CHARACTERISTICS OF THE ACCOUNTING OF BIOLOGICAL ASSETS IN THE GRAIN PRODUCTION

Juvenis scientia ◽

10.32415/jscientia.2018.12.04 ◽

2018 ◽

pp. 16-19

Author(s):

A. O. Beryoza

Keyword(s):

Multinational Corporations ◽

Financial Reporting ◽

Objective Assessment ◽

Fair Value ◽

World Market ◽

International Standards ◽

Financial Reports ◽

Accounting Systems ◽

Financial Reporting Standards ◽

The World

Today globalization of the world market leads to the need for the constructive interaction within the international market and the formation of common accounting forms and standards. The multinational corporations represent organizations that have divisions in different countries of the world. Therefore preparation of clear and transparent financial reports for such companies requires the establishment of common international standards. International financial reporting standards (IAS or IFRS) have become such standards. They are designed to provide an understanding of the reporting forms, to give an objective assessment of the property, as well as to promote interaction between investors and potential investment objects located in different national accounting systems. One of the standards that is of great importance for the Russian Federation is IAS 41 "Agriculture". Agriculture is one of the leading sectors in our country, which supplies products to both domestic and foreign markets. Accordingly, the adoption of the Russian analogue of this standard and the implementation of its provisions is a significant and important issue of today's economic reality.Thus, the need to allocate biological assets in a separate accounting and economic category, their reflection in accounting and reporting at fair value in accordance with the provisions of IAS 41 determined the relevance of the topic, purpose, objectives and logic of this work. The article suggests the author's approach to the calculation of the fair value of biological assets.

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Valuation of Biological Assets at Fair Value

The world of new economy ◽

10.26794/2220-6469-2019-13-3-59-70 ◽

2019 ◽

Vol 13 (3) ◽

pp. 59-70

Author(s):

A. O. Beryoza

Keyword(s):

Financial Reporting ◽

Foreign Market ◽

Fair Value ◽

World Market ◽

International Standards ◽

Information Support ◽

Accounting Systems ◽

Investment Projects ◽

Financial Reporting Standards ◽

The World

Today the globalisation of the world market leads to the necessity of constructive interaction in the international market and forming common standards of accounting. Transnational corporations as a phenomenon of worldwide integration are businesses with units in different countries of the world. Special issues of information support of management in agricultural organisations have become very important in the conditions of the market economy. Clear and transparent accounting in such enterprises requires the existence of common international standards. Such standards could become International Financial Reporting Standards (IFRS). They are designed to provide an understanding of financial processes in different countries for the interaction between investors and potential investment projects located in different national accounting systems. The standard “Agriculture” has great importance for the Russian Federation. Agriculture is one of the leading sectors of our country, supplying products for both domestic and foreign market. Accordingly, the adoption of this standard and the implementation of its provisions is an important and urgent issue of today’s economic reality. Introduction of this standard leads to the formation of fundamentally new methodological bases of the accounting of agricultural activities based on the market value of assets because paragraphs 12–13 of this Standard states that during the initial and subsequent valuation of biological assets will be measured at their fair value fewer costs to selling. Thus, the need to allocate biological assets in the separate account-economic category, their reflection in the accounting at fair value by the provisions of IAS 41 has determined the relevance of the topic, goal, objectives and logic of the article.

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Fair Value Accounting: Implementation Challenges Facing Small and Medium-Sized Entities in the Agricultural Sector

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v8i4.13643 ◽

2018 ◽

Vol 8 (4) ◽

pp. 60

Author(s):

Joseph Kwasi Agyemang ◽

Owusu Acheampong ◽

Wiafe Nti Akenten

Keyword(s):

