Federal Accountability Research Articles

Accounting of intangible assets: innovations, discussions and prospects

Starting with the financial statements for 2024, the new federal accounting standard FSBU 14/2022 “Intangible Assets” comes into effect. This standard introduces significant changes to the accounting of intangible assets. The article analyzes and evaluates the innovations of FSBU 14/2022 “Intangible Assets”. The new rules of this standard are compared with the regulations of its predecessor PBU 14/2007 “Accounting for Intangible Assets”, as well as with the rules of IAS 38 “Intangible Assets”. A comparison is made of the methodological approaches of FSBU 14/2022, PBU 14/2007 and IAS 38 regarding the qualification of objects as intangible assets, the initial and subsequent assessment of these assets, and the specifics of their accounting. The advantages and controversial issues of the new rules for accounting for intangible assets in FSBU 14/2022 “Intangible Assets” are substantiated. Recommendations for resolving controversial issues of accounting for intangible assets in the process of further development of accounting are substantiated.

Развитие финансового и управленческого учета для повышения эффективности отрасли садоводства

Abstract. The purpose of the study is to develop approaches to the construction of accounting and information support for the production management system of planting material for horticulture. Methodology and methods. The methodological basis was a systematic and integrated approach to the study of the problems of accounting in horticultural organizations. Both general theoretical, universal, and specific research methods were used (monographic method; analysis and synthesis; statistical-economic, computational-constructive and accounting modeling method). Results. The article shows that in order to reduce import dependence, horticulture on an innovative basis has been intensively developing in recent years. The drastic changes taking place in the development of the horticulture industry necessitate a revision of the approach to managing this industry. At the same time, the construction of an adequate management system for the sustainable development of fruit and berry production is impossible without relevant accounting and information support for all management functions. The current state and development trends of the horticulture industry in Russia as a whole and in the Voronezh region are considered. The analysis of the dynamics of the laying of gardens and nurseries in the region is presented. It is proved that one of the key factors in the development of horticulture is the production of high-quality domestic planting material. The assessment of state support for the planting and cultivation of seedlings and young gardens was carried out. The conclusion is made about the inconsistency of the existing accounting and management accounting system for the cost of nursery products with the tasks of the management system. The scientific novelty lies in the adaptation of financial accounting methods to the requirements of federal accounting standards, among which accounting models are proposed for reflecting the facts of economic life on accounting accounts in the context of using various methods of evaluating seedlings; the development of methods and systems of managerial accounting of nursery costs in relation to options for the organization and technology of production of seedlings and modern conditions of functioning of agribusiness in horticulture; justification approaches to budgeting the cost of seedlings.

Repair and maintenance of fixed assets

Federal Accounting Standard 26/2020 “Capital investments” has established rules for reflecting the cost of repairing fixed assets — if the repair is of a capital nature, the cost of it increases the cost of the repaired object, i.e. it is capitalized, and in the case when the repair is of a current nature or relates to the ongoing maintenance of fixed assets (when it is carried out with a frequency not exceeding 12 months), the costs of conducting them are not included in capital investments, but are written off as expenses of the current period. The non-governmental accounting regulator “Accounting Methodological Center” in its Recommendations sets out its position on the reflection of repair and maintenance costs. During the research, we used such methods as analysis and synthesis, comparison, grouping method, analogy method, logical approach, systematic approach. As a result of the conducted research, this article, in particular, presents additional proposals clarifying the wording of both the FSB 26/2020 and the Recommendations of the NBU BMC. In addition, in this paper, suggestions are made to improve the content of accounting statements. The results of this study will be of interest to a wide range of readers studying various problems of modern Russian and foreign accounting, and can also be used in the educational process of higher educational institutions.

Application of fair value for non-financial assets valuation by higher education institutions: Status and prospects

Subject. This article examines the state-of-the-art and prospects for the use of fair value for the valuation of non-financial assets in higher education institutions. Objectives. The article aims to consider the areas of concern associated with the use of fair value for the valuation of non-financial assets in higher education institutions, in particular, for fixed assets, analyze the methods for determining fair value, and compare the main provisions for establishing fair value in accordance with the International Financial Reporting Standards and the Federal Accounting Standards for Fixed Assets for the Public Sector. Methods. For the study, I used comparison, systematization and generalization. Results. The article systematizes the main theoretical approaches to the study of issues related to the valuation of non-financial assets in accordance with the International Public Sector Financial Reporting Standards and Federal Accounting Standards. Relevance. The above basic provisions for the use of fair value for the measurement of non-financial assets by higher education institutions can be used for theoretical study of the issue, as well as in practical activities in State (municipal) budgetary and autonomous institutions.

