Federal Accountability Research Articles

Definition, composition and recognition of intangible assets according to FAS 14/2022

The new Federal Accounting Standard (FAS) 14/2022 “Intangible Assets” makes significant changes to the Russian accounting of these assets of organizations in the non-state sector (including healthcare organizations in this sector). In one of the previous articles, we explored the main innovations of the above standard. In this article, we will analyze in more detail the issues related to the definition, composition and recognition of intangible assets, in accordance with FAS 14/2022. The following methods were used in the research: analysis and synthesis, comparison, grouping method, analogy method, logical approach, systematic approach. As a result of the research, the FAS 14/2022 regulations regarding the definition, composition and recognition of intangible assets (including issues related to the value limit for such recognition) of organizations in the non-state sector (in particular, healthcare organizations in this sector) were analyzed in detail, the main problematic aspects in this area are identified and proposals for their solution are substantiated. In addition, this article provides numerous examples to clarify the requirements of the above standard. The results reflected in this paper will be useful to a wide range of readers interested in the problems of Russian accounting, including accounting for intangible assets. In addition, the results obtained can be applied in the educational process of higher educational institutions, in the practical work of the accounting departments of organizations in the non-state sector (including healthcare organizations in this sector), as well as in the development and improvement of relevant regulatory documents on accounting.

The possibility and necessity of deviation from the requirements of accounting standards

The article considers the specifics of the practical application of the possibility of deviations from their requirements provided for by both international and Russian accounting standards in extremely rare cases, the range of which is not outlined by these standards, which may include global and local financial crises, political instability and hostile actions, sanctions against individual legal entities, etc. The peculiarity is that even in conditions of market instability, volatility of observed market indicators, significant uncertainty of economic activity of Russian enterprises and organizations,deviation from the current accounting rules will lead to worse consequences than their strict compliance. Despite the declaration of convergence of Russian federal accounting standards with international Financial Reporting Standards on the issue of deviation from the established accounting rules, practical recommendations are generated mainly by the domestic nonstate accounting regulator. During the research, such methods as analysis and synthesis, comparison, grouping, analogy, logical and systematic approaches were used. The research results obtained in this article can be applied in the practical work of accounting departments of modern organizations,in the educational process of higher educational institutions and in the development and reform of regulatory documents on accounting and reporting. The results presented in this paper will also be useful to a wide range of readers interested in modern problems of accounting and reporting at the domestic and international level (including accounting problems in healthcare organizations).

Problematic aspects of the normative regulation of modern Russian accounting

Currently, the reform of Russian accounting is actively continuing, which is being implemented in the course of the implementation of the Program for the Development of Federal Accounting Standards (FSBU). As a result of the implementation of these Programs, new FSBs are adopted, which significantly change many regulations in the field of accounting for various objects and business transactions. Such changes apply to all organizations (including healthcare organizations) that are subject to the new FSB. The article examines trends in the development of new FSB based on a comparison of the content of the Programs for the development of federal accounting standards for the periods 2018–2022 (according to the Order of the Ministry of Finance of Russia dated 18.04.2018 No. 83n), 2019–2021 (as amended by the Order of the Ministry of Finance of Russia dated 05.06.2019 N 83n), 2022–2026 (according to the Order of the Ministry of Finance of Russia dated February 22, 2022 N 23n). It is substantiated that despite the postponement of the dates of adoption of some FSBs to a later date, the development and adoption of new FSBs is proceeding quite intensively. As one of the features of the regulations of the new FSB, the requirements for the direct use of certain rules of international financial reporting standards included in them are analyzed. These requirements are systematized in various new FSB. It is substantiated that, according to the requirements of the new FSB, it will be necessary to apply the rules of IFRS 13 “Fair Value Measurement” and IAS 36 “Impairment of Assets” to the greatest extent. The Decrees of the Ministry of Finance of Russia on the introduction of IFRS in the territory of the Russian Federation are given, which will need to be guided by the application of the IFRS rules required in the new Russian FSB. The research methods were comparison, analysis, synthesis, grouping method, systemic and logical approaches. As a result of the study, the positive and problematic aspects of the innovations of the new FSB are systematized.

