Economic Sciences/ Accounting and Auditing
Cand.Phil.Sci. Moiseeva F.A.,
postgraduate Zemeleva T.S.
Donetsk National University of Economics and Trade
named after Michael Tugan-Baranovsky
CLASSIFICATION
OF EXPENSES UNDER THE TAX CODE OF UKRAINE
There are a lot
of issues concerning the formation of accounting information to the object of
taxation, taxable income and in the accounting system with the adoption of the
Tax Code of Ukraine. In particular this concerns to the costs.
Problems of
classification of costs under the Tax Code of Ukraine and national standards of
accounting are studied by our and foreign scientists. So, it is necessary to
underline the value of basic researches of the following scientists: Babich V.,
Beluha M., Golov S., Korniychuk H., Oleinik
O., Poddyerohina A., Prokopenko V., Stroich S. etc.. However it should be
mentioned, that still there are insufficiently investigated problems of account
of expenses and that certainly opens the topicality of choice of a thesis.
In this regard, the
purpose of a thesis is to study the differences in the composition of expenses
listed in the Tax Code of Ukraine and regulations regarding in the national
standards of accounting.
First of all,
consider the definition of category "costs". According to the paragraph
14.1.27 of the Tax Code of
Ukraine the costs is the amount of any costs of the taxpayer in cash, tangible
or intangible, implemented for carrying out business of the taxpayer, resulting
in decreasing economic benefits such as disposal of assets or increasing
liabilities originated, followed by decreasing of equity capital (excluding
changes in capital through its disinvestment or distribution of owner) [1]. The
same definition is given in national standard of accounting 3 "The Report on Financial Results" [2]. So the definition of category "costs"
is agreed.
In turn, in the Tax Code of Ukraine defined that the
costs is composed of operating expenses and other expenses (Fig. 1).
Figure 1 – The structure of costs according to the Tax Code of Ukraine
Thus, operating costs - above all it costs that make the cost of sales
of finished products. According to the Code, to the cost includes all costs
directly related to the manufacture of such products, [1], whereas in
accounting, according to national standard of accounting 16 "The
Expences" [3], the production cost also included the variables of total
costs and total production costs divided constant (which, according to a new
tax accounting should be accounted in the "other expenses"). More features
determining the tax cost create the image schematic (Fig. 2).
Figure
2 - Cost price according to the Tax
Code of Ukraine
So, we can say
that elements of the tax cost of goods sold and purchased similar items from
the original definition of value stocks (national standard 9
"Inventory"). In its turn, is the primary feature of the definition
cost of goods sold and manufactured (finished products), work performed,
services rendered in tax accounting is the lack of total expenses and loss of defective,
that a fully rejected for reasons of technological products.
The adoption of the
Tax Code of Ukraine has changed the order of recognition of expenses in
accounting and tax accounting, which is shown at Figure 3.
Features |
Accounting
(national standard 16"The Expences" |
Tax accounting |
|
Recognition
of costs |
Cancellation costs |
||
Cost
of goods |
Are
expensed certain period while the recognition of income for which they were
made |
At
the time of receipt of income from the sale of such products |
Are expensed in the period in which
income was recognized from the sale of such goods, works, services |
Cost
of sales (services) |
|||
À) Production cost: |
|||
- Direct material costs |
|||
-
Direct labor costs |
|||
- Other direct costs |
|||
- general production expenses |
Other
expenses. Are expensed the reporting period in which they are carried out |
||
B) Unallocated fixed costs
of total |
Costs
are recorded within the reporting period in which they were made |
Included
in cost of sales (services) in the period they arise |
|
Administrative
expenses |
In
the reporting period in which they were made |
||
Selling
expense |
|||
Other
operating expenses |
|||
Financial
expenses |
|||
Other
expenses ordinary activities |
Figure 3 - Recognition of costs in the accounting
and tax accounting
Thus, today there
are differences between tax regulations and accounting rules of expenses that
leads to tax differences in accounting. The elimination of these differences
will positively influence the formation of information about the activities of
enterprises.
References
1. Tax Code of Ukraine
1.
National standard of accounting 3 "The Report on Financial Results"[Electronic resource]. - Access mode: <//http://pro-u4ot.info>.
2. National standard of accounting 16 "The Expences"[Electronic resource]. - Access mode: <// http://pro-u4ot.info>.