SORP); Financial Reporting Standards ( FRS).

Financial Reporting Council ( FRC), which carries out general supervision of the standards development process, management of organizations developing standards, search for sources of funding. Accounting Standards Board ( ASB) is solely responsible for the development of accounting standards. Working group on emerging issues ( UITF) is a subcommittee AS B, with the task of developing solutions regarding the application of existing standards. Financial Reporting Oversight Commission ( FRRP), which is engaged in identifying and tracking deviations from existing accounting rules. Since 07/02/2012, the regulation of accounting and financial reporting in the UK has changed and is as follows:

Rice. 13.

It is obvious that since July 2, 2012 the structure and functions of the Financial Reporting Council have undergone noticeable changes. So, at present, the main organizations responsible for the development and application of accounting standards in the UK are.

1. Financial Reporting Council (the Financial Reporting Council - FRC) - an independent regulatory body responsible for developing and amending UK accounting standards. The Financial Reporting Board monitors and oversees the application of accounting standards, and is also responsible for the general oversight of the activities of professional accounting organizations.

• 2. Committee on codes and standards (The Codes and Standards Committee - CSC) is responsible for and adopts all standards and laws issued by the Financial Reporting Council and is the principal advisory body for the development of accounting standards.
• 3. Accounting advice (AccountingCouncil - AC) accepts for consideration draft accounting standards and laws, amendments to them, carries out consulting activities.
• 4. Committee for the management (leadership) of affairs ( Conduct Committee - CQ, the main task is to identify and track deviations from the current accounting rules, ensure the proper quality of monitoring by the financial reporting council, consulting activities in the investigation of cases of a disciplinary nature.

In addition, there are recommendations of professional accounting organizations (Institute of Chartered Accountants of England and Wales, Institute of Chartered Accountants of Scotland, Institute of Chartered Accountants of Ireland, etc.), which are not mandatory, but represent recommendations on certain professional issues for members of such organizations.

Thus, based on the study of the UK accounting regulation procedure, we distinguish three types of rules that establish financial accounting and reporting - legislation, stock exchange requirements, standard requirements. Tax accounting rules are separate from financial accounting and financial reporting.

The results of a study conducted on the example of accounting models in Great Britain and France, using different models of accounting and reporting information, led to the conclusion that the stages of the accounting process have the same composition, but different content for each of them. The accounting process used by business entities in the UK is shown below (Figure 14). Historically, each country has formed its own content of the stages of the accounting process, which reflected the influence of national characteristics of the organization of primary accounting and documentation of business transactions, the composition and formats of analytical and synthetic accounting registers, the chart of accounts, the form of accounting, the methods used to assess property and liabilities, organization of accounting and computational work, volume and composition of reporting indicators.

The distinctive characteristics of the conceptual principles should be emphasized, i.e. accounting methods and techniques that form the basis for organizing the UK accounting system and the choice of the model used in this country. They are designed to serve as the basis for the development and revision of existing accounting regulations, to help users of accounting information in understanding the data contained in financial statements, to provide specialists involved in accounting regulation with instructions to find approaches to its reform in terms of harmonization with the requirements of IFRS.

Rice. fourteen.

The basic principles and concepts of building UK accounting are presented in the Regulation on Financial Reporting Principles ( Statement of Principles for Financial Reporting and the Companies Act (The Companies Act 2006, ed. 2009) In addition, they are recorded in the Financial Reporting Standard No. 5 “Reflection in the reporting of the essence of operations” ( FRS 5 Reporting the Substance of Transactions and Financial Reporting Standard No. 18 " Accounting policy» (FRS 18 Accounting Policies). .

At the same time, the existing UK standards will be replaced by a new financial reporting framework, which assumes the application of 3 standards from 2015 in the UK and Ireland: FRS 100 "Application of financial reporting requirements", FRS 101 Simplified Disclosure Requirements, FRS 102 "Financial Reporting Standard Applied in the United Kingdom and the Republic of Ireland".

FRS 100 stipulates general rules financial reporting, giving companies the choice between several "granular modes" of accounting, depending on a number of factors, such as the size of the company and the presence of an exchange listing. This Standard also addresses when an entity may apply the Recommended Practices and when it may apply simplified disclosure requirements.

FRS 101 introduces a simplified reporting regime for subsidiaries that already apply IFRS, or are about to do so. This standard will be most convenient for use by large holding companies, where international financial reporting standards are already applied. The simplified disclosure regime will allow UK subsidiaries to adapt to IFRS reporting, benefiting from all the exemptions for financial disclosures set out in FRS 101 .

FRS 102 is derived from IFRS for SMEs, reflecting a simplified version of the full version of IFRS, but includes changes made by the Financial Reporting Council, and does not radically differ from current standards. Most large and medium UK companies will be able to apply FRS 102 when preparing annual financial statements, then this standard will completely replace those currently in force in the UK UK GAAP. Major changes in accounting FRS 102 will introduce into accounting practice the following: a change in the valuation of derivatives, goodwill and intangible assets will be recognized individually, a change in the valuation of investment property, the introduction of a deferred tax category, capitalization or recognition of borrowing costs as current expenses, etc. .

Rice. fifteen. Major changes in accounting standards according to FRS(compiled on the basis of the author's translation of the standards FRS100, FAS101, FRS102, 2014)

Table 8

To figure 15 changes according to FRS

When since 2015 in the UK and Ireland

Republic will become mandatory application FRS 102, then the construction of accounting and the procedure for disclosing information in reporting will meet the following principles:

• accrual method ( accmal basis) - income and expenses are recognized when they arise;
• offset (offsetting) - an organization is not entitled to offset assets and liabilities, income and expenses unless required or permitted by this standard (the definition of an asset less an estimated reserve is not an offset);
• fair representation (fair presentation) - the financial statements should fairly present the financial position, financial condition and cash flows of the organization. Fair presentation requires a true reflection of the organization's business operations, other events and conditions (conditions) in accordance with the definitions and criteria for the recognition of assets, liabilities, income and expenses;
• ongoing activity ( goingconcem) - the organization continues its activities as long as it has no intentions, and there is no need to liquidate the organization or significantly reduce activity;
• frequency of reporting (frequency of reporting) this principle implies that the organization must prepare financial statements annually;
• presentation sequence ( consistency of presentation) the entity is required to maintain the presentation and classification of the elements of the financial statements from one reporting period to another, unless there are significant changes in the activities of the entity;
• comparable information (comparative information) - an entity must present comparable information for the prior period for all amounts presented in the financial statements of the current period;

• principle of materiality and aggregation ( materiality and aggregation each material category of homogeneous indicators is presented separately in the financial statements, business transactions are aggregated depending on their origin;
• complete set of financial statements ( complete set of financial statements includes: a statement of financial position (balance sheet), a single statement of comprehensive income or a separate income statement and a separate statement of comprehensive income, a statement of changes in equity, a statement of cash flows and appendices to the statements;
• definition (identification) of financial statements (identification of financial statements) - an entity must clearly define each form of financial statements and separate them from other information (Principles are presented in the author's translation).

All three standards were developed (published in English) as part of a fundamental reform of the current system carried out by the UK Financial Reporting Council. The content of these regulatory documents allowed us to highlight the following basic principles of accounting and financial reporting of the country in question:

• truthful and fair presentation (true and fair view)- financial statements should provide a true and fair view of the financial position of the organization, contain a sufficient amount of high-quality information that can meet the reasonable expectations of users;
• obligation to continue (going concern) this principle assumes that the organization will continue its activities and it has no intention and need for the liquidation of the organization or a significant reduction in activities;
• complexity of accrual (accruals)- combines two principles: accrual and matching of income and expenses. The essence of this principle lies in the fact that when compiling a profit and loss statement, income is opposed to the expenses due to which they were received in the reporting period. This means that income and expenses are recognized not when they are paid in cash, but when they arise;
• separate recognition of assets and liabilities (separate determination of each asset and liability)- predetermines the conditions for recognition and the use of various types of value in the process of assessing assets and liabilities.

The next direction of research will be the characteristics of the Chart of Accounts used in the UK ( Chart of Accounts- the author's translation is used), in particular, working charts of accounts are considered ( University of Glasgow, Freshwater UK Company, Bridgeman International).

