Abstract on the topic of the final work
Content
- Introduction
- 1. Relevance of the topic
- 2. Purpose and objectives of the study, planned results
- 3. Review of research and development
- 4. The structure of the object of accounting for capital investments
- 5. State of the problem of capital investment
- Conclusions
Introduction
Today the state of modern production and entrepreneurship as a whole largely depends on the investment state of the organization. The main goal
of each enterprise is not only to maximize the income received, but also to provide consumers with quality products at affordable prices with
minimal costs for themselves. Therefore, an important role in the process of their functioning is played by capital investments, which are a kind
of engine
of production. In turn, effective investment management requires timely and complete information, the reliability of which is confirmed
by primary accounting, which today is difficult due to methodological shortcomings in documenting this link of accounting. Underestimation of its
importance and relevance has led to insufficient elaboration of certain standard forms of primary accounting of capital investments, which, in many
cases, are considered only as derivatives of documents on accounting for fixed assets.
1. Relevance of the topic
The relevance of the topic of capital investments is determined by the need to improve the accounting of capital investments and the sources of their financing, fill them with new content, adequate to new economic realities and corresponding to international financial reporting standards.
2. Purpose and objectives of the study, planned results
The purpose of the work is to identify contradictions and shortcomings in the accounting of capital investments and to develop recommendations
to resolve the contradictions on the example of OP Mine im. A. A. Skochinsky
.
To achieve this goal, the following tasks were solved in the work:
- To reveal the theoretical foundations of accounting for capital investments, namely: the essence and content of capital investments as an object of accounting, classification of capital investments, the state of the problem and legal regulation of capital investments, the tasks of improving the accounting of capital investments and the formation of accounting policies;
- Consider the organization of accounting and audit of capital investments in the conditions of the OP
Mine im. AA Skochinsky
, namely: the structure of the accounting object in relation to capital investments, primary, analytical and synthetic accounting of capital investments, the practice of drawing up financial statements at the enterprise, analysis of the practice of accounting for capital investments and the development of recommendations for its improvement; - Consider labor protection issues, namely: labor protection, life safety issues, civil defense issues.
Object of research: the process of accounting for capital investments in the conditions of OP Mine im. A. A. Skochinsky
.
Subject of research: methodology and organization of accounting for capital investments at an enterprise.
3. Review of research and development
The study of issues related to capital investment was carried out by such scientists as Zimin A.I. [1], Neshitoi A.S. [2], Deriy V.A. [3], Bocharov V.V. [4], Butynets F.F. [5] and others, who gave definitions to the concepts of "investment" and "capital investment". Also professor Gavrilenko V.A. [6] and Shandra D.V. [6] studied the problematic aspects of capital investment, namely, the problem of organizing primary accounting. Yunusova D.A. [7], Rysina V.A. [8], Gudova M.S. [9] and others investigated the audit of direct capital investment and audit of capital investment in fixed assets.
4. The structure of the object of accounting for capital investments
The enterprise OP Mine im. A. A. Skochinsky
. At the moment, the mine is part of the state association Donetsk
coal energy company
(SE DUEK
). Mine them. A. A. Skochinsky is engaged in coal mining. At this enterprise, a magazine is kept –
order form of accounting.
The structure of the object of accounting for capital investments in the studied enterprise can be represented as follows:
- Acquisition of equipment: equipment that does not require installation (portable pneumatic punchers, etc.); equipment requiring installation (conveyors, mine belt machines, shearers, etc.)
- Reconstruction, modernization of equipment (optimization of the technological process, improvement of the method of opening rocks, improvement of general ventilation and underground transport, re-equipment of the main and auxiliary technological links).
- Capital construction: capital mining; preparation of a new line of faces for subsequent coal mining. In turn, capital mine workings are subdivided into: vertical (mine shaft, pit); horizontal (adit, crosscut, drifts); inclined (mine shaft, pit, slope, bremsberg).
In general, the structure of the object of accounting for capital investments is shown in pic. 1.
When registering capital investments, a project is first developed, then an estimate – financial calculations, estimate, general estimate, estimates for title lists.
Stages of capital investment registration:
- Drafting project – estimate documentation. The project presents a title list, which indicates the objects of capital investment.
- Drawing up an estimate for each capital investment.
- Formation of cost estimates or financial plans approved by the project – budget organization. Funds can be allocated either from internal reserves, or from a superior organization.
- Justification of the need to allocate funds for capital investments.
- Determination of the amount of capital investment.
- Submitting an application to a superior organization (if funds from internal reserves are insufficient). The mine is part of the united
enterprises within the state enterprise
DUEK
, from which it has the right to request funds for capital investments.
Sources of capital investment coverage are:
- Domestic funds: (depreciation, current income)
- External investments: (targeted budget funds).
Accounting for capital investment costs depends on how they are carried out. When accounting for expenses in a household way – at the end of the month for each accounting object, the total amount of actual expenses for the month and from the beginning of the year is determined, indicating the estimated cost. Expenses are recorded according to the following items: materials, basic wages of workers, operating costs of construction machines and mechanisms, other expenses, overhead costs.
