Principles of Accounting and Financial Reporting According to IFRS: Issues of Terminological Formalization
Journal Title: Бізнес Інформ - Year 2015, Vol 7, Issue 0
Abstract
The article is aimed at systematizing and critical analysis of approaches to definition of the terms of «principles of accounting» and «principles of financial reporting», substantiating the need for their distinction and existence of subordinate relationship between them, as well as providing the terminological formalization. The general scientific as well as specific accounting approaches to the definition of principles of both accounting and financial reporting have been analyzed. Clear scientific trends regarding the delineation of the principles of accounting and principles of financial reporting have been identified. According to the results of the study, the distinction of principles of both financial reporting and accounting is taken further, not in the terms of individual classification groups, but as a hierarchical system in which the principles of financial reporting are determinate and the principles of accounting are derived from them and are subordinate to them. It is proved that the principle of accounting, not being in the subordinate relationship with principle of financial reporting, is not inherently a principle and can be considered as a suggestion, rule, requirement etc. A critical analysis of existing terminological constructions and explications of principles of both accounting and financial reporting has been conducted, making possible to state the lack of unity in the interpretation of the principles of accounting (financial reporting). Understanding of principles of both accounting and financial reporting as a hierarchical totality of the subordinate unconditional restrictions, placed over the arrays of accounting and reporting information, creating unconditional benchmarks in recognition, evaluation, presentation and information disclosure in the financial statements, has been proposed.
Authors and Affiliations
Olena Kharlamova
Keywords
Related Articles
- EP ID EP163805
- DOI -
- Views 71
- Downloads 0
Defining the Desired Values in the Formation of Strategies at Enterprise
The article is aimed at defining the desired values of controlled indicators of productive-economic activity, on the basis of which enterprise strategies should be developed. A hierarchy of strategies together with their...
Assessment of Competitiveness of Regions of Ukraine and Belarus as Part of Cross-Border Cooperation
The analysis of the theoretical foundations of the study of competitiveness of regions is made. Special attention was paid to the competitiveness of the border regions. It was shown the results of evaluation of the compe...
Optimal Pricing of the Credit and Deposit Products of Commercial Bank
The article considers the process of determining the optimal credit and deposit rates of commercial bank that maximizes the capital of bank at the end of the period of management. To accomplish this task, a bank model wa...
Cost Classification in Winemaking: Problems and Prospects
The purpose of this article is to summarize the position on the classification, the formation of a theoretical study of classifications and delineation of the costs in the field of winemaking. The basis of the choice of...
The Methodical Providing of Human Resource Management of Company
The paper developed a methodological basis for personnel management company, taking into account their stage play: the development, use, formation. It is concluded that the choice of scientific approaches to the study of...