Depreciation and impairment of non-financial assets in higher education institutions: Analysis and evaluation

Subject. The article investigates the state of presentation of information on depreciation and impairment of non-financial assets by Russian universities, and prospects for its improvement. Objectives. The aim is to summarize and systematize the provisions of the current federal accounting standards for public finance, governing the depreciation and impairment of non-financial assets, study the practice of accounting policy formation by higher education institutions in relation to non-financial assets based on the specifics of these organizations’ activities. Methods. The study employs observation, comparison, generalization, and interpretation, the analysis of the content of federal accounting standards for public finance, accounting policies for depreciation and impairment of non-financial assets of 26 higher education institutions in Russia. Results. Most higher education institutions do not consider the procedure for calculating depreciation of the structural part of fixed assets. Some universities apply the procedure for calculating amortization of intangibles that does not comply with the provisions of the federal accounting standards for public finance in relation to intangible assets with indefinite useful life. No university identifies signs of impairment or reflects non-financial assets less impairment losses in accounting statements, thus preventing their objective evaluation. Conclusions. I offered a unified approach to identifying external and internal signs of possible impairment of assets by higher education institutions, given the specifics of their activities. The paper established a sequence of actions when testing a cash-generating asset for impairment.

Analysis of existing rules and practices for disclosing information about fair value in financial statements

One of the most important for modern accounting and reporting is fair value. Moreover, this is typical for systems of both Russian and international standards (hereinafter referred to as RAS and IFRS). Indeed, fair value, which is actively used in IFRS, has now been introduced into almost all domestic federal accounting standards (hereinafter referred to as FAS). In this regard, the importance of issues related to the indicated value cannot be overestimated. In our previous works, we explored issues related to the interpretation and calculation of fair value. In this article we turn to the analysis of disclosure of information about fair value in financial statements. When carrying out research, methods such as analysis and synthesis, grouping method, comparison, analogy method, logical approach, systematic approach were used. As a result of the research carried out in this work, the main problems associated with the disclosure of information on fair value in the reporting of modern organizations have been identified. The results obtained in this article will be useful to a wide range of readers interested in current issues related to the preparation of financial statements under RAS and IFRS; they can be used in the educational process of higher educational institutions, in the practical work of accounting departments of modern organizations, as well as in the development and improvement of relevant domestic and international accounting standards.

Non-financial asset valuation at higher education institutions: The theoretical and practical aspects

Subject. This article focuses on the issues of initial and subsequent valuation of non-financial assets at Russian higher education institutions. Objectives. The article aims to analyze the provisions of the accounting policy of educational institutions for higher education in relation to the valuation of non-financial assets, compare them with the Federal Accounting Standards, identify problematic aspects, and determine the areas for their solution. Methods. The regulations on the accounting policy of twenty six higher education institutions of Russia in relation to the valuation of non-financial assets are the basis of the study. For the study, I used observation, comparison, generalization, and interpretation. Results. The article presents the results of the analysis of the composition of costs incurred by institutions in the process of creating an object of fixed assets. It also offers recommendations on the inclusion of interest expenses on long-term liabilities in the initial cost of non-financial assets during their construction (creation) using own resources and options for assessing the value of replaced (disposed) parts of fixed assets, and a methodology for their calculation. A list of expenses included in determining the initial cost of intangible assets created by higher education institutions on their own is also presented. Conclusions. To improve the accounting of transactions for the acquisition and creation of fixed assets, it is advisable to establish the procedure for allocating the costs of delivery of several fixed assets in the accounting policy of educational organizations, determine the methods of attributing additional borrowing costs, as well as establish the criterion for the materiality of such expenses. It is concluded that higher education institutions should have a unified methodology for accounting costs when carrying out regular scheduled overhauls, technical inspections and maintenance of fixed assets.

