Academic journal article European Research Studies

Accounting Engineering Tools in the Research of Economic Costs and Benefits

Academic journal article European Research Studies

Accounting Engineering Tools in the Research of Economic Costs and Benefits

Article excerpt

1. Introduction

The strengthening of economic ties of Russia and the EU depends on a common understanding of key financial and economic indicators, which increases the level of business confidence. The main source of information for objective and accurate determination of indicators, such as costs and profits, is accounting data. However, there are still a number of major scientific and methodological problems complicating qualitative determination and data integration to comply with these criteria, thus being not conducive to the growth of business and investment activities.

The purpose of this paper is critical analysis and research of ways to improve the reliability of the financial information regarding the costs and profits in a variety of accounting systems and ways of their optimization (Angelakis et al., 2015; Averina et al., 2016; Carstina et al., 2015; Thalassinos and Politis, 2012; Thalassinos and Dafnos, 2015; Havlicek et al., 2013; Breckova and Havlicek, 2013; Vovchenko et al., 2017; Suryanto, 2016; Anikina et al., 2016; Theriou and Angelakis, 2014).

To achieve this goal and to solve identified scientific problem, we have firstly conducted behavior terminological analysis of the conceptual apparatus in terms of categories of expenses, costs, accounting and economic profits (Tsamis and Liapis, 2014; Thalassinos and Liapis, 2014; Thalassinos et al., 2012; Liapis et al., 2013; Kalanotnis et al., 2014). Secondly, the article shows features of the understanding of costs and benefits in different scientific concepts and their accounting interpretation. Third, we consider possibilities, prospects and problems of the use of predictive tools to assess financial performance based on IT - technologies and accounting engineering tools aimed at adapting Russian accounting traditions to the international financial reporting standards system (Nechaev and Antipina, 2016).

2. Theoretical, Informational, Empirical, and Methodological Grounds

Considering the microeconomic aspects of business processes optimization, we handle the costs concepts. In this case, the information base for their calculation is usually the accounting data. There is still no clear understanding of such categories as costs, expenses and expenditures. Most economists of accounting profile draw an express line between these concepts, although there are such economists as professor Sokolov (2007), who consider them closely, related concepts. These differences are provided by the English-American, German and French schools of accounting that can be clearly seen from the following table.

The table shows that only Italian accounting school uses an identical interpretation of expenses, even though this concept is the most diverse for all the above-mentioned countries, since even in German, they recently began to use such a term as Aufwendung (expenses, expenditures) to describe expenses.

There are certain common places between the expenses and expenditures, which are primarily related to asset retirement or creation of business obligations, although there are different underlying causes. Expenses appear when a business unit obtains goods, assets and material resources, as well as upon payment for labor, formation of social obligations, etc. This predetermines the necessity of payments, the emergence property relations, reducing of accounts receivable and increase in business obligations of the enterprise. However, expenses are characterized by the fact that benefits in the form of decrease in assets of the enterprise or growth of its obligations are not reduced on them. In fact, elimination of an asset class or a business obligation increase only leads to structural changes allowing to increase other assets at the same rates.

However, managers and executives often need information about the costs value for obtaining any product, work or service. In this case, according to R. Anthony, the costs are a certain monetary determination of the amount of resources used for some purpose. …

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