Recognition of separate intangible assets in terms of the FSBU 14/2022 Standard: Some peculiarities

Subject. This article deals with the issues if it is reasonable to recognize such items as trademark, website and goodwill as intangible assets taking into consideration the transition to the procedure for accounting and financial statements preparation by organizations in Russia in accordance with the Federal Accounting Standard FSBU 14/2022 – Intangible Assets. Objectives. The article aims to analyze the complicated issues and specifics of the practical qualification of separate accounting items from the perspective of their compliance with the methodological provisions of the FSBU 14/2022 at the stage of transition to the application of the Standard. Methods. For the study, we used a systems analysis and generalization of legislative and regulatory documents, and professional literature. Results. The article finds that for the justified recognition of the items considered, including trademarks, websites and goodwill, it is necessary to analyze their compliance with the FSBU 14/2022 – Intangible Assets provisions, and in some cases, the accountant's professional judgment is necessary for the correct qualification of the listed items. Conclusions and Relevance. The variety and multiplicity of qualities of different types of intangible assets and economic benefits, as well as the emergence of new accounting items of an intangible nature, which require reasonable qualification in accounting, are among the reasons for the presence of identified problems. It is also necessary to take into account the fact that at present, not all Russian accountants have sufficient methodological training in terms of interpreting certain complex provisions of the FSBU 14/2022. The results of the study can be used in scientific and practical activities, for training specialists in the field of accounting and auditing, as well as for developing proposals for the correct transition to the FSBU 14/2022 provisions application.

Influence of the structure of construction organizations inventories on the balance sheet liquidity

The article addresses the issue of the impact of the structure of inventories on the liquidity and solvency of construction organizations. In 2019, the Ministry of Finance of the Russian Federation enacted new federal accounting standards FSBU, which expanded the composition of inventories and changed the approach to their valuation. The indicator “Inventories” in the balance sheet has a versatile structure, which depends on many factors, including the type of construction organization (customer, developer or contractor), the terms of construction contracts, the nature of the construction work performed and others. The task of analysis with regard to the structure of inventories is closely related to the task of improving the reliability of reporting and defining the liquidity and level of solvency of construction organizations. The article examines the structure of inventories in construction organizations of different types and their reflection in accounting, and reveals the influence of factors on different groups of inventories, which constitute a significant share in the total structure of inventories, as well as analyzes the main factors affecting the structure of inventories and considers the problems of construction organizations in reflecting the real value of inventories in the balance sheet. In addition, for preventive diagnostics and adjustment of reporting items, recommendations are given on how to reflect the structure of inventories in additional analytical internal supporting reporting.

Development of accounting and analytical support for the evaluation of investments in innovations by industrial enterprises

Introduction. New technological and economic challenges of our time demandindustrial enterprises to apply innovative approaches to the organization of production and management, therefore, investments in innovation are becoming one of the trends of sustainable development. Informed investmentdecisions require information and methodological tools, including accountingand analytical support. The purpose of the work is to consider the current state and directions of development of accounting and analytical support for the evaluation of investments in innovations by domestic industrial enterprises. Materials and methods. The paper analyzes approaches to the definition of accounting and analytical support; the author proposes their interpretation of the definition. The regulatory framework governing the accounting of investments in innovative development, the objects of which are R&D and intangible assets, as well as regulatory and author’s approaches to assessing the investment efficiency of projects are reviewed. Results. New federal accounting standards are compared and critically analyzed; a numberof recommendations on the application of the standards were proposed. Classical methods of investment evaluation are revealed; their advantages and weaknesses are identified. The development trends for the evaluation methods applied to the investments in innovations, proposed by modern researchers, and based on the decision tree, fuzzy set theory, multi-criteria approach, etc. are reviewed, and their advantages and disadvantages are described. Conclusion. The application is justified; the methodology derivedfrom the growth of the company’s value and applied to evaluate the innovationinvestment efficiency for the innovations is described and illustrated, since it reflects the ability of the enterprise to generate and multiply profits. The results of the work can be used by the scientific community to develop further directions for the development of accounting for investments in innovation and investment analysis, as well as by business entities to generateaccounting policies and accounting systems, as well as to assess the effectivenessof investments in innovation in order to ensure economic security and sustainable development.