Peculiarities of interpretation of transactions with shares and shares of other

The subject of the article is the peculiarities of interpretation of transactions related to financial investments in shares and shares of limited liability companies. The methodological basis of the study is analysis, synthesis, deduction, scientific abstraction and generalization of the results obtained. The study is based on an analysis of domestic federal accounting standards, international financial reporting standards, as well as economic literature on the topic. The article highlights terminological inconsistencies in relation to the name of assets reflecting financial investments in shares and shares of other organizations both within Russian standards and between Russian standards and IFRS. The author presents the relationship between the classifications of investments in shares and shares of other organizations with their presentation in the balance sheet and the way their value changes. A proposal has been made to introduce a classification for financial instruments based on a risk–based approach. The article analyzes regulatory documents in order to substantiate their inconsistency and inconsistency in relation to the classification of assets to improve the usefulness of reporting data provided to external users. The choice of a more objective classification of assets for external users to improve the usefulness of reporting information is justified.

Adaptation of the Russian accounting system for non-financial assets in accordance with the International Public Sector Accounting Standards: A problem analysis. Part 2

Subject. This article analyzes the areas of concern of accounting for non-financial assets in State-funded (municipal) and autonomous institutions in accordance with the International Public Sector Accounting Standards. Objectives. The article aims to identify and analyze the areas of concern associated with the adaptation of the Russian system of accounting for non-financial assets in accordance with the International Public Sector Accounting Standards based on a comparison of the main provisions of the International Financial Reporting Standards and the Russian Federal Accounting Standards for the public sector. Methods. For the study, I used the methods of comparison, systematization, and data generalization. Results. The article systematizes the main theoretical approaches to the study of issues in the field of adaptation of the Russian system of accounting for non-financial assets in accordance with the International Public Sector Accounting Standards. Relevance. The results of the study and the theories of adaptation of the Russian system of accounting for non-financial assets in accordance with the International Public Sector Accounting Standards can be used for the theoretical study of this issue, as well as in practical activities in State-owned (municipal) publicly-funded and autonomous institutions.

Comparing decision-making strategies in accounting franchises and independent brands: a causation and effectuation approach

Comparing decision-making strategies in accounting franchises and independent brands: a causation and effectuation approach

Modern problems of determining net realizable value in RAS and IFRS and ways to solve them

Thanks to the Federal Accounting Standard (FAS) 5/2019, net realizable value was introduced into Russian accounting for inventories. A similar value is also used in IAS 2. Despite the relatively long period of use of the specified value, its estimation still raises a number of questions when accounting and reporting according to both Russian and International Standards (hereinafter referred to as RAS and IFRS). These problems and ways to solve them are analyzed in this article. When carrying out research, methods such as analysis and synthesis, grouping method, comparison, analogy method, logical approach, systematic approach were used. As a result of the research carried out in this work, the main modern problems associated with determining the net realizable value in Russian and international accounting have been identified and proposals for their solution have been substantiated. The results obtained in this article will be useful to a wide range of readers interested in current issues relating to the regulations of RAS and IFRS, including the calculation of the net realizable value of inventories, can be used in the educational process of higher educational institutions, in the practical work of accounting departments of modern organizations, as well as in development and improvement of relevant domestic and international accounting standards.

Problematic aspects of the normative regulation of modern Russian accounting

Currently, a widely discussed topic is the future directions of development of Russian accounting and the extent to which the regulations of international financial reporting standards (IFRS) will continue to be used in the development of the rules of Russian federal accounting standards (FSBU). The article explores these issues. To understand the trends in the future development of Russian accounting, its evolution from the beginning of the transition of the Russian socialist economy to a market economy to the present time is examined. The regulatory documents that determined the directions of development of Russian accounting since the early 90s of the 20th century are considered. until now. Scientific discussions regarding the directions of development of Russian accounting are studied. The degree of use of IFRS regulations in the new Russian Federal Accounting Standards (FSBU) adopted in recent years is investigated. A significant degree of convergence of the methodological approaches of the new FSBUs with the regulations of international standards, which are analogues of these federal standards, is revealed. The innovation of the new FSBU regulations is a direct reference to the use of certain international standards for accounting in certain situations. Based on the conducted research, the conclusion is substantiated about the continuing trend of convergence of Russian accounting regulations with the rules of IFRS, as well as the expansion of the scope of use of international standards, which are approved for use on the territory of the Russian Federation in accordance with Orders of the Ministry of Finance of Russia.