It should be emphasized that the choice of an accounting organization model and the construction of a national chart of accounts are interrelated and interdependent. In particular, in accordance with the national mentality regarding the applied accounting model and the need for harmonization with the requirements of IFRS, each company develops its own working Chart of Accounts. We emphasize once again that in the UK there is no single Chart of Accounts for the economic activities of business entities, as a regulatory act regulating the accounting structure.

Hence, based on the individual requests of information consumers, the characteristics of the organization's activities, only the general rules for the formation and the recommended structure of the Chart of Accounts are used. At the same time, the following fundamental provisions are observed: the working Chart of Accounts should be based on a general classification of accounts, which is based on the relationship of the five elements of financial statements; the working Chart of Accounts should provide for the reflection of economic facts according to the “expenses - output” method with the obligatory orientation of accounting to the calculation of the final result. The main elements of financial reporting include: assets, liabilities, equity, income and expenses (Fig. 13).

Rice. 16.

Therefore, according to the logic of reasoning, each company can limit itself to five groups of accounts. However, tax legislation and the need for calculation predetermined the appearance of two more groups of accounts in the recommended structure of the national Chart of Accounts. These are tax accounts and distribution accounts.

When compiling the Chart of Accounts, different code systems are used. The simplest of them has a two-digit coding. Depending on the size of the enterprise, a three-, four-, and even six-digit coding system can be used, which, along with the coding of synthetic accounts, provides for the coding of analytical accounts.

Usually, the developers of the working Chart of Accounts for an individual customer, in addition to the above-mentioned fundamental provisions, are guided by the accounting system existing in the company. As a consequence, they use one of the approaches to build the structure of the chart of accounts:

• 1) the two-circle principle provides for the allocation of two autonomous systems of accounts. One is designed to perform the functions and tasks of financial accounting, the other system provides a generalization of information within the framework of management accounting;
• 2) a one-circle (integrated, monistic) principle, according to which management accounting accounts correspond with financial accounting accounts within a single system of accounts, collectively providing the functions and tasks of the two accounting subsystems.

In UK economic entities, the two-circular accounting system has received limited distribution, since it is believed that it is effective only in large companies. If there are two independent accounting departments - financial and managerial, only the second principle applies. At the same time, financial accounting general characteristics property of the enterprise and all economic activities of the economic entity. It includes analytical accounting of settlements with suppliers, buyers, other legal entities or individuals, as well as analytical accounting of financial transactions. According to financial accounting, profit (loss) is determined and reports are prepared.

Financial accounting compares the costs with the release in the context of the functional accounts of the working Plan (production, transport, supply, sales, administration, etc.) and determines the financial result, and in the case of allocation of cost centers, responsibility centers, profits and investments, generalization of costs, output and results is carried out in the context of the named divisions.

Management accounting solves such problems as determining the expected income from a particular business transaction, making a number of forecasts, namely, the profitability of new types of products based on the study of sales markets, the financial condition of the company in the future, the financial assessment of alternative options for the development of the enterprise etc. In management accounting, the reflection of expenses associated with the release and determination of financial results is made in the context of products, internal and external segments of activity.

So, when studying the procedure for developing individual working Charts of Accounts, the following features of the accounting model used in the UK can be distinguished:

• lack of a generally accepted national chart of accounts;
• widespread use of only one-round system of accounts, which provides for the needs of management and compliance with the generally accepted principles of disclosure of information in reporting in the country;
• using the ability of the national accounting model to quickly calculate and control the process of forming the final result;
• insufficiency of distribution of the two-circular system of organization of accounting, which leads to the lack of the possibility of integrating the processes of planning, control and analysis into the accounting model of medium and small enterprises;
• generalization of costs based on their grouping by elements with a clear separation of value added. List of procedures corresponding to individual accounting objects

depends on the type of activity of firms, the degree of standardization of processing homogeneous operations with primary documents, other information carriers, and the level of development of internal standards that combine accounting procedures on the basis of an object of management and accounting.

Small and medium-sized enterprises mainly use the Journal of registration of business transactions and the General ledger of accounts. Larger firms and companies use a system where accounts are kept in different books (see Figure 14). The most common books used to maintain various types of accounts are the sales book (debit book) (Sales Ledger/Debtors" Ledger), purchase book (book of creditors) ( Purchase Ledger/Creditors" Ledger), cash book (Cashbook), nominal (main) ledger (Nominal/General Ledger). In addition to these books, registers are also maintained to help organize information about ongoing operations and control the maintenance of the main books: books, journals, books of primary records (Fig. 17).

Typically, businesses maintain primary ledgers such as daily sales ledgers. (Sales Daybook), daily shopping books (Purchase Ledger) daily sales return book (Sales

Returns Daybook), daily purchase return book ( Purchases Returns Daybook), cash book (Cashbook), petty cash book (for records of payments of small amounts of cash) (Petty Cashbook) and other magazines (Journals).

Rice. 17.

It should be noted that the cash book is both part of the system of accounts and a way to record transactions that have occurred.

Business transactions in accordance with the accounting cycle are recorded in the books of primary records, and then transferred to the accounts maintained in the corresponding books. Thus, information about debtors and creditors is transferred from the daily books of sales, purchases and returns of sold and purchased goods to accounts receivable (sales book) and creditors (purchase book) daily, and to General Ledger accounts - usually monthly. To control the correctness of records for debtors and creditors, at the end of the reporting period, control accounts are compiled, which are maintained according to a one-way system, performing a verification function and ensuring compliance with financial accounting data and control accounts. Where a nonconformity is found, corrective entries should be made.

At the end of the reporting period, according to private adjustments, general corrective entries are made using working calculations (accruals; prepayment distribution; other adjustments related to the accrual of a reserve for doubtful debts, the accrual of depreciation of fixed assets, etc.). These calculations are numbered in order. Formats of registers (books) are constructed in such a way that they make it possible to generate information on accounting accounts for reporting.

The totality of theoretical structural elements of the accounting process allowed us to apply the same approach to the study of the general content and logical relationship of the constituent parts of financial statements.

Rice. eighteen.

The purpose of UK financial reporting (according to the "Regulation on the principles of financial reporting" Statement of Principles for Financial Reporting is to provide information to a wide range of users, including investors, about the financial condition of the enterprise and financial performance, which is useful for evaluating the activities of managers and making economic decisions.

In addition to the formulation of the goal in the first block, one can single out the principles of the relationship between the results of calculations performed in financial accounting and the technique of preparing financial statements.

First of all, attention is drawn to the obligation to draw up all forms of reporting on the basis of a worksheet and a trial balance. Accountants in UK companies make adjustment entries on a worksheet, and only after that a trial balance is drawn up. Trial balance accounts are labeled according to the form of reporting they fall into (and the profit and loss account is divided into two parts: the formation of gross profit (trading account) and all other income and expenses (profit and loss account). In the trial balance opposite the items affected by the adjustments, the numbers of the corresponding working calculations are put in. The adjusted "Worksheet" allows you to synchronously draw up a balance sheet and a profit and loss account, taking into account the necessary changes.

The next moment of this block is the procedure for modifying and regrouping balance sheet elements using the example of calculating net assets:

Rice. 19.

Basic type of equality (accounting equation) modified by rearranging elements. In the regrouped version, it has the form from which the definition of capital or net assets of the enterprise follows. The net assets of the enterprise or equity capital is equal to the difference between the assets accepted for calculation and the liabilities accepted for calculation, and shows the share of owners in the assets of the enterprise. In the UK, the balance sheet form is based on this equality, which serves as the basis not only for the relationship of all elements of financial reporting, but also for building a financial accounting system as a whole.

The implementation of the designated goal, the principles of compilation and the use of a modified balance sheet allows companies to assess the ability of an enterprise to generate cash and its adaptive abilities to changing conditions and circumstances of the external environment. In the normative document Statement of Principles for Financial Reporting Qualitative characteristics of reporting information limited by the scope of the enterprise are established:

Relevance (relevance) of information (has the ability to influence the economic decisions of users, and is provided on time);

• reliability (provides users with a true representation of the actual state of affairs, reflects the essence of the events and operations that have occurred);
• cost-effectiveness (presentation of information in reporting should not exceed the cost of its preparation);
• comparability (allows users to see and evaluate commonalities and differences between the nature and results of business transactions and other events over different periods of time);
• materiality (results in missing information or misrepresenting it, which may affect the decision of users);
• neutrality (does not take into account the intentions of individual users and their biased assessments);
• prudence (observance of a sufficient degree of care when making a professional judgment).

