Improving the methodology for calculating provision for impairment of financial investments

Abstract

Currently, in the context of restrictive sanctions and the withdrawal of global foreign companies from the Russian market, a situation has arisen where domestic companies are acquiring entire groups of interconnected vertically integrated holdings or groups united into one single business. A peculiarity of such transactions is that the subject of the acquisition agreement is usually the shares of the parent company, which is the actual owner of the business. Thus, the valuation of the shares of the parent company includes the value of shares and subsidiaries included in the holding. At the same time, the currently valid PBU 19/02 “Accounting for Financial Investments” (hereinafter referred to as PBU 19/02) does not offer any features in the subsequent assessment of such financial investments, as well as in the order of depreciation of such financial investments, and the determination of their estimated cost. This article is devoted to improving the methodology for calculating estimated reserves for such financial investments. When carrying out the research, the following methods were used: analysis and synthesis, comparison, systematic approach, logical research method based on a creative information approach. As a result of the research carried out, this article proposes the author’s approach to improving the methodology for calculating valuation reserves for the depreciation of financial investments, providing a more reliable calculation of such a reserve and meeting the requirements of modern times. The research results and the proposed methodology will be of interest to a wide range of readers and practitioners in the field of accounting, as well as the scientific community engaged in research in the field of problems of valuation reserves. The results obtained can also be used in the educational process of higher educational institutions and applied in the development and improvement of relevant regulatory documents on accounting and reporting, including in the formation of accounting policies of companies.