An important place in financial accounting is given to the use fundamental principles, without which it would be impossible for users to compare information about the activities of different organizations.

Basic principles financial accounting are:

Monetary measurement, i.e. all means and sources of their formation, business transactions and results of activity must be reflected in financial accounting in monetary terms;

Mandatory documentation, i.e. all business transactions and results of activities must be documented with the relevant financial accounting documents. Documenting transactions provides financial accounting with the necessary information about household assets ah and processes and gives its indicators legal force and reliability;

Bilateralism, i.e. all funds and sources of their formation, business transactions and results of activity must be reflected in financial accounting according to the channels of receipt and sources of their formation, which involves the opening of separate accounts accounting to reflect the channels for the receipt of funds and their placement, ensuring equality in both accounting accounts. This is how the requirement for mandatory double entry arose;

Autonomy (property separation) presupposes that the property of an organization must be strictly demarcated and separated from the property of its co-owners, employees and other organizations, i.e. the organization is considered as a legally independent and independent structure;

An operating organization assumes that any created organization must function for an indefinite period, i.e. be permanent. The continuous operation of the organization does not imply an intention to reduce production volumes;

Accounting at cost, i.e. assessment of all means and sources of their education, business transactions and the results of the organization’s activities should be based on their economic content and the rules provided for current legislation and relevant regulations;

Accounting period, i.e. according to the principle of a functioning organization, the duration of its work is not limited, which means that for an indefinitely long time it will not be possible to determine the result of its activities, but management, founders and other interested users periodically need to know how things are going in the organization. This need is realized using the accounting period principle. In accordance with current legislation, the accounting period is the calendar year, and the interim accounting period is the quarter, month;

Conservatism implies caution and prudence in relation to the depreciation of assets, doubtful debts of clients, which significantly affect the results of both the reporting and future periods, making a profit or making an expense requires the organization’s readiness to recognize expenses rather than income;

Completeness, provides for the reflection of all economic phenomena and processes, disclosure of the current state and results of the organization’s activities in in full;

Clarity, provides for the reflection of information in financial accounting clearly and understandably for any user;

Confidentiality, assumes that the contents of internal accounting information is a commercial secret of the organization, for disclosure and damage to its interests there is liability established by law;

Objectivity, i.e. all business transactions must be reflected in financial accounting, be registered throughout all stages of accounting, and supported by supporting documents on the basis of which accounting is carried out.

Question 5. Organizational and legal features of enterprises and their impact on financial accounting

IN modern conditions organizations operate in Russia various forms property: federal, municipal, joint-stock, cooperative, private, each of which is a legal entity, except for private ones without the formation of a legal entity. Legal entities that are commercial organizations, can be created in the form of joint-stock companies (open, closed), unitary enterprises (state (federal) and municipal), business partnerships (full, limited), production cooperatives.

The organizational and legal form of an organization influences the formation and subsequently the organization of accounting equity, which can act in the form of authorized capital, share capital, authorized capital, mutual fund.

Authorized capital created in joint stock companies open and closed type, limited and additional liability companies in the form of contributions (shares) of founders (participants) in monetary terms.

Share capital is created in general partnerships and limited partnerships in the form of contributions (shares) of participants in monetary terms.

The authorized capital is created in unitary enterprises by vesting them with state (federal, municipal) authorities with the main and working capital in monetary terms.

Unit trust is created in production cooperatives through contributions from members of the cooperative in monetary terms.

Any of the listed organizations can be classified as large, medium, or small, which in turn affects the organization of accounting.

The specifics of accounting for individual business transactions on the formation and movement of capital will be discussed in subsequent topics in the discipline “Financial Accounting”.

Technological and organizational features of production affect the accounting of the organization's assets, business operations and financial results.

To carry out these processes, a certain availability of economic assets (fixed and current assets). The organization's economic assets include - fixed assets, intangible assets, investments in fixed assets, financial investments, productive reserves, settlements with debtors, cash, other assets. Valuation of assets in financial accounting is carried out in accordance with the requirements regulatory framework: Regulations on accounting and reporting in Russian Federation. Approved by order of the Ministry of Finance of the Russian Federation dated July 29, 1998 No. 34n, PBU, etc.

The formation of economic funds is carried out at the expense of own and attracted sources:

A) own sources(statutory, own, reserve and Extra capital, retained earnings, other sources own funds);

b) attracted sources (long-term loans from banks and borrowed funds, short-term loans banks and borrowed funds, settlements with creditors, other short-term liabilities).

In the course of its activities, the organization carries out a number of business operations related to the formation of financial results. The assessment of business transactions is carried out in accordance with the criteria established in the accounting policies of the organization.

Financial accounting data is used within the enterprise by managers at various levels to control the movement of financial flows upon receipt and expenditure of non-cash and cash funds and external indicators. Financial accounting covers a significant part of accounting, accumulates information about property, liabilities and economic processes organizations in accordance with the requirements of regulatory acts on accounting.

Therefore, financial accounting collects economic information which provides accounting registration and registration of property and sources of their formation, business transactions, as well as drawing up financial statements.

The principles of financial accounting are divided into principles-assumptions And principles-requirements. Basic assumptions when organizing financial accounting: assumption of property isolation of the organization, assumption of continuity of activity of the organization, assumption of consistency of application accounting policy, the assumption of temporary certainty of the facts of economic activity (accrual principle). Basic requirements when organizing financial accounting: completeness, timeliness, prudence, priority of content over form,

consistency, rationality.

Methodological principles of financial accounting for any company are based on the main international and Russian accounting standards, based on the characteristics of financial and economic activities. The application of these principles facilitates understanding of the essence of financial accounting. When using specific methodological techniques of financial accounting and generating reporting at all levels, the financial director can choose to be guided by all or some of them.

1. The business unit principle, or the principle of accounting by profitability centers.

The success and survival of any company in a highly competitive environment requires focusing on two main goals: profitability and liquidity. Therefore, the question arises of identifying centers of profitability within the company’s activities. The activities of any company, even a small one, can be divided into areas, that is, profitability centers can be determined. IN trading company these can be sales departments (wholesale or retail), products and services with different consumer properties, brands within a homogeneous assortment, retail sites or stores, customers various categories, in production - these are workshops, products with different consumer properties. In groups of companies, holdings and large companies There are also profit centers. These are subsidiaries, branches, that is, certain economic units. Using the business unit principle (principle of profitability center accounting), each line of business or subsidiary must be considered as an economic business unit, separate from other business units, which will allow us to identify the most profitable centers, as well as make more informed decisions within the framework of the activity business units, and ultimately manage the company as a whole more successfully.

