Analysis of the Methodology of Fixed Assets in Accordance with IAS 16 “Fixed Assets” AND P(S)BU 7 “Fixed Assets”: Theory and Practice
The importance of transparent, complete, authentic and timely information comprehensible for all the users of financial reporting has grown in the context of Ukraine’s integration in the international economy. The issue of harmonizing the national accounting system with the international standards i...
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| Format: | Article |
| Language: | Ukrainian |
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National Academy of Statistics, Accounting and Audit
2018-10-01
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| Series: | Naukovij Vìsnik Nacìonalʹnoï Akademìï Statistiki, Oblìku ta Auditu |
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| Online Access: | https://nasoa-journal.com.ua/index.php/journal/article/view/161 |
| _version_ | 1828836937218129920 |
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| author | L. V. Shkulipa |
| author_facet | L. V. Shkulipa |
| author_sort | L. V. Shkulipa |
| collection | DOAJ |
| description | The importance of transparent, complete, authentic and timely information comprehensible for all the users of financial reporting has grown in the context of Ukraine’s integration in the international economy. The issue of harmonizing the national accounting system with the international standards is, therefore, on the agenda of the national statistics system. Apart from this, introduction of the international accounting standards in the Ukrainian statistics practice is expected to make Ukraine more attractive for foreign investors and lenders. As theoretical and practical problems related with harmonizing the national accounting standards with international ones are not fully elaborated, the article’s purpose is to analyze the methodology of fixed assets recording by international and national standards, with providing, in table form, comparative characteristics of the underlying sections of International Accounting Standards (IAS) 16 and Rules (Standards) of Accounting (R(S)A) enforced in Ukraine, and to illustrate their practical use. The comparison covers recognition, valuation, recording and reporting of fixed assets, elements of the original cost (estimates at the date of recognition), formation of the original value of fixed assets as a result of various events, revaluation of fixed assets, frequency of revaluation of the liquidation value of fixed assets etc. Practical issues related with fixed assets overvaluation (undervaluation), depreciating, disposal and exchange are highlighted.
The comparative analysis shows quite significant differences between the two documents in valuation, revaluation, liquidation, disposal of fixed assets. They can be explained by national specifics of record keeping in Ukraine, fully considered in the national standards, and, consequently, by adaptation of accounting in Ukraine to the national economy needs. |
| first_indexed | 2024-12-12T18:31:13Z |
| format | Article |
| id | doaj.art-0aa6ff2e6e274207913fe64b06276ded |
| institution | Directory Open Access Journal |
| issn | 2520-6834 2521-1323 |
| language | Ukrainian |
| last_indexed | 2024-12-12T18:31:13Z |
| publishDate | 2018-10-01 |
| publisher | National Academy of Statistics, Accounting and Audit |
| record_format | Article |
| series | Naukovij Vìsnik Nacìonalʹnoï Akademìï Statistiki, Oblìku ta Auditu |
| spelling | doaj.art-0aa6ff2e6e274207913fe64b06276ded2022-12-22T00:15:53ZukrNational Academy of Statistics, Accounting and AuditNaukovij Vìsnik Nacìonalʹnoï Akademìï Statistiki, Oblìku ta Auditu2520-68342521-13232018-10-01410211210.31767/nasoa.4.2018.10161Analysis of the Methodology of Fixed Assets in Accordance with IAS 16 “Fixed Assets” AND P(S)BU 7 “Fixed Assets”: Theory and PracticeL. V. Shkulipa0National Academy of Statistics, Accounting and AuditThe importance of transparent, complete, authentic and timely information comprehensible for all the users of financial reporting has grown in the context of Ukraine’s integration in the international economy. The issue of harmonizing the national accounting system with the international standards is, therefore, on the agenda of the national statistics system. Apart from this, introduction of the international accounting standards in the Ukrainian statistics practice is expected to make Ukraine more attractive for foreign investors and lenders. As theoretical and practical problems related with harmonizing the national accounting standards with international ones are not fully elaborated, the article’s purpose is to analyze the methodology of fixed assets recording by international and national standards, with providing, in table form, comparative characteristics of the underlying sections of International Accounting Standards (IAS) 16 and Rules (Standards) of Accounting (R(S)A) enforced in Ukraine, and to illustrate their practical use. The comparison covers recognition, valuation, recording and reporting of fixed assets, elements of the original cost (estimates at the date of recognition), formation of the original value of fixed assets as a result of various events, revaluation of fixed assets, frequency of revaluation of the liquidation value of fixed assets etc. Practical issues related with fixed assets overvaluation (undervaluation), depreciating, disposal and exchange are highlighted. The comparative analysis shows quite significant differences between the two documents in valuation, revaluation, liquidation, disposal of fixed assets. They can be explained by national specifics of record keeping in Ukraine, fully considered in the national standards, and, consequently, by adaptation of accounting in Ukraine to the national economy needs.https://nasoa-journal.com.ua/index.php/journal/article/view/161fixed assets, asset, depreciation, initial cost, valuation, international standards, national standards |
| spellingShingle | L. V. Shkulipa Analysis of the Methodology of Fixed Assets in Accordance with IAS 16 “Fixed Assets” AND P(S)BU 7 “Fixed Assets”: Theory and Practice Naukovij Vìsnik Nacìonalʹnoï Akademìï Statistiki, Oblìku ta Auditu fixed assets, asset, depreciation, initial cost, valuation, international standards, national standards |
| title | Analysis of the Methodology of Fixed Assets in Accordance with IAS 16 “Fixed Assets” AND P(S)BU 7 “Fixed Assets”: Theory and Practice |
| title_full | Analysis of the Methodology of Fixed Assets in Accordance with IAS 16 “Fixed Assets” AND P(S)BU 7 “Fixed Assets”: Theory and Practice |
| title_fullStr | Analysis of the Methodology of Fixed Assets in Accordance with IAS 16 “Fixed Assets” AND P(S)BU 7 “Fixed Assets”: Theory and Practice |
| title_full_unstemmed | Analysis of the Methodology of Fixed Assets in Accordance with IAS 16 “Fixed Assets” AND P(S)BU 7 “Fixed Assets”: Theory and Practice |
| title_short | Analysis of the Methodology of Fixed Assets in Accordance with IAS 16 “Fixed Assets” AND P(S)BU 7 “Fixed Assets”: Theory and Practice |
| title_sort | analysis of the methodology of fixed assets in accordance with ias 16 fixed assets and p s bu 7 fixed assets theory and practice |
| topic | fixed assets, asset, depreciation, initial cost, valuation, international standards, national standards |
| url | https://nasoa-journal.com.ua/index.php/journal/article/view/161 |
| work_keys_str_mv | AT lvshkulipa analysisofthemethodologyoffixedassetsinaccordancewithias16fixedassetsandpsbu7fixedassetstheoryandpractice |