Financial Reporting ◽

Agricultural Sector ◽

Fair Value ◽

International Standards ◽

Reporting Standards ◽

Fair Value Accounting ◽

Implementation Challenges ◽

Financial Reporting Standards ◽

Regulatory Bodies ◽

Value Reporting

Nowadays, the relevance of fair value in financial reporting is gaining impetus and recent discussions are moving in the trend of full fair value reporting. Small and medium-sized entities are not ignored in this instance. The move to new reporting standards results in various challenges for different interest groups such as auditors, preparers and regulators. The main objective of the study was to establish the fair value implementation challenges facing SMEs in the agricultural sector with evidence from regulatory bodies in Ghana. The study established that there is lack of methodological relationship between existing local laws and IFRS and absence of involvement of regulatory bodies in financial reporting standards setting. In light of these challenges, the study recommends involvement of regulatory bodies in standard setting and consideration should also be given to local laws when setting international standards.

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Does the Mark-to-Model Fair Value Measure Make Assets Impairment Noisy?: A Literature Review

Sustainability ◽

10.3390/su12041504 ◽

2020 ◽

Vol 12 (4) ◽

pp. 1504 ◽

Cited By ~ 1

Author(s):

Tadeusz Dudycz ◽

Jadwiga Praźników

Keyword(s):

Literature Review ◽

Financial Reporting ◽

Financial Statements ◽

Fair Value ◽

High Quality ◽

Financial Reports ◽

Financial Reporting Standards ◽

Asset Impairment ◽

Accounting Model ◽

Anglo American

With the purpose of reporting high-quality, transparent, and comparable information in financial statements, there is a strong, visible trend towards the implementation and use of International Financial Reporting Standards (IFRS), which represent the Anglo-American accounting model. According to IFRS, the fair value has become a dominant measurement paradigm. The purpose of this paper is to examine the implications of the implementation of the mark-to-model fair value measures for asset impairment tests on the relevance and reliability of information presented in financial reports. Among the three levels of the fair value hierarchy, mark-to-model is most controversial because it is susceptible to manipulation and has poor verifiability. After a systematic literature review and a synthesis of high-quality contributions in this field, we conclude that the implementation of asset impairment tests, that use the mark-to-model fair value measures, is not promising for increasing the quality and reliability of the information presented in financial statements. Unfortunately, research has shown that companies are using that tool to manage their earnings and promote managers’ unethical behaviour. Furthermore, capital markets’ reaction to asset impairment announcements is negative. Performed analysis can provide valuable pointers for standard setters, accounting policy makers, and researchers.

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A Retrospective View Of The IFRS Conceptual Path And Treatment Of Fair Value Measurements In Financial Reporting

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v9i3.4126 ◽

2011 ◽

Vol 9 (3) ◽

Author(s):

Stephen B. Shanklin ◽

Debra R. Hunter ◽

Craig R. Ehlen

Keyword(s):

Financial Reporting ◽

Accounting Standards ◽

Fair Value ◽

Theoretical Concept ◽

International Standards ◽

Financial Reporting Standards ◽

Retrospective View ◽

Fair Value Measurement ◽

Value Reporting ◽

Value Measurement

International Financial Reporting Standards (IFRS) require some assets, liabilities and equity instruments to be measured at fair value (IASB ED/2009/5). Thus begins the Fair Value Measurement IASB 2009 Exposure Draft. The IFRS requirement for fair value reporting has actually existed since 1975, due to the adoption of pronouncement IAS 2 (IASC/IAS 2 1975). This standard required that Inventory be valued at fair value less costs to sell for both reporting and disclosure purposes. But, as is the case in the history of many accounting standards and practice, the devil has always been in the details. This paper explores a brief historical path of fair value accounting within the venue of international accounting standards. Because of the impending plan of convergence and harmonization, plus potential global acceptance of standards of reporting and content, both the IASB and FASB have extensively explored the relevance and reliability of fair value reporting as compared with the more traditional costbased system. This exploration has been controversial because it goes to the very heart of the centuries-old cost-based foundation of financial accounting. In spite of the ongoing controversy of fair value versus historical cost accounting and the multiple uses and requirements of the fair value theoretical concept in IFRSs, there has been no definitive guidance on the various alternative calculations and appropriate uses of these differing representations of fair value. As the comment period closes on a second exposure draft directed at resolving Fair Value Measurement, this retrospective view of the international standards moves through the past standards and into the future methodology of reporting fair value. With FASBs latest exposure draft on fair value currently pending, the convergence opportunity of a more closely defined concept and its subsequent use in global practice is quite possibly at hand.

