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Abstract

Содержание

Introduction

Current assets ensure the uninterrupted circulation of the company's funds. The structure of working capital has significant fluctuations in individual industries. It depends on the composition of production costs, the type of production (single, batch, mass), the duration of the production cycle, the frequency and regularity of the supply of material assets, the conditions for the sale of products.

The effective use of working capital depends on the correct determination of the need for working capital. The underestimation of the value of working capital entails the instability of the financial situation, interruptions in production process and reduced production and profits. Overestimation of the amount of working capital reduces the ability of the enterprise to make capital expenditures to expand production. Thus, the efficiency of the enterprise and its financial stability depend on the use of current assets.

1. Theme urgency

One of the most important factors in the smooth functioning of a mining enterprise, as well as to provide non-distorted financial statements, an effective accounting system is working capital in the field of production: inventory, low-value and wearing items, work in progress and prepaid expenses.

Despite the large number of legislative and international regulatory acts on the accounting of working capital in the production sector, as well as the methodological foundations for the formation in accounting of information on such means and its disclosure in financial statements enterprises, there are a number of disadvantages that attract the attention of many scientists who propose methods improvement of the display of accounting information on working capital in the field of production.

2. Goal and tasks of the research

The purpose of the study is to identify shortcomings and contradictions in the accounting of current assets in the field mining industry and the development of specific recommendations for its improvement.

Main tasks of the research:

  1. To reveal the theoretical foundations of accounting for working capital in the field of production, namely, their essence and content, classification, state of the problem and legal regulation.
  2. Formulate the tasks of improving the accounting of working capital in the field of production.
  3. Disclose the organization of accounting for working capital, namely, their structure, primary, analytical and synthetic accounting, as well as the practice of preparing financial statements.
  4. Conduct an analysis of the practice of accounting for working capital in the field of production in a mine and develop recommendations for its improvement.
  5. To reveal the issues of audit of working capital in the field of production.

Research object: the process of accounting for working capital in the field of production in the mining industry.

Research subject: a set of theoretical, methodological and practical aspects of accounting current assets in production.

The practical significance of the work lies in the fact that the research results can be used in the reform of enterprise accounting in the DPR. The theoretical relevance lies in the development of recommendations to improve contradictions, eliminate shortcomings in the accounting of working capital in the field of production and ways to implement them in the mining industry.

3. The economic essence and structure of working capital in the field of production

Working capital, in contrast to fixed assets, is consumed in one production cycle and their cost the full amount is transferred to the cost of the product produced. Moreover, one of their constituent parts in real form is included in manufactured products and takes the form in which they will be consumed. Another – completely consumed in the process production, but, losing its use value, in material form in the product of labor is not included.

The composition of working capital in the field of production as an accounting object is presented as follows:

1. Manufacturing stock – objects of labor that have not yet been sent to production and are in the warehouses of the enterprise in the form stocks. Such stocks contain raw materials and supplies, components, purchased semi-finished products, fuels and lubricants, spare parts, containers and other material values necessary for the production of products (works, services), maintenance of production and management needs. They assume the largest part of the working capital.

Basic materials and raw materials are included in the manufactured product. Auxiliary materials can materially be part of manufactured products, but unlike basic materials, they give the manufactured product certain properties and at the same time with the main materials make changes to it. For example, timber fasteners, metal support, mining rails, ventilation pipes, etc.

The accounting of production stocks is regulated by P (S) BU 9 Stocks, according to which stocks – these are assets contained for further sale (distribution, transfer) in the ordinary course of business; are in production with the purpose of further selling the product of production; are contained for consumption in the production of goods (works, services), as well as enterprise management [ 8 ].

In P (S) BU 9 Inventories issues of inventory assessment at the time of receipt (acquisition), disposal and the balance sheet date are disclosed.

Assessment at the time of receipt (purchase). The acquired (received) or produced stocks are credited to the balance of the enterprise at the original cost. The cost of inventories purchased for a fee is the cost of inventories, which consists of of the following actual costs: amounts paid according to the contract to the supplier (seller) net of indirect taxes; sums import duties; indirect taxes associated with the acquisition of inventory that are not reimbursed to the entity; transportation and procurement costs [ 8 ].

If at the time of capitalization of stocks it is impossible to reliably determine their initial value, such stocks may measured and recorded at fair value with subsequent adjustments to cost. Initial cost inventories produced in-house by the enterprise, their production cost is recognized, which is determined by P (S) BU 16 Expenses. The initial cost of inventories contributed to the authorized capital of the enterprise is recognized as agreed by the founders (participants) of the enterprise their fair value, taking into account the costs provided for in clause 9 of the Regulation (standard). The initial the cost of inventories received by the enterprise free of charge, is recognized as their fair value including expenses [ 8 ].