Adaptation of the Russian Accounting System for non-financial assets in accordance with the International Public Sector Accounting Standards: A problem analysis. Part 1

Subject. This article analyzes the areas of concern of accounting for non-financial assets in State-funded (municipal) and autonomous institutions in accordance with the International Public Sector Accounting Standards. Objectives. The article aims to identify and analyze the areas of concern associated with the adaptation of the Russian system of accounting for non-financial assets in accordance with the International Public Sector Accounting Standards based on a comparison of the main provisions of the International Financial Reporting Standards and the Russian Federal Accounting Standards for the public sector. Methods. For the study, I used the methods of comparison, systematization, and data generalization. Results. The article systematizes the main theoretical approaches to the study of issues in the field of adaptation of the Russian system of accounting for non-financial assets in accordance with the International Public Sector Accounting Standards. Relevance. The results of the study and the theories of adaptation of the Russian system of accounting for non-financial assets in accordance with the International Public Sector Accounting Standards can be used for the theoretical study of this issue, as well as in practical activities in State-owned (municipal) publicly-funded and autonomous institutions.

National concept for the development of integrated reporting in Russia

The growing attention of the state to the issues of national sovereignty in different areas has predetermined the urgency of considering the current state of affairs in the field of corporate reporting from this position. The purpose of the study is to substantiate the need for institutionalization of the concept of integrated reporting as the model of corporate reporting that best meets national interests. Based on a study of Russian and foreign practice of normative regulation of corporate reporting, as well as transformation processes to standardize reporting in the field of sustainable development that have occurred in the last few years on a global scale, the need to replace the Concept for the development of non-financial reporting with the national concept for the development of integrated reporting is substantiated. The author proposed to empower the Ministry of Finance of the Russian Federation with the function of a regulator in the field of integrated reporting, which will allow to develop a system of standards for the latter, interconnected with the federal accounting standards and aimed at providing a holistic view of an economic entity. The article identifies the main elements of the institutional environment necessary for the introduction of integrated reporting into management practice. The research was carried out using such general scientific methods as analysis, synthesis, comparison, generalization, abstraction. Its results may be of interest to national regulators of corporate reporting, the scientific and professional community, as well as economic entities interested in increasing transparency and accountability.

Accounting of payments under a commercial concession agreement

In accordance with the Program for the Development of Federal Accounting Standards, Federal Accounting Standard 14/2022 “Intangible Assets” entered into force on January 1, 2024. At the same time, many questions arise about the application of this standard in various and frequently encountered situations, in particular, when concluding commercial concession (franchising) agreements, under which lump-sum payments and royalties are paid. Using the example of various practical situations, the article considers the procedure for recording non-exclusive rights to use the trademark of another franchisor organization in the accounting of a franchisee organization. During the research, such methods as analysis and synthesis, the method of comparison, grouping, analogy, logical and systematic approaches were used. The research results obtained in this article can be applied in the practical work of modern organizations, in the educational process of higher educational institutions and in the development and reform of regulatory documents on accounting, reporting and auditing. The results presented in this paper will also be useful to a wide range of readers interested in modern problems of accounting, reporting and auditing at the domestic and international levels.

Current issues in calculating the discount rate in Russian and foreign accounting

Thanks to the new Federal Accounting Standards (FAS), in Russian accounting it is increasingly necessary to determine the present value, which in turn is impossible without calculating the discount rate. The active use of the indicated value and rate is also expected in the IFRS system. At the same time, our research has shown that the calculation of the discount rate is associated with a number of complex issues in both Russian and foreign accounting. These questions are analyzed in this article. When carrying out research, methods such as analysis and synthesis, grouping method, comparison, analogy method, logical approach, systematic approach were used. As a result of the research, this paper presents the author’s view on current issues of calculating the discount rate in Russian and foreign accounting. The results obtained in this article will be useful to a wide range of readers interested in modern problems of Russian and international accounting. In addition, the results presented in this work can be used in the educational process of higher educational institutions, in the practical work of accounting departments, as well as in the development and improvement of relevant domestic and foreign regulatory documents on accounting.

