Assessment of long-term receivables of public enterprises

Анотація

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.

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