Methodological Aspects of Formation of Chart of Accounts

By Zimakova, Liliya Aleksandrovna; Danilina, Elena Ivanovna et al. | Asian Social Science, April 2015 | Go to article overview

Methodological Aspects of Formation of Chart of Accounts


Zimakova, Liliya Aleksandrovna, Danilina, Elena Ivanovna, Tsiguleva, Svetlana Nikolaevna, Dyachenko, Galina Borisovna, Asian Social Science


Abstract

The article raises questions about the methodological aspects of the formation of the chart of accounts, which depend on the singularities of national accounting systems, the users' information needs, and the problems solved by the system. The study identified three types of charts of accounts: the chart of accounts oriented to financial accounting, which is based on the matrix method of building, classification of accounts is based on the principles of the balance sheet and the traditional definition of financial results; the chart of accounts, which assumes detailing the cost accounting and allocating additional classes of accounts to determine the financial results of the production; the chart of accounts of the integrated accounting, allowing the formation of multi-sector information and the data exchange between the accounted subsystems.

Keywords: accounting, financial accounting, cost accounting, integrated accounting, chart of accounts

1. Introduction

The development and expansion of business have resulted in its growth beyond the borders of a single country; there is internationalization at all levels of the global economy through the creation of multinational companies and the active development of international stock markets. Thus, there is a common business space, which can effectively exist only in the presence of common good-working rules. The major component of these rules is the awareness of the business participants.

The main volume of information on the activities of a company is contained in the accounting system, which predetermines the methodology of forming the chart of accounts. Each country has its own rules of accounting and reporting. International Accounting Standards used by many companies regulate the rules of reporting, but not the accounting. Management of the current activity and preparing forecasts of a company's development is based on the accounting information prepared under internal rules. The chart of accounts of a modern company should allow generating information that would satisfy different groups of users. Studying charts of accounts as an integral part of national accounting systems allows determining the orientation of the specified system and the possibility of obtaining detailed information on a particular issue, which promotes the development of an optimal approach to the formation of the chart of accounts of international companies.

2. Methodology

Over a long period, under the influence of different trends of thought and action, bookkeeping accounts appeared and, simultaneously, grouping of these accounts was performed, which lays at the basis of the charts of accounts. A chart of accounts is the determining factor in the accounting system; it meets the goals and objectives of the system, and is closely linked with the forms of ownership, methods of pricing, tax policy of the government, funding methods, and principles of determining the final result of work.

The study examined the charts of accounts approved by the legislation of various countries (Germany, France, Vietnam, the Netherlands, Russia, Ukraine, Uzbekistan, Poland, South Korea), as well as the structured working charts of accounts of 20 foreign and 300 large Russian corporate entities related to various spheres of activity - production, the mining and processing industries, the services sector, agriculture, and others.

They were studied and grouped according to the problems solved based on them:

- Asset management of an enterprise and the sources of these assets formation;

- Preparation of reports;

- Control over the state of calculations;

- Determination of the cost of inventory balances necessary for the detection of the financial result;

- Calculation of the gross profit.

3. Results

The research allowed determining the factors that influenced on the formation of accounting systems. Among the internal factors, the most significant ones were identified, the effect of which was reflected in the development of the national plan of accounts: the dominance of theoretical concepts, the overall level of economic development, the dominant organizational and legal forms of business, the management accounting, the prevailing combination of interests of users of financial statements, particularly the national culture. …

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