ИСТОКИ ВОЗНИКНОВЕНИЯ НОВЫХ ПОДХОДОВ К ОРГАНИЗАЦИИ БУХГАЛТЕРСКОГО УЧЕТА АРЕНДЫ

The article discusses the adoption of new federal accounting Standards (FSB), the methodological basis of most of which is determined by the provisions of the relevant International Financial Reporting Standards (IFRS). However, while the latter are taken for granted, in practice they themselves are developed and adopted as standards not immediately, but after lengthy and ambiguous discussions and approvals. Not all methodological innovations in IFRS are unambiguous and unanimously recognized in the professional community. An example is the recently adopted new federal accounting standard FSB 25/2018 “Lease Accounting”. It is based on a similar international standard IFRS 17 “Lease”. The article discusses some controversial issues related to the history of the adoption of the latter and the transition to a new model of lease accounting.

ТЕСТИРОВАНИЕ НА ОБЕСЦЕНЕНИЕ АКТИВОВ В ФОРМЕ ПРАВА ПОЛЬЗОВАНИЯ: ПРОБЛЕМЫ И ВОЗМОЖНЫЕ РЕШЕНИЯ

The article discusses current issues of testing for impairment of right-of-use assets in connection with the introduction of the federal accounting standard FAS 25/2018 “Lease Accounting”. The author examines the problems associated with the practical implementation of the requirements of the new standard and suggests possible ways to solve them. The difficulties faced by companies are discussed, as well as the experience of applying FAS 25/2018. The relevance and importance of the issues disclosed are confirmed by the conclusions about the consultations actually conducted by the author related to the methodological aspects of the application of this standard.

Minimizing emissions from grid-based hydrogen production in the United States

Low-carbon hydrogen could be an important component of a net-zero carbon economy, helping to mitigate emissions in a number of hard-to-abate sectors. The United States recently introduced an escalating production tax credit (PTC) to incentivize production of hydrogen meeting increasingly stringent embodied emissions thresholds. Hydrogen produced via electrolysis can qualify for the full subsidy under current federal accounting standards if the input electricity is generated by carbon-free resources, but may fail to do so if emitting resources are present in the generation mix. While use of behind-the-meter carbon-free electricity inputs can guarantee compliance with this standard, the PTC could also be structured to allow producers using grid-supplied electricity to qualify subject to certain clean energy procurement requirements. Herein we use electricity system capacity expansion modeling to quantitatively assess the impact of grid-connected electrolysis on the evolution of the power sector in the western United States through 2030 under multiple possible implementations of the clean hydrogen PTC. We find that subsidized grid-connected hydrogen production has the potential to induce additional emissions at effective rates worse than those of conventional, fossil-based hydrogen production pathways. Emissions can be minimized by requiring grid-based hydrogen producers to match 100% of their electricity consumption on an hourly basis with physically deliverable, ‘additional’ clean generation, which ensures effective emissions rates equivalent to electrolysis exclusively supplied by behind-the-meter carbon-free generation. While these requirements cannot eliminate indirect emissions caused by competition for limited clean resources, which we find to be a persistent result of large hydrogen production subsidies, they consistently outperform alternative approaches relying on relaxed time matching or marginal emissions accounting. Added hydrogen production costs from enforcing an hourly matching requirement rather than no requirements are less than $1 kg−1, and can be near zero if clean, firm electricity resources are available for procurement.