AT FRS 102, which comes into force on January 1, 2015, the following qualitative characteristics of information have been added:

• comprehensibility ( understability) - the information presented in the financial statements should be understandable to interested users;
• priority of content over form (. substance overform) the facts of financial and economic activity are reflected in accounting based on their economic content, and not on their legal form;
• prudence (prudence)- some degree of prudence, which assumes that expenses and liabilities are not underestimated, and incomes and assets are not overstated;
• completeness ( completeness) - the information in the financial statements must be complete, without any omissions;
• timeliness ( timelines) - information must be available to decision makers before it loses its ability to influence decision making;
• balance between benefits and costs (balance between benefit and cost)- the benefits derived from the information must exceed the costs of obtaining it (author's translation).

As noted in the first chapter, the requirements for the qualitative characteristics of the content of UK reporting have almost the same parameters as in Russia.

However, in the accounting standard FRS 18 "Accounting policy" ("Accounting Policies") in more detail than in the previous document, the limitations imposed on the qualitative characteristics of reporting information, which arise from the inconsistency of categories, are presented. This is especially the case in the requirements of relevance and reliability, neutrality and prudence.

It should be noted that the implementation in practice of the requirements for reporting information we have considered predetermines the specifics of the preparation of financial statements in this country.

The third block of theoretical structural elements of financial reporting includes the composition of elements proposed by the “Regulations on Financial Reporting Principles”: assets, liabilities, share of owners, income and expenses. At the same time, the document, which is recognized as particularly significant in the country, contains certain interpretations of each element:

• assets ( assets)- rights or other access to future economic benefits controlled by the company as a result of past transactions or events;
• obligations ( liabilities) - obligations to transfer economic benefits as a result of past transactions or events;
• share of owners (ownership interest) residual value calculated by subtracting all liabilities from the value of all assets (in FRS 102 the concept of "capital" is used (equity))",
• income (gains)- an increase in the share of owners that did not result from contributions from owners;
• expenses (losses) - a decrease in the share of owners that did not occur as a result of withdrawals of owners.

So, many definitions have a completely different meaning than the interpretations adopted in the domestic system (detailed in the third paragraph of this chapter).

The recognition criterion is given in the fifth chapter of the Regulations and FRS 5 “Reflection in the reporting of the essence of operations” and constitutes the second component of the block. The main conditions for recognition will be “... if a transaction or other event gives rise to a new asset or liability or changes the amount of existing assets or liabilities, the effect of this transaction is recognized only if:

• there is sufficient evidence that a new asset or liability is being created or the value of an existing asset or liability is being changed;
• a new asset or liability, or changes to existing assets or liabilities, can be valued in monetary terms with a reasonable degree of reliability. The Regulations also highlight the stages of the recognition process.

I. Initial recognition.

II. subsequent reassessment.

III. Termination of recognition.

It is necessary to note the emphasis on the primacy of the recognition of assets and liabilities in relation to the recognition of income and expenses: income and expenses can be recognized only if there are recognized changes in assets or liabilities or the changes are the result of an investment or distribution of funds.

Derecognition occurs when an asset is used up (consumed), transferred, sold, or terminated, and when a liability is transferred, repaid, paid, or terminated.

Approaches to the valuation of assets and liabilities are the third component of the block under consideration and are presented in the sixth chapter of the Regulation. For each type of assets and liabilities, the Regulation interprets the obligation to select and justify the appropriate assessment: historical or current market value. Under the current market value, the Regulations understand: replacement cost; net realizable value; the present value of future cash flows. The Regulation states that the choice of a specific assessment should be determined by the need to ensure the fulfillment of the purpose of financial reporting, requirements for the quality of information, truthful and fair presentation of information and the nature of the relevant assets and liabilities.

The study omits consideration of the methodology of consolidated reporting, since it has its own subject, goals, structural elements, etc., which is beyond the scope of the dissertation. Nevertheless, let us dwell on the general issues of the preparation and content of consolidated financial statements, which are presented in the eighth chapter of the Regulation.

The consolidated financial statements include, in part, the data of those companies over which the parent company has significant influence. As a rule, this refers to joint ventures or companies holding from 20 to 50% of the shares of other companies. In the UK they are called associates. These are usually relatively small organizations. At the same time, according to the Regulation, certain branches are excluded from full consolidation if they have significant differences from other members of the group or control over them is limited.

So in the course of the study, it was revealed that the following methods of consolidation are used in the UK: purchases and mergers. When acquiring a company, the consolidation of financial statements of the parent and newly acquired companies will be carried out using the purchase method (acquisition). According to this method, at the date of acquisition is determined fair market price identifiable assets and liabilities acquired by the parent company. The cost of such assets is reflected in the accounting of the parent company under the item "Investments". The same method will be used to consolidate reporting indicators in the event of a takeover by one company by another.

Merge method ( merger) used in a business combination by exchanging the investor's shares for the shares of the investee. In this case, there is a change in the composition of the securities of the parent company, i.e. as part of equity without changes in the composition of assets and liabilities.

Foreign experience

ACCOUNTING IN FOREIGN COUNTRIES*

The article presents the features of national and international accounting and reporting standards of Israel, Slovakia, Latvia and Ukraine.

Keywords Keywords: standard, accounting, IFRS, law, reform, documents, accounting policy.

The textbook edited by Doctor of Economics, Professor, Honored Worker of Science and Technology of Ukraine F. F. Butynets, consisting of several parts, reveals the features of accounting, auditing and economic analysis, the specifics of regulatory accounting training programs and requirements for auditors. In addition, the manual highlights the basic rules for accounting for various objects in the countries mentioned, which makes the publication especially useful for students, practitioners and researchers of accounting, analysis and audit problems.

L. Davuliene, candidate of economic sciences, senior expert (Lithuania) took part in the writing of the first part of the manual, devoted to Belarus, Bulgaria, Lithuania, Russia, Ukraine and the Czech Republic; E. Druzhinina, assistant (Belarus); T. Zhilinskaya, postgraduate student (Belarus); L. Kaz-lauskienė, Director of the Institute of Accounting (Lithuania); V. Kivachuk, Candidate of Economic Sciences, Associate Professor (Belarus); S. Korotaev, Candidate of Economic Sciences, Associate Professor (Belarus); N. Malyuga, Doctor of Economics, Professor (Ukraine); I. Mackevicius, Doctor of Economics, Professor (Lithuania); L. Meizlik, Candidate of Economic Sciences, Associate Professor (Czech Republic);

* LLC "Publishing house FINANCE and CREDIT" thanks the team of authors for the material provided.

O. Mironova, Doctor of Economics, Professor (Lithuania); M. Musov, doctoral candidate (Bulgaria); I. Pelyak, assistant (Czech Republic); L. Potonya, Senior Lecturer (Belarus); L. Prokhorova, undergraduate (Belarus); O. Senokosova, Senior Lecturer (Belarus); Y. Slapik, Associate Professor (Belarus); V. Yurchik, Senior Lecturer (Belarus).

Azerbaijan, Israel, Latvia, Moldova, Poland, Slovakia and Ukraine are represented in the second part of the manual. M. Vashekova (Slovakia), O. Veksler (Israel) worked on its creation; K. Winiarska (Poland); I. Vitola (Latvia), A. Yesemchika (Latvia), V. Zarina (Latvia), G. Kalninya (Latvia), S. Keish (Latvia), I. Leibus (Latvia), N. Malyuga (Ukraine) , I. Mackevicius (Latvia), D. Mokosheva (Slovakia), A. Polomosh-nykh (Moldova), A. Soopa (Latvia), V. Shelaginov (Azerbaijan), M. Steinman (Israel), V. Tsurkanu (Moldova).

The third part study guide will be devoted to Armenia, Great Britain, Germany, Denmark, Spain, Italy, the Netherlands, the USA, France and Sweden.

In this article, we will only consider the application of national and international standards in Israel, Slovakia, Latvia and Hungary.

The development of Israeli accounting standards began even before the formation of the state. In 1931, back in the days of the British mandate, i.e. 17 years before the formation of the State of Israel, the Chamber of Auditors was created, the founders of which formulated the basic standards of accounting in the country.