Issues of accounting for intangible assets under the new standard at the stage of their identification

Subject. Since 2024, the new Federal Accounting Standard (FSBU) 14/2022 – Intangible Assets is mandatory. This article examines the categorical framework of this Standard, as well as the past and international standards in comparison with legal norms. Objectives. The article aims to identify the types of intangible assets to be accounted for in accordance with the new Standard, based on the essence and generic features, the legal content of the types of intangible assets mentioned in the accounting standards in order to identify them, based on their importance in generating economic benefits and participating in the processes of the organization. Methods. For the study, we used the general scientific methods of cognition, a systems approach, logical generalization, analysis and synthesis, and analogy. Results. The study shows that the new Standard is not much different from the old one in terms of defining categories. In contrast to the international similar standard, the domestic standard lacks detailed explanations that are essential for identifying costs as expenses of the period or intangible assets. Conclusions and Relevance. For the reasonable recognition of intangible assets in accounting, it is necessary that the Standard takes into account the norms of the Civil Code of the Russian Federation and other laws that make it possible to distinguish between generic and essential features of intangible assets, which are the results of intellectual activity and means of individualization. The presented results are intended to further develop the methodology and practice of accounting for intangible assets of organizations.

Interrogating the Paradox--Availability of Funds and Paucity of Infrastructure/Social Amenities in Nigerian Local Government Areas: Conundrum of the Selected State (2011-2018)

Concerns have been expressed very often as to why the intergovernmental relations in the federal system of many developing countries, especially in the Sub-Sahara Africa are predictably chequered. Lack of devolution of power to LGAs in Nigeria is usually at the expense of grassroots development especially with regards to infrastructure/social amenities. Besides, the confusion surrounding progressive decline in provision of rural infrastructure to the local government areas of the state despite humongous monthly fiscal allocations to the LGAs by Federation Account Allocation Committee (FAAC) equally creates existential problems to the rural dwellers. It is on this note that the study seeks to investigate the apparently disturbing paradox in Imo State. Data were sourced from both secondary and primary sources. Secondary data was sourced from government gazette and related literature while primary data was elicited from respondents through structured questionnaire. Multiple regression and graphical/pictorial analytical techniques were used for secondary and primary data respectively. The findings indicated that lack of transformative leadership exhibited in embezzlement of funds and indifference in leadership on the part of the State agents were the significant causes of poor development in the rural areas of Imo State. The study recommended inter alia; the enforcement of attitudinal change and punitive sanctions on the political and administrative classes in the state through legal measures to protect public funds for service delivery.

Goods in wholesalers: Valuation at recognition, accounting considerations

Subject. This article deals with the issues of formation of the actual cost of goods when they are purchased in wholesale trade organizations. Objectives. The article aims to substantiate the method of formation of the actual cost of purchased goods of wholesale organizations, consider options for reflecting its components in the accounts, and highlight controversial issues in the valuation of goods when they are recognized. Methods. For the study, we used the methods of comparative analysis, content analysis, systematization, analogy, and generalization. Results. According to Federal Accounting Standard FSBU 5/2019 – Inventories, if goods are recognized in the accounting of a wholesale organization, there is a variability in the understanding of the actual cost. The article finds that the choice of components of the actual cost of purchased goods has a direct impact on many aspects of accounting. The article systematizes the methods of reflecting the received goods in accounting depending on the method of valuation, and formulates the peculiarities of their application. An analysis of regulatory documents shows that the procedure for calculating the write-off of deviations for goods has not been established yet. Conclusions and Relevance. Based on international practices, FAS FSBU 5/2019 – Inventories helps exercise professional judgment of an accountant in matters of valuation of goods of wholesale organizations upon recognition. The results obtained can be used both in theory and practice of reflecting commodity operations of wholesale organizations.

Impact of Treasury Single Account on Public Finance Management in Nigeria. Pre and Post Implementation Analysis

This study examined the impact of Treasury Single Account (TSA) on the public finance management in Nigeria. The study investigated how the implementation of TSA in Nigeria affected revenue collection, public cash management, federation account allocation and corruption control in Nigeria. The paper used secondary data collected from Central Bank of Nigeria statistical bulletin and transparency international from 2010-2014 (pre adoption period) to 2015-2019 (post-adoption period). T-test statistical technique was employed to analyze the data. The findings of the study revealed that TSA has a negative and insignificant effect on government revenue, public cash management, federal account allocation, as well as corruption control in Nigeria. The study recommends that government should strengthen the system of implementation of TSA in Nigeria and all resources of leakages to total government revenue should be investigated forensically and such loopholes filled. Moreover government should devise other means of cash management and reduce so much reliance on TSA implementation.