scholarly journals SPECIFIC TYPES OF RELATED PARTIES AND TRANSACTIONS WITH THEM IN INTERNATIONAL STANDARD ON AUDITING 550: IMPACT ON THE ASSESSMENT OF RISK OF MATERIAL MISSTATEMENT AND ESTABLISHING THE ENTITY’S ACCOUNTING POLICY

2020 ◽  
Vol 1 (3) ◽  
pp. 89-95
Author(s):  
Nataliia Shalimova ◽  
Yana Klymenko
Keyword(s):  
Internal Control ◽  
System Analysis ◽  
Financial Statements ◽  
International Standards ◽  
Related Services ◽  
Scientific Methods ◽  
Logical Method ◽  
Management Staff ◽  
The Impact ◽  
Accounting Policy

The purpose of the study is to identify the impact of specific types of related parties, which are allocated in International Standards on Auditing 550 “Related Parties”, not only on the organization of the audit of financial statements in the context of assessing the risk of material misstatement, but also on the organization of accounting in enterprises. To achieve the goal set in the work, a complex of general scientific methods (analysis, synthesis, induction, deduction, abstraction) and methodical techniques (systematization, generalization, review, comparison) based on the provisions of International Standards of Auditing was used. In the study of the essence of related parties transactions and elaboration their classification method of system analysis, logical method, and method of modeling were used. There are three major tasks within the overall responsibility of the auditor while fulfilling such engagement as audit of the financial statements have been determined. It is substantiated that two different phrases (“has a responsibility to perform audit procedures” and “needs to obtain an understanding”) which are used in International Standards on Auditing 550 “Related Parties” requires a separate approach to formation a set of optimal audit procedures. Specific types of related parties based on the International Standards 550 “Related Services” that should be considered when performing audit of financial statements has been identified. Classification of related parties transactions according to their riskiness and connection with the normal course of business into four different types has been elaborated. Two groups of inquiries concerning related parties transactions have been analyzed. It has been proved that making inquiries the auditor should provide as much information as possible in order to avoid misunderstandings, which may lead to difficulties in forming an opinion. It is noted that determining the characteristics of the dominant influence and significant transactions will allow effective communication and cooperation between auditors, management staff and those responsible for governance in formation inquires and answers for them. Using proposed classification in the process of audit of financial statements and in developing regulatory documents for accounting at the entity will allow appropriate assessing of risk of material misstatement and increasing the effectiveness of internal control at the entity. It has been substantiated that the objectives of accounting policy not only in terms of meeting the interests of the company as an entity that prepares financial statements and interacts with related parties, but also in terms of meeting the interests of the entity as a responsible party, interacting with the auditor, that seeks to establish an internal control system that will ensure reducing its own risks.

scholarly journals Changes in the accounting of property of a construction contractor

2021 ◽  
Vol 263 ◽  
pp. 05040
Author(s):  
Irina Zaslavskaya
Keyword(s):  
Financial Statements ◽  
International Standards ◽  
Fixed Assets ◽  
Construction Contractor ◽  
The Impact ◽  
Accounting Policy

This article studies the impact of changes in the accounting of property of organizations in connection with the new regulations in the field of accounting, and the convergence of Russian accounting with international standards. These changes are considered on the example of accounting for tools and inventory in a construction contractor. The conclusion is made about the significant impact on the financial statements of the limit for accepting fixed assets for accounting established in the Accounting Policy, and the need to justify the choice of such a limit by the accountant.

Particularities of the independent auditor's report on reliability of accounting (financial) statements for 2019: COVID-19 as qualitatively essential information (Part 2)

2020 ◽  
Vol 23 (7) ◽  
pp. 777-799
Author(s):  
O.I. Shvyreva ◽  
Z.I. Kruglyak ◽  
A.V. Petukh
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Economic Situation ◽  
Risk Disclosure ◽  
Essential Information ◽  
Logical Method ◽  
Annual Reporting ◽  
The Face ◽  
Key Aspects ◽  
The Impact

Subject. This article discusses the issues related to the practice of financial reporting in the face of uncertainties caused by the coronavirus contagion, as well as the specifics of the audit strategy and formation of an audit opinion on this reporting. Objectives. The article aims to identify the quality characteristics of financial reporting prepared in the context of the COVID-19 pandemic and justify the key aspects of assurance engagement completion in an extremely uncertain epidemiological and economic situation. Methods. For the study, we used an abstract-logical method, content analysis techniques, systematization, and classification. Results. Analyzing the impact of the extremely uncertain epidemiological and economic situation on financial statements, the article clarifies aspects of disclosure of events after the reporting date and threats to business continuity in the annual reporting of economic entities. The article identifies possible alternative procedures and algorithms to obtain proper evidence when it is insufficient in the face of the inability to meet certain audit standards requirements in a remote audit environment. The article defines the impact of COVID-19 risk disclosure on the structure of the audit report and opinion. Relevance. The results of the study can be used in the practical activities of economic entities that prepare financial statements in the face of significant uncertainty, as well as auditors and audit organizations.