Traditionally, the state, until recently, was not the initiator of change.

niya and innovations on the organization of accounting, with the exception of the Law on Securities, which regulates the annual and quarterly reporting of listed companies, as well as a number of laws and regulations governing accounting in budgetary organizations and their tax reporting. Ironically, the law regulating the activities of the Chamber of Auditors (the Law on Auditors) was adopted only a quarter of a century after the founding of the Chamber - in 1955.

The Chamber of Auditors has created a set of accounting standards based on English accounting standards.

In the 1980s. the British approach could no longer fully satisfy all the requirements of modern business. Gradually, the English accounting rules, which are considered conservative in world practice, were replaced by more mobile American standards.

In order to maintain the professional level of Israeli professionals, the Chamber of Auditors published "open professional opinions" or instructions that are essentially a guide to action in the field of accounting and auditing.

In the 1990s. with the entry into the era advanced technologies(high-tech) accounting standards around the world, including in Israel, have undergone major changes.

The issuance of company securities as a means of encouraging workers has become the norm in most industrial firms. The use of futures contracts to mitigate commercial and foreign exchange risks required more detailed explanation in the financial statements. The merger of enterprises did not proceed in the same straightforward manner as decades ago. These and other factors have compelled the best accounting and auditing professionals around the world to seek solutions that would meet today's business requirements.

In 1994, the Institute of Accounting Standards was formed under the leadership of the Israeli Chamber of Auditors.

Companies listed on the Tel Aviv Stock Exchange are required to comply not only with accounting standards, but also with the requirements of the Securities Act of 1968, which provide for

more stringent attitude to the rules of financial reporting in order to ensure its reliability.

The following accounting standards apply in Israel (Table 1).

In 2002, the European Union (EU) decided to draw up uniform accounting standards in force in the territory of the EU countries. Starting from 2005, all companies whose shares are listed on European stock exchanges are required to report in accordance with IFRS (SHIZ).

Since the shares of many Israeli companies are listed on both European and American stock exchanges, the Israel Accounting Standards Institute has allowed listed companies, since 2008, to present their financial statements in accordance with IFRS standards (SHIZ) even in cases where there are differences between IFRS ( Shiz) and Israeli standards approved by the Standards Institute, the Israeli Chamber of Auditors or the Securities Commission.

According to experts, the introduction of IFRS (SHIZ) will lead to both positive and negative results. On the one hand, the introduction of IFRS (IER8) is necessary for integration in the global market and to attract foreign investors. On the other hand, the new rules include elements that are very different from the principles of accounting conservatism currently in force in Israel. Thus, representatives of the Securities Commission believe that the introduction of IFRS (SHIZ) will “increase” on paper the profits of Israeli listed companies by an average of 8%. However, the current standards do not allow reflecting the real value of the company in the financial statements. The principle of asymmetry operates when the user of financial statements is in an unequal situation with the board of the company that compiles these reports.

So, for example, a construction company bought a land plot for development 15 years ago. The market price of the plot has increased ten times during this time, but only the company's management knows about this, since the true price of the plot is not reflected in the financial statements.

The introduction of IFRS (IER8) is intended to equalize the positions of management and the investor in

Table 1

Israeli Accounting Standards

Standard number Publication date Standard name

5 December 1999 Comments on the conclusion of the Chamber of Auditors 69 - "Charity Organizations"

issues of assessing the real value of the company (Table 2).

If there is no Israeli standard, then the American standard is used in the preparation of financial statements, and in case of its absence, the international standard.

SLOVAKIA

Characterizing Slovakia, it should be noted that since the political changes in 1989, when the process of transformation from a centrally planned economy to a market-oriented economy began, the following main changes in accounting legislation began:

In 1991 The Law on Accounting No. 563/1991 was drafted as the main accounting law in Czechoslovakia;

The harmonization process to prepare for entry into the EU required significant additions to the accounting legislation. It provided for the need to create a new law on accounting. Law No. 431/2002 "On Accounting" came into force on 01.01.2003. In addition to amending the Law on Accounting, some provisions on accounting procedures and the basis for the chart of accounts for those entrepreneurs who keep records in the double entry system have been changed. The changes were caused by the introduction of some IFRS rules:

International standards have been implemented on the basis of EU regulations related to the consolidated reporting of public companies, and since 2007 those legal

table 2

Comparative analysis of international and Israeli accounting standards

Standard name US GAAP IFRS Israeli Accounting Standards

Events after the financial statements date FAS 1 IAS 10 RAP 11, AC7

Organizational contracts for the construction of the ARV 45 IAS 11 AC 4

Taxes FAS 109 IAS 12 None

Sector reporting FAS 131 IAS 14 AC 11

Impact of price changes and inflation on reporting FAS 89 IAS 15 RAP 36, RAP 50, AS 13

Leasing FAS 13, FAS 28 IAS 17 None

Income accounting CON 5 IAS 18 The same

Benefits and emissions for employees FAS 43, FAS 87, FAS 106, FAS 112 IAS 19 RAP 19-20

Financial Accounting for Government Grants - IAS 20 RAP 35

Effect of changes in exchange rates on financial statements FAS 52 IAS 21 AC 13

Combinations FAS 141 IFRS 3 None

Accounting for financial costs FAS 34 IAS 23 AC 3

Accounting for transactions with related parties FAS 57 IAS 24 RAP 29

Accounting for pensions and severance pay FAS 35 IAS 26 None

Consolidated financial statements and investments in affiliated companies FAS 94 IAS 27 RAP 57

Financial reporting during hyperinflation FAS 89 IAS 29 RAP 36, RAP 50, AC 12

Reporting on joint transactions APB 18 IAS 31 RAP 57

Earnings per share FAS 128 IAS 33 PAP 55

Financial statements for the preliminary (quarterly) period APB 28 IAS 34 RAP 43, AS 14

Discontinued operations FAS 39 IAS 35 AC 8

Depreciation of the market value of assets FAS 144 IAS 36 AC 15

Financial instruments FAS 133, FAS 107 IFRS 3 None

Intangible assets FAS 2, FAS 142 IAS 38 The same

Real estate investment None IAS 40 AC 16

legal entities who must apply IFRS in the preparation of individual financial statements.

The Ministry of Finance of the Republic of Slovakia is the developer of national legislation.

List of national standards. Law No. 431/2002 "On Accounting" is the main legal document. The Ministry of Finance of the Slovak Republic issues regulatory documents rather to clarify than to clarify the norms of the law in the form of various regulations for certain types of enterprises. Various regulations have been developed for different business entities:

Decree of the Ministry of Finance of the Republic of Slovakia of December 16, 2002 No. 23054/2002-92, which sets out

explanations of accounting procedures and the basis of the chart of accounts for entrepreneurs who keep records in the double entry system;

Decree of the Ministry of Finance of the Republic of Slovakia dated 17.12.2002 No. 4455/2003-92, which sets out the requirements for the structure, description and content of financial statements for an individual legal entity and the amount of data presented in financial statements to be published by entrepreneurs who maintain financial records in double bookkeeping system;

Decree of the Ministry of Finance of the Republic of Slovakia dated 17.12.2002 No. 23586/2002-92, which sets out the requirements for the structure, description and content of financial reporting items for an individual legal entity and the amount of data displayed in financial statements that are subject to

publications by entrepreneurs who keep financial records in a simple entry system and are engaged in business or other profitable activities, where they display the amounts of expenses incurred to generate income when determining the income tax base;

Decree of the Ministry of Finance of the Republic of Slovakia No. 20359/2002-92, which sets out the accounting procedures and the basis of the chart of accounts for banks, subdivisions of foreign banks, the National Bank of the Republic of Slovakia, the deposit protection fund, securities traders, representative offices of foreign securities traders, the investment guarantee fund, asset management companies, representative offices of foreign asset management companies and mutual funds;

Regulation of the Ministry of Finance of the Republic of Slovakia No. 5292/2005-74, which establishes the features of the construction and meaning of items in financial statements, the degree of information disclosure. This document is applied by banks, branches of foreign banks, the National Bank of the Republic of Slovakia, a deposit protection fund, securities traders, representative offices of foreign securities traders, an investment guarantee fund, asset management companies, representative offices of foreign asset management companies, mutual funds;

Regulation of the Ministry of Finance of the Republic of Slovakia No. MF / 8338 / 2005-74, establishing the features of the construction and meaning of items of individual financial statements, the degree of disclosure of information for publication. This document is applied by the National Bank of the Republic of Slovakia;

