Problematic issues of current liabilities accounting and ways to solution

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National University "Yuri Kondratyuk Poltava Polytechnic"

Problematic issues of current liabilities accounting and ways to solution

Alla Dmytrenko, D.Sc. (Economics)

Associate Professor of Finance, Banking and Taxation

Anastasiia Loza, Student

Alla Dmytrenko, Doctor of Economics, Associate Professor, Associate Professor, Department of Finance, Banking and Taxation, National University "Poltava Polytechnic named after Yuri Kondratyuk"

Anastasiia Loza, Student of the National University "Poltava Polytechnic named after Yuri Kondratyuk"

Problematic issues of current liabilities accounting and ways to solution

Abstract

The article specifies the peculiarities of the organization of accounting of current liabelities at branches that are part of Joint stock company "Ukrainian railway". The definition of the group "current liabelities" is given. The main regulations governing the accounting of current liabelities are researched. The article explains that current liabelities will be repaid during the operating cycle of the enterprise or that must be repaid within 12 months starting from the balance sheet date. In addition, it is examined what forms of evaluation are used to classify current liabelities.

Key words: Joint stock company "Ukrzaliznytsia", current liabelities, the FOBOS automated accounting system, accounting.

Дмитренко Алла Василівна, доктор економічних наук, доцент, доцент кафедри фінансів, банківського бізнесу та оподаткування, Національний університет «Полтавська політехніка імені Юрія Кондратюка»

Лоза Анастасія Володимирівна, студентка, Національний університет «Полтавська політехніка імені Юрія Кондратюка»

Проблемні питання обліку поточних зобов'язань та шляхи їх розв'язання

Анотація

current liability accounting

У статті зазначено особливості організації обліку поточних зобов'язань на підприємствах «Укрзалізниці» з урахуванням достовірність і об'єктивність їх оцінки. Наведено визначення «поточних зобов'язань». Розглянуто головні нормативні акти, якими регулюється облік поточних зобов'язань, класифікація поточних зобов'язань та методи їх обліку за допомогою електронної бухгалтерської системи «Фобос». Поточні зобов'язання відображаються в балансі підприємства за сумою погашення. Але кредиторську заборгованість за товари, роботи, послуги краще оцінювати за поточною вартістю придбання, так як вона враховує показник інфляції і динаміку цін. Досліджено теоретичні і методичні аспекти обліку поточних зобов'язань в сучасних умовах. Запропоновано алгоритм проведення аналізу поточних зобов'язань. Досліджено, які форми документації використовують для відображення операцій з поточними зобов'язаннями. Зроблено висновок, що базована на сучасних електронних бухгалтерських системах організація і методика обліку надасть можливість забезпечити отримання об'єктивної інформації для аналізу і контролю поточних зобов'язань. Це приведе до ефективного формування, підготовки та прийняття управлінських рішень щодо діяльності підприємства та підтриманню його фінансової стійкості та платоспроможності.

Ключові слова: підприємство, поточні зобов'язання, нормативно-правове забезпечення, документування, облік.

Introduction

In the course of the company's activity, certain economic relationships are formed with counterparties, namely legal and natural persons, state institutions. Current liabilities appear because of such cooperation. They are the objects of accounting, control and analysis, as they affect on the indicators of liquidity, creditworthiness and solvency of the enterprise. Moreover, in the conditions of martial law and an unfavorable economic environment in Ukraine, the problem of ensuring financial stability and increasing the efficiency of enterprises becomes especially urgent. One of the problematic issues of accounting for enterprises' liabilities is the reliability and objectivity of their assessment. Therefore, an urgent task is to study the procedure for evaluating this accounting object.

In the course of activity, the enterprise has current obligations: to the state, to suppliers, when goods or services have been received, and money for them has not been paid, to the bank for a loan, to own employees due to the need to pay wages. These are liabilities that will be repaid during the operating cycle of the enterprise or that must be repaid within 12 months starting from the balance sheet date [2]. In addition, according to the norms of clause 11 of National standard of accounting 11, current liabilities are reflected in the balance sheet by the repayment amount. The main regulatory documents that highlight the issue of current obligations are the Civil and Economic Codes. Their reflection in accounting and financial reports is determined by the Law of Ukraine "On accounting and financial reporting in Ukraine", of the National standard of accounting 1 "General requirements for financial reporting", of the National standard of accounting 11 "Liabilities", of the National standard of accounting 26 "Payments to employees" and of the National standard of accounting 37 "Security, contingent liabilities and contingent assets". Current liabilities are short-term bank loans, current debt for longterm liabilities, short-term promissory notes issued, accounts payable for goods, works, and services. Current arrears according to settlements are calculated from received advances, from the budget, from extrabudgetary payments, from insurance, from wages, from internal settlements, as well as other current liabilities (according to accrued interest, from settlements with other creditors).

Analysis of recent research and publications

In the scientific literature, there are different points of view regarding the definition of the essence and composition of obligations. H. Lebedyk and V. Yatsenko determined as a result of the research that obligations arise as a result of past events, namely: receipt of goods, works, services, advance, as well as calculation of wages, taxes, fees [10, p. 88].