Estimating inventory retirement. When stocks are released into production, sold or otherwise disposed of, their assessment is carried out according to one of the following methods: the identified cost of the corresponding inventory unit; weighted average cost; cost the first by the time of receipt of stocks (FIFO); regulatory costs; selling prices.

The cost of the IBE transferred into operation is excluded from the composition of assets (written off from the balance sheet) with further organization operational quantitative accounting of such items by location of use and relevant persons during the period of their actual use [ 8 ].

Valuation of stocks at the balance sheet date. Production inventories are reflected in accounting and reporting at the lower of the two estimates: initial cost or net realizable value. Inventories are recorded at net realizable value when at the date balance, their price has decreased, or they have been damaged or otherwise lost the originally expected economic benefit. Net worth sales are determined for each inventory unit by deducting the expected selling price of the expected cost of completing production and sales. The amount by which the PS of inventories exceeds the net realizable value and the value of the fully lost inventories is written off to expenses of the reporting period. The amounts of shortages and losses from damage to values ??before deciding on specific culprits are reflected in off-balance sheet accounts. After identifying the persons who must compensate for the loss, the amount to be reimbursed is credited to accounts receivable (or other assets) and income of the reporting period. If the net realizable value of inventory previously discounted and which are assets at the balance sheet date, further increases, then by the amount of increase in net realizable value, but not more the amount of the previous decrease, another operating income is recognized with an increase in the value of inventories [ 8 ].

2. Work in progress (WIP) – products that have not yet passed all stages of processing; is directly at workplaces in production halls or in the process of transportation from one production unit to another. Products, the processing of which is completely finished in this production unit, but they still require further processing in other production workshops are called self-made semi-finished products. WIP accounting is regulated in accordance with RAS 9 Inventories [ 8 ], 16 Expenses [ 9 ] that consider the issues of assessment and inventory of WIP, methods of its assessment.

With regard to WIP in BU P (S) 9 Inventories [ 8 ] it was established that WIP is reflected in the accounting and financial statements at the smallest of two estimates: cost or net realizable value in case of loss of WIP of the initial expected economic benefit. Inventories in the form of WIP refer to inventories produced in-house by the enterprise. In this regard, their initial cost their production cost is recognized, which is determined according to the requirements of P (C) BU 16 Expenses [ 9 ].

Clause 11 of P (C) BU 16 defines the composition of expenses that form the cost of goods sold and production cost products (works and services), which can be used to assess the WIP. The list of expenses to be classified as direct and general production costs that form the production cost of products (works, services) are given in clause 12, clause 13 P (C) BU 16 [ 9 ]. The list and composition of articles for calculating the production cost of products (works, services) is established by the enterprise yourself. In this case, the enterprise can use the Methodological Recommendations for the formation of the cost of products (works, services).

In addition, clause 21 P (S) BU 9 [ 8 ] provides for the assessment of reserves in terms of WIP at standard costs. Estimated by standard costs consists in using the norms of costs per unit of production (work, services), which are established by the enterprise, taking into account normal levels use of stocks, labor, production capacity and current prices. To ensure maximum approximation of regulatory cost to actual cost rates and prices should be regularly reviewed and revised in the regulatory framework.

Thus, WIP balances can be estimated either at the actual production cost, or at the current regulatory (planned) cost. WIP assessment is carried out at the end of the month by a specially created commission in the context of WIP types and calculation items.

Methods for assessing work in progress. At enterprises with a continuous technological process, WIP is assessed according to the cost of raw materials and materials loaded into the apparatus. The amount of raw materials, materials and semi-finished products is determined by conducting measurements and laboratory analyzes and is indicated in terms of the content of useful substances in them. In workshops with a short cycle technological process, WIP is evaluated only at the cost of raw materials, materials and semi-finished products located in processing. In some industries where work-in-progress is relatively stable and small, it is allowed to leave as part of work in progress only the main direct costs. WIP can also be valued at the balance sheet date at net realizable value.

3. Deferred expenses – the costs of preparing and mastering new products that occur in this period, but will repaid in the future. Accounting for such expenses is determined in accordance with P (C) BU 16 Expenses [ 9 ].