This principle is based on property isolation: a business unit conditionally or unconditionally owns certain own funds, represented by property in cash or in kind.

In the process of economic activity, the volume of property in monetary terms changes due to a corresponding change in liabilities or own funds of the business unit.

2. The principle of business continuity.

This principle is based on the assumption that each business unit is functioning normally and there is no intention to liquidate or significantly reduce its activities. That is, an enterprise, once established, will exist forever. This is a very peculiar principle, because it contradicts common sense: every person knows that he will die, especially any factory, store, salon, etc. cannot exist permanently. And yet this principle is put forward as one of the main ones. The accepted assumption, reminiscent of the first law of mechanics, allows one to very effectively calculate financial results and abandon pointless attempts to revaluate the objects taken into account. In fact, if a company exists forever, why revalue its assets. On the contrary, if the company is liquidated, then its inheritance must be valued at current market value, and not according to their historical assessment.

3. The principle of periodicity.

The periodicity principle means that the main financial planned and actual indicators are calculated at strictly defined points in time, established by equal calendar month, quarter, half-year, year. In addition, this principle allows us to consider reporting year only as related to the peculiarities of the business cycle and not to tie it to the calendar year. Each sector of the national economy has its own cycle, and, therefore, the financial director of each enterprise has the right to choose the timing of the business year for his company.

4. Accrual principle.

The accrual principle is one of the basic principles and is implemented in the assumption of temporary certainty of the facts of economic activity.

Temporary certainty is expressed by the following fundamental norms:

A. Standard of Compliance.

All costs are divided into 3 main groups:

Current costs of core activities associated with generating income;

Costs of capital investments, that is, costs of acquisition (in any form), as well as reconstruction and renewal of fixed assets directly or indirectly involved in the process of core activities;

Financial investments representing acquisition costs financial assets(shares, bonds, participation interests, bills, etc.), including the provision of long-term loans, made for the purpose of generating income not related to the main activity or another purpose determined by the company’s management.

Current expenses are divided into:

direct, which can be attributed to a specific type of activity;

indirect ones that arise when running a business unit economic activity, but which cannot be unconditionally tied to its specific type.

Direct costs can be conditionally variable, the size of which depends on economic activity in a certain activity (according to a linear or other increasing function), and conditionally constant, which arise regardless of the level of economic activity in a given activity.

Indirect costs , as a rule, are always conditionally constant.

For financial accounting purposes, the compliance standard is defined as the need to reflect direct costs of generating income in the same period as the income for which they were incurred. Accordingly, in a certain period only those direct expenses that led to the formation of income received in this period are reflected. In this case, the assumption is made that indirect costs are subject to attribution to a decrease in financial results, including reporting period when it is certain that they will be incurred, or, depending on the chosen accounting policy, when they are actually paid (cash method).

Capital and financial investments are not included in the reduction of the financial result of the reporting period when they were made, and transfer their value to current costs in accordance with accounting policies.

B. Accrual rate.

The accrual rate determines that expenses and income are recognized in the reporting period to which they relate. In this case, income and expenses are reflected in financial accounting only if there is primary documents, allowing you to accurately determine their size.

B. Income registration standard.

This rule establishes that in order to recognize sales revenue it is necessary:

transfer of ownership;

the ability to estimate income with a significant degree of accuracy;

completeness of revenue generation activities;

confidence in the impossibility of canceling the transaction;

an increase in assets due to revenue or a decrease in liabilities.

5. The principle of the monetary meter.

Financial accounting of assets, liabilities, income, expenses of a company and business units is carried out by valuing them in a single hard currency. Usually the US dollar is chosen. If accounting is carried out on the basis of primary documents expressed in another currency, then conversion into US dollars is made at the officially established or separately agreed rate on the date of the transaction. The application of the principle of a monetary meter does not mean a refusal to use natural meters when accounting individual species assets. At the same time, the accounting of indicators in natural meters is carried out when reflecting business transactions with mandatory parallel taxation (multiplying quantity by price).

6. The principle of conservatism.

The application of this principle means that if it is possible to use two different methods of accounting for the same indicators, it is necessary to use the method that presents the company's position in a less favorable light. Profit is reflected only after it real receipt, and a loss - if it is possible to occur. Thus, the financial director is obliged to create reserves for any assets that appear to be risky to one degree or another. At the same time, assets should be accounted for at the lowest possible cost, and liabilities at the highest.

7. The principle of completeness.

One of the main objectives of financial accounting is to obtain complete and reliable information about the property status and results of economic activity of a company or business unit. The practical application of this principle is expressed in the mandatory inclusion in the financial statements of the necessary adjustments and explanations if the standard forms of financial statements do not provide a complete picture of the company’s activities.

8. Principle of materiality.

The principle of materiality states that information obtained from financial accounting must be meaningful to the user.

The principle of materiality is expressed in the degree of significance of changes in estimates, in the correction of errors in reports of previous periods, or in in various ways reflection of quantitative data. These changes and revisions are considered material if they are large enough or important enough to affect decisions made on the basis of the financial statements. As a general rule, any distortion of reporting data is considered insignificant if its relative value does not exceed 5% of the value of the corresponding indicator and 0.5% of the amount of assets.

9. The principle of rationality.

In accordance with the principle of rationality, the advantages and benefits derived from the information received must exceed the costs associated with its receipt.

This principle complements the principle of materiality, in fact establishing a second criterion according to which the need to adjust accounting data is assessed.

10. The principle of relevance (appropriateness).

Information is relevant if it can have a practical impact on the extent to which decisions are made. This means that the information must provide the ability to evaluate the company’s activities and make its forecasts. Accordingly, financial information must be presented on a timely basis (to a strict deadlines) and contain the minimum essential data necessary to make a specific decision. One of the components of this principle is Feedback, that is, the opportunity, as a result of analyzing financial accounting data, to evaluate a previously made investment decision.

11. The principle of reliability (reliability).

The reliability of the information received is one of the purposes of financial accounting.

Its achievement is carried out through continuous, systematized accounting of business transactions, as well as alternative verification of the data obtained.

The need for an alternative test means that any significant indicator of the financial statements must either be verified by reconciliation with other accounting data (in particular, accounting data), or determined independently of the main accounting system. One of the important requirements of the principle of reliability is the consistency of financial accounting, expressed in accordance with the data analytical accounting data synthetic accounting and reporting.

