REVALUATION OF THE TANGIBLE ASSETS – OPTION ACCESSIBLE TO COMPANY MANAGERS

Accounting policies are access ways which companies can use to fulfil the development strategies envisaged. According to the accounting regulations currently applicable in Romania, the accounting policies are specific to each company and subject to approval by the management, and they are constantly applied from one financial year to another. The revaluation of the tangible assets is part of the options available to managers. Nevertheless, their implementation is based on a prior analysis of the impact on performance. The aim of this paper is to identify the influences that this accounting policy has on the company’s performance

FORMING THE ACCOUNTING POLICY OF HEALTH CARE INSTITUTIONS IN THE NEW CONDITIONS OF THEIR REFORMS

Inconsistencies of the accounting policy in business enterprise health care institutions with the legal and regulatory requirements, and the imperatives for forming the accounting policy of medical institutions in the new conditions of their reforms are determined by exploring their accounting procedures. The specifics of payment of value added tax by medical institutions are analyzed. Scientific-medical recommendations on accounting policy improvements with respect to the accounting of liabilities, including value added tax, are substantiated. The essential characteristic of the definition «related party» is given in keeping with the standards of accounting and tax law, accounting of transactions with related parties, with providing recommendations on the accounting of related parties. Methodical provisions on the accounting policy of incomes, stocks and expenses, pertaining to the classification and evaluation of incomes from medical services are specified. The structure of management report compiled by business entities, including medical institutions, is specified, with demonstrating that the process involved in the compilation of report is conditional on the accounting data and judgement of the management personnel, realized through the accounting policy. Based on an analytical review of methods for the compilation of report on monetary flows generated by operational activities (direct and indirect method), it is proposed that medical institutions should use indirect method as more informative one for users of financial reporting. The necessity to form information about incomes, expenses, financial results, assets and liabilities of reporting segments and its disclosure in the financial reporting is demonstrated. Recommendations on organization of an effective system for internal control of health care institutions are developed, with outlining the main areas of its organizational support in view of preventing risky events. The procedure for forming information required for the compilation of reports on management, monetary flows, and reports by segments, which is supposed by comply with all the essential aspects of a selected conceptual framework of financial reporting is shown. Keywords: accounting policy, heath care institution, financial reporting, control. JEL Classіfіcatіon M41, M48, I18 Formulas: 0; fig.: 0; tabl.: 4; bibl.: 18.

THE FORMATION CONCEPTUAL BASIS OF ACCOUNTING POLICY FOR DEFERRED REVENUE IN ACCORDANCE TO IFRS 15 «REVENUE FROM CONTRACTS WHITH CUSTOMERS»

The article provides a scientific justification of the methodological basis of accounting policies for deferred income and the features of their recognition over time, taking into account the requirements of IFRS 15 «Revenue from contracts whith customers». A method of recognizing revenue from contracts with customers over time is assessed, assessing progress towards full compliance with the obligation to perform. Approaches to the reflection of modifications of the contract and a significant component of financing are formalized. A conceptual accounting model is proposed to disclose information in the financial statements about contractual assets and liabilities. Prerequisites for harmonization of financial statements with the requirements of international standards have been formed.

Understanding the Essence of the Accrual Method According to the International Standards

Assumption of international accounting standards was considerable event in the accounting practice of Georgia. One of the innovation was the introduction of "accounting policy" and establishment such an element in the compilation of financial statements as "accrual method". Mentioned method was not used in Soviet accounting. Based on his explanation, after the introduction of international standards, the definitions have undergone some changes. The article analyzes the implemented changes, definitions, given in international standards and conceptual frameworks, outlook of various authors concerning subject matter and relevant conclusions drawn. Based on researches have been proven that, the "accrual method" should be used by the enterprise in recognizing / reflecting income and expenses and not in relation to assets and liabilities. Based on the reconciliation and analysis of different definitions, the author's designation of the "accrual method" is proposed.

The Use of Accounting Policy Options under IFRS in Europe: Do Country, Industry, and Topic Factors Matter?

Since the formation of the International Accounting Standards Board (IASB), the use of In-ternational Financial Reporting Standards (IFRS) has spread and they have become global standards for financial reporting. However, they are not used unanimously all over the world. This paper focuses on differences in countries’ approaches to IFRS. Our study aims to investi-gate the use of accounting policy choice for selected options in Europe with a particular focus on countries, industry and topic-specific firm factors. We analyze financial statements of 416 companies of the STOXX Europe 600 operating in 17 European countries. We use content analysis to identify the companies’ decisions to choose a particular option allowed under IFRS and run a logistic regression to identify potential factors that influence them. Our findings suggest that the factors under investigation do not always have a significant influence on the accounting option choice. However, the country variables seem to have a stronger influence than industry or topic variables. The study contributes to the body of literature mainly because it investigates a uniform European setting with the use of the 2017 data and it covers coun-tries not included in previous studies. Its results also provide a basis for discussion on the fi-nancial statements quality and the impact of IFRS across countries.

Maintaining separate accounting of VAT costs in the field of medical care: accounting policy and methodology for maintaining separate accounting of VAT costs

The article discusses the features of maintaining separate accounting of VAT in the field of medical care and provides recommendations for drawing up an accounting policy when maintaining separate accounting of VAT costs by organizations. The problematic of the article is relevant in the context of the preparation of a VAT tax return and the need to form tax accounting registers for it, which confirm the VAT deductions of the organization. In this regard, when preparing quarterly reports, accompanying documents must be prepared, which are supplemented when maintaining separate accounting of VAT costs with an accounting reference, which determines the share of VAT costs that the organization has the right to set off. To compile the accounting statement of the calculation, one should consider the specificity of the medical organization, and follow the accounting policy of the organization. Thus, the article has prepared an algorithm for creating an organization’s accounting policy in terms of maintaining separate accounting of VAT costs and presents calculations when compiling an accounting reference-calculation that organizations should carry out to create it to prove the legality of VAT deduction.

Accounting Policies, Management Judgements And Financial Reporting Quality Of Small And Medium Enterprises In Nigeria: A Survey

The accounting policy adopted by an enterprise, together with the level of approximations done by the management in financial statements, could either enhance or impair their relevance and reliability, and by extension, the credibility of financial decisions made by users of such reports. This is because financial statements portray the financial position and performance of entities. This study assesses the influence of management’s choice of accounting policy and accounting approximations in financial statements on the quality of financial reports of Small and Medium Enterprises in Nigeria. The study was anchored on the Stakeholders’ theory. The study also adopted the survey design approach. Data were mainly collected through the questionnaire and was analyzed using descriptive statistics and regression techniques. Findings revealed that wrong approximations may affect the quality of financial reports, together with other factors. It was recommended that management of small and medium enterprises should adhere to the provisions of accounting standards when designing their accounting policies and in their judgements/approximations; in order to reduce material errors and enhance the quality of their financial report.