National Accounting Standards Research Articles

ACCOUNTING IN UZBEKISTAN BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS (as exemplified by intangible assets)

The article is devoted to the consideration of the problems arising in the process of globalization and experienced in adjusting the National Accounting Standards (NAS) in Uzbekistan, including the standard related to intangible assets, in compliance with the International Financial Reporting Standards (IFRS), as well as the solutions proposed thereof. Herewith the author proposes the recommendations worked out for recognition of intangible assets, assessment of book value, the method of calculating amortization, revaluation model, the order of disclosure of information on intangible assets in the financial statements in accordance with international standards (IFRS 38). Moreover, there some considerations on the revaluation model of intangible assets to assess their impact on initial value, amortization, long-term and total assets.

The puzzling association between accounting conservatism and corporate social responsibility

PurposeThe purpose of this paper is to focus on exploring the mutual impact of accounting conservatism and corporate social responsibility (CSR).Design/methodology/approachTo empirically assess the theoretical arguments the authors estimate a simultaneous equations system for accounting conservatism and corporate social responsibility determination by two-stage least squares in a sample of 175 firms listed on the Tehran Stock Exchange (TSE) for the period 2009–2019.FindingsThe results of the present study showed that accountability in companies listed on the TSE has led to an increase in the use of conservative practices. Therefore arguably, companies that seek CSR activities are more conservative in preparing and presenting financial reports. Also, companies that engage in conservative practices for the benefit of stakeholders are better able to implement CSR activities to meet stakeholder obligations. These results show a two-way relationship between CSR and accounting conservatism.Practical implicationsAccording to the results obtained from this study and the elimination of conservatism from the qualitative features of financial reporting in International Accounting Standards, it is recommended for the trustees and authorities of national accounting standards to decide whether this qualitative feature is effective or not.Originality/valueFurthermore, the findings of this study suggest that the application of corporate social responsibility theories calls for more inquiry.

MODELS OF COST BEHAVIOUR: A MANAGERIAL PERSPECTIVE

The paper considers the peculiarities of cost behaviour in the production of metallurgical products and their modelling. The industry specifics and their impact on cost formation and production of metallurgical products are assessed. The article develops step-by-step approaches to cost behaviour analysis. It is proved that one of the key aspects of the study of cost behaviour is the choice of an effective method of their accounting and calculation The main factors of external and internal direction of cost behaviour are formed. Peculiarities of application of the preliminary method of production are evaluated. The scheme of formation of accounting and analytical reflection of production of metallurgical products by the preliminary method at PJSC "Kamet-Stal" is developed. The accounting and analytical reflection of formation of the production cost of metallurgical products on the accounts is presented. The emphasis is placed on the peculiarities of accounting for the formation of the production cost of metallurgical products according to national accounting standards (regulations). A set of interrelated factors that shape and influence the behaviour of costs has been formed. It has been concluded that the most objective method for assessing cost behaviour is statistical correlation models. A regression equation as a linear model of cost behaviour has been formed. A linear model of cost behaviour has been calculated. The equation parameters, actual and tabulated coefficient of determination are determined. The relationship between the volume of pig iron production and changes in total fixed costs is substantiated. The closeness and significance of the relationship are estimated. Analytical conclusions are formed and the main directions of the cost management strategy are developed. It is proposed to forecast costs using the tested model. It has been concluded that the developed model of cost behaviour of metallurgical products (liquid cast iron) can be useful in the practical activities of an enterprise for making effective management decisions in both the short and long term.

Assetization as a mode of techno-economic governance: Knowledge, education and personal data in the UN's System of National Accounts

Assets are made through the configuration of technoscientific and political-economic (or techno-economic) relations, claims and practices; a process increasingly conceptualized as ‘assetization’. The UN’s System of National Accounts (SNA) – a set of national accounting standards – defines assets as ‘entities that must be owned by some unit, or units, and from which economic benefits are derived by their owner(s) by holding or using them over a period of time’. Accounting standards like the SNA are implicated in the construction of assets through their ‘extension of the asset boundary’, which happens periodically as accounting standards are revised and updated to better reflect changing business practices. Assetization, then, entails more than an analysis of the transformation of something into an asset, it can also be conceptualized as a mode of governance in which social actors change their world. To make this argument, I examine the SNA’s treatment of knowledge, education and personal data: respectively, redefined as an asset (e.g. intellectual property product); treated as a quasi-asset (e.g. human capital); and subject to continued debate (e.g. digital data). In exploring the SNA’s accounting standards, I show how assetization reconfigures the governance of knowledge, education and personal data, often in problematic ways.

