KIREY OKSANA

TARAS SHEVCHENKO NATIONAL UNIVERSITY OF KYIV

GRADUATE STUDENT

 

Non-Current Assets Accounting and Reporting Management

 

The accounting management should be understood to mean a system of conditions and elements of accounting process in order to obtain true and timely information on business activity of an enterprise and maintain control of efficient use of production resources and finished goods. Its purpose is improvement and rationalization of information processing, assignment of work to accounting staff, scientific labour management.

Accounting management is a complex of measures carried out by owner of an enterprise that are directed to ensure the registration of business facts, their generalization in order to obtain the required information to draw up reports and make management decisions.

The accounting management and maintenance procedure in Ukraine is regulated by the Ukrainian Law “On Accounting in Ukraine” and Accounting Provision (Standard) since January 1, 2000.

Pursuant to the Ukrainian Law “On Accounting and Financial Statements in Ukraine” the accounting policy is a system of principles, methods and procedures that are used by an enterprise to draw up and submit financial statements. That is a choice made by an enterprise itself of certain and specific methods, form and techniques for maintenance of accounting records based upon the current regulatory enactments and peculiarities of enterprise activities.

One of the integral parts of order on enterprise accounting policy is a working chart of accounts. The working chart of accounts should guarantee such accounting management that accounting registers are kept by systematized method, the data of accounts should ensure to draw up financial statements to the full extent as well as these data can be used for management needs of an enterprise. This chart provides with all necessary accounts for accounting of operating, financial and investment activity of enterprises.

Carrying out its business activity an enterprise should be governed by the Provision on Accounting Department, Enterprise Accounting Policy and Duty Regulations. The main tasks of accounting are to ensure the accounting of commodity and material valuables, resources and money means of an enterprise.

The head of an enterprise bears the responsibility for accounting and financial statement management at an enterprise. The chief accountant ensures the accounting management and control in the structural units according to efficient and economic consumption of material and financial resources, reservation of enterprise’s property. He reports directly to director.

The primary accounting of non-current assets represents an initial stage of system perception and registration of certain operations that characterize business processes and events at an enterprise. The primary documents in which preliminaries on business facts at units of trade enterprise are represented should be completed at this stage of accounting work. The basic requirements to draw up primary documents are set forth in the Ukrainian Law “On Accounting and Financial Statements in Ukraine”.

Any and all operations that are subject to accounting should be completed according to principles of full coverage by primary accounting documents.

The variety and a large volume of primary accounting data, different conditions of their receipt and registration, a great number of places for their incurrence, from which the primary information is obtained, a considerable complexity of process to fill in information media and other peculiarities lead to certain difficulties to carry out the work at the first state of accounting process, especially in the process of its computerization.

The output data obtained due to observation and primary representation of carried out business operations are the basis for information of accounting, management and tax accounting.

The accuracy and reasonableness of management decisions depend on data reliability, time period of their obtainment, processing and transfer to interested persons.

The primary accounting of non-current assets in the system of enterprise management ensures the resolving of the following tasks: obtainment of information on inflow, capitalization, transfer and disposal of Property, Plant and Equipment and intangible assets; obtainment of information on acknowledgement and relief of long-term receivables; constant taking of measures to increase reliability, accuracy and timeliness accounting data on non-current assets of an enterprise; integrated orientation of accounting information on non-current assets and use of standardized forms for primary accounting documentation.

 

List of References:

1.The Ukrainian Law “On Accounting and Financial Statements in Ukraine” approved by the Decree of the Verkhovna Rada of Ukraine (the Supreme Council of Ukraine) dated 16.07.1999 (amended and revised).

2.V.G. Shvets Theory of Accounting: Textbook. – K.: Znannya-Pres, 2008. – 535 p.