Ensuring financial statement accuracy through adjusting the value of reserves in construction organizations

Abstract

This paper substantiates the need to create reserves for reducing the value of material assets in construction organizations in order to comply with the requirements for the reliability of financial statements. The issue of creating reserves is considered from the standpoint of the features of the construction organization activities. The necessity of creating such reserves for construction organizations conducting warehouse accounting is proved. Subject of the study: features of accounting for inventories in construction organizations and their reflection in the financial statements in accordance with the principles of reliability. Objectives: to justify the need to create reserves for reducing the cost of inventories in construction organizations. Materials and methods: the question of creating reserves is considered from the point of view of the requirements of Russian accounting standards and international standards in relation to the valuation of stocks in a warehouse. Results: the reasons for creating reserves for reducing the value of material assets are formulated, the features of stock accounting in construction organizations are studied. Conclusions: the degree of reliability of the financial statements significantly increases when reflecting the value of inventories in the balance sheet in a net assessment, taking into account reserves for reducing the value of material assets.