Enterprise Costs: Essence and Management Features in Modern Conditions

Purpose: The objective of the article is the study of theoretical provisions and the development of practical recommendations for improving the company's cost management methodology. Design / Methodology / Approach: The following methods were used in the research process: methods of induction and deduction, the method of comparison, the method of generalization – to reveal and clarify the economic essence of costs; system approach – to build a system of cost management of the enterprise; statistical research methods – to assess the structure and dynamics of enterprise costs; graphic – for a visual presentation of research results. Findings: The article examines the economic essence of enterprise costs through the prism of national and international accounting standards. The composition and structure of the company's costs were diagnosed and the factors that influenced their change were analyzed. The theoretical and methodological aspects of enterprise cost management are justified. Originality / Value: The scientific novelty of the obtained results lies in the identification and disclosure of directions for improving the company’s cost management methodology. It has been proven that cost management of an enterprise is a complex and dynamic process that involves achieving a high economic result of its operation. Practical Meaning: The practical significance lies in certain places and the role of costs in achieving production efficiency. It has been established that in order to form an effective cost management system for an enterprise, it is necessary to develop a management strategy, record and analyze costs in terms of their volume, dynamics, structure and responsibility centers, as well as identify trends in the level, volume and structure of costs per unit of output. Further Research: For the correct choice of the cost optimization method, it is necessary to take into account external and internal factors, the determination and assessment of the impact of which on the company’s costs are areas of further research.

Economics in primary schools: an empirical experiment from Hungary

The paper highlights the importance and relevance of introducing economic studies to primary schools. The research aimed to investigate the appropriate age, environment, type, and composition of presentation for introducing combined economic knowledge. The 190 students participating in the research were students from three primary schools in Hungary from 10 classes. Given the fact that in the case of all of the significant results, a sufficient effect size could be measured, and furthermore, the relevant test value was very high, it is unambiguously proven that the size of the sample (n = 190) that was used for the examination was sufficient. The results suggest that teaching economic and financial knowledge through accounting and making lectures interactive using special tools of positive education is critical to stimulating children’s interest. Eighty percent of the students in the study liked the combined and interactive lecture. Another goal was to investigate whether those that liked the presentation would perform better on the related knowledge test, which proved to be the case. In the two target groups, students in grade 6 outperformed students in grade 3 on the test. An investigation of gender performance is also included in the research. Findings suggest that the respective education may appropriately be developed based on the close relationship between mathematics and accounting. The lectures can be adapted according to any national or international accounting standards (IFRS, etc.) and can be taught in an online classroom as well. The lectures aim to develop children’s independent problem-solving skills so they can adapt the information to their own lives and financial situations. The paper fills a gap in the research by describing a successful attempt to complex economic literacy.JEL Classification codeA29, M21, M41

Financial Results of Ukrainian Enterprises: Peculiarities of Accounting Support for their Formation and Management

The theoretical foundations and features of accounting support for the formation of financial results of Ukrainian enterprises have been studied, taking into account the requirements of national legislation and international accounting standards. The system of accounting accounts for recording the formation of the financial result of enterprises is characterized. The study of the differences in the rules for calculating the financial result of enterprises and private enterprises, recognition of their income and expenses was deepened. The influence of the financial result on taxation (income tax and single tax) is analyzed. A detailed analysis of the composition of income and expenses for operating and non-operating activities and notes to financial statements made it possible to establish that the main determining factor in the formation of income is the net income from the sale of products (goods, works, services) and net earned insurance premiums, while the formation of expenses is operational expenses of Ukrainian enterprises.