IFRS IMPLEMENTATION AS ONE OF THE FACTORS FOR IMPROVING THE INVESTMENT CLIMATE IN UKRAINE

2017 ◽  
Author(s):  
Kateryna Sova ◽  
◽  
Natalia Yatsenko ◽  
Denys Zagirniak ◽  
◽  
...  
Keyword(s):  
Financial Reporting ◽  
Direct Investment ◽  
Financial Statements ◽  
International Standards ◽  
Investment Climate ◽  
The European Union ◽  
Economic Activities ◽  
Financial Reporting Standards ◽  
Almost All ◽  
The Impact

The article is devoted to the study of the impact of the introduction of International Financial Reporting Standards (IFRS) on changes in the investment climate in Ukraine. The relevance of the topic is that improving the practice of applying IFRS as a tool for exchanging financial information is one of the key conditions for improving the investment climate in Ukraine. The authors have created the generalized scheme that illustrates the chronological list of enterprises that are required by law to prepare financial statements in accordance with IFRS. It was noted that in 2018, in accordance with Part 2 of Article 12 of the law on accounting and financial reporting in Ukraine and resolution of the Cabinet of Ministers of Ukraine No. 547 from 11.07.2018, the criteria of enterprises that are required to prepare financial statements in accordance with IFRS were updated. This step significantly increased the level of application of international standards due to the adoption of such a decision at the legislative level. The dynamics of the number of IFRS enterprises in Ukraine was analyzed. The analysis showed that over the past three years, the number of almost all enterprises that must apply international standards has been growing. The advantages of using IFRS for different users of financial statements were determined. It was determined that the priority users of IFRS financial statements are investors. At the same time, it was noted that the main advantage for other users of financial statements prepared in accordance with international standards is the improvement of the investment climate. The dynamics of the Investment Attractiveness Index of Ukraine based on the Likert scale in the period from 2016 to 2020 was analyzed. The direct investment receipts to Ukraine from the European Union countries were studied. The dynamics of direct investment in the Ukrainian economy was analyzed for two types of economic activities that should form financial statements in accordance with IFRS, namely, the extractive industry and quarrying, as well as financial and insurance activities.

Accounting policy as a constituent of internal control and corporate economic security

2021 ◽  
Vol 17 (4) ◽  
pp. 664-681
Author(s):  
Yuliya N. STETSYUNICH ◽  
Andrei A. ZAITSEV
Keyword(s):  
Internal Control ◽  
Financial Management ◽  
Semantic Analysis ◽  
Economic Security ◽  
External Factors ◽  
Practical Significance ◽  
Negative Consequences ◽  
Internal And External Factors ◽  
The Impact ◽  
Accounting Policy

Subject. The article discusses the consistency of accounting policies, internal control and constituents of corporate economic security. Objectives. The study determines the process of articulating the term Accounting Policy at the legislative and normative levels nationwide and worldwide. We compare our own interpretations of corporate economic security. The article traces the impact of the accounting policy on areas of internal control and corporate economic securities. Methods. The study is based on general methods of research, such as the dialectical method, methods of analysis and synthesis, induction and deduction, and semantic analysis. Results. The article shows the impact of internal and external factors, which also influence corporate economic security and translate into the formation of corporate accounting policies. Conclusions and Relevance. Economic security is an aspect that every entity pursues. Therefore, it is important to thoroughly study how clauses of accounting policies influence the aspect from perspectives of business entities. The impact of constituents of corporate accounting policies, as evaluated herein, allow to consider adverse factors and help prevent negative consequences that internal and external factors may cause to corporate economic security. The findings contribute to accounting techniques for financial management in order to ensure the economic security. They are of practical significance for business leaders and financial personnel.

scholarly journals The Impact of Private Ownership Structure on Risk Taking by Pakistani Banks: An Empirical Study

2018 ◽  
Vol 6 (3) ◽  
Author(s):  
Muhammad Sajjad Hussain ◽  
Muhammad Muhaizam Bin Musa Musa ◽  
Muhammad Muhaizam Bin Musa Musa ◽  
Abdelnaser Omran Ali
Keyword(s):  
Ownership Structure ◽  
Risk Taking ◽  
Negative Impact ◽  
Negative Relationship ◽  
Financial Statements ◽  
International Standards ◽  
Bank Risk ◽  
Private Ownership ◽  
Private Banks ◽  
The Impact

