A. Palahniuk
N. Kostiv
Yu. Kovalyuk
Bukovyna State Finance Academy, Chernivtsi
The role of accounting policies in the organization of
accounting of enterprise
The present paper deals
with current issues related to accounting policy and its role in organizing the
firm's accounting.
Introduction into
the problem. In the contemporary economy there
is growing importance of accounting policy in economic
activities of enterprises. In connection with the reform of the accounting
system, which aims to bring the national accounting system to the needs of the
market economy and to the international
financial reporting standards, business entities granted more autonomy to
accounting and developing management
reporting forms. This independence is realized through the formation of
accounting policy.
Topicality. Accounting policies are
important for all types of businesses and depend largely on the efficiency of economic activities and the
company’s long-term development strategy. Creating accounting policy in the business is very laborious and responsible process, because the company does not have
to work one year and take into account its assets and liabilities developed in
accordance with its
accounting policies. This requires more opportunities to develop accounting policy
that is specific to its
work.
The aim of the present paper is to analyze the role of
accounting policies in the general organization of the firm's accounting.
Analysis of recent researches and publications. The question about
formation and implementation of accounting policy are reflected in the works of
Ukrainian scientists: M. Beluga, F. Butyntsya, G. Kireytsev, L. Kindratskaya, V. Linnik, M. Pushkar, V. Hill, W. Shvets, and foreign – R. Alborova, A. Bakayeva, N.
Kondrakov, S. Korotaev, M. Cutters, B. Nidlza, S. Nikolaev, V. Piles,
L. Khabarova, E. Hendryksen, L. Shneydman and others.
Problem statement. In the Law of Ukraine "On Accounting and Financial Reporting in Ukraine"
accounting policy is defined as a set of principles, methods and procedures
used for the presentation and preparation of financial statements [1, 8].
Choosing the right accounting
policy lies within the competence of
the company's owner, the body authorized to manage state property, agency or the body authorized to manage state corporate rights.
The authority of a
business owner to set up
accounting policy is implemented through the definition of administrative
documents in the list of assessment methods, and accounting procedures, for
which the legislature provides more
than one version of them [1, 20].
The choice of accounting
policy is affected by the following
factors:
1) field of industry or activity;
2)
legal form ( a private enterprise, etc.);
3)
output (number of employees);
4) skill level of accounting personnel and their computer equipment;
5)
relationship with the taxation system (amount of taxes the company pays);
6)
strategy of financial and business enterprises.
Nowadays, increasingly formal approach to setting up accounting policies is observed, which reduce preparation of financial statements according to general requirements (standards) and external users.
The reasons for this situation are following:
- unstable commodity and financial markets formed in Ukraine and their infrastructure,
the main elements of which are stock exchange, auctions, credit and emission
systems, information technologies and means of business communication,
commercial risk insurance system;
- economic entities, in many cases, have to work
under the rules that are dictated by
investors, suppliers of raw materials, energy resources;
-lack
of sufficient experience in
the new economic environment.
-the Law «On Accounting and Financial Reporting» does not
establish clear rules on the formation and implementation of accounting policies
[3, 15].
The analysis of scientific sources shows that
theoretically, there are three approaches to the problem of accounting policies
of enterprise:
-centralized;
-decentralized;
-mixed [2, 264]
The centralized approach of
accounting policy involves the regulation of accounting in one place. According to this approach, the company must follow
the rules and regulations produced by the center. This option is available in
the transitional economy.
The decentralized approach provides individualized accounting
rules for each particular enterprise, depending on ownership and type of activity scale. While this approach provides
maximum adequacy and accounting process of
the enterprise, yet, in a market economy it is of limited use.
The third approach (mixed) is based
on a clever combination of elements of the first and the
second approaches. Experience of other countries with developed
market economies shows that while this approach remains within centralized regulation,
it establishes
common rules and principles that provide accounting and usefulness of this information, which is formed in accounting. Implementation of all these rules and principles
are particular to each company and sold through the company is developing
accounting policies, which affect the formation of different factors (Fig. 1) [4, 28].
Fig.
1. Mechanism of accounting policies
If take credit into the experience of countries with developed market relations, which suggests that skillfully formed accounting policy
promotes reliable description of a financial result, taxable
income and requires proper design of accounting information and full disclosure
of its financial statements.
Conclusion. Thus, accounting policy should create conditions for effective
implementation of comprehensive management processes.
Absence of major commodity and financial markets, their infrastructure, insufficient work experience of
businesses in the new economic environment and scientifically based recommendations regarding formation of accounting policies, adaptation to
environments with national standards accounting standards, formal approach,that is formation of accounting policies requires substantial training
of the accounting personnel. Professional
accountants must not only follow the basic principles of accounting, but adopt a systematic approach to the formation
of accounting policies and at the same time be guided by their
principles, while the principles of accounting policies
formation correspond to the general scientific ones as well as to economic
accounting logics and industrial systems management.
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