Academic journal article Review of European Studies

Accounting Risks in the Subjects of Business Systems

Academic journal article Review of European Studies

Accounting Risks in the Subjects of Business Systems

Article excerpt


The study of economic activity of subjects of business systems shows that the emergence of risk is a consequence of uncertainty, which is characteristic manifests itself in the formation of the accounting (financial) statements. Today, due to the financial crisis, the relevance of financial statements is constantly increasing. Accounting is the main data base, which accurately reflect the financial condition of the subject and allows you to make effective economic decisions. All of the economic risks it is necessary to identify assess and take into accounting because the lack of information may become a viable source of losses and will distort the reporting of data on financial results. Today the Russian economies have different risks, but their accounting is missing. This leads to a direct distortion of accounting data and subsequently can lead to bankruptcy. Not currently developed methods for the assessment of the accounting risk through the mechanism of redundancy. It is necessary to reconsider the practice of ignoring actual accounting risks in accounting. In this regard, there is a need to study accounting risks, classification, valuation, accounting as its objects. The urgency of the problems and determined the research topic. In the article the author's technique of creating information accounting software accounting risks commercial organizations, as well as the developed form of working documents to reflect the obtained results with the purpose of organization of analytical and synthetic accounting. The study aims to develop a methodology for the inclusion in the financial statements of commercial entities probable losses that are associated with the effects of accounting risks, as well as to create account registers, which will improve the reliability of data on financial reserves, information, and control over its use. Overall results of the study are upgrading internal system of accounting organization risks.

Keywords: risks, uncertainties, accounting risks, reserves, professional judgment, internal control, loss

1. Introduction

On the basis of available sources of information to the head of the entity is necessary to make management decisions. An entity may have information as in large quantities, and is in its complete absence (Borodovsky, 2000). Thus, there are informational risks uncertainties. One of the sources of internal information is the accounting (financial) statements. It is in the process of formation of the accounting (financial) statements the most typical uncertainty of the economic environment. The consequences of this uncertainty are accounting risks. Analyzing the risks inherent in the Russian economy, it is possible to separate the two groups. The first group is standard risks (net). They are inherent to the economic entities in all economic activities. The second group will include dynamic risks (investment, commercial and other). Both groups of risks directly or indirectly affect accounting information.

For example, financial risks. All information about the financial position, financial results of the company contained in the financial statements. If inflation is insignificant, in this case, there is a strong influence on reporting. Due to the sharp appreciation of the dollar, inflation has a negative impact on all aspects of the activity and, accordingly, the financial statements become biased. Using this information, the analysis results and corresponding conclusions will be unreal. There is a situation in which the accounting statements do not provide an objective assessment of the real value of the assets and liabilities of the entity and requires appropriate adjustments for inflation. The cost of the asset and liabilities denominated in foreign currency shall be recalculated in rubles at the rate set by the Central Bank of the Russian Federation. The time lag between the business operations and the dynamics of exchange rates indicates the presence of uncertainty and risk of inaccurate information (Berezina, 2010). …

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