Reserve and regulatory objects in accounting theory and practice: origins and evolution of the world accounting thoughtwithin the framework of the developments by the Western Ukrainian scientists of the 19th – middle 20th cent. (Opinion from the modern age perspective)
Date
2019-02-26
Authors
Journal Title
Journal ISSN
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Publisher
Lviv Politechnic Publishing House
Abstract
There are growing risks in the conduct
of financial and economic activities by economic agents
in the conditions of the modern economy, and because a
reliable information base is needed both for management
purposes and for market counterparties regarding the
means actually available at an enterprise to overcome
the risk of loss (reduction) of capital. Accounting and
public reporting is the only tool that provides
information in formalized data on the size of the reserve
and insurance potential established by an entity.
However, there are a number of problematic issues in
modern theory and practice regarding the objective
display of reserve and regulatory objects in the
accounting and their provision in the public financial
(corporate) reporting that actualize the multi-vectoral
research both in the subject area of knowledge and in the
system of interdisciplinary researches. The hypothesis of
this research is the assumption of elaboration in past
developments, including Western Ukrainian scholars,
relevant to the modern theory and practice of ideas that
can objectively be considered appropriate for the
improvement of modern accounting of capital reserves,
a means to enhance the validity of managerial decisions
to a more adequate information provision. The article
analyses the historical stages of the development of
reserve and regulatory objects of accounting, evaluates
the fundamental principles of the formation of
accounting reserves in different accounting concepts in
the evolutionary aspect by distinguishing the relevant
ones among them for modern research. The scientific
legitimacy of the ways and approaches proposed in this
article to improve the conceptual foundations of the
reservation system in modern accounting rests upon the
use of historically formed ideas and is based on the
following approaches: it is argued that accounting tools
are an important component of any paradigm of reserve
management, the only formalized information tool for
disclosing the real state of the security of the capital
employed by an enterprise; the formation of reserves is a
consequence of one of the principles of accounting – the
assumption of continuity of an enterprise, embodied in
the modern concept (paradigms) of sustainable
development. Using general scientific and interdisciplinary
methods of cognition, traditional methods for historicalanalytical
analysis (historical and retrospective,
historical and comparative methods) and the techniques
special for the sphere of accounting, the theoretical
generalization was conducted of systematic approaches
to organization of computational practise, evolutionary
disposition of reserve and regulatory articles in
accounting system and their characteristic positioning in
separate accounting concepts and theories. A separate
component of the study is the historiographical analysis
and assessment of accounting reservation in unexplored
works of Western Ukrainian theoreticians and in the
practice of accounting. On the basis of the performed
exploration, the following reasoning was provided
regarding the author's conclusions about the
appropriateness of the use of certain aspects of the
historical developments in respect of regulatory
principles in modern norms and regulation in any system
of accounting standardization and the suggestions were
substantiated about ways to adapt public accounting and
financial reporting needs of modern economic
conditions. On the basis of the received results, the
expediency of use of approaches and techniques of
organic and econometric balance theories was
substantiated for the development of modern accounting
reserve and regulatory objects, which confirms the
relevance of research of such direction in general, and of this one in particular.
Description
Keywords
words: accounting, balance theories, objects, reserves, reserve capital, reserve funds, regulators, targeted financing, provision, methodology
Citation
Yaremko I. Reserve and regulatory objects in accounting theory and practice: origins and evolution of the world accounting thoughtwithin the framework of the developments by the Western Ukrainian scientists of the 19th – middle 20th cent. (Opinion from the modern age perspective) / I. Yaremko, O. Lemishovska // Economics, Entrepreneurship, Management. — Lviv : Lviv Politechnic Publishing House, 2019. — Vol 6. — No 1. — P. 13–29.