A Study of Recent Accounting Trends in India's Corporate Sector with Special Reference to International Financial Reporting Standards

Accounting is the process of keeping track of monetary transactions and data in a structured, consistent, and understandable style so that stakeholders in a business or organization may make informed economic decisions. Early forms of accounting used clay tokens to keep track of products and livestock, but the discipline has since evolved into a sophisticated system for recording a wide variety of financial transactions and details. The first step toward IAS, or International Accounting Standards, was done in 1959. Since then, accounting groups and others have collaborated to form the International Accounting Standards Committee. In 1997, the IASC was restructured to better enable the convergence of various national accounting standards and practices toward a single, high-quality set of global accounting standards. Established in 1973, it issued the foundational documents for what is now known as International Accounting Standards until the year 2000. As the International Accounting Standards Committee (IASC) was abolished in 2001, the International Accounting Standards Board (IASB) was tasked with publishing international accounting standards. The integration of global financial markets and the need of investors for more uniformity in the financial reports of multinational firms both demand the globalization of IFRS.

International Accounting Standards and their Impact on the Banking Sector Performance

The performance of the banking industry in the Kurdistan area of Iraq is the focus of this study, which explores the influence that International Accounting Standards (IAS) have had on the situation. The purpose of this study is to determine the degree to which IAS has been implemented in the banking industry, the factors that have an influence on the implementation of IAS, and the effect that IAS implementation has had on the financial performance of banks in the region. Data was collected from a sample of 142 banking professionals located throughout the region using a quantitative research technique. According to the findings of the study, the percentage of financial institutions that have adopted International Accounting Standards (IAS) is rather low, and the majority of financial institutions continue to rely on their own national accounting standards. It was discovered that the implementation of IAS has a large and beneficial effect on the performance of banks, with fully adopting banks demonstrating improved levels of profitability, liquidity, and asset quality. Education and training were shown to be the most important predictor variables in the banking sector in the region when attempting to explain the adoption of International Accounting Standards (IAS). The lack of resources and technical knowledge in the region was cited as the reason for the sluggish adoption of IAS in the region. According to the findings of the study, there is a need to improve education and training, raise awareness of international accounting standards (IAS), encourage regulatory support, provide technical assistance, and promote international collaboration in order to increase the likelihood that IAS will be adopted in the banking sector in the Kurdistan region of Iraq.
  

Understandability of Financial Reporting Requires Comprehensive Explanations and Not Mere References to Accounting Standards or Reports Attached to Financial Reporting

The understandability of Financial reporting requires that the profit and loss, the balance sheet, the notes, the cash flow statement and all the reports that, although not part of the Financial Reporting, constitute the company's communication to the outside world be intelligible and understandable by anyone reading a portion or all of the Financial reporting. And it should be noted that the person who has to understand everything set out in the financial reporting must, necessarily, have an even minimal basis of the concepts set out in the Financial reporting because it is impossible to draft a Financial report without using accounting terms or techniques that may be clear to a person who does not have the even minimal basis in accounting and financial reporting itself point. Understandability is achieved by applying national or international accounting standards, depending on the type of company in question, as well as civil law for companies obliged to do so, and by implementing the advice that the board of statutory auditors or auditors highlight in their documents and reports that they draw up during the audits that are periodically carried out in the company and that are drafted especially during the period of preparation of financial reporting. However, this article points out that merely referring to an accounting standard or a report by the board of auditors in which findings are highlighted and the consequent assertion that the accounting standard has been duly applied and all conclusions made by the auditors have been slavishly observed does not ensure the understandability of financial reporting. A particular analytical method must specify the accounting standard used and its involvement in financial reporting. In the presence of auditors' reports with findings, the findings made by the board of auditors must be explicit. It must be explained unambiguously in what manner and according to what accounting method the recommendations in the report in which the findings are highlighted in the accounting and corporate field were implemented.