Decree of the Ministry of Finance of the Republic of Slovakia dated 03.12.2002 No. 22212/2002-92, which defines the accounting procedures and structure of the chart of accounts for insurance companies, divisions of foreign insurance companies, companies that specialize in reinsurance operations, divisions of foreign reinsurance companies, management of insurers in Slovakia (the Slovak Insurers" Office);

Decree of the Ministry of Finance of the Republic of Slovakia No. 12643/2004-74 defines the features of the construction, the significance of financial statements for publication. Stra-

insurance companies, subdivisions of foreign insurance companies, companies that specialize in reinsurance operations, subdivisions of foreign reinsurance companies, the Slovak Insurers Administration;

Resolution of the Ministry of Finance of the Republic of Slovakia No. 24501/2003-92 dated 11.12.2003, defining accounting procedures, the structure of the chart of accounts for state organizations (budgetary organizations, state funds, municipalities);

Decree of the Ministry of Finance of the Republic of Slovakia No. 22502/2002-92 dated 10.12.2002 defines accounting procedures and chart of accounts for non-profit organizations;

Decree of the Ministry of Finance of the Republic of Slovakia No. 1407/2003-92 dated 25.12.2003, which defines the features of the structure, the meaning of financial statements items, the content of items and the degree of information disclosure in financial statements. It is used by state organizations, budgetary organizations, state funds, municipalities;

Decree of the Ministry of Finance of the Republic of Slovakia No. 22602-92 dated 16.12.2002 defines accounting procedures, the structure, description and content of financial reporting items for legal entities and the degree of disclosure of financial reporting information, is subject to public disclosure by entrepreneurs keeping records in the simple entry system, which are non-profit organizations;

Decree of the Ministry of Finance of the Republic of Slovakia dated November 30, 2005 No. MF/22930/2005-74 defines accounting procedures, the structure of the chart of accounts for companies specializing in health insurance;

Decree of the Ministry of Finance of the Republic of Slovakia dated 14.12.2005 No. MF 2293/2005-74 determines the specifics of the construction of financial statements, the meaning of their articles, content, and the degree of disclosure of financial statements that are subject to public disclosure. Used by companies that specialize in health insurance.

Accounting rules for business entities are established by Decree of the Ministry of Finance of the Republic of Slovakia No. 23054/2002-92 dated December 16, 2002 (Slovak Double Entry Accounting Details), which has the following structure:

1. General Provisions.

2. Accounting procedures for asset valuation.

3. Accounting procedures in specific situations.

4. Special Provisions Regarding Accounting Methods.

5. Class of accounts 0 - "Non-current assets".

6. Class of accounts 1 - "Stocks".

7. Class of accounts 2 - "Financial accounts".

8. Class of accounts 3 - "Accounts of receivables and payables".

9. Class of accounts 4 - "Accounts of capital and long-term liabilities".

10. Class of accounts 5 - "Expenses".

11. Class of accounts 6 - "Income".

12. Class of accounts 7 - "Summing balance accounts and off-balance accounts".

13. Provisional and final provisions.

Financial reporting rules

business entities are established by Decree of the Ministry of Finance of the Republic of Slovakia dated 12/17/2002 No. 4455/2003-92 (Slovak Financial Statements Details), containing the following parts:

1. Basic provisions.

2. Balance sheet and income statement.

3. Notes.

4. Provisional and final provisions.

Application of IFRS (LAS/IFRS) in the country.

As a member of the EU, the Slovak Republic is required to take a decision from the EU Commission regarding the application of IFRS from 1 January 2005.

All companies whose securities traded in the financial market must apply IFRS. However, for tax purposes, they must also calculate the tax base in accordance with the tax legislation of the Republic of Slovakia.

After the adoption of the Declaration of Independence (May 4, 1990), Latvia had to create a new legislative system. This marked the beginning of the transition from a centrally planned economy to a market economy, which

It led to a revision of the old institutions of power and legal legislation. The political situation dictated the creation of a new legal framework for accounting, tax policy and audit.

With the beginning of the reform of the accounting system in Latvia, it was necessary to decide on the accounting system. It was proposed to choose one of the models of the EU countries or to reform the current accounting system, taking into account market relations. The concept was based on the Danish system, which is due to the following:

The Danish accounting system most fully met the requirements of international standards;

Denmark, like Latvia, is a small country with a unified accounting and taxation system.

The first legislative acts on accounting were approved by the Supreme Council of Latvia on 10/14/1992:

Accounting Law;

Law on annual reports of enterprises.

Ministry of Finance of Latvia by Order No. 63 dated 13.05.1993

approved the unified chart of accounts. Subsequently, Latvian legislation was harmonized with the norms of EU directives, international and American standards. In Latvia, accounting regulations are constantly being improved, which serve as the basis for the preparation of financial statements in accordance with EU requirements.

The Latvian Accounting Standards (LSAS) are developed by the Latvian Accounting Council and approved by the Latvian Cabinet of Ministers.

International normative documents regulating accounting. Another 10 years

ago it seemed impossible to harmonize financial reporting standards in accordance with the requirements of the EU and other international standards. The requirements for the preparation of annual reports in each individual state were individual and different, like the states themselves. Some countries tried to preserve their individuality and defended the preservation of the norms of laws. It was considered a national identity, tradition, and part of independence. Find common points

touch in solving this problem was not easy. In the process of organizing and developing the pan-European market, these complex issues also had to be addressed.

On the basis of the fourth (93/22/EEC) and the sixth (89/29B/EEC) EU directives, work has begun on the harmonization of European accounting. These directives define the accounting standards in EU companies. The fourth directive is the most important document defining the ways, forms and methods of harmonization and unification of accounting and reporting in Western Europe. This directive contains a set of basic requirements that the accounting of private companies, joint-stock companies and limited liability companies must comply with, and also defines the requirements for the format (list and grouping of indicators) according to which the balance sheet and profit (loss) report must be drawn up .

The accounting policies of banks and insurance companies are based on other directives. European directives came into force in the late 1970s and early 1980s. The minimum level of comparability of EU accounting and reporting is provided by directives. In order to effectively change the accounting policy, the norms of directives have been incorporated into national legislation. This is a labor-intensive and long-term process for all states. At the same time, the directives provide freedom of interpretation, which leaves the opportunity to maintain differences in the financial standards of European countries.

The main organization involved in the development of international standards is a special International Accounting Standards Committee - IAC (IASC). The basis for the development of international accounting standards are those procedures that have historically developed in English-speaking countries, mainly in the USA and Great Britain. A common fact that emphasizes the growing importance of international accounting standards is the participation of SMEs in a joint program with the International Organization of Securities Commissions (IOSCO), which brings together the governing bodies of world stock exchanges.

Latvian Accounting Standards. The traditions of each state in the field of accounting differ significantly from the requirements of IFRS. This creates significant difficulties for the transition from the application of national accounting standards to the application of international ones. Latvia can be attributed to the group of countries in which national accounting has developed in close accordance with the requirements of IFRS. In Latvia, work has begun on the development of national accounting standards that would be based on IFRS. Under the LAPR (Latvian Association of Sworn Auditors) a commission was established that was involved in the development of Latvian standards. Currently LTKSFU (Latvian Financial Accounting Standardization Technical Committee) is responsible for developing national accounting standards. It is imperative for companies to take into account and comprehend in a timely manner all aspects related to ensuring the compliance of financial statements with the requirements of international standards. This is due to the fact that when preparing an annual report, accountants must comply with the norms of the Latvian Accounting Standards (LAS). At the initial stage, it is necessary to assess the difference between existing accounting practices and international requirements. Annual reports for 2007 include the requirements of eight standards already in force (a total of nine standards have been approved):

1. Basic principles for the preparation of financial statements.

2. Cash flow statement.

3. Events after the balance date.

4. Changes in accounting policies, changes in accounting estimates and correction of errors from previous years.

5. Long-term contracts.

6. Income.

7. Fixed assets.

8. Savings.

9. Investment property.

is given in table. 3.

The provisions of these LAS are used in the process of making decisions regarding the management of property by the management of a business entity (Fig. 1).

