The contents
- Introduction
- 1. Theme urgency
- 2. The purpose and objectives of the study, the planned results
- 3. Review of research and development
- The essence and content of working capital in the sphere of production, as an object of accounting
- References
Introduction
Circulating assets in the production sector, as part of the working capital of the enterprise, are the material basis of the production process and in the course of entrepreneurial activities in different ways and to varying degrees transfer their value to the value of the produced product. They represent the minimum production reserves necessary for the production program, work in progress, production marriages, semi-finished products of own production, low-value and wearing items, as well as future expenses.
Relevance of the topic1. In modern conditions of management, the role of working capital in the sphere of production is increasing, since it is precisely in this property component that the basis for the financial stability of enterprises lies. The process of managing circulating assets in the sphere of production at industrial enterprises, beginning with the theoretical justification of the concept itself and ending with control, contains a number of significant and at the same time unsettled issues. Rational use of current assets is one of the priority activities of the enterprise at present. Ultimately, improving the mechanism of managing the company's current assets in the production sector is one of the main factors for increasing the economic efficiency of production at the present stage of development of the domestic economy.
2. The purpose and objectives of the study, the planned results
In accordance with this goal, the following tasks are accomplished:
- consider the theoretical basis for the accounting of working capital in the sphere of production;
- to get acquainted with the organization of accounting of circulating assets in the sphere of production. In part: the structure of the object of accounting, primary accounting, synthetic accounting, analytical accounting of working capital in the production sector;
- to study the practice of drawing up financial statements in a coal mining enterprise;
- analyze the organization of accounting and audit of working capital in the production sector, provide recommendations for improving the accounting of working capital in the production sector.
Research object: Organization of accounting and audit of current assets in the sphere of production in conditions of the "Zasyadko mine"
Research subject: accounting and audit of working capital in the sphere of production.
3. Review of research and development
The concept of "circulating assets" is widely used in modern economic literature and research of this category is devoted to enough scientific works of both domestic and foreign economist scholars.
Different authors interpret the term in different ways. For example, V.Gruzinov, V.Gribov define current assets as factors that are used for the production of economic goods [1, p. 26].
A. Ilyin, V. Volkov define this term as a factor of production involved in economic circulation "[2, p.646].
Let's note, that among scientists-economists there are various points of view concerning interpretation of the concept of circulating assets in the sphere of production and their components.
Thus, according to V.Gruzinov and V.Gribov, the working capital, tools (machinery, equipment, etc.), work items (raw materials, materials, etc.), finished products stocks of goods) and natural production conditions (land, minerals, etc.) [1, p. 20].
M. Bakanov, A. Sheremet adhere to a certain classification of circulating assets in the sphere of production in kind according to their purpose in the production process, which are called elements or factors of production: means of labor, objects of labor and labor itself [10, p. 227].
V.A. Gavrilenko considers production revolving funds as part of the physical capital of the enterprise [8].
Thus, based on the conducted studies, it can be concluded that in modern economic literature there is no single view on the content of working capital in the sphere of production and their composition. It should be noted that there is no single methodological approach to their evaluation.
According to the National Accounting Standard 1 "General Requirements for Financial Reporting," current assets are "money and their equivalents that are not restricted in use, and other assets intended for sale or consumption during the operational cycle or for a period of twelve months from the balance sheet date "[20]. This definition, in our opinion, does not disclose the nature of current assets and only indicates external manifestations of their functioning.
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Current assets in the production sphere are represented by the following categories: production stocks, production in process and future expenses. The methodological basis for the formation in the accounting of information on working capital in the production sphere is determined by the Regulations (standards) of accounting 9 "Stocks" [22]. In P (C) BU 9 the following definitions are given:
Stocks - assets that are held for further sale on the condition of normal economic activity; are in the process of production with a view to further selling the product of production; are kept for consumption during the production of products, performance of work and provision of services, as well as management of the enterprise.
Summarizing, we can conclude that working capital is the resources invested in facilities, the use of which is carried out by the enterprise either within a single production cycle, or within a relatively short calendar period, usually less than one year.
4. The essence and content of working capital in the sphere of production, as an object of accounting
Continuity of the process of production and commercial activity requires constant investment of funds in these elements for the implementation of their expanded reproduction. Unlike the basic production assets, circulating funds are consumed in one production cycle and their value is completely transferred to the cost of manufactured products.
Figure 1 - Structure of current assets
The structure of the accounting object in relation to current assets in the production sphere is represented by the following areas:
1. Production reserves - objects of labor, which are not yet involved in the production process and are stored in the warehouse of the enterprise in the form of stocks. (Includes raw materials, basic and auxiliary materials, components, purchased semi-finished products, fuel, spare parts, containers and other tangible assets intended for the production of products, works, services, production and administrative needs .The production reserves represent the largest part of circulating assets production enterprise.
2. Incomplete production - products that have not yet passed through all processing stages. They are located directly at workplaces in production workshops 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 shops, are called self-made semi-finished products.
3. Expenses of the future periods - expenses for preparation and development of new production which take place in the given period, but will be extinguished in the future).
In connection with the specific nature of the functioning of the coal mining enterprise, the structure of the inventory object for circulating assets in the production sector is represented by inventories in production and expenditures of future periods.
Conclusion
The formation and use of working capital requires careful analysis, which was carried out during the writing of the thesis.
Theoretical aspects of the accounting of working capital in the production sphere were studied, special attention was paid to the economic essence, content.
The organization of accounting of current assets in the sphere of production was studied in detail. The structure of accounting at the enterprise is described with regard to current assets in the sphere of production. To develop recommendations for improving accounting and auditing was thoroughly studied: the primary, analytical and synthetic accounting of working capital. Particular attention was paid to the sectoral specifics of accounting for working capital in the sphere of production for a coal mining enterprise. The base for scientific research was the materials of the really functioning enterprise of the SE "Mine. A.F. Zasyadko ", within the framework of which the main scientific recommendations proposed in the work were tested.
Note
When writing this essay, the master's work is not yet complete. Final completion: May 2018. The full text of the work and materials on the topic can be obtained from the author or his supervisor after the specified date.
References
- . GruzinovV. P.Economics of the enterprise: studies. allowance / VP Gruzinov, VD Gribov. - 2 nd ed. - M.: Finance and Statistics, 2000. - 208 p.
- Business Economics: Textbook. allowance / VP Volkov, AI Il'in, VI Stankevich and others; under the Society. Ed. AI Il'ina, VP Volkov. - M.: New knowledge, 2003. - 677 p.
- Gavrilenko, V.A. Economic analysis of industrial enterprises: monograph / V.A. Gavrilenko.-Donetsk: DonNTU, 2009.-383s. [Electronic resource] Access mode: http://ea.donntu.ru/handle/123456789/25203 (circulation date 15.05.17)
- Bakanov, MI. The Theory of Economic Analysis: A Textbook / MI Bakanov, AD Sheremet. - 4 th ed. - M.: Finance and Statistics, 2002. - 416 p.
- NP (C) BU 1 "General requirements for financial reporting" [Electronic resource] Access mode: http://zakon2.rada.gov.ua/laws/show/z0027-00 (circulation date 15.05.17)
- Ï (Ñ) ÁÓ 9 "Stocks", approved by the order of the Ministry of Finance of Ukraine ¹ 246 from 20.10.99 [Electronic resource]: Access mode: http://zakon2.rada.gov.ua/laws/show/z0751 -99 (circulation date 15.05.17)