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Cryptocurrency Assets in the Financial Accounting Systems

THE PROBLEMS OF ECONOMY ◽

10.32983/2222-0712-2020-3-184-189 ◽

2020 ◽

Vol 3 (45) ◽

pp. 184-189

Author(s):

A. A. Makurin ◽

Keyword(s):

Financial Reporting ◽

Intangible Assets ◽

Balance Sheet ◽

Fair Value ◽

Financial Accounting ◽

Accounting Systems ◽

Financial Investment ◽

Financial Reporting Standards ◽

The One ◽

Definition Of

The article deals with constructing an asset accounting process and an algorithm for recognizing an object as an asset. The main approaches to the reflection of cryptocurrency in financial accounting are analyzed. The study showed that International Financial Reporting Standards (IFRS) still lack specific clarifications on the correctness of accounting and recognition of cryptocurrencies. Cryptocurrencies are suggested to be recognized as, intangible assets on the one hand, and as inventories, on the other. The research shows that before starting the process of accounting for any asset, it is necessary to determine, whether such a resource meets the definition of an asset. The article proves that cryptocurrency is an asset. However, attaching cryptocurrency to a certain group of assets turns out to be rather problematic. The main approaches to doing it are analyzed. Speaking formally, cryptocurrency is considered to be cash or cash equivalents. Cash and cryptocurrencies have been compared, and the main distinguishing features of these two assets have been considered. The conclusion is made that cryptocurrency should be evaluated at fair value, indicating the date of evaluation to fix actual market conditions. The measure of cryptocurrency when reflected in the financial reporting is the US dollar or its equivalent in the national currency as at the balance sheet date. The research has shown that depending on the type of the enterprise activity, cryptocurrency should be determined in the financial reporting, or the «balance sheet», as «intangible assets» (line code 1000), and the primary value of such an asset corresponds to line 1001, or inventories (line code 1100). Also, if the company’s accounting policy states that cryptocurrency is a financial investment, it should be reflected in line 1160.

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Fair Value Accounting: Affect On The Auditing Profession

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v26i3.292 ◽

2010 ◽

Vol 26 (3) ◽

Cited By ~ 7

Author(s):

Danny Pannese ◽

Alan DelFavero

Keyword(s):

Multinational Corporations ◽

Financial Reporting ◽

Accounting Standards ◽

Fair Value ◽

Financial Accounting ◽

Credit Crisis ◽

Fair Value Accounting ◽

Financial Reporting Standards ◽

Business Entities ◽

Recent Financial Crisis

During this period of global markets, multinational corporations are demanding financial accounting standards with enhanced uniformity. In an effort to achieve this objective, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have been working together on the Convergence Project, aiming to develop accounting standards that closely correlate with international financial reporting standards.  In September 2006 and February 2007, the FASB issued two key fair value accounting (FVA) standards which focused on providing guidelines for fair value measurement (through a classification hierarchy), expanding disclosure requirements, and also allowing business entities to increase FVA’s application.  However, the recent financial crisis has placed increased scrutiny on estimates derived under FVA.  Consequently, a spotlight has been placed on the auditing profession, as the effectiveness of an auditor’s ability to test estimates derived under FVA has been questioned due to numerous firms approaching collapse in the midst of the credit crisis.  Thus, the purpose of this paper is to present the challenges auditors face when auditing FV estimates, and to discuss the profession’s capability of adapting to FVA in the future.