The financial crisis of 2007-09 was converted the focus of researchers and regulators toward bank risk-taking and this study is also analyzed the private ownership structure impact on Pakistani bank’s risk-taking. This study selects the all Pakistani private banks for investigation and data is collected from financial statements from 2005 to 2016. Most of the past studies found a negative impact of private ownership structure on bank risk-taking and this study is also indicated the negative relationship between private ownership and bank risk-taking. On the other, non-performing loans are double than the international standards that highlighted the owner’s attention toward high risky investments for high return. Thus, this study suggests that check this relationship with other factors that forced the owner’s behavior toward risk.

scholarly journals Accounting for non-current assets in budgetary institutions: problems and solutions

Ekonomika APK ◽  
2020 ◽  
Vol 314 (12) ◽  
pp. 22-28
Author(s):  
Mykhailo Prodanchuk ◽  
Yuliia Bezdushna
Keyword(s):  
Information Technology ◽  
Internal Control ◽  
International Standards ◽  
Practical Significance ◽  
Accounting System ◽  
Basic Principles ◽  
Scientific Methods ◽  
Budgetary Institutions ◽  
Problems And Solutions ◽  
General Scientific

The purpose of the article is to identify problematic aspects of accounting for non-current assets and to suggest their solutions using information technology and documentation. Research methods. The methodological basis of the study is a systematic approach to the study of the processes of reflection of non-current assets in the accounting of budgetary institutions. The epistemological method is used to clarify and deepen the meaning of the concept of "non-current assets". Analysis, synthesis, induction, deduction, abstraction, idealization and generalization, as general scientific methods of cognition, are used to develop the basic principles of the theory, methodology and organization of accounting for non-current assets. Bibliographic and bibliometric types of analysis provided identification of trends in the theory and methodology of accounting, as well as problematic aspects of non-current assets. The method of formalization made it possible to make suggestions on how to solve the problematic aspects of accounting for non-current assets. Research results. Identifying of problematic aspects in the accounting for non-current assets of budgetary institutions allowed to offer options for their solution, which will deepen the informativeness of accounting and reporting data and ensure their accuracy, reliability and comparability. Improving the accounting aspects of the reflection of non-current assets will also help increase the effectiveness of internal control (including inventory), and thus their management in budgetary institutions. Scientific novelty. Theoretical and practical provisions for accounting for non-current assets of budgetary institutions are improved. Ways to improve the accounting and internal control of non-current assets for the needs of management in budgetary institutions are proposed. Practical significance. In order to bring the national accounting system in line with international standards and in accordance with the needs of management, it is proposed to improve the reflection in the accounting of non-current assets of budgetary institutions through the use of information technology and documentation. Refs.: 11.

scholarly journals Economic development management in a water-capacious economy

2019 ◽  
Vol 17 (3) ◽  
pp. 259-270 ◽  
Author(s):  
Svitlana Fedulova ◽  
Volodymyr Dubnytskyi ◽  
Vitalina Komirna ◽  
Nataliia Naumenko
Keyword(s):  
Economic Development ◽  
Water Resources ◽  
System Analysis ◽  
Water Security ◽  
Resource Specialization ◽  
Its Regions ◽  
Logical Method ◽  
Food Needs ◽  
Regional Product ◽  
The Impact

The world tendencies of spatial development, namely the availability of limited resources (primarily water) and the growth of the world’s food needs focus on the resource specialization of the region. On this basis, the purpose of the article is to study the impact of the water-capacious economy on the economic development of the country and its regions. The study used the traditional and special methods, including: historical and logical method – to analyze the functioning of regional socio-economic systems under limited water resources; and system analysis methods – to evaluate the impact of the water-capacious economy on the economic development of the country and its regions. The research results have important implications for the management of the territories. The authors show that the production specialization of the regions of Ukraine on the export/import of water-capacious products is not determined by their water supply. They also suggest that stimulating the region’s water-efficient activity should lead to a minimization of the water capacity of gross regional product and the reproduction of water capital, taking into account the water security of the regions. The authors also show that the water resources of the country and its regions and the natural water potential of the territories in the current situation become significant restriction to the economic development of territories, which allows to state the need to change the approaches to the regulation of regional development based on limited water resources.

scholarly journals ФОРМУВАННЯ ОБЛІКОВОЇ ПОЛІТИКИ ЗА ПРИНЦИПОМ БЕЗПЕРЕРВНОСТІ ДІЯЛЬНОСТІ ПІДПРИЄМСТВ

2021 ◽  
pp. 74-81
Author(s):  
Олена Сергіївна Юрченко
Keyword(s):  
Financial Reporting ◽  
Information Needs ◽  
Accounting Standards ◽  
Financial Statements ◽  
Fair Value ◽  
The Real ◽  
Real Value ◽  
The Impact ◽  
Accounting Policy

