The current state of accounting of financial expenses
Journal Title: Visnyk Ternopilskoho natsionalnoho ekonomichnoho universytetu - Year 2018, Vol 4, Issue
Abstract
The article examines legal acts which regulate the process of collecting information on financial expenses in accounting and financial reporting. It is pointed out that loans bearing interest include: bank loans, issued bills, issued bonds, etc. The economic substance of financial expenses as an item of accounting is highlighted. The types of financial expenses are presented and the procedure for their recognition by different economic entities is disclosed in accordance with the requirements of national accounting standards. The system of accounting which is used by corporate issuers when the transactions are displayed, due to the accrual of various types of interest on borrowings, is disclosed. The essence and types of both qualifying and non-qualifying assets are considered in accordance with the requirements of Ukrainian Accounting standard 31. Capitalized and non-capitalized expenses are characterized. The procedure of capitalization of financial expenses is presented and the algorithm of distribution of such expenses is described. It is proved that the costs recognized in the part of the depreciation of the premium, accrued on financial investments, recorded at amortized cost, should be reflected in other activities in subaccount 975, which is proposed to be called «Costs of changes in the value of financial investments».
Authors and Affiliations
Volodymyr Priadko
Keywords
Related Articles
- EP ID EP515901
- DOI -
- Views 75
- Downloads 0
The neoliberal model of the world economy as an inter-civilization threat to internationalization of economic life
The article analyzes trends in internationalization of economic life in the face of the global competition, and proves that the current stage of the world development is characterized by a dynamic strengthening of politi...
Sales management, its functions and object orientation
The essence of sales management and various options for treatment are observed. The author determined the nature of sales management. There are emphasized the differences between the concepts of “sale” and “sale”. The at...
The impact of global technological trends on accounting
The article points out that the pace of technological advance has led to integrating information and communication technology into accounting processes. Examples of advanced technologies for business that influence accou...
The evolution of intangible assets in terms of social and economic development concepts
The article presents evidence that historically the emergence of intellectual property rights dates back to the pre-industrial stage of society’s development. The issuing of letters patent in England led to further devel...
Analysis’ methodological support of regulatory impact of draft legal acts: advantages and disadvantages
This article is devoted to current issues of assessing the quality of analysis of draft legal acts’ regulatory impact. The methodical approach to assessing the quality of implementation by state agencies analysis of draf...