12. The principle of priority of content over form.

Business transactions in financial accounting should be taken into account solely on the basis of their economic content and business conditions, regardless of the specific legal form in which they are clothed. One expression of this principle is the requirement of neutrality, that is, the release of financial data from any influence. When preparing financial statements, it is necessary to be guided only by economic laws, its distortion for the purpose of influencing the adoption of a specific management decision is not allowed.

13. The principle of constancy (consistency).

The principle of constancy presupposes the constancy of the application of accounting procedures (methods) over a certain period of time. Any company is obliged within calendar year apply uniform accounting policies and maintain a stable composition of reporting indicators. Changes in accounting methods and the composition of reporting indicators can be made from the beginning of the next calendar year. At the same time, it is important to comply with the comparability requirement: reporting data for the current period must be comparable with data for the corresponding periods of previous calendar years.

“Financial accounting is an orderly system of collecting, registering and summarizing information in monetary terms about the property, obligations of an organization and their movement through continuous, continuous and documentary accounting of all business transactions. The objects of accounting are the property of organizations, their obligations and business transactions carried out by organizations in the course of their activities.”

The purpose of financial accounting can be formulated directly through its objectives. “The main tasks of financial accounting include the following:

1. generation of complete and reliable information about the organization’s activities and its property status, necessary for internal users financial statements- managers, founders, participants and owners of the organization’s property, as well as external investors, creditors and other users of financial statements;
2. providing information necessary for internal and external users of accounting statements to monitor compliance with the legislation of the Russian Federation when the organization carries out business operations and their feasibility, the presence and movement of property and liabilities, the use of material, labor and financial resources in accordance with approved norms, standards and estimates;
3. preventing negative results from the organization’s economic activities and identifying internal reserves to ensure its financial stability.”

Financial accounting is a mandatory procedure, because the rules for its maintenance (laws, regulations, instructions) are regulated by the state and government. The purpose of financial accounting is to provide a significant range of interested users necessary information O financial situation and financial results of the organization.

To achieve this goal, financial accounting must be based on general principles and meet certain accounting requirements. The basic rules for its conduct are defined Federal law“On Accounting” and the Regulations on Accounting and Financial Reporting in the Russian Federation. These rules include:

1. mandatory double entry of facts of economic life in the accounts of the working chart of accounts, which is drawn up on the basis of the Chart of Accounts, approved, in turn, by the Ministry of Finance of the Russian Federation;
2. keeping records in Russian monetary units - rubles and kopecks and in Russian;
3. reflection in accounting of current costs for production of products, performance of work and provision of services separately from costs associated with capital and financial investments;
4. mandatory documentation of facts of economic activity;
5. the use of accounting registers to ensure the accumulation and systematization of data contained in primary accounting documents;
6. valuation of accounting objects in monetary terms;
7. mandatory inventory of the organization's assets, capital and liabilities;
8. drawing up accounting policies in order to ensure accounting in the organization in accordance with current legislation.

The principles of financial accounting are universal provisions that form the basis for constructing the concept of financial accounting. Currently, domestic accounting is based on accounting principles generally accepted in world practice, which include the following:

1. the principle of an economic unit - economic entity studied as a separate unit, analyzed separately from the property and finances of its owner and other enterprises;
2. the principle of going concern - when maintaining financial accounting, it is assumed that the organization will operate and receive income currently and in the near future, which is a rather important condition for creditors;
3. the principle of accounting consistency - this means that the accounting policy chosen by the organization is used consistently from one reporting period to another;
4. the principle of temporal certainty of business transactions - all facts of economic life are reflected in the accounting and reporting of the period in which they took place, regardless of the actual time of receipt or payment of funds associated with these facts.

When solving management problems at various levels of management, a lack of information characterizing real financial and production-economic processes at the time of decision-making is largely noticed.

Accounting information is used by a wide range of decision makers for various purposes and areas of activity. Users of accounting information include legal and individuals interested in obtaining information about the financial and property status of an organization, having a minimum level of knowledge about the procedure for generating this information, as well as having the skills to use it.

Information users can be divided into three groups:

1. internal users with direct financial interest;
2. external users with direct financial interests;
3. indirect external users.

The first group includes the owners of the organization, co-owners, board of directors, senior management personnel, managers, executives and other users who need to know the real state of the organization in order, if necessary, to resolve all identified problems and determine new plans for the near future.

The second group includes users with direct financial interest, that is, these are investors and creditors for whom last years in many regions of the Russian Federation organizations compile financial reports general purpose, which contains information about how successfully they achieved their goals in terms of profitability, and what is the real liquidity (solvency) of the enterprise.

Investors (real and possible) by financial reports general purpose, they draw conclusions about the financial prospects of the organization and whether it is worth investing their funds in it. In addition, investors need information to help them determine whether to buy, hold or sell a stock. Shareholders are also interested in information that will allow them to assess the organization's ability to pay dividends. Creditors (real and possible) make conclusions about the creditworthiness of the enterprise, that is, whether it has the money to pay interest and whether it can repay loan debts on time.

The third group consists of users with indirect, that is, indirect financial interest. These include employees tax authorities, lenders, suppliers and other commercial counterparties, customers, government agencies and other interested individuals and legal entities. With the help of financial statements, they can satisfy various needs for information that will allow them to assess the organization's ability to fulfill its obligations to counterparties and the budget.

The basic principles of maintaining and organizing financial accounting in organizations are established by the Regulations on accounting and financial reporting in the Russian Federation, the Accounting Regulations “Accounting Policy” and the Chart of Accounts and some other regulatory documents.

The Regulations on Accounting and Financial Reporting contain the following basic principles for organizing financial accounting:

1. Responsibility for organizing accounting in the organization and compliance with the law when carrying out business operations lies with the head of the organization.

2. The head of the organization, depending on the volume of work, can establish accounting service as a structural unit headed by the chief accountant;

add an accountant position to the staff;

transfer on a contractual basis the maintenance of accounting to a centralized accounting department, a specialized organization or a specialist accountant.

3. The basis for entries in accounting registers are primary accounting documents. All business transactions carried out by the organization must be documented with supporting documents containing the required details: name of the document (form), form code; date of compilation; name of company; content of a business transaction; meters (in kind and in monetary terms); Name officials, responsible for the execution of a business transaction and the correctness of its execution, personal signatures and their transcripts.

Primary accounting documents are accepted for accounting if they are compiled according to the form contained in the albums of unified (standard) forms of primary accounting documentation.

