scholarly journals Cryptocurrency Assets in the Financial Accounting Systems

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.

A Cross-Country Empirical Investigation of Corruption and its Relationship to Economic, Cultural, and Monitoring Institutions: An Examination of the Role of Accounting and Financial Statements Quality

2002 ◽  
Vol 17 (4) ◽  
pp. 325-350 ◽  
Author(s):  
Marinilka Barros Kimbro
Keyword(s):  
Financial Reporting ◽  
Empirical Investigation ◽  
Financial Statements ◽  
Financial Accounting ◽  
Accounting Systems ◽  
Financial Reporting Standards ◽  
Information Monitoring ◽  
Per Capita ◽  
Cross Country

This paper empirically tests a model that links economic, cultural, and information/monitoring variables to corruption in 61 countries. The results offer significant evidence to suggest that higher GNP per capita, moderate economic growth, effective legal and financial accounting systems, collectivist values and low power distance are associated with countries that have low corruption. Countries that have better laws, more effective judiciary, good financial reporting standards, and a higher concentration of accountants are found to be less corrupt.

scholarly journals Valuation of Biological Assets at Fair Value

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.

scholarly journals Comparability of financial statements prepared according to IFRS and IFRS for SMEs in the field of intangible assets

2010 ◽  
Vol 58 (6) ◽  
pp. 67-78 ◽  
Author(s):  
Hana Bohušová ◽  
Patrik Svoboda
Keyword(s):  
Financial Reporting ◽  
Intangible Assets ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Important Field ◽  
Definition Of ◽  
The Impact

IFRS for SMEs were adopted in July 2009 as a result of efforts to harmonize financial reporting for SMEs. These standards are based on the same principles as full standards. The aim is, compared to full IFRS reporting of these businesses, to significantly simplify, mainly from the reason that the strict application of the principles of the full standards does not excessively financially and administratively burden smaller accounting entity. Field of identifying, recording and reporting of intangible assets except goodwill is an important field in which the methodology is substantially different. In the pre­sent paper there is documented on the example the impact of different methods for recording of internally generated intangible assets in the both systems into balance sheet and profit or loss and into the selected indicators of financial analysis. Definition of issues that may arise during the transition from the IFRS for SMEs to full IFRS and vice versa, in the context of drafting the opening balance sheet is another field to which the paper is dedicated.

scholarly journals Towards a new ecological and human type of national accounting for developing economies (The CARE/TDL model) (to be continued)

2020 ◽  
pp. 43-59
Author(s):  
Jacques Richard
Keyword(s):  
Financial Reporting ◽  
Developing Economies ◽  
Ecological Crisis ◽  
Financial Accounting ◽  
Accounting System ◽  
Reporting Standards ◽  
Historical Survey ◽  
National Accounts ◽  
Financial Reporting Standards ◽  
The One

The goal of this article is to show how today’s financial accounting system, notably the IFRS (International Financial Reporting Standards) and the related National accounts (primarily the famous GDP, Gross Domestic Product), are the main causes of today’s human and ecological crisis. This assertion is justified on the basis of an historical survey of the development of capitalist accounting since the end of the Middles Age, the time of its foundation. We prove that, in the form it was invented by big capitalists at that time (and used until today), the concept of capital-debt to be conserved has nothing to do with the one used by economists of either classical, neoclassical, or marxist schools and that it is a very dangerous weapon against the interests of the mankind and ecology.

scholarly journals CHARACTERISTICS OF THE ACCOUNTING OF BIOLOGICAL ASSETS IN THE GRAIN PRODUCTION

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.

scholarly journals Reserve component of the enterprise capital and its accounting and information support

2020 ◽  
Vol 66 (5) ◽  
pp. 49-58
Author(s):  
Yа. Krupka
Keyword(s):  
Financial Reporting ◽  
Economic Performance ◽  
Fair Value ◽  
Information Support ◽  
Basic Principles ◽  
Book Value ◽  
The Difference ◽  
The One ◽  
Definition Of

The place and value of reserves for future expenses and payments in the enterprise capital are defined in this paper. Possibilities and expediency of providing certain types of expenses at the expense of pre-created reserves are considered. The specified definition of reserves as a component of the enterprise capital which are considered as reserved at the expense of additional owners contributions , profit, prime cost of the source for coverage of the future predicted or unpredicted expenses connected with maintenance of usual activity, its restructuring, distribution of expenses by the principles of prudence and compliance. It is proved that these principles are unreasonably removed by the latest legislation from the basic principles of accounting and financial reporting. Classification of reserves, the order of their formation and directions of their use are given in this paper. Reserves are classified into separate groups according to the sources of their formation, the directions of use, the obligation to create, the method of reflection in accounting and reporting, their participation in the enterprise capital. Particular attention is paid to the need of taking into account the hidden reserves. Their value is equal to the difference between the book value of the enterprise's property and its fair value. The order of recognition, documentation and reflection of accrual and use of reserves and other provisions in the accounting is specified. The following rrecommendations are given, on the one hand, to expand and deepen information in financial and other kinds of enterprise reporting concerning reserves as a component of enterprise capital, on the other - to simplify the accounting of reserved sources by additional unregistered contributions of participants, founders. The order of distribution and reflection in the accounting of reserves at withdrawal of separate participants from the company is specified. Recommendations concerning the recognition of accumulated resources for future liabilities by insurance reserves and their reflection in the composition of the enterprise own composition, making it possible to improve the economic performance, investment attractiveness of such entities are given.

