Capital Investments Accounting in the Context of Ongoing Legislative Reforms

Abstract

The accounting regulatory system in the Russian Federation is being currently updated, which results in introduction of a number of new federal accounting standards. Implementing new regulations is always fraught with difficulties, which in this case include emerging of different types of assessment of accounting objects, and changing order of calculation of accounting indicators. The purpose of this article is to review the provisions of FSBU 26/2020 «Capital Investments» which is one of the five federal accounting standards effective as of 2022. The study is concluded with an analysis of regulatory controls before the standard came into force and in accordance with FSBU 26/2020, and the draft amendments to it. It has been proposed to differentiate capital investments by time and method of their implementation, as well as by their direction. One of the problems of applying the standard in practice is that it is required of an accountant to develop a professional judgment in relation to such issues as: defining the type of restoration recognized as an object of capital investments, assessment of fair and discounted value of capital investments, calculation of their depreciation and estimated liability arising from their implementation.