LOGIC OF RESEARCH AND METHODICAL APPROACHES TO SETTLEMENTS WITH CREDITORS

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LOGIC OF RESEARCH AND METHODICAL APPROACHES TO SETTLEMENTS WITH CREDITORS

Journal Title: Проблеми системного підходу в економіці - Year 2017, Vol 6, Issue 62

Abstract

Settlements are a source of financial assets formation and financing, they have a decisive influence on the solvency and financial sustainability of economic entities and, due to their dynamic nature, require serious supervision of the actual state of payments and the sound management of cash flows. The basis for such control is qualitative, timely, and reliable information on the debt, the source of which is the system of accounting. Due to certain differences in the definition of liabilities in the accounting and legal field, the limited theoretical elaboration of issues of their recognition, the imperfect method of displaying settlements with creditors in financial statements and accounting, this type of liabilities is considered one of the most difficult stages in the accounting process. However, certain difficulties in accounting for calculations with creditors of enterprises, first of all, the classification of debt, its assessment, terms of recognition of obligations, organization and methodology taking into account new needs, require the expansion of research with a special attention to organizational and technological aspects at individual enterprises, which determines the relevance of the study. Obligations may be settled by money, other assets or services, by substituting a commitment with another obligation. In accounting and reporting, obligations are reflected only when its assessment can be reliably determined. Obligations are usually estimated by the amount of money needed to pay the debt (or the cost of the goods and services that need to be provided). Among the obligations, one can also call the guarantee of the following costs and payments – a liability for which on the balance date amount or maturity remain uncertain. One type of obligation is the income received in advance (future income). Revenues of future periods are created during advances for goods or services, which realization is carried out gradually over a specified period of time: – Income received as a down payment for the provision of non-current assets in financial leasing; – The amount of proceeds from the subscription to periodicals; – Profit from the sale of tickets for transport and theatrical entertainment companies. Thus, in carrying out economic activity, the enterprise uses both its own resources and borrowed (loan) capital, considering its debts to natural or legal persons as borrowed resources or obligations in due time to return them to the owners (the lender). Commitment is an important object of accounting for the enterprise, an element of measurement of the financial position of the enterprise. The enterprise using borrowed capital has both high financial potential of its development (formation of an additional volume of assets) and the possibility of growth of financial profitability of activity, however, to some extent increases financial risk and threat of bankruptcy (increasing with increasing share of borrowed funds in total amount of used capital). An adequate organization of accounting for payables at enterprises of different ownership forms is of paramount importance, since it provides an opportunity to receive orderly, transparent, and reliable information regarding settlements with creditors. The main determinant of the financial and economic prosperity of the enterprise is the achievement of a stable financial state and its appropriate support. Providing customers with reliable and adequate information on settlements with counterparties requires a well-organized audit of payables in accordance with defined tasks and goals.

Authors and Affiliations

H. E. Pavlova, I. P. Prikhodko

Keywords

EP ID EP634901
DOI -
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