What Factors Drive Faithful Financial Reporting by Subnational Governments? Insights from Switzerland

Using the context of the 26 Swiss subnational governments, this paper aims to empirically identify factors driving—or not—the use of accounting and reporting standards aimed to increase financial faithfulness. Because the 26 entities had a certain autonomy, as they jointly implemented two major successive accounting reforms over the past forty years, policy outcomes were heterogeneous. Findings suggest that both citizen demand and government supply-side factors contribute to explaining the extent to which each entity’s policy led to a faithful reporting. This paper thus highlights some of the challenges in implementing supranational (e.g., IPSAS, EPSAS) or national accounting standards at lower tiers, when governments have some leeway over the process, while yet facing strong democratic scrutiny.

New aspects regarding the components, recognition and evaluation of contractual revenues and expenses

This article examines new aspects related to contractual revenues and expenses, primarily regarding: - the components of revenues and expenses in construction contracts; - the method of recognizing contractual revenues and expenses; - the evaluation of contractual revenues and expenses. These aspects result from the changes made in the National Accounting Standards and the General Chart of Accounts, which were developed based on Directive 2013/34/EU and the General Framework for Financial Reporting and came into force on January 1, 2020. When implementing the changes to the National Accounting Standards, it should be noted that there are divergences between the provisions of the National Accounting Standards and the IAS regarding the components, recognition, and evaluation of contractual revenues and expenses.

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

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.

FEATURES OF FINANCIAL STATEMENTS FORMATED ON THE BASIS OF IFRS

This article is devoted to the consideration of the theoretical and practical aspects of financial statements developed by economic entities based on international financial reporting standards (IFRS). In addition, the article highlights possibilities of financial statements in the implementation of the investment policy of the digital economy are highlighted. Moreover, various aspects of financial statements prepared according to national accounting standards (NAS) and international financial reporting standards, as well as the ways for their preparation are demonstrated.As a result of the research, the author has developed proposals and recommendations on the financial reporting forms based on international standards

FEATURES OF ACCOUNTING IN THE REPUBLIC OF UZBEKISTAN AND THE PROGRAM OF ITS REFORM

The article reveals the features of national accounting standards in the Republic of Uzbekistan, the stages of reforms for the transition to international financial reporting standards and the problems of their implementation.

The need to understand innovative activity as a capital-forming process in the accounting system

The compliance of the current accounting system with the needs of interested parties regarding the innovative activity of the enterprise has been analyzed. Dissatisfaction of interested users with information about research and development, formed in the accounting system, has been considered. The requirements of international and national accounting standards (IAS/IFRS, GAAP US, S(S)A) regarding the capitalization of research and development costs have been analyzed. The use of a cost-forming approach to understanding innovative activity in the accounting system has been considered. The inconsistency of the accounting and economic approaches to understanding the innovative activity of the enterprise has been established. The need to use a capital-forming approach to understanding the essence of innovative activity in the accounting system to meet the growing needs of users in the conditions of the knowledge economy has been substantiated. The need to use the integrated concept of «innovation capital» in accounting for the development of a new system of accounting and reporting on innovative initiatives, prospects and risks to the innovative policy and strategy of the enterprise has been proposed.

Historical and economic essence of liabilities for accounting and taxation purposes

The article delves into the concept of «obligations» from a historical perspective. An exploration of the essence of obligations spans from the times of the Roman Empire and the Middle Ages to contemporary interpretations. In order to account for obligations, a list of relevant accounts was compiled, which has also evolved and is presented in the article. Simultaneously, the significance of the development of this concept for accounting and taxation purposes was revealed. The essence of obligations is unveiled from both legal and economic standpoints. Rooted in the origins of legal direction since Roman law, it is understood that an obligation establishes a specific legal connection between its participants, resulting in certain rights and duties. However, it's noted that most scholars who researched the concept concluded that it is grounded in economic relations, intermediating them, and is by no means a technique for organizing economic production activities. In essence, obligations represent legal relations through which one party (debtor) must act in favor of another party (creditor) in certain actions (transferring property, performing work, paying money, etc.), or conversely refrain from specific actions, while the creditor has the right to demand the debtor's fulfillment of their obligation. The framework of regulatory documents defining the recognition and accounting of obligations is identified. The interconnection of subjects, objects, and the content of the concept of «obligation» is substantiated, suggesting that obligations are demands placed on a company's assets by its creditors, essentially an unregulated indebtedness of the enterprise. Furthermore, it's established that obligations in a modern context are characterized by specific economic resources, specificity, maturity dates for this indebtedness, compensation for resource usage, and specific sanctions for breaching previously agreed contractual obligations concerning terms or amounts of debt repayment. The position of enterprise obligations in the structure of company liabilities complies with national accounting standards.

