Provisions, contingent liabilities and contingent assets in group reporting of companies

Subject. The article makes an attempt to develop recommendations for provisions, contingent liabilities and conditional assets accounting under RAS and IFRS for companies operating in the real economy, based on the survey conducted using the sampling of Top 600 largest Russian companies at year-end2015 by Expert RA.Objectives. The aim of the study is to improve the quality of financial statements of Russian companies prepared under RAS and IFRS to the extent of provisions, conditional liabilities, contingent assets, and to perfect methods of relevant reporting data analysis.Methods. In the research, I applied the method of comparative analysis.Results. The paper presents a comparative analysis of the existing accounting methods for provisions, contingent liabilities and contingent assets under RAS, IFRS and GAAP, namely, systematizes the characteristic features and highlights the specifics of accounting systems. I examined the impact impact of data on provisions, contingent liabilities and contingent assets on evaluation of financial result of companies and developed recommendations to improve accounting treatment of provisions, contingent liabilities and contingent assets under RAS and IFRS.Conclusions. The offered recommendations may enhance the quality of financial statements of companies operating in financial and real sectors of the economy, as well as the effectiveness of investment decisions based on financial statement data.