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Fair value: characteristics and impact on economic security

The Economy under Guard ◽

10.36511/2588-0071-2020-4-38-44 ◽

2020 ◽

pp. 38-44

Author(s):

Svetlana Kozmenkova

Keyword(s):

Public Sector ◽

Financial Reporting ◽

Fair Value ◽

Economic Security ◽

International Standards ◽

Reporting Standards ◽

Financial Reporting Standards ◽

Public Sector Organizations

The article examines the concept of “fair value” when applying international and national financial reporting standards, including public sector organizations. And although the assessment at fair value is used only in certain cases, for example, when receiving property free of charge, drawing up reports in accordance with the requirements of international standards, and this is justified, however, the subsequent assessment of assets can be subjective and have a significant impact on economic security, as a separate organization and the country as a whole.

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ACCOUNTING PRODUCTION AND SALE OF PRODUCTS IN ACCORDANCE WITH IFRS

Young Scientist ◽

10.32839/2304-5809/2020-11-87-43 ◽

2020 ◽

Vol 11 (87) ◽

Author(s):

Olha Romashko ◽

◽

Anastasiia Znamerovska ◽

Keyword(s):

Financial Reporting ◽

Production Efficiency ◽

World Market ◽

International Standards ◽

National Standards ◽

International Accounting ◽

Reporting Standards ◽

Increase Production Efficiency ◽

Accounting Regulation ◽

Financial Reporting Standards

The article is devoted to the procedure for forming information and reflecting business operations for accounting for finished products of an economic entity in accordance with the accounting regulation (standard) 9 "inventory" and the international accounting standard (IAS) 2 "Inventory". The norms of national and international standards are compared and the expediency of switching Ukrainian enterprises to international accounting standards is determined. Occupying an important part of the company's assets, finished products play a significant role in shaping the cost structure of enterprises, and their cost has a significant impact on the level of profitability of production, the speed of turnover of invested capital and profit of the enterprise depend on their effective use. Rational use of production stocks carries the potential to increase production efficiency. In turn, the formation of reliable information about the availability and movement of production stocks and the correct accounting of their cost ensures the reliability of financial statements. The national accounting regulations (standards) comply with the requirements of international accounting and Financial Reporting Standards, taking into account the economic, legal, and tax characteristics of our state, but there are certain inconsistencies between national standards and international ones, including in terms of inventory accounting. That is why the issues of improving the accounting of production stocks with their maximum approximation to the methodology of international standards are quite relevant today. In the light of recent events, due to the development of globalization processes that have covered all spheres of life, including economic ones, the study of the requirements of IAS and International Financial Reporting Standards (IFRS) is particularly relevant. Ukraine's entry into the world market directly depends on the transparency and reliability of the accounting statements of its economic entities, on the basis of which the investor can decide on the volume of investments and the feasibility of investing in Ukrainian companies as a whole, as well as, accordingly, monitor the effectiveness of the use of the provided investments. This confirms the relevance and necessity of studying the issue of adapting accounting regulation (standard) to international standards.

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Cash Flow Statement in Russian and International Practice

Auditor ◽

10.12737/1998-0701-2020-35-41 ◽

2020 ◽

Vol 6 (9) ◽

pp. 35-41

Author(s):

I. Dmitrieva ◽

Yu. Kharakoz

Keyword(s):

Cash Flow ◽

Financial Reporting ◽

Accounting Standards ◽

The United States ◽

Cash Flows ◽

Accounting Systems ◽

Generally Accepted Accounting Principles ◽

Financial Reporting Standards ◽

The World ◽

Cash Flow Statement

Th e article discusses the world practice of applying accounting standards for the formation of a cash flow statement. In particular, the requirements for providing information on cash flows in national accounting systems were studied: generally accepted accounting principles of the United States, international financial reporting standards and Russian standards.

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

International scientific journal Internauka Series Economical Sciences ◽

10.25313/2520-2294-2020-12-6598 ◽

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.

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