PRİNCİPLES OF ACCOUNTİNG ORGANİZATİON AND REPORT FORMATİON İN SMALL AND MEDİUM-SİZED BUSİNESS ENTİTİES İN MODERN CONDİTİONS

Abstract

According to international accounting theory, intangible assets represent various rights to intellectual property objects and the use of natural resources. In accounting terminology, the phenomenon of intangible assets is characterized as long-term assets that do not have a physical form, but have value and bring profit to small and medium-sized enterprises. The concept of intangible assets such as “business image of the enterprise”, “company value” or “goodwill”, which shows the difference between the book value of the property of small and medium enterprises purchased and its market (sale) price, is considered completely new for practicing accountants. The existence of certain differences of opinion on the procedures for assessing the business image of small and medium-sized enterprises and gradually erasing its value in both national and international accounting practice proves once again that the above-mentioned terms have a complex nature. However, in modern times, the study of this phenomenon, the correct understanding of its essence and its application in the country’s accounting practice, the development of a single terminology, and the adaptation of financial statements to international standards are considered relevant. As a rule, intangible assets are reflected in accounting with actual costs, and in statistical reports with residual value. During the analysis of the financial situation of small and medium-sized enterprises, that item of the asset of the accounting balance is defined as a “risky” asset due to its intangible nature and the relativity of the concept of “useful life” (depreciation is calculated for intangible assets taking into account their useful life) is done. In contrast to the phenomenon of intangible assets, the nature of fixed assets in the accounting literature is interpreted as long-term assets that ensure the profitability of production activities of small and medium-sized enterprises. It is necessary to emphasize one fact that in both national and international practice, the accounting of fixed assets is carried out according to a similar scheme. This type of assets is reflected in accounting and reporting at its initial cost (taking into account the costs of acquisition, construction and commissioning of fixed assets), and at the time of revaluation at its replacement cost. In the process of systematic analysis of financial statements, especially the accounting balance, paying special attention to the item “Fixed Assets” can be explained by the fact that, according to our conclusions, they have the ability to generate profit in the conditions of their efficient use. According to the country's accounting standards, “long-term financial investments” are characterized as investments directed to income-generating assets, authorized capital, government securities and debts issued by other subjects of small and medium-sized enterprises established on the territory of the republic and outside of it. In international practice, the essence of the concept of “long-term financial investment” is added to the above, as well as their long-term goals, which are characterized by providing income and control over other small and medium-sized enterprises. It is considered more appropriate to start the comprehensive analysis of that indicator of the financial report, both in the country and in the Western accounting practice, from the review of its evaluation procedure. In accordance with national accounting standards, long-term financial investments are valued at the actual cost of their acquisition, which, in turn, leads to an increase in their price. In contrast, in foreign practice, in relation to long-term financial investments, the valuation rule is applied with the least of two quantities, such as purchase price and market value. In the article, it was discussed about the principles of accounting organization and report formation in small and medium business subjects in modern conditions. It was noted that the results of the production and financial activities of small and medium economic entities have a direct impact on the financial situation of small and medium enterprises. It was pointed out that the formation of financial results and profits of small and medium-sized economic entities is considered an important characteristic of financial activity. In the research work, information on the development of a new aspect of the methodology of accounting, analysis and evaluation of accounting and financial results of small and medium-sized enterprises and the development of a package of scientifically based proposals of theoretical and practical importance on its improvement from the point of view of international experience have been reflected. It was concluded that in modern times, the financial report with new content acts as a means of interaction between business entities and the market. According to international accounting theory, intangible assets are reflected in intellectual property objects and various rights to use natural resources. The article evaluates the place and role of the financial report, which is considered the main source of information in the management system of small and medium-sized enterprises. Keywords: business entity, small and medium entrepreneurship, financial reporting, international accounting, economic entity.