The definition of the BPO is given in clause 2.36 of the Instructions on the application of the Chart of Accounts for accounting for assets, capital, liabilities and business operations of enterprises and organizations and Methodological recommendations for filling out financial reporting forms & ndash; these are expenses current or previous reporting periods related to the next reporting periods. Deferred expenses are included in current assets. The BPO is written off in accordance with the procedure established by the enterprise when they are accepted for accounting during the period to whom they refer. The period during which BPOs are transferred to the corresponding costs is determined when they are taken into account.

Coal mining enterprises have a fairly high level of material consumption of production, in which circulating production funds account for almost 70% of the total cost of coal. In this case, all materials at the mine are auxiliary. For future expenses periods, along with the classic, include the cost of mining and preparatory work [ 1 ].

A significant circumstance of the correct organization of the accounting of working capital in the sphere of production is their correct grouping (systematization) at the enterprise according to their purpose and importance in the production process. Particular attention should be paid to them division into standardized and non-standardized production working capital.

Working capital in the field of production in a mine is represented by production inventories for the performance of work of the main and auxiliary production (general production costs) and for the execution of other types of production, work in progress production and deferred expenses.

The structure of inventories for performing work of the main production in a mine includes:

  1. Determination of the standard of production stocks: based on the standard or limit-fence cards.
  2. Purchase of inventory.
  3. Accounting for the movement of inventories in the warehouse.
  4. Determination of the actual value of inventories on average for the month and at the end of the month.
  5. Determination of standard losses for inventory and reflection in accounting.
  6. Reuse of material assets and their reflection in production inventories.
  7. Gratuitous receipt of production stocks.
  8. Accounting for production stocks identified during the inventory (surplus).
  9. Disposal of inventories: sales, gratuitous transfer, shortage (damage) in the presence of guilty persons, shortage past reporting periods in the presence of perpetrators, lack of valuables received from suppliers, loss of inventory due to natural disasters.

The structure of inventories for performing auxiliary production work (overhead costs) includes in itself stocks, the amount of which cannot be determined using standards for a certain period and thereby implement them purchase. Such stocks are purchased and distributed to sites as needed.

The structure of inventories for the execution of other types of production includes inventories that are purchased and distributed based on requirements from the heads of structural divisions.

WIP at mines is not taken into account, and raw coal transferred to the central processing plant for the purpose of obtaining concentrate is taken into account as a semi-finished product of our own production.

The structure of deferred expenses includes:

  1. Expenses for preparation and development of production: additional exploration of deposits, cleaning of the territory in the area of ??open mining, sites for storing fertile a layer of soil used in the subsequent reclamation of land, the construction of temporary underground routes and roads for the export of mined coal, etc.
  2. Accounting for durable materials, the costs of which are attributed to the extraction and processing of coal through deferred expenses: accounting for metal arch support; accounting of pans, conveyors, complexes and chains spent on replacing worn out; cable accounting flexible when equipping longwalls and replacing worn out ones, as well as when carrying out preparatory workings at the expense of the cost of coal mining; accounting for water and air supply, ventilation and rubberized pipes, used for equipment in mine workings carried out at the expense of the cost of coal mining, except for trunk lines; rail of mine and turnout switches along mines and sections, etc.
  3. Accounting for future prepayments for newspapers, magazines and other periodicals and reference publications.
  4. Accounting for future expenses for the advance payment of rental payments.
  5. Accounting for future license and trade patent costs up to 1 year.

The structure of inventories in a coal mining enterprise is shown in Fig. 1.

The structure of working capital in the field of production in a coal mining enterprise

Figure 1 – The structure of working capital in the field of production in a coal mining enterprise
(animation: 13 frames with repetitions, 288 kilobytes)

Conclusion

Within the framework of this work, the economic essence of the circulating assets of a coal enterprise was investigated, their structure was considered.

Thus, current assets provide an uninterrupted circulation of funds of the enterprise. The structure of working capital has significant fluctuations in individual industries. It depends on the composition of production costs, the type of production (single, serial, mass), the duration of the production cycle, the frequency and regularity of the supply of material assets, the conditions for the sale of products.

Effective use of working capital depends on the correct determination of the need for working capital. Understatement the amount of working capital entails the instability of the financial situation, interruptions in the production process and a decrease production volumes and profits. Overestimation of the amount of working capital reduces the ability of the enterprise to make capital costs to expand production. Thus, the efficiency of the enterprise depends on the use of current assets and it's financial strength.

The novelty of the work lies in the development of recommendations for improving the contradictions, eliminating the shortcomings of accounting for circulating means in the field of production and ways of selling them at the enterprise.

This master's work is not completed yet. Final completion: May 2020. The full text of the work and materials on the topic can be obtained from the author or his head after this date.

References

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