According to TA. Butynets, L.V. Chizhevska, S.L. Bereza, N.M. Tkachenko, obligations are divided into: monetary and non-monetary; current and future; long-term and current; actual, estimated and conditional [8, p. 50].

N.S. Abalmasova, V.S. Tereshchenko believe that "current liabilities are short-term financial liabilities that must be repaid during the current operating cycle of the enterprise or within a year from the date of drawing up the balance sheet; obligations that are paid at the demand of creditors or are expected to be liquidated within twelve months" [3].

Kermit D. Larson, John J. Wilde, B. Chiapetta state that "current liabilities are those that must be repaid within one year, however, if the operating cycle is more than one year, then they can be paid within that term [5, p. 483].

M. Buffett, D. Clark believe that current liabilities are debts and other obligations that the company must repay within one financial year, that is, these are the funds that the company owes to suppliers for goods and services provided on credit [4].

And such authors as: B. Needles, H. Anderson, D. Caldwell divide current obligations according to the degree of probability into actual, estimated and contingent [7, p. 175]. To actual, they include obligations that arise from an agreement, contract or because of legislation as actual, the amount of which can be clearly and unambiguously calculated. They include accounts receivable, salaries, dividends payable, sales tax and excise duty arrears, current portion of long-term liabilities. Estimated liabilities include liabilities, the exact amount of which cannot be determined until a certain date (as an example, payments under warranty obligations). As for contingent liabilities, they include liabilities that depend on future events; they are also called non-existent liabilities.

In turn, Yu.Yu. Myronova classifies current liabilities as follows: by types: current debt for long-term liabilities, short-term bills issued, accounts payable for goods, works, services, current debt for settlements, current provisions and other current liabilities; by maturity: up to three months, from three to six months, from six to twelve months; upon fulfillment of repayment terms: debt whose repayment term has not yet arrived; deferred debt, overdue debt [6, p. 201].

Scientist S.I. Travinska considers current liabilities as liabilities to be repaid at the request of creditors, as well as that part of liabilities that will be repaid during the operating cycle or one year, starting from the balance sheet date [9, p. 100]. It proposes the division of current obligations according to the relevant criteria: according to the condition of occurrence, according to the ratio of the rights and obligations of the subjects, according to the certainty of the subject of the obligation, according to the nature of the relationship, according to the complexity of repayment, according to the time of occurrence, according to the method repayment, by the possibility of assessment, by the term of repayment, by cost, by the object of the obligation, by the form of involvement and by the type of activity. Thus, first, information on current liabilities must be accurately reflected by their types in reporting.

Objectives of the article

Study of theoretical aspects and methodical principles of accounting of current liabilities of enterprises, in modern conditions, and determination of ways of their improvement:

To study theoretical aspects of accounting of current liabilities of the enterprise.

Investigate the methodological principles of accounting for the company's current liabilities.

Study of theoretical and methodological aspects of accounting for current liabilities in modern conditions.

Determination of ways to improve the accounting of current liabilities at the enterprise.

The main material of the study

The organization and accounting methodology based on modern electronic accounting systems will provide an opportunity to provide objective information for the analysis and control of current liabilities. The main sources for improving the accounting of current liabilities: financial statements, data of the turnover statement and the general ledger regarding current liabilities, as well as data of primary and consolidated accounting documents that confirm the facts of the occurrence and repayment of current liabilities. Accounting for liabilities begins with the fact of their recognition, assessment and recording in the system of accounts with subsequent disclosure in financial statements. It is necessary to recognize current liabilities under the conditions stipulated in the National standard of accounting 11 "Liabilities" [2] and under the following conditions:

The enterprise recognizes the need for future payments to creditors.

Obligations must be fulfilled undeniably.

The entity with respect to which the debt obligations arose must be identified.

In this regard, it is expedient to adjust the amount of the obligation to the inflation index when concluding contracts. The accountant carries out mandatory registration of tax invoices in the unified register of tax invoices in accordance with the norms of tax legislation.

Taking into account the specifics of record keeping at railway transport enterprises is very important for carrying out financial activities. To obtain reliable information about the peculiarities of accounting management and organization at railway transport enterprises, it is necessary to review the literature sources on the topic of the study presented in Table 1.

Review of literary sources on the research topic

Thus, new technologies allow enterprises to keep accounting records in real time, and not just to keep verified records of financial transactions in separate privately created databases or accounting books, to draw conclusions about the success of the conducted activities and to plan future business transactions. In addition, of course, they take into account the specifics of such industries as railways with the peculiarities of accounting for goods, services and works.

It was determined that the main problems of railway transport, which require immediate solution, are: imperfection of regulatory acts, insufficient transparency of the financial activity of the industry, high level of wear and tear of fixed assets, lack of state support for innovative development of the industry, lack of additional sources of funding for investments in the development of material and technical bases of railway transport. The need to improve the railway transport management system and ensure state support for its reform is substantiated, which will increase the competitiveness of Ukrainian railways in the market of transport services. The rational organizational structure of management is characterized by the following features: the enterprise is a production unit with high labor productivity and low direct costs, with high quality of repair, control and stability of communication with the consumer of services.

