№ 9/2021

Fìnansi Ukr. 2021 (9): 117–128https://doi.org/10.33763/finukr2021.09.117

ACCOUNTING AND AUDIT

KORSHYKOVA Renata ¹, OZERAN Alla ²

¹SHEE “Kyiv National Economic University named after Vadym Hetman”
OrcID ID : https://orcid.org/0000-0002-1367-2450
²Kyiv National Economic University named after Vadym Hetman
OrcID ID : https://orcid.org/0000-0002-9234-4593

Assessment of long-term receivables of public enterprises

The paper considers the main methodological aspects of accounting for long-term receivables of state-owned enterprises in accordance with international financial reporting standards and national accounting regulations (standards) (NAR(S)). At the same time, attention has been focused on the valuation of the asset and the method of reflection its initial and book value in the accounting. The study examines the procedure for determining the initial and carrying amount of long-term receivables in accordance with IFRS and illustrates the difference in the essence of the terms "present value" and "amortized cost": the former is used at the initial recognition of an asset, and the latter - for its further evaluation in order to be included in the financial statements. The comparison of requirements of international and national standard concerning the above mentioned asset reveals the following problems regarding the latter: inconsistency in the use and scattered terminological apparatus, as well as the lack of a methodology for the formation of the initial value. The paper proposes to supplement the terminology contained in NAR(S)10 with the definitions " present value" and "amortized cost", as well as to clarify the scope of their application for harmonization with IFRS. In addition, a proposal was made to revise the procedure for calculating the effective interest rate provided for by the NAR(S). Regardless of the accounting system in which the state enterprise operates, the problem arises of the difficulty for monitoring the timeliness and completeness of repayment of long-term receivables, as well as reconciliation of the state of settlements with debtors, which affects the planning of cash flows. The study formulates the following options for solving this problem: the application of an off-balance account or a special sub-account to the account of long-term receivables.

Keywords:long-term receivables, state enterprises, amortization of discount, present value, amortized cost, effective interest rate

JEL: М41, М48

Korshykova R. . Assessment of long-term receivables of public enterprises / R. Korshykova, A. Ozeran // Фінанси України. - 2021. - № 9. - C. 117-128.

Article original in Ukrainian (pp. 117 - 128)

Download

Downloads :116

1. Verkhovna Rada of Ukraine. (1999). About accounting and financial reporting in Ukraine (Act No. 996-XIV, July 16). Retrieved from zakon.rada.gov.ua/laws/show/996-14#Text [in Ukrainian].
2. Adamovska, V. S., & Sidorova, O. I. (2016). Improvement of accounting long-term receivables due to the current economic situation. Scientific Bulletin of UNU. Series: International economic relations and world economy, 6 (1), 6–9 [in Ukrainian].
3. Turpak, T., Boiko, N., Karlova, I., & Masalitina, V. (2021). Discounting of receivables in accounting and analysis. Efektyvna ekonomika, 2 [in Ukrainian]. doi.org/10.32702/2307-2105-2021.2.97
4. Kravchuk, T. V., & Vysoshyna, A. V. (2018). Analysis of methods for calculating the discount rate for the correct reflection of long-term receivables at fair value. Eastern Europe: economy, business and management, 5 (16), 258–261. Retrieved from www.easterneurope-ebm.in.ua/journal/16_2018/47.pdf [in Ukrainian].
5. Len, V. S., & Glivenko, V. V. (2020). Long-Term Receivables and Liabilities in Accounting
and Reporting. Accounting & Finance, 3, 30–40 [in Ukrainian]. doi.org/10.33146/2307-9878-2020-3(89)-30-40
6. Zolotukhin, O. (2020, January 21). Discounting of non-interest long-term debt for agricultural producers. Retrieved from www.growhow.in.ua/dyskontuvannia-neprotsentnoi-dovhostrokovoi-zaborhovanosti-dlia-sil-hospvyrobnykiv [in Ukrainian].
7. Petrovych, I. (2020). Discounting of "transitional" long-term debts: variations of the simplified application of "accounting and political" changes. Interactive accounting, 33. Retrieved from interbuh.com.ua/ua/documents/oneanalytics/137114 [in Ukrainian].
8. IASB 32 Financial Instruments: Presentation (n. d.). Retrieved from mof.gov.ua/storage/files/IAS%2032_ukr_2018.pdf [in Ukrainian].
9. IFRS 9 Financial Instruments (n. d.). Retrieved from mof.gov.ua/storage/files/IFRS_9_Ukrainian-compressed.pdf [in Ukrainian].
10. Ministry of Finance of Ukraine. (1999). National Accounting Regulation (Standard) 10 “Accounts Receivable” (Order No. 237, October 8). Retrieved from zakon.rada.gov.ua/laws/show/z0725-99#Text [in Ukrainian].
11. Ministry of Finance of Ukraine. (2000). National Accounting Regulation (Standard) 11 “Liabilities” (Order No. 20, January 31). Retrieved from zakon.rada.gov.ua/laws/show/z0085-00#Text [in Ukrainian].
12. Ministry of Finance of Ukraine. (2000). Accounting Regulation (Standard) 12 “Financial Investments” (Order No. 91, April 26). Retrieved from zakon.rada.gov.ua/rada/show/z0284-00#Text [in Ukrainian].
13. Ministry of Finance of Ukraine. (2020, July 21). Regarding the discount rate for long-term receivables and long-term liabilities (Information message). Retrieved from mof.gov.ua [in Ukrainian].