Table 3

LSBU Summary

No. 1 “Basic Principles for the Preparation of Financial Statements” (Decision of the Council for Accounting and Accounting dated 05.02.2004, in force 13.02.2004) Summarizes and explains the main principles for the preparation of financial statements. The standard contains guidance on issues that have not yet been regulated, it defines the elements of financial statements, provides signs of the quality of financial information, the structure of the financial statement, information on the formation of a statement of changes in equity, reflection of accounting policies and other aspects of the preparation of financial statements. The standard applies to the financial statement of an individual entity prepared in accordance with the Law on Annual Reports and the consolidated annual report prepared in accordance with the Law on Consolidated Annual Reports. The standard uses the following terms: assets, equity, income, liabilities, revenue, acquisitions, expenses, losses. This concerns the definition of accounting objects as elements of accounting policies and their disclosure, indicating the content of accounting entries. Management selects and applies accounting policies in accordance with all requirements of each applicable LAS. Information must be disclosed in a way that is relevant, reliable, comparable and understandable. Additional explanations are required to enable users of the financial statement to understand the impact of specific transactions or events. Appendix to LAS No. 1 provides illustrated examples of the statement of changes in equity and the development of accounting policies

No. 2 “Cash Flow Statement” (Decision of the Board of Accountants dated 05.02.2004, in force 13.02.2004) Describes the preparation of a cash flow statement for enterprises that prepare their financial statements in accordance with the Law “On Annual Reports”. The standard characterizes cash flows that are reported as operating activities and as investing or financing activities, defines terms related to the cash flow statement, and explains how certain features of a transaction are reflected in the cash flow statement. The scheme of the statement of cash flow in the next reporting year is changed only if it is required by special circumstances and if the report was prepared according to one scheme for at least two consecutive years. The annex to the standard No. 2 provides an example that allows you to trace the preparation of a cash flow statement based on data from the situation described in the example.

No. 3 “Events after the balance sheet date” (decision of the Accounting Council dated 12/08/2004, effective from 12/18/2004) Establishes the procedure in accordance with which the enterprise reflects the events that became known in the period of time between the end of the reporting year and the date of approval of the financial report for publication: adjusting events that provide evidence of circumstances that existed at the balance sheet date; non-adjusting events that are indicative of circumstances that arose after the balance sheet date. It is important for users of financial statements to know when a financial statement is authorized for publication because it does not reflect events after that date. Each material non-adjusting event after the balance sheet date is reported by the type of event, a rough estimate

No. 4 “Changes in accounting policies, changes in accounting estimates and errors of previous years” (decision of the Accounting Council dated February 9, 2005, effective from March 15, 2005) The principle of materiality provides that all significant information should be reflected in accounting and reporting, on which the main indicators of the enterprise depend. Irrelevant information can be ignored. Materiality is recommended to be set in the accounting policy of the enterprise, indicating its size as a percentage

No. 5 “Long-term contracts” (decision of the Accounting Council dated July 12, 2005, in force since 2006 reporting year) Applies to long-term contracts. The contracts provide for the creation of assets, the date of commencement and completion of the work. They may be fixed price, where the contractor agrees to a fixed contract price or rate for each unit of output. Contracts may also include costs plus a markup, where the contractor is reimbursed for allowable or otherwise defined costs plus interest. Income related to a long-term contract includes the original cost of income stipulated in the contract, deviations from the contract, changes in claims and incentive payments.

Continuation of the table. 3

LSBU Summary

Income is measured at fair value or receivable. The estimate may be revised as a result of events and the resolution of uncertainties. In the calculation of profit or loss, the following are recognized: depreciation of construction equipment during its downtime, expenses for preparing a proposal for participation in a tender that was lost; accrual for doubtful receivables under previously completed contracts. The balance sheet recognizes settlements with customers, which include the debt under a previously completed contract, minus accumulations associated with the possibility of losing this debt, as well as accumulated receipts - income recognized in the reporting period under work contracts (no invoices issued)

No. 6 “Income” (decision of the Accounting Council on 07.12.2005, in force since the reporting year 2007) Establishes the procedure for recognizing income from the sale and transfer of assets for use by other persons. This Standard does not address income from long-term (LAS No. 5) and lease agreements, dividends from consolidated financial investments (accounted for in accordance with the equity method), as well as changes in the fair value of financial assets and liabilities, the value of other current assets, changes in value at the fair value of biological assets and mining. The transaction is usually recognized on a case-by-case basis. Revenue recognition applies to certain constituent parts one deal. For example, if the sale price of a product includes a notional amount for its further maintenance, revenues are measured at the actual value of the contract received or receivable, taking into account discounts. Income is the amount received or receivable in cash or its equivalent. Otherwise, the actual value of the award may be less than the nominal amount. For example, issuing an interest-free loan to the buyer, receiving an IOU from the buyer with an interest rate below the market interest rate. The actual value of the award is determined by discounting all amounts to be received in the future

No. 7 “Fixed Assets” (decision of the Accounting Council dated 21.12.2005, effective from the reporting year 2006) The standard defines and clarifies the accounting for fixed assets and the presentation of information related to fixed assets in financial statements. The standard does not apply to land, a building or part of it accounted for as investment property, biological assets, minerals, similar non-renewable resources, rights to extract similar resources. Fixed assets are recognized if future economic benefits are expected from their use at the enterprise. Also, fixed assets are recognized if the time of their beneficial use exceeds one cycle of the ordinary activities of the enterprise and their value can be reliably estimated. An asset is recognized when the entity assumes all the risks and rewards associated with the asset. The following information is disclosed in the appendix of the financial report for each balance sheet item for fixed assets: the applied valuation principles; applied wear methods; useful life or applicable depreciation rates; report on the movement of fixed assets; the presence and extent of restrictions on property rights and the book value of fixed assets pledged as security for obligations; cadastral value of real estate; amount of liabilities on fixed assets

No. 8 “Accumulations, possible liabilities and possible assets” (decision of the Accounting Council dated 12/21/2005, effective from 2006 reporting year) Determines the criteria for recognition and evaluation of savings, possible liabilities and possible assets, requirements for disclosure of information in the appendix of the financial report. The standard does not apply to savings arising from financial instruments valued at fair value; savings formed in connection with executable contracts, with the exception of encumbrance contracts; savings that are subject to the requirements of other LAS. Bad debt provisions are asset value adjustments that are not covered in this Standard. Accrued liabilities for goods and services received are also not covered in this Standard.

The end of the table. 3

LSBU Summary

No. 9 “Investment property” (decision of the Accounting Board dated 20.06.2007, effective from 2008) Recognizes investment property as an asset only when it is probable that the firm will receive future economic benefits associated with investment property. property; the value or fair value of the investment property can be measured reliably

Provisions are reviewed at each balance sheet date and adjusted to reflect the best estimate available at the balance sheet date, if possible. For correction, profit or loss calculation items are used. When savings are discounted, their value grows every year. This equates to interest payments on expenses (Figure 2).

Are there existing liabilities due to the event giving rise to the liability?

Does it exist

possible commitment?

Is an outflow of economic goods possible?

Is it possible to reliably calculate the amount?

Accumulation is recognized

Potential obligation disclosed

Rice. 1. Decision tree

Is the property _for sale?_

Is the property used by the owner?

Is the property being created _currently?_

This property is _investment_

Apply Standard "Inventory"

Use basic accounting procedures

use basic accounting procedures

Use the basic accounting treatment (at cost)

Rice. 2. Decision tree for accounting for ownership in accordance with LSRS No. 9

Apply LSFR No. 9

(fair value)

It should be noted that the fair value shown on the balance sheet should reflect the actual market position and condition at the balance sheet date, and not at an earlier or later date. It follows, in particular, that the cost of any future capital expenditure to improve the property and the corresponding expected increase in the level of economic benefits should not be included in fair value at a given date. The Standard requires that an entity that begins measuring its investment property at fair value must continue to measure it the same way, even if such estimates are less reliable.

Interrelation of LSBU with IFRS.

The role of IFRS is growing every year around the world. This is because IFRS are generally accepted accounting and reporting principles. The purpose of IFRS is to coordinate accounting standards in order to minimize national differences in reporting and, on this basis, to ensure the comparability and reliability of information for decision-making by its users.

The standards are not a normative document regulating specific methods of accounting and reporting standards, but are advisory in nature. They enable Latvian specialized organizations to form their accounting policies by choosing specific accounting rules and reporting procedures.

Does not affect the financial statement

Economic differences and differences in the environment determine the difference between reporting systems (for example, in terms of their regulation), in accounting estimates, as well as in the orientation of financial reporting. Together, these elements influence national reporting standards and practices.

