Under the chart of accounts means a system of accounts (each of which takes into account the cash flow), performing the role of informing about the state and direction of financial flows within the organization.
Depending on the problems facing the company, selected a particular chart of accounts.The most successful is considered to be a solution that allows you to get from the data contained in the reports the maximum amount of useful information.Chart of Accounts is dependent on specific industries (insurance organizations, financial institutions, pension fund, small business) and, depending on the priority subsystem (case management, tax, and international accounting types).There are also other possible classification levels of accounts.Today we talk about is a rare phenomenon for our country under the name IAS.The so-called international financial reporting systems have been officially recognized by the Government of the Russian Federation according to the decision by the end of February 2011 under the number 107. It is clear that the adoption of this decision is connected with the accession to the WTO, contributes to the erosion of economic borders.This kind of accounting will be useful to the auditor or the investor chooses to analyze information about a particular foreign company for the purchase of securities.In the West, the use of IFRS for public companies considered standard.However, the US is still widely used by local standards - US GAAP.But since 2010 many large corporations operating on a transnational scale, given the new reporting format.There are markings under IFRS IFRS (1 to 8), IAS (where there is a variation of 41) and IFRIC (discloses the use of previous standards).Each of them is an instruction for the financial reporting department.
The "pure" defined chart of accounts according to international standards of accountability does not exist, because he set the standards focused exclusively on the statements for the convenience of investors, and following simple principles.However, many resources for the convenience of Accountants published the work plan of accounts, adapted to IFRS.
prepared by numerous international financial reporting standards, improved chart of accounts, often repeats the two main report.This statement of comprehensive income and statement of financial position.This structure allows to obtain basic financial parameters in the so-called current financial statements.This approach makes it possible to account for all the items in the statement of financial position and of comprehensive income.Thus, an investor who has even a superficial knowledge of financial management can determine the impact of the operations conducted by the organization in the reporting, as well as future trends.
should be noted that IFRS is not a collection of rigid rules governing the chart of accounts of accounting and reporting system is flexible, based on only two principles.
1. The so-called accrual basis, meaning a reflection of operations during which they occurred.It is not permitted to make entries after the receipt or payment.This means that all transactions are recorded exactly when they occur (in this period).Following this method makes it possible for the auditor, investor or manager to obtain information about all cash receipts and liabilities, and in the long term that allows to predict the results of operations for a certain period.If some of the money is not received, then the correction is made with the use of the provision for bad debts.
2. Going concern.The assumption that the company will continue operations in the near term.And for the reason that the management, shareholders or the relevant committee did not recognize the company bankrupt, the assets of the company, leading statements in accordance with IFRS, will not take into account the costs of liquidation.In other statements of the company have to be compiled on a different basis, which should be disclosed.
