Classification of Reserves for Business Accounting Purposes

  • І. GRINENKO National Academy of Statistics, Accounting and Audit
Keywords: reserves, classification of reserves, classification criterion, accounting, business enterprise.

Abstract

Due to accumulation of reserves and their appropriate accounting and recording, business enterprises are allowed to increase assets, quickly respond on the occurrence of unpredicted costs and liabilities, and comply with the principle of business continuity. The classification of reserves as objects of accounting is the key to the sound recording and enclosure of information about them in the financial statements of a business enterprise. The research objective is to analyze and sum up classification criteria and types of reserves, and to develop recommendations on improvements in the classification of reserves for business accounting purposes.             

Approaches of Ukrainian authors to the classification of business reserves as an object of accounting are investigated. It is revealed that the researchers propose a wide range of the classification criteria. The most widespread classification criteria are compulsory accumulation, accumulation sources, and accumulation purpose. But the proposed criteria are diverse to the extent that the system approach to the recognition, valuation and recording of reserves cannot be applicable. The author’s approach to the classification of reserves by various criteria is proposed as a way to resolve the problems of constructing an accounting system for reserves as accounting objects and provide an appropriate information support for business enterprises. The types of reserves and classification criteria proposed by the author on the basis of the research can give multifaceted characteristics of the studied object, and can be used as a framework for accounting and recording of transactions related with accumulation and utilization of reserves.

Downloads

Download data is not yet available.

References

1. Astakhova M. M. (2008). Problemni aspekty terminolohii ta klasyfikatsii rezerviv pidpryiemstva [Problems of terminology and classification of business reserves]. Visnyk Natsionalnoho universytetu “Lvivska politekhnika” – Bulletin of National University “Lvivska Politekhnika”, 611, 111–117 [in Ukrainian].
2. Veryha Yu. A. (2004). Rezervy pidpryiemstv Ukrainy: vydy, metody stvorennia i podannia informatsii u finansovii zvitnosti [Reserves of Ukrainian enterprises: types, methods of formation and presentation of information in financial statements]. Naukovyi visnyk Poltavskoho universytetu spozhyvchoi kooperatsii Ukrainy: Ekonomichni nauky – Scientific Bulletin of Poltava University of Consumer Cooperation of Ukraine: Economics, 1(11), 116–119 [in Ukrainian].
3. Veryha Yu. A., and Oryshchenko M. M. (2011). Rezervuvannia kapitalu: oblik, audyt ta zvitnist [Reserving of capital: accounting, audit, and reporting]. Poltava University of Economics and Trade [in Ukrainian].
4. Veryha Yu. A., and Oryshchenko M. M. (2010). roblemni aspekty klasyfikatsii rezerviv pidpryiemstva [Problems of classification of business reserves]. Proceedings from: Mizhnarodna naukovo-praktychna konferentsiia “Rol i mistse bukhhalterskoho obliku, kontroliu y analizu v rozvytku ekonomichnoi nauky i praktyky” [International scientific and practical conference “The contribution of accounting, control and analysis in the development of economic science and practice]. (pp. 331–334). Kyiv National Economic University [in Ukrainian].
5. Kozlova M. O. (2006). Oblik i kontrol protsesu rezervuvannia (na prykladi diialnosti velykykh promyslovykh pidpryiemstv Ukrainy) [Accounting and control of reservation processes (by case of operation of large industrial enterprises in Ukraine]. Abstract of PhD thesis. State Academy of Statistics, Accounting and Audit of the State Statistics Committee of Ukraine [in Ukrainian].
6. Krupka Ya. D. (2020). Rezervna skladova kapitalu pidpryiemstva ta yii oblikovo-informatsiine zabezpechennia [Reserve component of the enterprise capital and its accounting and information support]. Halytskyi ekonomichnyi visnyk – Galician Economic Journal, 5(66), 49–58 [in Ukrainian].
7. Paliy V. F., and Paliy V. V. (2001). Finansovyiy uchet [Financial accounting]. 2nd ed., rev. and suppl. Moscow: ID FBK-PRESS [in Russian].
8. Parkhomchuk O. O. (2015). Rezervy ta yikh znachennia dlia orhanizatsii obliku: sutnist poniattia [Reserves and their significance for accounting organization: essence and concepts]. Mizhnarodnyi zbirnyk naukovykh prats – International Bulletin of Scientific Works, 3(18), 274–283 [in Ukrainian].
9. Resler M. V., and Hrebeniuk M. A. (2016). Klasyfikatsiia hroshovykh koshtiv, yii vykorystannia dlia potreb obliku [The classification of funds, and its use for the needs of accounting]. Naukovyi visnyk Mukachivskoho derzhavnoho universytetu – Scientific Bulletin of Mukachevo State University, 21(16), 257–260 [in Ukrainian].
10. Fatenok-Tkachuk A. O., and Danylko A. R. (2018). Metodyka vyiavlennia ta analizu isnuiuchykh rezerviv pidpryiemstva u protsesi oblikovo-analitychnoho zabezpechennia rozvytku pidpryiemstva [Method for detection and analysis of existing reserves of the enterprise in accounting and analytical processing of development of enterprise]. Ekonomika i suspilstvo – Economic and Society, 18, 1026–1033 [in Ukrainian].

Abstract views: 1
PDF Downloads: 2
Published
2021-11-03
How to Cite
GRINENKOІ. (2021). Classification of Reserves for Business Accounting Purposes. Scientific Bulletin of the National Academy of Statistics, Accounting and Audit, (4), 29-37. Retrieved from https://nasoa-journal.com.ua/index.php/journal/article/view/224