For Latvian entrepreneurs, disclosure of information is an important factor, as existing owners are interested in investing in business development. Two groups of firms have appeared in Latvia. The first group consists of companies whose activities are aimed at obtaining funds in the global financial markets, so they began to apply the rules for reporting under IFRS. Other large group- local companies (mainly small and medium-sized) that would like to continue to use national SBUs.

International standards are used by Latvia as a basis for the development of national standards. Allocate the objective advantages of IFRS over national accounting standards (Table 4).

However, the shortcomings of IFRS should also be noted. These include, in particular, the following:

The generalized nature of the standards, providing for diversity in accounting methods;

Lack of detailed instructions, explanations and examples of application of standards to specific situations;

Orientation of IFRS to a developed market economy, which makes it difficult for developing countries to use them;

The application of IFRS cannot be partial, i.e. the reporting must comply with the requirements of each applicable standard.

Latvian accounting legislation allows the preparation of financial statements in accordance with IFRS. This is one of the simplest and most promising ways to disseminate IFRS.

Normative regulation of accounting in Ukraine is represented by five levels (Table 5) and is carried out in order to implement the state policy in the field of accounting, as well as to determine general directions organization, accounting, preparation and reporting.

In accordance with the documents given in table. 5, regulates the general requirements for accounting and reporting, sub-

Table 4

Comparative analysis of IFRS and LAS

IFRS LSBU

Summarize the best knowledge and experience accumulated by accountants from different countries Summarize the knowledge and experience accumulated by accountants in Latvia

In the course of development, the stages of public discussion and “pilot” application are carried out. Developed and approved by the decision of the Accounting Council.

The standards are not “tied” to the peculiarities of accounting regulation in individual countries “Tied” to the peculiarities of accounting regulation in Latvia

Ensure the comparability of accounting documentation between companies on a global scale, as well as being a condition for the availability of accounting information for external users. Ensure the comparability of accounting documentation between Latvian companies. Information available to external users provided by the business register

Allows companies to significantly reduce the costs of preparing consolidated (consolidated) reports Consolidated (consolidated) reports are prepared on the basis of the Law “On Consolidated Annual Reports”

Easy to understand for users of financial information Standards are easy to understand for accountants

Constantly improving The practice of introducing standards does not have a long period (since 2004), so the issue of improvement is not relevant yet

Table 5

Levels of regulatory accounting regulation in Ukraine

Level of regulation, subjects List of documents

First level Supreme Council of Ukraine Economic Code, Civil Code, Code of Labor Laws, Customs Code, Code of Criminal Procedure, Criminal Code, Code of Ukraine on Administrative Offenses; Laws of Ukraine (LU) “On Accounting and Financial Reporting in Ukraine”, “On the Taxation System, “On Taxation of Enterprise Profits”, “On Value Added Tax”, “On Personal Income Tax”, “On Wages” , "On holidays", "On securities and the stock exchange", "On foreign economic activity", "On the fee for compulsory state pension insurance"

Second level President of Ukraine, Cabinet of Ministers of Ukraine Decree of the Cabinet of Ministers of Ukraine "On the calculation of average wages (income) for the calculation of payments for compulsory state social insurance", decree of the President of Ukraine "On a simplified system of taxation, accounting and reporting"

Third level Ministry of Finance of Ukraine Provisions (standards) of accounting. Chart of accounts for accounting of assets, capital, liabilities and business operations of enterprises and organizations. Instructions on the application of the chart of accounts for accounting of assets, capital, liabilities and business operations of enterprises and organizations. Regulation on documentary support of records in accounting

Fourth level Ministry of Finance, National Bank, State Tax Administration, State Statistics Committee, State Committee for Metrology, Standardization and Certification Instruction of the State Statistics Committee of Ukraine on the statistics of the number of employees. Regulations on conducting cash transactions in the national currency in Ukraine. Instructions for non-cash payments. Guidelines for accounting of fixed assets. State classifier of Ukraine "Classification of fixed assets". Instructions for the inventory of fixed assets, intangible assets, inventory items, cash, documents and calculations. Guidelines for the use of accounting registers. Methodological recommendations for accounting stocks. Guidelines for Accounting for Biological Assets

Fifth level The owner (manager) of the enterprise in cooperation with the accountant Decisions (orders, orders, regulations) regarding the organization and maintenance of accounting at the enterprise

accounting organization projects, accounting documents and registers, duties of the chief accountant, accounting rules for its individual objects, list and correspondence scheme of accounting accounts, etc.

The main accounting regulation document is the Law of Ukraine “On Accounting and Financial Reporting in Ukraine”, which defines the legal principles of regulation, organization, accounting and financial reporting. In particular, the law provides: 1) state regulation accounting and financial reporting in order to protect the interests of users, improve accounting and reporting;

2) application of the principles and methods of accounting and financial reporting, which are determined by national accounting regulations (standards) (hereinafter - P (S) BU) and do not contradict IFRS;

3) development by sectoral ministries and other executive authorities of methodological recommendations regarding the application of national P (S) BU, taking into account industry specifics;

Methodological Council for Accounting is an advisory body under the Ministry of Finance of Ukraine, in whose competence

according to the Law of Ukraine “On Accounting and Financial Reporting in Ukraine” includes:

Organization of the development and review of draft national P (S) BU, other legal documents related to accounting and financial reporting;

Improvement of organizational forms and methods of accounting in Ukraine;

Methodological support for implementation modern technology collection and processing of accounting and economic information;

The general nature of many of the rules and P(S) accounting provides accountants with a wide field for professional judgment and encourages them to make important decisions on their own in problematic accounting situations. The accountant has the right to independently determine the cost limits for recognizing assets as other non-current tangible assets with a simplified system of their depreciation, the use of depreciation methods for tangible and intangible non-current assets, methods for estimating inventories when they are written off, the procedure for forming reserves and funds at the expense of enterprise profits.

With the introduction of the Law of Ukraine “On Accounting and Financial Reporting in Ukraine”, the owner of the enterprise, together with the chief accountant, got the opportunity to implement their policy in the field of accounting

Compliance with Ukrainian P

topics of independent choice of accounting methods and procedures, i.e., the formation of an enterprise accounting policy.

National and international accounting and reporting standards

The relevance of harmonization in the field of accounting is determined by the Agreement between Ukraine and the EU, which provides, in particular, for the implementation by Ukraine of measures to adapt legislation in the field of accounting and auditing. Specific measures in this direction are contained in the Action Plan "Ukraine-EU" (21.02.2005), which provides for the need to adapt and ensure the effective implementation of the basic principles that are in line with international rules and standards, as well as EU rules and standards.

The government has adopted relevant resolutions and decisions aimed at the application of IFRS in Ukraine, in particular:

Application since 2003 of IFRS by issuers whose securities are placed on institutionalized stock markets, professional stock market participants, general investment institutions;

Transition of open joint-stock companies to the application of IFRS since 2004-2005.

To implement the Accounting Reform Program using IFRS (Decree of the Government of Ukraine dated October 28, 1998), a comprehensive package of regulatory and methodological accounting framework was approved, including 31 Regulations (standard)

Table 6

BU international standards

P (S) BU 1 "General requirements for financial reporting" Purpose, composition, principles of preparation of financial statements and requirements for the recognition and disclosure of its elements; the time of submission of financial statements to the relevant bodies of the Conceptual framework. Conceptual framework for the preparation and presentation of financial statements1. IAS 1 "Presentation Financial Statements" (MSFZ (IAS) 1 "Presentation of Financial Statements")

P (S) BU 2 "Balance" Content and form of the balance sheet, general requirements for the disclosure of balance sheet items IAS 1 "Presentation Financial Statements" (IFRS (IAS) 1 "Presentation of Financial Statements")

P (S) BU 3 "Report on financial results" Content and form of the report on financial results, general requirements for disclosure of report items, determination of profit (loss) for the reporting period

Continuation of the table. 6

Ukrainian standard Summary of the standard Analogue of the international standard

P (C) BU 4 “Cash Flow Statement” Content and form of the cash flow statement, general requirements for disclosure of its items, cash flow as a result of operating, investing and financial activities IAS 7 “Cash Flow Statements” (IFRS ( IAS) 7 Cash Flow Statements)

P (C) BU 5 "Statement of Equity" Content and form of the cash flow statement, general requirements for disclosure of its items, cash flow as a result of operating, investing and financial activities

