Accounting policy as a tool for management of the financial results of the enterprise

Abstract

It was established that the main factors influencing the choice of accounting policy are the following: ownership, type of enterprise, its subordination, type of economic activity, number of personnel; the size of the enterprise, the taxation system, the format of financial statements (full or simplified); form of accounting management and organization; enterprise development strategy; cost structure (wage cost, material cost, depreciation cost, etc.); seasonal or non-seasonal nature of the type of activity; pricing procedure, level of competition and degree of uniqueness of the activity product; the state of corporate governance and levels of responsibility to the owners of the enterprise; personnel motivation system; environmental responsibility to society. The classification of the accounting policy for the purposes of analysis and audit has been improved according to the following characteristics: depending on the level of regulatory regulation; depending on the reporting based on it; depending on the term of validity; depending on the risks of distortion of financial statements due to the application of professional judgment; depending on the impact on the financial situation. It has been established that the development of a working plan of accounts taking into consideration the analysis sections necessary for the preparation of financial, tax, statistical, management reporting, and the Management Report will allow the formation of an integrated accounting system that reflects the interrelationships between individual indicators of various reports, which will strengthen the effectiveness of the system of internal control at enterprises and will reduce the risks of distortions of the reflected financial condition at the macro and micro levels. It is substantiated that compliance with the current legislation of the applied accounting policy is characterized by the assessment of objects and their reflection on the accounts in accordance with their purpose and type of activity, the reliability of the reporting compiled on its basis, which ensures the completeness of the display of all operations and the determination of financial results and a reliable assessment of efficiency types of activities in accordance with the productivity of expenses, profitability and cash flow.

Keywords

• reporting
• falsification
• reliability
• accounting policy
• financial results