Application of the principle of rationality in the conditions of accounting according to Federal Accounting Standard (FSBU) 6/2020 - Fixed Assets

Abstract

Subject. This article discusses the possibility of applying the principle of rationality in accounting in accordance with the provisions of the Russian Federal Accounting Standards - FSBU. Objectives. The article aims to analyze if it is possible to apply the principle of rationality in accounting, as provided for in Clause 6 of FSBU (PBU) 1/2008 - Accounting Policy of the Organization, in addition to those provisions in which the requirement to regulate through the development of materiality criteria is expressly established by FSBU 6/2020 - Accounting for Fixed Assets. Methods. For the study, we used the methods of analysis, synthesis, and logical research. Results. On the basis of an analysis of the possibility of applying the principle of rationality in relation to the requirement for the verification of depreciation elements, the article offers practical recommendations for the development of materiality criteria and the provisions of the Accounting Policy providing for the application of the principle of rationality in relation to the requirement for annual verification of depreciation elements. Conclusions and Relevance. As shown by the practice of applying FSBU 6/2020 over the past year and a detailed study of the requirements imposed by this standard, it can be argued that there is a significant increase in the complexity of the formation and presentation of the necessary high-quality accounting information on fixed assets. The results of the study can be used to improve the quality and reliability of accounting information on fixed assets, as well as reduce labor intensity in meeting the requirements for annual verification of depreciation elements.