P (S) BU 6 “Correction of errors and changes in financial statements” Procedure for correcting errors and changes in accounting estimates, changes in accounting policies, events after the balance sheet date (list of events) and ways to adjust assets and liabilities IAS 8 “Accounting Policies, Changes inAc-counting Estimates and Errors” (IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”). IAS 10 "EventsAfter Balance Sheet Date" (IFRS (IAS) 10 "Events after the balance sheet date")

I (C) BU 7 "Fixed Assets" Principles for the formation of accounting information on fixed assets and other non-current tangible assets, disclosure of information about them in financial statements, recognition, valuation, revaluation, depreciation; disposal of property, plant and equipment IAS 16 Property, Plant and Equipment (IAS 16 Property, Plant and Equipment)

I (C) BU 8 “Intangible Assets” Principles for the formation of information on intangible assets in accounting, recognition and evaluation, revaluation, amortization, depreciation of intangible assets, disposal of intangible assets IAS 38 “Intangible Assets” (IAS 38 “Intangible assets")

I (C) BU 9 Reserves initial estimate inventory, valuation of inventory on disposal IAS 2 Inventories (IAS 2 Inventories)

I (C) BU 10 “Accounts Receivable” Principles for the formation of information on receivables in accounting, recognition and valuation of receivables, current receivables, allowance for doubtful debts IAS 39 “Financial Instruments: Recognition and Measurement see also” (IAS) 39 "Financial Instruments: Recognition and Valuation")

I (C) BU 11 “Liabilities” Methodological principles for the formation of information on liabilities in accounting and its disclosure in the financial statements

I (C) BU 12 “Financial Investments” Principles for the formation of information on financial investments in accounting, its disclosure in financial statements; assessment of financial investments as of the balance sheet date, accounting for financial investments in associates and subsidiaries; accounting for financial investments for joint ventures IAS 28 Investments in Associates (IAS 28 Investments in Associates). IAS 31 Interests in Joint Ventures (IAS 31 Financial Statements of Interests in Joint Ventures)

Continuation of the table. 6

Ukrainian standard Summary of the standard Analogue of the international standard

P (C) BU 13 "Financial Instruments" Principles of formation of information on financial instruments in accounting; their recognition and measurement IAS 32 Financial Instruments: Disclosure and Presentation (IAS 32 Financial Instruments: Disclosure and Presentation). IAS 39 Financial Instruments: Recognition and Measurement see also (IAS 39 Financial Instruments: Recognition and Measurement). IFRS 7 Financial Instruments: Disclosures (IFRS 7 Financial Instruments: Disclosures)

P (S) BU 14 "Leases" Methodological bases for the formation in accounting of information on the lease of non-current assets and its disclosure in the financial statements IAS 17 "Leases"

P (S) BU 15 “Income” Recognition and classification of income, assessment of income, principles for the formation in accounting of information on income from ordinary and extraordinary activities and its disclosure in the financial statements IAS 18 “Revenue” (IFRS (IAS) 18 “Income” )

P (C) BU 16 "Expenses" Principles of formation in accounting of information on the expenses of the enterprise and its disclosure in the financial statements; expense recognition, composition of expenses IAS 23 Borrowing Costs (IAS 23 Borrowing Costs)

П(С) BU 17 "Income Tax" (IAS) 12 Income Taxes)

P (S) BU 18 "Construction Contracts" Principles for the formation of accounting information regarding construction contracts, recognition and evaluation of income and expenses under construction contracts IAS 11 "Construction Contracts" (IAS 11 "Construction Contracts")

P (S) BU 19 “Business Combinations” The procedure for displaying in accounting and reporting the acquisition of other enterprises, goodwill arising from the acquisition, merger of enterprises, as well as disclosure of information on business combinations, accounting for the acquisition; business combination accounting IFRS 3 Business Combinations (IFRS 3 Business Combinations)

P (C) BU 20 “Consolidated Financial Statements” The procedure for preparing consolidated financial statements; general disclosure requirements for the preparation of consolidated financial statements in the notes to the statements; conditions for non-provision of consolidated financial statements IAS 27 “Consolidated and Separate Financial Statements” (IAS 27 “Consolidated and separate financial statements”)

P (C) BU 21 "The impact of changes in foreign exchange rates" Methodological bases for the formation in accounting of information on transactions in foreign currency and the display of indicators of financial statements of business units outside Ukraine in the monetary unit of Ukraine IAS 21 "Effects Changes in Foreign Rates" (IFRS (IAS) 21 "The Effects of Changes in Foreign Exchange Rates")

Continuation of the table. 6

Ukrainian standard Summary of the standard Analogue of the international standard

P (S) BU 22 "The Impact of Inflation" The procedure for adjusting public financial statements due to inflation IAS 29 "Financial Reporting in Hyperinflationary Economies" (IAS 29 "Financial Reporting in Hyperinflationary Economies")

P (S) BU 23 “Related Party Disclosures” Methodological principles for the formation of information about related party transactions and their disclosure in financial statements IAS 24 “Related Party Disclosures” (IAS 24 “Related Party Disclosures”)

P (S) BU 24 "Earnings per share" Methodological principles for the formation of information in accounting on net income per ordinary share IAS 33 "Earnings per Share" (IFRS (IAS) 33 "Earnings per share")

P (C) BU 25 "Financial Report of Small Business Entities" Content and form of financial statements of SMP - Balance (form No. 1st) and income statement (form No. 2nd). The procedure for filling out report items, elements of operating expenses No analogue

P (S) BU 26 “Payments to employees” Methodological principles for the formation in accounting of information on payments (in monetary and non-monetary forms) for work performed by employees, and its disclosure in the financial statements IAS 24 “Related Party Disclosures” (IFRS (IAS ) 24 “Related Party Disclosures”). IAS 19 Employee Benefits (IAS 19 Employee Benefits). IAS 26 Accounting and Reporting Retirement Benefit Plans (IAS 26 Accounting and Reporting Retirement Benefit Plans)

P (C) BU 27 “Non-current assets held for sale and discontinuing operations” Methodological principles for the formation in accounting of information about activities that are terminated and its disclosure in the financial statements IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations » (IFRS 5 Non-current Assets Held for Sale and Discontinued Operations)

P (S) BU 28 "Impairment of Assets" Methodological principles for the formation in accounting of information on the decrease in the usefulness of assets and its disclosure in the financial statements IAS 36 "Impairment Assets" (IFRS (IAS) 36 "Impairment of Assets")

P (S) BU 29 "Financial reporting by segments" The procedure for the formation of information on income, expenses, financial results, assets and liabilities of reportable segments and its disclosure in the financial statements IFRS 8 "Operating Segments" (IFRS 8 "Operating Segments" )

P (S) BU 30 "Biological Assets" Methodological principles for the formation of information on financial expenses in accounting and its disclosure in the financial statements IAS 41 "Agriculture" (IFRS (IAS) 41 " Agriculture»)

P (C) BU 31 "Financial expenses" Methodological principles for the formation of information on financial expenses in accounting and its disclosure in the financial statements IAS 23 "Borrowing Costs" (IAS 23 "Borrowing Costs")

P (S) BU 32 Investment Property

No analogue IAS 20 Accounting for Government Grants and Disclosure Government Assistance (IAS 20 Accounting for Government Grants and Disclosure of Government Assistance)

Also IAS 30 “Disclosures in Financial Statements Banks and Similar Financial Institutions” (IAS 30 “Disclosures in the Financial Statements of Banks and Similar Institutions”)

» IAS 34 Interim Financial Reporting (IAS 34 Interim Financial Reporting)

The end of the table. 6

Ukrainian standard Summary of the standard Analogue of the international standard

» IFRS 1 First-time Adoption International Financial Reporting Standards (IFRS 1 First-Time Adoption of IFRS)

» IFRS 2 Share-based Payment

» IFRS 4 Insurance Contracts (IFRS 4 Insurance Contracts)

» IFRS 6 Exploration for and Evaluation Mineral Resources (IFRS 6 Exploration for and Evaluation of Mineral Resources)

1 Not a financial reporting standard.

accounting based on international standards (Table 6).

All standards provide for the disclosure of information about accounting items in the Notes to the annual financial statements,

which, with indicators in numerical (total) terms, are included in the annual financial statements No. 5 “Notes to the annual financial statements”, No. 6 “Financial statements by segments”.

(To be continued)