Choosing a method of accrual and accounting for intangible assets’ value amortization

Subject. The article considers new accounting regulations on amortization of intangible assets presented in the new Federal Accounting Standard FSBU 14/2022 – Intangible Assets. Objectives. The purpose of the study is to define organizational and methodological recommendations on accounting for amortization of intangible assets. Methods. The study draws on general scientific methods, like analysis, synthesis, modeling, abstraction, and comparison. Results. The paper presents requirements, start time and termination of amortization of intangible assets, the aspects of choosing methods of accrual in the accounting policy of organizations. We offer organizational and methodological recommendations for practical application of methods to calculate amortization of intangible assets, and recommendations for accounting treatment of amortization of the said assets. Conclusions. To ensure the reliability of accounting data and financial statements, the accounting policy of organizations should describe a chosen method of calculating amortization of intangible assets, time of start and termination. It is crucial to approve and attach to the accounting policy primary documents for amortization of various groups of intangible assets, and use the proposed organizational and methodological recommendations on accounting treatment of intangible assets’ amortization.

Features of Disclosure of Information about Assets of Public Administration Sectors in the Balance Sheet

The article presents the development of the accounting of the public sector during the budget reform implemented in Russia in the late XXth — early XXIst centuries. The study showed a close relationship between the information request of users and the content of public sector accounting statements. It is found that the modern content of the balance sheet — one of the most important reporting forms is a consequence of changing approaches to the management of state (municipal) finances and objects of state (municipal) ownership, as well as the information needs of key users of reporting information. The article reveals the features of the first system — forming element of the balance sheet — an asset, and the criteria for assigning objects of public sector entities to assets. The analysis of federal accounting standards of public finance and other regulatory legal acts allowed us to systematize the requirements for the valuation of assets in the balance sheet. It is concluded that the expansion of valuation methods increases the qualitative characteristics that ensure the usefulness of reporting information for users. At the same time, the use of new methods of valuation of assets is problematic due to their insufficient development. The obtained results can be used for the further development of the valuation of objects, as well as by practitioners for the preparation of the balance sheet and the implementation of state financial control.

Practical Aspects of Using the Federal Accounting Standard “Fixed Assets”

One of the main aspects of fixed assets accounting is studied as the process of fixed assets acquisition, their internal movement, depreciation and disposal. Fixed assets accounting is considered to ensure proper documentation and timely reflection in primary documents and in bookkeeping and tax accounting register, as well as control over the safety and proper use of each object. This paper discusses theoretical and practical research of the national federal accounting standard titled «Fixed assets». This discussion is particularly related to the most significant rulings that affect bookkeeping and tax accounting and such corporate reporting aspects as revaluation, impairment, reclassification of fixed assets and other types of assets. It should be especially noted that the Federal Accounting Standard "Fixed Assets" is moving to the IFRS by introducing new norms and concepts, for instance, the disposal value. It has been proved that the complexity of the depreciation calculation scheme is unjustified and that the transition and adaptation of new rules is largely based on subjective evaluation. Non-current assets, that are mostly fixed assets, are one of the main objects of accounting in organizations, so it is difficult to overestimate the importance of the issues related to their evaluation, since this affects the timeliness, reliability and completeness of information in accounting documentation and in the accounting financial statements of economic entities. The processes of accounting reform have had a significant impact on the change in the accounting rules of fixed assets. Non-current assets are designed to serve in the business sphere for a long time and have a significant impact on the financial results of the organization's activities. Currently, there are major problems in fixed asset accounting that prevent receiving complete, real, objective, and reliable reporting information. This conclusion has been confirmed by the research results of those contemporary academics who have analyzed various issues related to the regulatory norms of fixed assets accounting as well as the application of new rules for the evaluation of these assets. Thus, there is an obvious convergence of rules in accounting with international financial reporting standards.