ХУСУСИЙ КАПИТАЛ ҲИСОБИНИ ТАКОМИЛЛАШТИРИШ ЙЎНАЛИШЛАРИ

The article explores the essence of equity, which is considered as an object of accounting. Also, the rules of national accounting standards and international financial reporting standards in accounting of equity were analyzed moreover proposals and conclusions were formulated in order to improve the national accounting system

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Objective. The purpose of this research is to carry out a comparative analysis of the advantages and possibility of using IFRS 15 ?Revenue from Contracts with Customers? in comparison with the accounting of revenues according to national accounting standards at Ukrainian enterprises. Methods. The main research methods were general and special scientific approaches to theoretical generalization and grouping, systematization, comparative analysis, logical generalization. Results. The application IFRS 15 ?Revenue from contracts with customers? has the potential to increase the efficiency of the process of accounting of revenues compared to as a traditional system. IFRS 15 is based on the balance sheet approach. Revenue, expenses, and income are recognized as a result of changes in the values of these assets and liabilities. The article analyzes the main characteristics of which are directly relevant for revenue recognition. They include recognition and measurement revenue, presentation and disclosure of items related to customer�s contracts. IFRS 15 has greatly extended the scope of disclosure. To achieve that an entity shall disclose qualitative and quantitative information about all of the following: its contracts with customers, the significant judgements, and changes in the judgements, any assets recognized from the costs to obtain or fulfil a contract with a customer. Scientific novelty. The author substantiates that the use of IFRS 15 ?Revenue from contracts with customers? for revenue accounting will make accounting more efficient and transparent, will ensure increases usefulness and faithfully represent information in financial statements. Practical significance. Revenue from customer�s contracts purports to be a highly reliable outcome from the company�s activities. As such it carries important confirmatory information about actual performance and useful information to forecast future revenues. Key words: revenue, contract, customers, recognition, measurement, disclosure, submission, compensation, receivables.

ОСОБЛИВОСТІ ЗАСТОСУВАННЯ МСФЗ ДЛЯ МАЛИХ ПІДПРИЄМСТВ В УКРАЇНІ

The adoption of the International Financial Reporting Standards for small enterprises (IFRS for small enterprises) has allowed to standardize accounting practice and systematize approaches to the formation of financial statements for small enterprises around the world. The article examines the process of implementing IFRS for small enterprises, identifies the specifics of using IFRS and considers the differences with national accounting standards of Ukraine. It is substantiated that the transition to the application of IFRS for small enterprises contributes to increasing the transparency, comparability and reliability of the financial statements of small enterprises and also facilitates the understanding and analysis of the financial statements of small enterprises by interested parties at the national and international level. The practical consequences associated with the introduction of IFRS for small enterprises in Ukraine are analyzed and it is proved that the formation of financial statements in accordance with IFRS can potentially expand the access of domestic small enterprises to global capital markets and increase their trust on the part of international investors and creditors. Emphasizing the need for harmonization between IFRS and national accounting standards of Ukraine, the expediency and advantages of implementing IFRS for small enterprises in the Ukrainian business environment are determined. It has been proven that small enterprises in Ukraine can use the implementation of IFRS not only to accord international reporting standards, but also to improve the financial management system, management structure and decision-making processes. The features of the adaptation of IFRS for small enterprises to Ukrainian realities, which will include staff training, the introduction of new accounting and reporting software, as well as the revision of internal control procedures are revealed. It is substantiated that the successful implementation of IFRS for small enterprises will contribute to the formation of a more transparent and effective system of financial management of the activities of small enterprises, which is crucial important in a competitive business environment.