In the framework of the interdisciplinary course (MDC) "Technology for the preparation of financial statements", we study the features of the formation of documentation that reflects information about the facts of the organization's business. Work on filling out accounting forms is regulated by regulatory acts, coordinated by the government of the Russian Federation, which granted the right to regulate the Ministry of Finance and the Central Bank, as well as other departments and structures. Let us further consider what are the features of using accounting reporting technology.
General information
Conducting financial statements is considered as an important stage of accounting activities. It is between the registration of events of economic life and financial analysis. The formation of documentation, as well as the preparation of tax reporting, allows you to implement key accounting tasks.
These include:
- Generalization of reliable and complete information about the work of the enterprise, its property status. Data is provided to internal (managers, owners, participants) and external (creditors, investors) users.
- Providing information that is necessary for interested parties to monitor compliance with the law, the availability and movement of material assets, the use of financial, labor and other resources, in accordance with the approved estimates and standards, to fulfill obligations.
- Prevention of negative results of business operations, identification of internal reserves of financial stability.
From the above it follows that boo. reporting acts as an information base for the analysis of the company and making administrative decisions. The purpose of the documentation is to provide reliable and complete data to a wide range of entities on the financial condition of the company and changes in it.
Standards
In the context of a globalized economy, specialists are forced to use 2-3 technologies for preparing financial statements. Moreover, they are guided by various standards. In such conditions, the company’s expenses for the preparation, verification and disclosure of indicators significantly increase on the one hand, and on the other hand, the significance of the presented documentation for users decreases. The latter is due to the fact that different amounts reflected in the same articles significantly reduce investor confidence.
In this regard, there was a need to bring together the technology of accounting reporting used in different countries. The generally accepted standards are IFRS, IFRS. These are sets of documents that regulate the rules for reflecting information on the financial performance of an enterprise required by interested parties. Between 1973 and 2001, standards were developed by the IFRS Committee. In 2001, it was reorganized and renamed the Council.
Key IFRS Objectives
The main objectives of the international standard were:
- The convergence of accounting requirements in different countries.
- Creation of uniform rules for the formation of documentation in the capital market.
- Increasing the information content of indicators for users.
- Achieving comparability of information about enterprises from different countries.
- Reducing the cost of preparing consolidated documentation for multinational corporations.
- Reduced costs for reporting companies whose shares are traded on global capital markets.
Basic principles
IFRS, in contrast to a number of national rules, are not based on stringent requirements, which must comply with the technology of preparing financial statements. The practice should be carried out in such a way that specialists are guided in their work by principles, rather than looking for gaps in peremptory norms.
The basic provisions of IFRS should include:
- Using accrual method. All results of operations should be recognized upon their implementation, but not at the time of payment / receipt of funds.
- Business Continuity. The company does not plan to terminate or significantly reduce the volume of work.
IFRS structure
Standards include:
- Concept. It defines key provisions in the preparation and provision of financial documentation.
- The standards themselves. They are considered as key approaches to accounting and reporting transactions and other facts of the economic life of the enterprise. The standards define the methods and principles of classification, valuation, recognition of assets, capital, obligations of the company, requirements for the disclosure of additional information about them. For example, IFRS 16 sets out the rules for property, plant and equipment.
- Interpretation of standards. These acts clarify the application of IFRS and are a kind of instructions.
Specificity of accounting technology
If the financial documentation is subject to compulsory audit or publication, an auditor’s opinion is attached thereto. Small business representatives form a bang. reporting under a simplified scheme. In particular, they create a balance sheet and disclose a financial result. In the appendices to these documents indicators are given, without the knowledge of which it is impossible to assess the property status of the company. In this case, reports include information on groups of articles without detailing the information.
In cases provided for by the rules or the founders, the company generates intermediate documentation. It includes a balance sheet, a report on financial results. Additional explanations may be attached. Interim documentation is generated for a period not exceeding a year (quarter, month, 6 months), cumulatively from the beginning of the year no later than 30 days after the end of the reporting period.
Mandatory details
Reporting forms should include the following information:
- The name of the form.
- The reporting date for which the documentation is compiled, or the period for which it is generated.
- The full name of the organization. It must comply with the information present in the constituent documents.
- INN
- Type of main activity.
- Form of incorporation or type of ownership.
- Unit of measurement. The format for the reflection of numerical values (rubles, million, etc.) should be indicated.
- The address of the company.
- Report signing date.
Key Rules
The financial statements are in Russian, the ruble is used as the currency. Blots, cleanings are not allowed in the documentation. Reporting must be signed by Ch. accountant, as well as the head of the enterprise. For each numerical value, except for that given for the first financial period, information must be provided for at least the last 2 years.
Information in financial statements is reflected in thousands of rubles. Decimals are not used. Businesses with high sales can report in millions.
Preparatory stages
Reporting indicators are summarized in the accounting system. Its essence is the implementation of the following steps:
- Processing of primary documentation provided by persons liable.
- Filling in grouping and funded statements.
- Systematization of primary documentation in accounting registers.
- Generalization of data on objects in accounts in the General Ledger. The basis for the information is the summary information of the accounting registers. The balances, turnover on the loan and debit, and, if necessary, the data of analytical accounting are used for reporting.
Formation order
Reporting begins after the activities indicated above. Next, fill out the forms. Before reporting, a set of procedures is carried out aimed at obtaining the most accurate information. These include:
- Checking records of accounting accounts and correcting errors discovered before the reporting day.
- Refinement of indicators for assessing liabilities and assets.
- Reflection of the financial result of the company.
- Reconciliation of analytical and synthetic records at the reporting date.
Filling out forms is a procedure for transferring grouped data from registers to the appropriate sections. The main source of information is the General Ledger. The content of the financial statements also includes information on analytical accounting.
Important point
When reporting, form indicators should be interlinked. This means that when filling out the forms, a comparison of the values reflecting the assessment of the same components of the financial condition of the enterprise in various documents is carried out. Reporting is open to interested users. In this regard, the possibility of timely acquaintance with it should be provided. In addition, the obligation of the enterprise is to provide documentation free of charge in one copy of the Federal Tax Service and state statistics bodies. Reporting to the specified authorities is carried out no later than 3 months from the date of completion of the year.
Automation
In the context of the rapid development of information technology, the leaders of many enterprises are trying to ensure the efficiency and convenience of their specialists. This task is achieved through the introduction of automated systems. One of the most popular is the program 1C 8.3. Accounting, using this platform, receives many opportunities and tools for solving operational problems.
The main objectives of the system are:
- Full automation of information compilation processes.
- Converting accounting information into tax reporting indicators.
- Automated form filling.
- Verification of credentials.
When using the 1C 8.3 platform, accounting significantly saves time and avoids many errors.