Features of accounting for property leases in organizations in accordance with the requirements of the Federal accounting standard FSB 25/2018 «Lease accounting»

In the existing realities, transformations of the regulatory regulation of Russian accounting are taking place, as a result of which national standards are updated in accordance with international requirements. the development and adoption of the «Federal Accounting Standard FSB 25/2018 "Lease Accounting"» is one of the stages of such transformation in the article, the authors analyzed the fundamental aspects of the organization of accounting for property lease transactions in organizations. the requirements for information in accounting and accounting statements of an economic entity, defined by the federal standard, as well as the procedure for assessing assets and liabilities in accordance with IFRS 16 «Lease», are considered. the procedure for determining the initial value of the rental object, its market and fair value is analyzed. the methodological basis of the study includes a critical analysis and generalization of regulations governing this area of accounting in Russian and international practice. A step-by-step instruction for the application of FSB 25/2018 «Lease Accounting» in the accounting of property from the tenant and the landlord is presented.

Capital investments acquired under a barter agreement

The article discusses the features of the evaluation of capital investment objects in the case when the acquisition, creation, improvement and restoration of such objects occurs under a barter agreement. The peculiarity is that the costs forming the object of capital investments should be assessed at fair value, depending on the situation — transferred or received property, property rights, works and services. Despite the declaration of convergence of Russian federal accounting standards with International Financial Reporting Standards on the valuation of capital investment objects under a barter agreement, there are discrepancies between the requirements of IFRS (IAS) 16 “Fixed Assets” and FSB 26/2020 “Capital Investments”. The article uses examples to reveal discrepancies in the estimates of capital investments in future fixed assets. The article uses examples to reveal discrepancies in the estimates of capital investments in future fixed assets. During the research, such methods as analysis and synthesis, comparison, grouping, analogy, logical and systematic approaches were used. The research results obtained in this article can be applied in the practical work of accounting departments of modern organizations, in the educational process of higher educational institutions and in the development and reform of regulatory documents on accounting and reporting. The results presented in this paper will also be useful to a wide range of readers interested in modern problems of accounting and reporting at the domestic and international level (including accounting problems in healthcare organizations).

THE EFFECTS OF STATE-LOCAL-GOVERNMENTS JOINT ACCOUNT ON LOCAL GOVERNMENTS’ IMPACT ON RURAL DEVELOPMENT IN NIGERIA

This paper examines how the operation of State-Local Government Joint Account affects the impact of local government, in executing rural development programmes at the grassroots. The intention of the constitution is to forge cooperation between the state and local governments in managing efficiently local government allocations from Federation Account for the benefit of local people, but reports and agitation of the people on nature of operation of the account proves otherwise. For the purpose of contributing towards the reform of the operation of the account, the paper examines the nature of the operation of the account in some selected states, evaluates the effects of the operation on the local government impacts on rural development, and identifies ways of improving the operation of the account to achieve its objectives. In the process, descriptive analysis method was adopted in examining the available secondary data. However, the findings indicate that the state governments manipulate the account to the disadvantage of local governments. Also, most local governments are unable to contribute significantly to rural development activities because of paucity of funds. Therefore, the paper recommends way out to improve the operation of the account, instead of abolishing it, through effective budgeting; compliance, monitoring, and enforcement by Community Development Associations (CDAs); and prevention of mismanagement and diversion of funds by Anti-corruption agencies.