The Wagon Depot production unit uses the FOBOS automated accounting system. In the module, "Accounting of settlements with debtors-creditors" it is possible to transfer information to the system "Automated collection and processing of information about receivables and payables of Ukrzaliznytsia enterprises by customer", which helps to control settlement discipline in the railway industry and beyond. The database of the system provides analytical information on the main accounting objects in terms of settlement operations. Trade and other payables are initially recognized and recorded at fair value less costs directly attributable to the related transactions. Subsequently, trade and other payables are shown at amortized cost using the effective interest rate method.

The "Centralized Financing" module has been implemented in the automated accounting system. "FOBOS". It ensures the entry and storage of applications for centralized financing and makes it possible to promptly monitor the passage of application confirmations at all levels: enterprise, service, branch, Central Financial Treasury. Applications are created and edited at the enterprise level. In the application, the following details are recorded: article of financing, amount of the application, bank details of the applicant's company (name, MFI of the bank, name of the bank, current account), bank details of the recipient of funds (name, MFI of the bank, name of the bank, current account), content of the operation (purpose of payment), date of payment. The following obligations are subject to entry into the database: current settlement documents (contracts, acts of completed work, invoices) that are subject to payment in a specified amount on a specified date: payments for such obligations will be verified and executed only on the condition that they are previously entered into the task "Centralized financing"; overdue settlement documents - settlement documents, the final payment term of which has reached the current date; obligations for which there is information about their payment in the future, but the specific date is not yet known; the date of fulfillment of such an obligation can be: - the deadline for fulfillment specified in the contract (or other deed); - periodic dates (for example, every 10th, 25th or the last day of the month) with a corresponding breakdown of the payment amount, obligations for which there is information about their payment in the future, but the specific amount is not yet known (for example, salary, taxes and fees). The "Amount" parameter can take the following values: the total amount specified in the contract or the planned/estimated amount of the relevant obligations; partial amounts (for example, every 10th, 25th or last day of the month) with a corresponding breakdown by date, obligations that may arise as a result of court decisions on ongoing court cases (executive documents, fines, penalties, etc.); liabilities in foreign currency (if there are such transactions). For the formation of information and the use of a single methodology for coding about receivables and payables, ASBO "FOBOS" has developed forms of tables in the form of appendices to financial reports, namely No. 4 "Receivables" and No. 5 "Payables". On the balance sheet sub-account 683 "Internal economic settlements" mutual settlements between the Company and branches, between branches, structural (production) divisions of branches that are part of them are recorded. Mutual settlements between branches are carried out through the Accounting and Tax Accounting Department.

In the case of intra-household settlements, the request for payment is drawn up by issuing a notice (notice of receipt) and is sent to the payer, bypassing banks. The document because of which intra-economic settlements between Branches and structural (production) divisions of JSC "Ukrzaliznytsia" are reflected is the notification (notification) of FRU form No. 13. It should contain the necessary details: the name, date of compilation, number, full name of the structural (production) unit that made the notification, which transmits and receives the content of the economic transaction and its amount in monetary terms, the accounting of the transferring party, the name of the employees' positions, responsible for the implementation of the business transaction and its correctness, personal signatures of these persons. Primary documents certifying the fact of the economic transaction are attached to the notification (notice) and are sent to the recipient together with the notification. The employee of the accounting department, in accordance with his job duties, prepares financial statements, reconciles calculations and prepares the Act of reconciliation for sub-account 6834 "Internal economic calculations of the farm". Current liabilities are reflected in the balance sheet of the enterprise according to the repayment amount. However, it is better to estimate accounts payable for goods, works, and services at the current cost of acquisition, as it takes into account the inflation rate and price dynamics.

Conclusions

Therefore, it is necessary to correctly display information on current liabilities by their types in reporting. The algorithm for analyzing the company's current liabilities will make it possible to reduce the probability of the company's bankruptcy.

In order to improve the accounting of payments for current liabilities at the enterprise, the chief accountant must systematically follow the changes occurring in the current legislation.

The management personnel of the enterprise must develop detailed plans for the exit of the enterprise from the crisis state, as well as introduce new Internet technologies and use audit programs.

The organization and accounting methodology based on modern electronic accounting systems will provide an opportunity to provide objective information for the analysis and control of current liabilities.

Analysis and audit of current liabilities contributes to the effective formation, preparation and adoption of management decisions regarding the enterprise's activities and support of its financial stability and solvency.

References

1. Economic Code of Ukraine dated January 16, 2003 No. 436-IV / Verkhovna Rada of Ukraine. Available at: https://zakon.rada.gov.ua/laws/show/436-15#Text (accessed 24 March 2023).

2. National regulation (standard) of accounting 11 "Liabilities" dated 29.09.2020 № 588 / Ministry of Finance of Ukraine. Available at: https://zakon.rada.gov.ua/laws/show/z0085-00#Text (accessed 25 March 2023).

3. Abalmasova N.S., Tereshchenko V.S. Improvement of accounting of current liabilities in Ukraine based on international experience. Available at: http://www.rusnauka.com/11_EISN_2010/Economics/64247.doc.htm (accessed 23 March 2023).

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