Formulation of the problem. Based on the study, the prerequisites, features and components of the formation of accounting policies in the context of business continuity are revealed. The purpose of the article is to substantiate the theoretical and methodological and organizational provisions of accounting policy formation in the context of the implementation of the concept of continuity. The object of research is the process of formation of accounting policy and its impact on the quality of corporate financial reporting information. Methods used in the study: scientific knowledge, method of generalization, comparison, logical - meaningful, methods of induction and deduction. The main hypothesis is that the formation of accounting policies aimed at determining the regulations of accounting and reporting from the standpoint of reflecting complete and reliable information about the real value of assets and liabilities will help reconcile the interests of all stakeholders. Presenting main material. The article identifies the prerequisites, directions and elements of the formation of accounting policies on the principle of continuity of enterprises. Provisions on the development of theoretical and methodological foundations for the formation of accounting policies of enterprises on the basis of risk-oriented approach are revealed. The necessity of valuation of assets and liabilities according to the criteria: fair, discounted and market value of enterprises is substantiated and the methodological support of valuation of financial instruments in accounting is revealed. Originality and practical significance are proposals for the formation of methodological and organizational support and recommendations for the measurement of assets and liabilities at fair value in order to improve the quality of financial statements. Research findings. The formation of accounting policy in the context of the principle of continuity is based on the requirements of International Accounting Standards and National Accounting Standards and depends on the needs of management, methods and techniques of accounting. In the process of developing an accounting policy, it is necessary to take into account the information needs of various stakeholders to disclose information in corporate financial statements. The introduction of theoretical and methodological provisions for the formation of elements of accounting policy on the principle of continuity will meet the information needs of different users, improve the quality of financial reporting and assess the impact of accounting policies on the real value of enterprises in the future.

scholarly journals Some issues of improving the effectiveness of the implementation of audit engagements

2021 ◽  
pp. 56-61
Author(s):  
Катерина Леонідівна Ткаченко
Keyword(s):  
Legal Status ◽  
Financial Statements ◽  
Point Of View ◽  
International Standards ◽  
Maximum Efficiency ◽  
Related Services ◽  
Statistical Sample ◽  
State Of Affairs ◽  
Audit Effectiveness

The issue of audit effectiveness is one of the most essential and debating issues that have not been fully resolved at the present time yet. This issue is considered in the context of compliance with «The International Standards for Quality Control, Auditing, Review, Other Assurance and Related Services, 2016–2017». A gradation of quality indicators for the performance of audit assignments is proposed from the point of view of the need to achieve the completeness of the performance of the audit assignment, minimize the costs of its implementation and achieve maximum efficiency. Generalized groups have been identified into which it is advisable to divide the requirements for assessing the effectiveness of the task of auditing financial statements and clearly delineated the need to perform two types of audit confirmations: for compliance with legal requirements and compliance with the real state of affairs at the enterprise. A five-level classification of subjects of control over the effectiveness of the audit assignment has been developed, depending on the legal status. The concept of objects of control is generalized. It is proposed to evaluate the effectiveness of the audit assignment by three methods: an indirect method of comparing various options, an assessment based on the final results, an assessment on the immediate results, and the essence of each method is disclosed. It was determined that one of the significant indicators that affect efficiency is the audit sample and methods for creating a non-statistical sample are proposed. We believe that the implementation of the proposed methods of assessing efficiency in the practice of performing audit tasks will contribute to the formation of high-quality audit practice in Ukraine.

scholarly journals Understanding the Essence of the Accrual Method According to the International Standards

2021 ◽  
pp. 57-66
Author(s):  
Bidzina Grigalashvili ◽  
Keyword(s):  
Subject Matter ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Conceptual Frameworks ◽  
Accounting Practice ◽  
Accounting Policy

Assumption of international accounting standards was considerable event in the accounting practice of Georgia. One of the innovation was the introduction of "accounting policy" and establishment such an element in the compilation of financial statements as "accrual method". Mentioned method was not used in Soviet accounting. Based on his explanation, after the introduction of international standards, the definitions have undergone some changes. The article analyzes the implemented changes, definitions, given in international standards and conceptual frameworks, outlook of various authors concerning subject matter and relevant conclusions drawn. Based on researches have been proven that, the "accrual method" should be used by the enterprise in recognizing / reflecting income and expenses and not in relation to assets and liabilities. Based on the reconciliation and analysis of different definitions, the author's designation of the "accrual method" is proposed.

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