VARIABILITY OF ACCOUNTING POLICIES – ADVANTAGES AND DISADVANTAGES

Julija Bojarenko

DOI: http://dx.doi.org/10.12775/CJFA.2017.013

Abstract


There are several provisions of accounting policy, which are not regulated by the legislation of the Republic of Latvia. As a result, companies are free to develop and adopt recognition criteria and the methods of evaluation and accounting for items of their financial statements. This article deals with the choice of recognition criteria and the methods of evaluation of and accounting for fixed assets. The aim of the article is to develop recommendations on how to resolve the issue of accounting policy variabilities for the companies of the Republic of Latvia. The objects of the study are recognition criteria and the methods of evaluation and accounting of fixed assets. The recommendations on the solution of the issues related to variability of fixed asset accounting policy are based on the determination of materiality criteria.

Keywords


accounting policy; fixed assets; materiality criteria

Full Text:

PDF

References


Hendriksen, E. S., & Breda, M. F. (2000). Accounting Theory (5th edition). McGraw-Hill Education.

IAS 1 Presentation of Financial Statements, http://www.ifrs.org/issued-standards/listof-standards/ias-1-presentation-of-financial-statements/ (accessed: 07.07.2017).

Kondrakov, N. P., & Kondrakov, I. N. (2013). Accounting in charts and tables. Moscow: Prospect.

Kondrakov, N. P. (2013). Accounting: Textbook. Moscow: Scientific Publishing Center IN-FRA-M.

Leibus, I., Petersone, I., & Jesemchik, A. (2016). Financial Accounting. Riga: Business Information Service.

Ludborzhs, A. (2006). Accounting for fixed assets. Riga: Business Information Service.

Needles, B. E., Powers, M., & Crosson, S. V. (2013). Principles of Accounting, (12th edition). Cengage Learning.

Sheremet, A. D. (2009). Analysis and diagnostics of financial and economic activity of the enterprise: Textbook. Moscow: Scientific Publishing Center IN-FRA-M.

The Guidelines on the Preparation of Accountancy Documents, http://www.fm.gov.lv/

lv/sadalas/gramatvedibas_un_revizijas_politika/gramatvedibas_politika/gramatvedibas_organizacijas_dokumentu_rokasgramata_mikrosabiedribam_un_mazam_sabiedribam___/ (accessed: 28.07.2017).

The Law on Accounting, https://likumi.lv/doc.php?id=66460 (accessed: 01.08.2017).

The law On the Annual Financial Statements and Consolidated Financial Statements, https://likumi.lv/ta/id/277779-gada-parskatu-un-konsolideto-gada-parskatu-likums (accessed: 21.07.2017).

The Rules of the Cabinet of Ministers No 585 “Regulation Regarding the Conduct and Organisation of Accounting”, https://likumi.lv/doc.php?id=80418 (accessed: 01.08.2017).








ISSN 2300-1240 (print)
ISSN 2300-3065 (online)

Partnerzy platformy czasopism