Primary accounting forms include documents on accounting for fixed assets, accounting for labor and its payment, according to material accounting, cash accounting and settlement transactions. There are also various specialized forms of documents to reflect the results of inventory, registration of pensions, benefits, etc.

Availability of a single primary documentation in organizations, it has important organizational significance, it makes it possible to eliminate discrepancies in the initial link of the organization of accounting, and the presence of a single unified documentation is important for the implementation of computerization of accounting.

Thus, the system of documenting business transactions is an important part of the organization of financial accounting.

4. The creation of primary accounting documents, the procedure and timing of their transfer for reflection in accounting are carried out in accordance with the document flow schedule approved by the organization.

5. To systematize and accumulate information from primary documents, data is transferred to accounting registers. Register forms are developed by the Ministry of Finance of the Russian Federation. Business transactions in accounting registers must be reflected in chronological order and grouped according to the appropriate accounting accounts.

6. To ensure the reliability of accounting data and financial statements, organizations are required to conduct an inventory of property and liabilities. The procedure and timing of the inventory are determined by the head of the organization.

7. One of the principles of organizing financial accounting is the distribution of responsibilities in the accounting department.

When distributing job responsibilities, the most responsible and complex work is entrusted to qualified employees. The distribution of responsibilities is structured in such a way as to ensure the interchangeability of workers.

The list of job responsibilities is developed by the chief accountant and approved by the head of the organization.

The distribution of responsibilities depends on the organizational structure of the accounting process.

8. Organizational structure The accounting process in organizations can be built on the principles of complete centralization, decentralization, and partial decentralization.

Complete centralization of the accounting process means that the entire accounting process is concentrated in the central accounting department. In connection with the introduction of computerization of accounting, such organization of the accounting process is becoming increasingly common.

The decentralization of the accounting process is that in each division of the organization a full cycle of accounting work is carried out from filling out primary documents to drawing up a balance sheet. The central accounting department carries out consolidated accounting for the entire organization.

Partial decentralization is more common. In this case, the departments conduct documenting business transactions, grouping and summarizing documents before drawing up production reports. It becomes important to rationally link the accounting process in the central accounting department and in the divisions of the organization.

9. An important element in the organization of accounting is the storage of accounting documents and accounting registers. To properly organize the storage of documents, a nomenclature of files is drawn up, which indicates the name of the document, index, quantity and storage period.

All accounting documents and accounting records are stored for periods established in accordance with the rules for organizing state archival affairs, but not less than five years.

The Regulations formulate an accounting policy that presupposes property separation and continuity of the organization. The organization's accounting policies must meet the requirements of completeness, prudence, priority of content over form, consistency and rationality.

The assumption of property separation means that the property and obligations of the organization exist separately from the property and obligations of the owner. During the formative period market economy This assumption seems important, since the property of many organizations is in the personal use of founders, participants or employees.

A going concern means that an entity will continue to operate in the future and has no intention of liquidation or significant reduction in operations. If the organization has these intentions, it is obliged to declare this in its accounting policies and in explanatory note To annual report for the past financial year.

The assumption of consistency in the application of accounting policies means that the accounting policies chosen by the organization are applied consistently from year to year.

The assumption of temporary certainty of the facts of economic activity means that they are reflected in the accounting and reporting of the period in which they were committed, regardless of the actual time of receipt or payment of funds associated with these facts.

The accounting policy of the organization is formed by the chief accountant and approved by the head of the organization. In this case it is affirmed:

* working chart of accounts;

* forms of primary accounting documents used to document facts of economic activity;

* the procedure for conducting an inventory of the organization’s assets and liabilities;

* methods for assessing assets and liabilities;

* rules of document flow and technology for processing accounting information;

* procedure for monitoring business transactions.

The organization's accounting policy must ensure:

1) completeness of reflection in accounting of all factors of economic activity (completeness requirement);

2) timely reflection of business activity factors in accounting and financial statements (timeliness requirement);

3) greater readiness to recognize expenses and liabilities in accounting than possible income and assets, avoiding the creation of hidden reserves (requirement of prudence);

4) reflection in accounting of factors of economic activity based not so much on their legal form, but on the economic content of facts and business conditions (the requirement of priority of content over form);

5) the identity of analytical accounting data with turnovers and balances on synthetic accounting accounts on the last calendar day of each month (consistency requirement);

6) rational accounting based on the conditions of economic activity and the size of the organization (the requirement of rationality).

Thus, when organizing financial accounting, the main principles (requirements) are: completeness, timeliness, prudence, consistency, rationality and priority of content over form.

In accordance with the international accounting standard, the fundamental financial accounting principles are: continuation of activities, continuity (constancy) of accounting policies (accumulation, growth), methods for assessing assets and liabilities, the principle of double entry of business transactions.

In accordance with the Chart of Accounts, approved by order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94 n, assets that are the property of the organization are reflected in system accounting and the balance sheet, and property owned by other enterprises is recorded in off-balance sheet accounts.

Differences and features of financial accounting

Classic definition financial accounting states: “Financial accounting is a system that measures, processes and transmits financial and economic information about a specific economic entity.” This information enables users to “make informed decisions when choosing alternative uses of limited resources in managing the business of a firm.” Usually, when talking about financial accounting, users of information may mean financial or management or accounting. But there are differences between these accounting systems, although currently in Western practice there are no differences between accounting and financial accounting, and management accounting is treated by some financiers as a special case, an organic component of financial accounting, although no one rejects the postulate that management accounting performs functions other than financial accounting. Let's consider the differences between the above accounting systems from the point of view of classical finance theory, especially since for Russian practice accounting, these differences are fundamental. Defining theoretical concept, we can say that financial and accounting is necessary for calculating the results of the economic activities of an individual enterprise. Methods for such calculation may be different. Since most countries, including Russia, consider it necessary to tax profits, and for the purposes of the fiscal (tax services) the amount of profit received by an enterprise is fundamentally important, the state introduces certain restrictions on the choice of accounting methodology for calculating it. We can say that accounting, based on a strictly state-regulated system for registering business transactions, storing accounting documentation, analyzing, interpreting and using information for fiscal purposes, is accounting. But the owners, administration of any functioning enterprise, creditors, and investors also evaluate the success of the company by the amount of profit received. However, the administration or the owners may have their own goals, and they do not always coincide with the goals of the tax services. Therefore, for calculus economic result in this case, the administration can choose other methods (other methods of depreciation, unique methods of calculating finished products and services, etc.) and organize its own financial accounting in addition to accounting. Profit calculated according to financial accounting data does not coincide with its value shown in accounting records. This is not data falsification, as ours sometimes believe. tax services, and a conscious open approach to achieving various goals - the calculation of taxable amounts and the administration's assessment of the results of its work. Financial accounting is not a surrogate substitute for accounting, although both accounting and financial accounting are based on basic international and Russian accounting standards. In addition to the main task of financial accounting, which is obtaining and summarizing adequate economic information about the activities of a company, group of companies or holding structures, regardless of the type of activity, financial accounting is also interested in identifying trends based on the information it processes and the effect of various alternatives, which is not typical accounting in principle.

