The Economic Operation as the Primary Unit of Observation in Accounting

Abstract

The article is aimed at the scientific substantiation of meaning of facts of economic activity of enterprise for the system of accounting, essence of economic operations, and their classification. It has been proved that definition of the term of «economic operation» in both the regulatory documents and the scientific literature makes it impossible to unambiguous interpretation of essence of this notion. It has been substantiated that the primary unit of observation in accounting is exactly the economic operation, which confirms the real fact of economic activity. It has been specified that to the facts of economic activity can be included treaty, event, occurrence, process, operation, causing impact on the financial status, financial performance and cash flows of enterprise, or changing the value of the enterprise’s off-balance sheet assets and liabilities. A classification of economic operations by various attributes has been suggested in order to ensure the systemacity in consideration of this category. It has been concluded that identification of facts of economic activity will deepen the content of subject of accounting.

Keywords

• economic operation
• fact of economic activity
• event
• occurrence
• process
• subject of accounting