증권 불공정거래 피해 투자자에 대한 공적 보상 방안 - 공정 기금 제도의 도입을 중심으로

주식 시장의 발전은 시장의 공정성·건전성을 담보로 한다. 작전 세력이 정보의 불균형 상태(내부자거래)·인위적으로 형성된 주가(시세조종) 등을 통해 이득을 취한다면 일반 투자자는 주식 시장을 이탈하여 시장은 침체될 것이다. 우리나라 법체계상 사적 피해는 피해자 스스로 사적 구제를 모색해야 한다. 불공정거래로 작전 세력이 부당이득을 획득하고 투자자에게 피해가 발생하면 피해 투자자는 불공정거래 행위자를 상대로 손해배상 청구소송을 제기하여 피해를 회복할 수 있지만, 소송 과정의 어려움으로 활성화되지 않은 상황이다. 주식 시장의 신뢰성을 제고하여 투자자의 참여를 촉진하기 위해 국가 기관이 손해배상 청구소송을 지원하거나 불공정거래 행위자에게 징수한 제재금을 재원으로 기금을 설치하여 피해 금액을 보상하는 방안을 검토할 수 있다. 미국 증권거래위원회(The Securities and Exchange Commission)는 증권법 위반자에게 공정 기금(Federal Account for Investor Restitution Fund)을 결성하여 피해 투자자에게 보상하도록 한다. 공정 기금은 화해(Settlement)의 실효성 확보, 증권법 위반자의 책임재산 유지·조사 저항 감소라는 장점이 있다. 불공정거래에 형사처벌을 원칙으로 하는 우리나라 법체계도 범죄피해재산환부·범죄피해자 보호 제도에 근거하여 피해 투자자에 대한 공적 보상을 검토할 수 있다. 공적 보상은 보충적으로 기능하고 범위·대상이 제한되어야 한다. 형사처벌의 몰수·추징한 부당이득, 행정제재의 과징금 중 부당이득 부분 등을 재원으로 공정 기금을 설치하는 방식으로도 피해 투자자에 대한 공적 보상이 가능하다. 공정 기금을 기반으로 불공정거래의 법적 판단이 확정되면 공적보상을 시행할 수 있다.

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.

Analysis of the Provisions of the Draft Federal Accounting Standard «Accounting Statements of an Organization»:Domestic and International Experience in the Formation of Accounting (Financial) Statements

Analysis of the Provisions of the Draft Federal Accounting Standard «Accounting Statements of an Organization»:Domestic and International Experience in the Formation of Accounting (Financial) Statements

Analysis of the main innovations of FAS 14/2022

The Ministry of Finance of the Russian Federation approved a new Federal Accounting Standard (FAS) for non-state sector organizations (including healthcare organizations in this sector) 14/2022 “Intangible Assets” (hereinafter FAS 14/2022). This standard makes significant adjustments to the accounting rules for the above assets. These changes will enter into force without fail from 2024, but early application of FAS 14/2022 is also allowed by decision of the organization. To prepare for future innovations, accountants, management of organizations, as well as teachers, students and many other participants in public relations need to analyze these innovations now. Such an analysis is carried out in this article. When carrying out research, such methods as comparison, grouping method, analysis and synthesis, analogy method, systematic approach, logical approach were used. As a result of the research, the main innovations of FAS 14/2022 were identified, analyzed and combined into five large groups. In addition, this article identifies the most important problems that arise in this area, and formulates proposals for their solution. The results presented in this paper will help modern organizations in the non-state sector (including healthcare organizations in this sector) to prepare in advance for the above changes and easier to go through the process of adaptation to the new requirements of FAS 14/2022. In addition, the results obtained in this article will be useful to a wide range of readers interested in the problems of domestic accounting, including accounting for intangible assets, and can also be used in the educational process of higher educational institutions and in the development and improvement of relevant regulatory documents on accounting.

Amortization of intangible assets: innovations of Federal Accounting Standard 14/2022 “Intangible assets”

Starting from the financial statements for 2024, all private organizations, including medical ones, will accrue depreciation of intangible assets in a new way in connection with the entry into force of the new Federal Accounting Standard 14/2022 “Intangible Assets”. The article is devoted to the analysis of each of the three possible methods ща amortization — linear, the method of the reduced balance and in proportion to the amount of products (volume of works (services)). The peculiarities of amortization of intangible assets were revealed when using each of these methods, it was noted that the Federal Accounting Standard introduces a new concept for intangible assets — the liquidation value of an intangible asset object, the amount of which directly affects the amount of depreciation deductions. Practical examples of calculation of the depreciation amount according to Federal Accounting Standard 14/2022 were considered.