Most businesses also use non-financial information. To satisfy various information needs, management accounting is usually created. The management accounting system consists of interconnected subsystems that provide the information necessary to manage a company or group of companies, with the financial subsystem being the most important, since it plays a leading role in managing the flow of economic data and sending it to all departments of the company. The purpose of management accounting is to provide information to managers responsible for achieving specific goals. Financial and accounting information created and prepared for use by management or external users is subject to different rules than information intended for use by internal users, working directly in the company and making decisions. Let's look at the differences between managerial, accounting and financial accounting. The comparison is mainly focused on: the main consumers of information, types of accounting systems, freedom of choice (limitations), the meters used, the main objects of analysis, the frequency of reporting, the degree of reliability of the information received. The comparison results are shown in Table 1.

Table 1

Comparison of financial, accounting and management accounting

Comparison areas	Financial Accounting	Accounting	Management Accounting
1. Main consumers of information	Persons and organizations both inside and outside the business entity with direct and indirect financial interests	Persons and organizations outside the business unit with direct and indirect financial interests	Various levels of intra-company management
2. Types of accounting systems	Double entry system	Double entry system	Not limited by double entry system; any system that produces results is used
3. Freedom of choice	Mandatory adherence to generally accepted accounting principles, regulated within the company accounting policy	Mandatory adherence to generally accepted accounting principles, regulated by law	There are no rules or restrictions; the only criterion is suitability
4. Meters used		Currency unit at the rate in effect at the time the fact of economic life arises	Any suitable monetary or natural unit of measurement: man-hour, machine-hour, etc. If the valuation is in dollars, then actual or future value dollar
5. Main object of analysis	Business unit as a whole and profit centers	Business unit as a whole	Various structural divisions of a business unit
6. Frequency of reporting		Periodically, on a regular basis	When required; may not be compiled on a regular basis
7. Degree of reliability		Requires objectivity; historical in nature	Highly dependent on planning objectives; but when required, accurate data is used; futuristic in nature

Main consumers of information

Users of financial information can be divided roughly into three groups:

1) those who manage the enterprise, i.e. a group of people in a company who bears full responsibility for managing the activities of the enterprise and achieving the goals of the company;

2) those who are outside the enterprise and have direct financial interests in it, i.e. a group of potential or existing lenders or investors;

3) those persons or agencies who have an indirect financial interest in the enterprise (consultants, contractors, regulators, employees).

Consumers of traditional accounting reports are outside the company that prepares the report and whose management is responsible for its preparation.

Internal analytical reports are used by the administrators of the company itself. The content of these reports varies depending on their intended purpose and the position of the administrator for whom they are intended. Examples of such reports include: analysis of the state of warehouse balances; current operational sales reports, reports from the responsibility center (work area) - to evaluate the results of work; cost reports - for making short-term decisions; analysis of capital investment estimates - for long-term planning purposes, etc.

Types of accounting systems

Accounting statements prepared for an external source are prepared in valuation and reflect the balances of all accounts included in the general ledger of the company. Before data can be entered into the general ledger, it must be encoded into the form required by the double entry system.

The recording of financial information within a firm must be based on a double entry system, or the information may be compiled by sections or divisions of the firm.

Management accounting information can be reflected in various units of measurement, and not just in valuation. It should not accumulate in the general ledger accounts. It is prepared for specific needs of administrators, and its use stops there. In this state of affairs, the information storage and retrieval system must have greater capacity than is required for financial accounting.

freedom of choice

Financial and accounting are based on generally accepted accounting standards and principles that govern the recording, measurement and communication of financial information. Generally accepted accounting principles, necessary primarily to protect the interests of the state and creditors and ensure confidence in the information received, limit the choice of an accountant or financier to a finite number of accounting techniques and methods. Management accounting has limitations only in the techniques and methods used, which should give useful information. In each individual case, it is decided what information will be useful to the recipient, and then the necessary techniques and methods are selected. There are many approaches to solving the problem of information adequacy, and it is necessary to choose the method that should be the most accurate under the circumstances. Since the information is intended only for internal use, there is no need to adhere to any specific standards when recording facts of economic life.

Meters used

Financial or accounting fulfills its functions by presenting information about business processes that have taken place. Information is measured in accounting currency, or more precisely, in the “historical” currency in which business transactions were carried out. However, financiers are not limited to using “historical” currency and can use any other measure that is suitable in a given situation. Historical currency can be used for a short period of time to control the level of costs and to analyze trends in solving current planning problems. However, most management decisions are based on calculations that use an assumed "future" currency. In general, these decisions require forecast information and forward-looking estimates of current data and must be based on an expected assessment of the exchange rate in the future. This is a feature of financial and management accounting. Management accounting also uses in its analysis such indicators as man-hours, machine-hours and units of measurement of products or measures of work performed. The general measure underlying all activities in the selection of types of meters, reporting and analysis in management accounting is the usefulness of the meter for a given situation.

Main object of analysis

Financial and accounting accounts summarize the transactions of the entire firm. Management accounting usually includes analysis of the activities of various departments (cost centers; structural divisions, the results of which are measured by the profit received - profit centers; departments or functional departments of the company) or any aspects of its activities. Reports can cover both an analysis of income and expenses of an entire department, and an accounting of funds used by a specific department.

Reporting Frequency

Accounting reports prepared for external use are presented regularly in accordance with the rules approved by law. Financial reports are also presented regularly, but in accordance with the company's accounting policies: monthly, quarterly and/or annually. Periodic reporting, prepared at regular intervals, is a basic principle of financial and accounting accounting. In management accounting, reports can also be prepared monthly, quarterly and/or annually on a regular basis or even daily, but this is not necessary, since the main thing is that each report is useful to its recipient and presented to him at the right time.

