Abstract - Accounting and audit of financial investments

The contents

Introduction
1. Theme urgency
2. The purpose and objectives of the study, the planned results
3. Review of research and development
4. The essence and content of financial investments, as an object of accounting conclusions
List of sources

Introduction

Investment activity of enterprises is one of the most complex and risky activities, and its results have a significant impact on the effectiveness of entrepreneurship in general. To the essential factors restraining its development, among many reasons, it is necessary to attribute incomplete and biased disclosure of information on investment processes in accounting and financial reporting, which does not allow to attract both external and internal investment resources in sufficient volume.

Relevance

To date, financial investments remain an insufficiently investigated phenomenon in the activities of business entities, and issues of their accounting have received little attention in scientific and professional literature. The foregoing necessitated the search for new economic instruments in the management of the company's investment activities, since the functioning of the existing does not provide complete, reliable and objective information on the impact of investment processes on the overall performance of the enterprise. In addition, in the context of significant institutional changes, the complexity of economic activity, one of the aspects of improving the management efficiency of economic entities is the improvement of accounting as an important component of the integral information system of the business entity. This is actualized by the study of accounting and audit of financial investments in the enterprise.

2. The purpose and objectives of the study, the planned results

The purpose of the thesis is to develop recommendations for improving the accounting and audit of financial investments in the company's conditions on the basis of an analysis of the shortcomings of the existing accounting system, based on the materials of the enterprise, as well as the development of measures to increase the profitability of the enterprise.

In accordance with this goal, the following tasks are accomplished:

consider the theoretical aspects of accounting for financial investments, as an accounting object, to identify the classification characteristics that are the basis for the organization of accounting;
familiarize with the organization of financial investment accounting, in part: the organization of primary, synthetic, analytical accounting;
consider the construction of an accounting process for financial investments;
highlight the problems that exist in the organization of financial investment accounting;
analyze the organization of accounting and audit of financial investments of the enterprise, provide recommendations for improving their accounting.

Research object: Organization of accounting and audit of financial investments in the conditions of LLC KORTES

Research subject: accounting and audit of financial investments.

3. Review of research and development

The problems of organizing financial investment accounting, both in scientific and practical aspects, are devoted to the research of many well-known domestic and foreign scientists and practitioners, at the same time, theoretical and methodological questions on the organization of recording financial investments have not yet been fully explored.

Investigating the issues of accounting and analysis of financial investments, we took into account the rich previous experience of organization of accounting and analytical work, theoretical as well as practical developments in this field of such domestic scientists as Azrilyan AN. , Borisov A.B. F.F. Butinets, V.A. Gavrilenko, A.G. Zagorodni, M.V. Kuzhelny, L.A. Leonova, V.V.Sopko, N.G.Chumachenko, as well as foreign researchers such as H.Anderson, J.Blake, V.Bocharov, V.V. Kachalin, V.V. Kovalov, D. Caldwell, VF Paliy, Ya.V. Sokolov, E.S. Hendricksen, ADSheremet and others. However, modern conditions pose new challenges, require an integrated approach to solving problems associated with changing investment policy in the state, reforming the national accounting and reporting system. The essence of financial investments lies in their economic nature.

Analyzing the above information, we can see that the first group of authors [1, 2, 6, 8], is of the opinion that investments in stocks, bonds and other securities should be considered financial investments. The second group of authors [7,9], asserts that financial investments are expenses of the organization for purchase of securities, investments in the authorized capital of joint-stock companies, limited liability companies, acquisition of government bonds, certificates. The third group of authors [3, 4] gives the following definition of financial investments: assets held by the enterprise for the purpose of increasing profits (interest, dividends, etc.), growth of the cost of capital or other benefits for the investor. This definition is consistent with the definition of financial investment that is provided for in national regulations (standards).

Accounting for financial investments in enterprises and providing users with information on them in the financial statements must comply with the requirements of the Accounting Regulation 12 "Financial Investments" [12]. In accordance with the current legislation, an investment is an economic transaction that involves the acquisition of fixed assets, intangible assets, corporate rights and securities in exchange for cash or property.

The organization of accounting for financial investments is considered rational when it involves a systematic approach that takes into account the interaction of different accounting methods and obeys the general logic of operational and strategic management of the enterprise The main objective of the organization of accounting for financial investments at enterprises is to ensure an objective assessment, full reflection and timely registration in the accounting registers of operations related to financial investments. The organization of accounting summarizes the information on such transactions in the reporting in order to ensure the information needs of the interested parties, and also provides an opportunity for analysis and audit to increase the effectiveness of investment activities.

a name=p3>

4. The essence and content of financial investment as an object of accounting

Since the rapid economic changes in the state require special attention to the accounting of financial investments, it is expedient to consider the organization of their accounting.

The tasks of accounting for financial investments are:

1. when purchasing financial investments, it is appropriate to classify them for further accounting;

2. It is legally correct to formulate initial accounting documents for investments, in a timely manner and in accordance with accounting policies, to re-evaluate at fair value;

3. not lose control of investments, which are accounted for using the equity method;

4. To timely and reliably report on transactions in the acquisition, revaluation and repayment of financial investments.

Financial investments include the acquisition of corporate rights, securities and other financial instruments.

The main forms of financial investment are investments in long-term and short-term financial instruments (stocks, bonds, savings certificates), investments in long-term and short-term financial instruments (deposit deposits in banks), investments in statutory funds of joint ventures.

Conclusion

As a result of the research, problematic issues related to accounting for financial investments were summarized, analyzed, solved and improved. It is determined that a financial investment is an economic transaction that involves the acquisition of corporate rights, securities, derivatives and other financial instruments. Classification of financial instruments is carried out on the basis of accounting for various classification characteristics. For the needs of accounting, the most appropriate classification of financial investment in long-term and current. It is proved that the national accounting standard 12 "Financial Investments" contains insufficiently clear requirements for accounting for financial investments. The main tasks of accounting for financial investments are formulated. This information is necessary for full coverage in the accounting and reporting of investment processes in the enterprise, obtaining reliable information on investment income and expenses, a clear delineation of the results of each type of enterprise activity.

Daria Talko

Faculty of Engineering and Economics

Department of Accounting and Auditing

Speciality Accounting and audit

Accounting and audit of financial investments