Recognition versus Disclosure of Fair Values

2015 ◽  
Vol 90 (6) ◽  
pp. 2411-2447 ◽  
Author(s):  
Maximilian A. Müller ◽  
Edward J. Riedl ◽  
Thorsten Sellhorn
Keyword(s):  
Information Processing ◽  
Financial Reporting ◽  
Balance Sheet ◽  
Fair Value ◽  
Data Availability ◽  
Equity Prices ◽  
Analyst Following ◽  
Financial Reporting Standards ◽  
Related Information ◽  
Prior Literature

ABSTRACT This paper examines pricing differences across recognized and disclosed fair values. We build on prior literature by examining two theoretical causes of such differences: lower reliability of the disclosed information, and/or investors' higher related information processing costs. We examine European real estate firms reporting under International Financial Reporting Standards (IFRS), which require that fair values for investment properties, our sample firms' key operating asset, either be recognized on the balance sheet or disclosed in the footnotes. Consistent with prior research, we predict and find a lower association between equity prices and disclosed relative to recognized investment property fair values, reflecting a discount applied to disclosed fair values. We then predict and find that this discount is mitigated by lower information processing costs (proxied via high analyst following), and some support that it is also mitigated by higher reliability (proxied via use of external appraisals). These latter results are documented using subsample analyses to test one attribute (either information processing costs or reliability) while holding the other constant. Overall, these findings are consistent with fair value reliability and information processing costs providing complementary explanations for observed pricing discounts assessed on disclosed accounting amounts. Data Availability: Data are available from public sources identified in the manuscript.

Portable Power: An Application of IAS 16 Including Self-Constructed Assets and the Revaluation Model

2019 ◽  
Vol 34 (2) ◽  
pp. 61-71 ◽  
Author(s):  
Susan B. Hughes ◽  
Suzanne Lowensohn ◽  
Elise Tefre
Keyword(s):  
Financial Reporting ◽  
Fair Value ◽  
High Energy ◽  
Production Equipment ◽  
Financial Accounting ◽  
Financial Statement ◽  
Financial Reporting Standards ◽  
Portable Power ◽  
Accounting Courses ◽  
Privately Owned

ABSTRACT This teaching case focuses on a privately owned Swiss company that produces and sells high-energy chews favored by European athletes. External investors recently expressed interest in the company. Management hired an international public accounting firm and is currently preparing its first set of audited International Financial Reporting Standards (IFRS) financial statements. The auditors question management's fair value estimations for the land and production equipment, as well as the accuracy of capitalized greenhouse costs included in operating assets. The case emphasizes the need to consult IFRS, form judgments and estimates when determining financial statement content, and draft appropriate note disclosures. Students are also exposed to the complexities of accounting for agricultural assets, a category not often included in financial accounting courses. After working through this case, students should be able to measure fair value and determine the reliability of valuation inputs, appropriately capitalize assets, and draft necessary disclosures.

Accounting for Market Equilibrium – Comparing the Revenue-Expense to the Balance-Sheet Approach

2019 ◽  
Vol 0 (0) ◽  
Author(s):  
Eduard Braun
Keyword(s):  
Financial Reporting ◽  
Market Equilibrium ◽  
Balance Sheet ◽  
Fair Value ◽  
Financial Accounting ◽  
Market Process ◽  
Net Income ◽  
Fair Value Accounting ◽  
Suitable Framework ◽  
Value Measurement

AbstractThis paper combines the market process approach developed by the Austrian School of Economics with the theory of capital as worked out by the Historical School in order to provide a suitable framework for discussing the two competing approaches to financial accounting. Within this framework, it becomes clear that the revenue-expense approach with its emphasis on actually realized, historical transactions plays an important role in creating a tendency towards market equilibrium. Net income determined according to this approach provides information to the market on where there are gaps in the price structure. The balance-sheet approach, on the other hand, and particularly fair value measurement take market equilibrium for granted. Based on fair value accounting, an equilibrium could never be accomplished in the first place. Ironically, in order to be applicable, the balance-sheet approach presupposes the perfect working of the market process, including financial reporting based on the revenue-expense approach.

scholarly journals Recognizing Intellectual Capital As An Asset

2014 ◽  
Vol 12 (2) ◽  
pp. 177 ◽  
Author(s):  
Mary Fischer ◽  
Treba Marsh
Keyword(s):  
Knowledge Management ◽  
Intellectual Capital ◽  
Measurement Techniques ◽  
Balance Sheet ◽  
Fair Value ◽  
Measurement Model ◽  
Financial Accounting ◽  
Definition Of ◽  
Value Measurement ◽  
Stakeholder Communication

The revised definition of an asset by the FASB and GASB gives way to the recognition of the fair value of another off-balance sheet value. Interest in recognizing intellectual capital as an asset of the organization has grown out of dissatisfaction with traditional financial accounting and reporting directed toward manufacturing, trading of goods, and service activities which ignore the organizational asset values based on knowledge, expertise and technology. The growing interest in intellectual capital (IC) and knowledge management reflects an awareness of the need for identification, utilization, and measurement of an organizations most valuable asset. This paper identifies the importance of the IC value, discusses the research emphasis placed on it by others, and develops a fair value measurement model. The model provides a basis not only for identifying crucial aspects of effective knowledge management, but also for emphasizing the interdependence, and the synergy that may be created through recognition. Measurement techniques are presented together with a process for stakeholder communication that establishes the groundwork for future empirical investigation and analysis.

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