Degree of reliability

Financial and accounting information included in financial statements covers the actual data summarized for the consumer. This information reflects transactions that have already been completed and for this reason it is objective and verifiable. Management accounting is primarily concerned with the control of internal operations. Making management decisions is an activity that is more focused on the future. Operations for past period, although useful for identifying trends, are usually unimportant for planning purposes and should be replaced by subjective assessments of future expected events.

The seven areas compared should help move from accounting to financial accounting, and from financial accounting to management accounting. In many cases, financial and management accounting data relate to the profitability of the company and are intended only for management. Leakage of such information can make competition in the market unfair. Thus, while financial accounting focuses on fully and accurately explaining and disclosing the results of a firm's operations, management accounting seeks to help management achieve its goals.

Conceptual methodological norms and principles of financial accounting

Methodological principles of financial accounting for any company are based on the main international and Russian accounting standards, based on the characteristics of financial and economic activities. The application of these principles facilitates understanding of the essence of financial accounting. When using specific methodological techniques of financial accounting and generating reporting at all levels, the financial director can choose to be guided by all or some of them.

1. The business unit principle, or the principle of accounting by profitability centers.

The success and survival of any company in a highly competitive environment requires focusing on two main goals: profitability and liquidity. Therefore, the question arises of identifying centers of profitability within the company’s activities. The activities of any company, even a small one, can be divided into areas, that is, profitability centers can be determined. In a trading company, these may be sales departments (wholesale or retail), products and services with different consumer properties, brands within a homogeneous assortment, retail sites or stores, clients of various categories; in production, these are workshops, products with different consumer properties. Groups of companies, holdings and large companies also have profit centers. These are subsidiaries, branches, that is, certain economic units. Using the business unit principle (principle of profitability center accounting), each line of business or subsidiary must be considered as an economic business unit, separate from other business units, which will allow us to identify the most profitable centers, as well as make more informed decisions within the framework of the activity business units, and ultimately manage the company as a whole more successfully.

This principle is based on property isolation: a business unit conditionally or unconditionally owns certain own funds, represented by property in cash or in kind.

In the process of economic activity, the volume of property in monetary terms changes due to a corresponding change in liabilities or own funds of the business unit.

2. The principle of business continuity.

This principle is based on the assumption that each business unit is functioning normally and there is no intention to liquidate or significantly reduce its activities. That is, an enterprise, once established, will exist forever. This is a very peculiar principle, because it contradicts common sense: every person knows that he will die, especially any factory, store, salon, etc. cannot exist permanently. And yet this principle is put forward as one of the main ones. The accepted assumption, reminiscent of the first law of mechanics, allows one to very effectively calculate financial results and abandon pointless attempts to revaluate the objects taken into account. In fact, if a company exists forever, why revalue its assets. In contrast, if a business is liquidated, its legacy should be valued at its current market value rather than its historical valuation.

3. The principle of periodicity.

The periodicity principle means that the main financial planned and actual indicators are calculated at strictly defined points in time, set equal to a calendar month, quarter, half-year, or year. In addition, this principle allows us to consider the reporting year only as related to the characteristics of the business cycle and not tie it to the calendar year. Each sector of the national economy has its own cycle, and, therefore, the financial director of each enterprise has the right to choose the timing of the business year for his company.

4. Accrual principle.

The accrual principle is one of the basic principles and is implemented in the assumption of temporary certainty of the facts of economic activity.

Temporary certainty is expressed by the following fundamental norms:

A. Standard of Compliance.

All costs are divided into 3 main groups:

• current costs of core activities associated with generating income;
• costs of capital investments, that is, costs of acquisition (in any form), as well as reconstruction and renewal of fixed assets directly or indirectly involved in the process of core activities;
• financial investments, which represent expenses for the acquisition of financial assets (shares, bonds, participation interests, bills, etc.), including the provision of long-term loans, made for the purpose of generating income not related to the main activity or other determined by the management of the company, purpose.

Current costs are divided into:

• direct, which can be attributed to a specific type of activity;
• indirect, which arise when a business unit conducts economic activities, but which cannot be unconditionally tied to its specific type.

Direct costs can be conditionally variable, the size of which depends on economic activity in a particular activity (according to a linear or other increasing function), and conditionally constant, which arise regardless of the level of economic activity in a given activity.

Indirect costs, as a rule, are always semi-fixed.

For financial accounting purposes, the compliance standard is defined as the need to reflect direct costs of generating income in the same period as the income for which they were incurred.

Accordingly, in a certain period only those direct expenses that led to the formation of income received in this period are reflected.

In this case, the assumption is made that indirect expenses are to be attributed to a decrease in the financial result in the reporting period when it was certain that they would be incurred, or, depending on the chosen accounting policy, when they were actually paid (cash method).

Capital and financial investments are not included in the reduction of the financial result of the reporting period when they were made, and transfer their value to current costs in accordance with accounting policies.

B. Accrual rate.

The accrual rate determines that expenses and income are recognized in the reporting period to which they relate.

In this case, income and expenses are reflected in financial accounting only if there are primary documents that make it possible to accurately determine their amount.

B. income registration rate.

This rule establishes that in order to recognize sales revenue it is necessary:

• transfer of ownership;
• the ability to estimate income with a significant degree of accuracy;
• completeness of revenue generation activities;
• confidence in the impossibility of canceling the transaction;
• an increase in assets due to revenue or a decrease in liabilities.

5. The principle of the monetary meter.

Financial accounting of assets, liabilities, income, expenses of a company and business units is carried out by valuing them in a single hard currency. Usually the US dollar is chosen.

If accounting is carried out on the basis of primary documents expressed in another currency, then conversion into US dollars is made at the officially established or separately agreed rate on the date of the transaction.

The application of the principle of a monetary meter does not mean a refusal to use natural meters when accounting for certain types of assets.

At the same time, the accounting of indicators in natural meters is carried out when reflecting business transactions with mandatory parallel taxation (multiplying quantity by price).

6. The principle of conservatism.

The application of this principle means that if it is possible to use two different methods of accounting for the same indicators, it is necessary to use the method that presents the company's position in a less favorable light.

Profit is reflected only after it is actually received, and loss is reflected when it is possible to occur.

Thus, the financial director is obliged to create reserves for any assets that appear to be risky to one degree or another.

At the same time, assets should be accounted for at their lowest possible cost, and liabilities at their highest.

7. The principle of completeness.

One of the main objectives of financial accounting is to obtain complete and reliable information about the property status and results of economic activity of a company or business unit.

The practical application of this principle is expressed in the mandatory inclusion in the financial statements of the necessary adjustments and explanations if the standard forms of financial statements do not provide a complete picture of the company’s activities.

