Open AccessUnderstanding the Essence of the Accrual Method According to the International Standards
Author(s) -
Bidzina Grigalashvili
Publication year - 2021
Publication title -
šromebi - sak'art'velos tek'nikuri universiteti
Language(s) - English
Resource type - Journals
ISSN - 1512-0996
DOI - 10.36073/1512-0996-2021-2-57-66
Subject(s) - accrual , accounting , relation (database) , accounting standard , financial accounting , element (criminal law) , subject (documents) , subject matter , business , accounting information system , political science , computer science , law , earnings , database , library science , curriculum
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.