Open AccessThe Impact of Accounting Advances on the Valuation of Property and Liabilities of the Organization
Author(s) -
A.V. Lapaeva,
L. E. Tumali
Publication year - 2020
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/753/6/062007
Subject(s) - balance sheet , accounting , valuation (finance) , substance over form , business , accounting information system , working capital , accounting records , current liability , audit , financial accounting , mark to market accounting , actuarial science
The accounting statements of the organization made up in compliance with all the rules are perceived by interested users as a reliable information source especially if the auditor gave them a positive assessment implicitly, Only those who have a good understanding of the rules of Russian financial accounting know the intricacies of forming the organization’s statements that can distort the fair valuation of its property and liabilities. Drawing up accounting records is one of such items of book records and tax accounting in the case of full or partial prepayment for products (services and work). Compliance with the accounting rules determines incomparability of payables in liabilities and receivables in the organization’s working capital due to the asymmetric inclusion of the sum of value added tax in these items of the balance sheet. It is necessary to adjust the amount of receivables reflected in the balance sheet to understand the true value of the ratio of both debts, which determines the company’s paying capacity and the need for working capital, its financial stability and business activity.