And when accounting by a contract method – expenses are grouped according to the technological structure determined by the estimate documentation (design – survey work; construction works; equipment installation work; the cost of purchasing equipment requiring installation; expenses for purchase of equipment that does not require installation; other capital expenditures).
Capital construction is carried out on the industrial site of the main enterprise, therefore capital investments this is an independent species works. They are accounted for separately from the main activity, but capital investments use transport, electricity, water resources enterprises, etc. All these expenses are written off for all elements from the main activity and included in capital investments. Services are 21-23% of direct standardized expenses in capital investments. Further, the services are deducted from the cost of the main activity by elements costs.
5. The state of the capital investment problem
The imperfection of the regulatory framework for accounting for capital investments raises many questions from accountants – practitioners. It is worth noting,
that the issues of accounting for capital investments in the Accounting Standards are practically not covered, the definition of capital investments in P (S) BU No. 7
not given. Generally, capital investments – this is a specific type of non-current assets, which differ significantly in their economic content
from financial investments. In fact, capital investments are internal
investments in the company's own assets[10].
Despite this, the issues of accounting for capital investments are regulated only by Instruction No. 291, according to which the latter can be defined as
costs of acquiring or creating tangible and intangible non-current assets
[11]. Capital tax accounting requirements
investments are determined by the Law of Ukraine On Taxation of Enterprise Profits
. It can be noted that the term capital investments
in the Law also
does not apply, therefore, it is only possible to conditionally define the articles regulating the tax accounting of capital investments: clause 8.1 - in terms of acquisition
(manufacturing) of fixed assets, clause 8.7 in terms of reflecting current and major repairs, reconstruction, modernization, technical re-equipment and
other types of improvement of fixed assets. In addition, it is necessary to highlight paragraph 8.9 of this Law, which regulates the tax accounting of expenses on capital
improvement of land, which by the Law of Ukraine On taxation of profit of enterprises
dated 24.12.2002, No. 349-IV are referred to the fixed assets of group I.
Thus, in both accounting and tax accounting, capital investments include expenses that increase the book value of the main
funds and subject to depreciation. However, the regulatory framework for accounting and tax accounting of capital investments requires serious revision.
A separate Standard should be developed to govern the valuation and accounting of capital investments. This document should
be drawn up taking into account the norms of the law of Ukraine On taxation of profit of enterprises
, i.e. ensure accounting compliance with tax
[12].
You can also say that account 15 Capital investments
is not sufficiently detailed by sub-accounts, which is a problem for practical
accounting for capital investments. According to Instruction No. 291, account 15 Capital investments
has the following sub-accounts:
- 151
Capital construction
; - 152
Purchase (manufacture) of fixed assets
; - 153
Purchase (manufacture) of other non-current tangible assets
; - 154
Purchase (creation) of intangible assets
; - 155
Formation of the main herd
.
Such a division into sub-accounts does not allow reflecting the accounting of other capital investments (i.e. expenditures for design and exploration work, maintenance
capital construction departments, etc.) [13]. Also, in the structure of the account there is no subaccount on which to show recognition and
write-off of expenses for capital improvement of land. In addition, none of the subaccounts provides for showing the costs of improving fixed assets.
(reconstruction, modernization, etc.), which is the most serious drawback of account 15 Capital investments
. Therefore it is advisable
open on account 15 Capital investments
subaccount 156 Improvement of fixed assets
. According to Instruction No. 291, it is determined that for management
needs, it is allowed for enterprises to use correspondence of accounts not listed in this Instruction, based on the norms of this instruction, provisions
(standards) accounting, other regulatory – legal acts on accounting and management needs
[11].
Also, Professor V. A. Gavrilenko and D. V. Shandra studied problematic aspects of capital investment, namely – problem organization of primary accounting. They noticed that capital investment refers to the cost of building, manufacturing or purchasing fixed assets, which means that all these costs must be formalized with documents that make up the accounting value of the investment. Most often it is at this point the enterprise starts to have problems. These documents make up the workflow, the scheme of which, even a general one, cannot always be found in specialized literature. You also need to take into account a large number of analytical accounts (they are often different for each enterprise). IN Taken together, these problems can cause confusion and error, which will inevitably lead to increased costs and decreased profitability [6].
Thus, we can conclude that in order to improve the accounting of capital investments at all enterprises, including mines, it is necessary introduce a number of measures that will solve the pressing problems. First of all, it is necessary to develop a separate provision where it is necessary to formulate clear definition of investments and capital investments, develop a classification, characterize their technological and reproductive structures, types of assessments, the possibility of revaluation, the procedure for disposal, to present in it the features of accounting for each type of capital investment and other important accounting points that will be used in the provision of accounting services.
Сonclusions
As a result of the reflection of theoretical and practical knowledge on the example of OP Mine im. A. A. Skochinsky
all the main goals and objectives were fulfilled,
delivered in work.
The theoretical foundations of capital investment accounting are disclosed. The essence and content of capital investments as an object have been clarified accounting, it is based on this that the authors' approaches to the definition of capital investments and consideration of their internal structure make it possible come to the conclusion that capital investments are understood as investments invested in the acquisition or creation of non-current assets on their own. The classification of capital investments, the state of the problem and regulatory – legal regulation of capital investments, tasks of improvement accounting for capital investments and the formation of accounting policies.
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