Accounting Theory - a basic set of studying the organization of accounting (financial, tax and management), as well as some related disciplines. accounting theory is the basis of all methods of conducting financial and tax records in the enterprise.
Appointment of accounting theory
word "theory" has come to us from the Greek language.And it means, "viewing" or "research".Therefore, we can still identify as the concept of science that studies the accounting theory, which studies and explains to the basics of the subject of the accounting profession or accountant.
study of the theory of accounting is necessary for proper understanding and representation of the essence of the analysis and systematization of the entire economic and financial information organization, expressed in monetary terms.Accounting Theory defines the place of processing of financial and tax records in the economic system of enterprise management, as well as basic economic accounting categories used in practical business.
Knowledge of the theoretical bases of accounting is particularly important for understanding the functioning of the company, since its inception, that is, the registration of the legal form, the creation of authorized capital and the subsequent implementation of all necessary economic and financial business operations.All numerical data obtained in the course of activities should always be recorded in the source documents and registers, through which received financial information can be processed using the accounts and to withdraw the financial results required for calculation of taxes.
method of calculating
Accounting Theory is of paramount importance, both for profit and its calculation.Using different methods of calculation, can the same results in the same case, show a profit, and the other - a loss.Example of such reporting can be a well-known case of the German concern Daimler-Benz.In two reports, drawn up by an accountant Concern for the same data were derived completely different results.The report for the New York Stock Exchange was shown a profit, and in the document for the tax authorities in Germany - loss.This discrepancy is explained by different accounting methodology, America and Germany.Such cases have led to several concepts or approaches to the theory of accounting.
accounting theory approach
Today accounting theory is characterized by the following concepts:
The most common approach is the tax.Although the use of only the applicable throughout the accounting system more productive.The purpose of tax accounting is the accurate calculation of the numerical value of the required budgetary allocations, rather than the analysis of the prospects and opportunities of higher returns and reduce costs.Based on the fact that the tax authorities quite interesting how measured by revenue, began to apply a mixed approach.Therefore, in the structure of accounting is used as a method of tax accounting and financial (economic).
However, the application of tax standards has had a great influence on the development of accounting and its practice.Account activity has been greatly improved, became more consistent and meaningful.An example is the requirement for depreciation, tax regulations introduced in 1909.This document provided the impetus to search for ways to improve the depreciation of movable and immovable property, their classification, as well as the use of more convenient definition of the concepts of depreciation costs.