8. Principle of materiality.

The principle of materiality states that information obtained from financial accounting must be meaningful to the user.

The principle of materiality is expressed in the degree of significance of changes in estimates, in the correction of errors in historical reports, or in different ways of reflecting quantitative data.

These changes and revisions are considered material if they are large enough or important enough to affect decisions made on the basis of the financial statements.

As a general rule, any distortion of reporting data is considered insignificant if its relative value does not exceed 5% of the value of the corresponding indicator and 0.5% of the amount of assets.

9. The principle of rationality.

In accordance with the principle of rationality, the advantages and benefits derived from the information received must exceed the costs associated with its receipt.

This principle complements the principle of materiality, in fact establishing a second criterion according to which the need to adjust accounting data is assessed.

10. The principle of relevance (appropriateness).

Information is relevant if it can have a practical impact on the extent to which decisions are made.

This means that the information must provide the ability to evaluate the company’s activities and make its forecasts.

Accordingly, financial information must be presented in a timely manner (within strictly established deadlines) and contain the minimum essential data necessary for making a specific decision.

One of the components of this principle is feedback, that is, the opportunity, as a result of analyzing financial accounting data, to evaluate a previously made investment decision.

11. The principle of reliability (reliability).

The reliability of the information received is one of the purposes of financial accounting.

Its achievement is carried out through continuous, systematized accounting of business transactions, as well as alternative verification of the data obtained.

The need for an alternative test means that any significant indicator of the financial statements must either be verified by reconciliation with other accounting data (in particular, accounting data), or determined independently of the main accounting system.

One of the important requirements of the principle of reliability is the consistency of financial accounting, expressed in the correspondence of analytical accounting data to synthetic accounting and reporting data.

12. The principle of priority of content over form.

Business transactions in financial accounting should be taken into account solely on the basis of their economic content and business conditions, regardless of the specific legal form in which they are clothed.

One expression of this principle is the requirement of neutrality, that is, the release of financial data from any influence.

When preparing financial statements, it is necessary to be guided only by economic laws; their distortion in order to influence the adoption of a specific management decision is not allowed.

13. The principle of constancy (consistency).

The principle of constancy presupposes the constancy of the application of accounting procedures (methods) over a certain period of time.

Any company is obliged to apply uniform accounting policies during the calendar year and maintain a stable composition of reporting indicators.

Changes in accounting methods and the composition of reporting indicators can be made from the beginning of the next calendar year.

At the same time, it is important to comply with the comparability requirement: reporting data for the current period must be comparable with data for the corresponding periods of previous calendar years.

Accounting policies - features of the choice of basic provisions

So, the financial director has decided on the principles of financial accounting. Next, the question arises about the accounting methods that will guide both the financial director and the entire company, that is, we are talking about the company’s accounting policy. The company's accounting policy is formed by the financial director.

For each business unit, the financial director must establish a system of indicators for analytical accounting, synthetic accounting and financial reporting, as well as standard forms of documents on the basis of which entries are made in the financial accounting system.

Changes in methodological approaches regarding the assessment of assets and liabilities established in the accounting policies are allowed only when the style of doing business changes. Based on the principle of constancy, accounting policies are formed for a long-term period.

The system of actual indicators consists of:

• financial balances (Table 2);
• profit and loss statements (Table 3);
• cash flow reports (replace this report with a report of actual budget indicators).

Since financial accounting is not regulated by legislation, there is no unified chart of accounts. The company's financial director himself forms the plan that he considers acceptable and reflects it in the accounting policy.

Charts of accounts formed at enterprises reflect the influence of certain standards and financial principles, the essence of which is formulated above in the article.

Likewise, in financial accounting there are no uniform reporting forms that are mandatory for all companies. The balance sheet and profit and loss account are standardized by the financial director and again reflected in the accounting policy (approximate balance sheet and profit and loss report - see tables 2,3). Financial statements may be more compact and have larger indicators compared to accounting reporting forms, and that is why they are distinguished by greater visibility and, perhaps, greater analyticalness.

An essential feature of financial accounting should be the preparation of consolidated statements. Consolidated financial statements should not be confused, as is sometimes done, with consolidated reporting(mechanical aggregation of individual balances). The differences between them arise from the characteristics of ownership of certain forms. Consolidation is due to the fact that very often when we talk about business, we mean the activities of several law firms, that is, a group of companies interconnected by a single source of capital de facto and not always formalized de jure. Therefore, the financial director needs to formulate a consolidation procedure in the accounting policy and decide how transfer prices will be determined (the price at which legal entities within the same group of companies purchase from each other material values), how the funds controlled by the parent company in the daughter company (there can be many such daughter companies and granddaughter companies) are reflected in the balance sheet, as well as determine the cost of production within the group of companies and much more.

table 2

Exemplary financial balance

Balance
	At the beginning of the period	At the end of the period
ASSETS
1. CURRENT ASSETS
1.1. Cash
Current accounts
Funds on the way
Funds in settlements
1.2. Accounts receivable
Suppliers
Buyers
Accountable persons
1.3. Inventories of goods and materials
Products in stock
Goods are shipping
Raw materials
Unfinished production
Finished products
1.4. Fin. investments in third parties
Securities
2. LONG-TERM ASSETS
1.2.1 Fixed assets
Real estate
Equipment
Intangible assets
Construction in progress
LIABILITIES
1. Accounts payable of counterparties
Suppliers
Buyers
Accountable persons
2.Fin. obligations to third parties
Overdrafts
3. Capital and accumulated profit
4.Reserves
5. Unearned income

Note: The balance sheet account “Unearned Revenue” is entered when choosing to recognize sales revenue on payment.

Table 3

Sample profit and loss statement for a trading organization

CONSOLIDATED INCOME STATEMENT	TOTAL	Profit center 1	Profit center 2	Profit center 3
Revenues from sales
Sales volume in contract prices
Gross profit from sales
Trade margin
Delivery overhead
Cost of goods sold
Associated costs of product promotion
Entertainment expenses
Payroll of sellers
Commissions for banking services
Financial commissions
Business trips
Rental of retail warehouse sites
Gross profit
Return on sales
General and administrative expenses
Automation costs
General running costs
Payroll of administrative personnel
Office space rental
Maintenance
Depreciation deductions
Profit before taxes and interest payments on the loan
% on loan
Taxes
Profit from current activities
Other profit (loss)
From financial activities
From investment activities
Non-operating profit (loss)
Exchange differences
NET PROFIT
Use of net profit

Moving from the chart of accounts and financial statements to accounting procedures, it should be noted that the choice of the form of accounting in the accounting policy is entirely within the competence of the financial director. The financial director may choose accounting procedures based on GAAP, that is, he does not strive to ensure that account turnover adequately reflects actual turnover in legal and economic sense, because double entry, from the point of view of our Western colleagues, this is only a technical technique and nothing more. In this regard, the “red reversal” method is not known abroad, which, with the help of reversal entries, allows you to reduce either erroneous or artificial turnover. Features of Western methodology in general include the widespread use of mixed transactions, when several accounts are debited and credited at the same time. This is also a very convenient solution and the financial director can adopt these methods, although a Russian accountant cannot “give up principles,” because in this case the correspondence between specific accounts is destroyed.

Another point that needs to be reflected in the accounting policy is the moment of recognition of sales revenue. The moment of transfer of ownership of the subject object from the seller to the buyer is the main subject in discussions among financiers. For some of our colleagues, the starting point is the concept of law, according to which realization is the moment of transfer of ownership of a value. For others, the moment of sale is the moment of receipt of money from the buyer to the seller for an already shipped product (service provided), and it does not coincide with the moment of transfer of ownership. For others, this is the moment when money is received from the buyer to the seller, regardless of whether the transfer of ownership has occurred or not. Thus, according to one concept, profit arises at the time of shipment of goods, according to other views, at the time of receipt of money. In the first case, there is profit, but money is needed to pay wages, pay off accounts payable and there are no taxes to pay. In any case, the decision on which accounting policy to choose (shipment, payment or cash method) is made by the financial director independently. Any method has its pros and cons. Thus, when choosing a shipping method, it is necessary to create and maintain reserves for doubtful debts (doubtful debts, based on the principle of conservatism, the financial director should recognize most of accounts receivable buyers). Further, the circumstance - there is profit, but no money - forces the financial director to draw up a complex cash flow report. When choosing the cash method, there is a risk that advances received from customers will be claimed back by them and the profit received will require adjustment. When choosing a payment method (the goods are shipped, the service is provided and the money is received in full), a system for comparing the shipped and paid goods is necessary if the shipment and payment do not coincide in the same reporting period. The comparison problem is solved by the presence of two accounts in the balance sheet: “Goods shipped and unpaid”, “Unearned income”.

After choosing the moment to recognize sales revenue, the financial director must select and write down in the accounting policy the moment to recognize the company's expenses. Based on the accrual principle, the income of the reporting period must be correlated with the expenses through which these incomes were received. This is the hardest thing for practical application principle. It goes back to the significant interpretation of the asset given by E. Schmalenbach (1873-1955), who argued that an asset is a cost that should become income in the future. Hence the need arises to consider how costs invested in assets are written off for the financial results of each reporting period. In connection with this expense, it is not the payment of money that can be recognized, but the emergence or exercise of rights to these payments (shipment method). This method requires a lot of labor. Therefore, when recognizing expenses, the financial director can use the principle of materiality and write off part of the expenses using the simplest cash method, setting, for example, a 5% barrier.

Accounting for inventory items is also part of the accounting policy. This is understandable. Indeed, depending on the valuation of inventory, the cost of goods sold is measured, corresponding to the sales proceeds. At the same time, the financier’s repertoire has at least four valuation options inventories: individual accounting, valuation at average prices, valuation at the price of the last (LIFO) or first (FIFO) batch of receipt. Which option should I choose? It is necessary to understand that if the inflation rate is high and the company uses the LIFO method, then the cost of inventories (remains) of inventory items will be underestimated, and the cost of goods sold will be overestimated, and, therefore, the amount of profit will be underestimated. (It is no coincidence that the LIFO method is prohibited in the UK.) If the FIFO method is used in similar conditions, then the cost of inventories (balances) of inventory items will be overstated, and the cost of goods sold will be underestimated, and, thus, the amount of profit will be exaggerated. At least four important conclusions follow from this:

• there is no direct connection between movement in value and in physical terms, for example LIFO means hidden increase value expression commodity mass, while it is possible to reduce this mass in its physical expression;
• LIFO and FIFO methods represent two extreme limits between which the true value of cost lies;
• the essence of the LIFO and FIFO methods is not in the valuation of inventories (this is a side effect), but in comparing the current costs of goods sold during the reporting period with the revenue received;
• the choice of accounting method predetermines financial results companies.

Next, when formulating accounting policies, the financial director needs to classify costs. Assigning the value of an object to one category or another depends on the value the owner attaches to it. This is a kind of “Doolittle effect”, a scavenger who demanded money from Professor Higgins that was relatively equal to the income of a millionaire. So, in one enterprise an object can be classified as fixed assets, and in another, an absolutely identical object can be immediately written off as an expense for a given reporting period. The main criterion is the cost of the object; depending on this, it can be classified either as fixed assets, or as low-value and wear-and-tear items (IBP), or directly written off as enterprise costs. In the accounting of some countries, for example the USA, the intermediate group - IBP, as a rule, is completely absent and, accordingly, the regulating account “Depreciation of low-value and high-wear items” is also absent. That is, the financial director can follow the example of our Western colleagues and thereby make it easier for himself to account for costs by introducing into the accounting policy the possibility of assigning certain objects either to the “Fixed Assets” accounts or to the cost accounts.

Since financial accounting consists of two interrelated parts: accounting planned indicators and taking into account actual data in the accounting policy, the company's budget policy is additionally prescribed. The main objective of the Company's budgeting is to obtain and summarize economic information about the Company's activities for making management decisions for the long term.

Accounting for planned indicators is carried out in order to obtain and summarize economic information about the state and main characteristics of the Company’s turnover, the sources of its formation, as well as the movement of financial flows for the planned period.

Planned periods in budget policy can be set equal to one year or 6 months, broken down by month.

Accounting for actual data is carried out to obtain information about the performance of planned indicators, analyze the causes of deviations that arise and adjust the planned indicators for subsequent periods.

Budget data can be used when analyzing the effectiveness of planned and implemented commercial transactions, drawing up investment plans Companies.

It is advisable to build a system of planned and actual indicators from:

• long-term financial plans(budgets) and reports on their execution, determining the directions of changes in the company’s turnover and expenses (Table 5) during the planned period, namely the structure of turnover (Table 6), the structure of expenses for core activities (see Table 4), the structure investment projects and financial investments.

Table 4

Budget structure of company expenses