Tereshchenko V. Accounting of future costs and payments provisions: theory and methods

Purpose of research: developing scientifically substantiated recommendations on the further improvement of the theory and procedures of future costs and payment provisions in accounting. Object of research: provisions for future costs and payments forming and utilization operations in the industrial enterprises of Ukraine. Subject of research: theoretic, methodic and practical bases of accounting for provisions for future costs and payments forming and utilization operations. Methods of research: comparison, graphical method, grouping, range correlation method, semantic method, statistic methods, analysis, synthesis, dialectic, induction, deduction. Scientific novelty. The given research aims at eliminating contradictory approaches when defining the place of costs and payments provisions in the system of financial resources of business activity and their reserve nature accounting. It also specifies the economic essence of the "future costs and payments provisions" concept. The existing system of provisions is supplemented by provisions for environmental remediation and equity repairs, which will promote even account of nature conservation and repair activities in accounting. The author proposes the improved accounting technique for future costs and payments provisions terms of their creation, charge mechanism and the way they are recorded in accounts. The thesis offers the structure of financial reporting relative to provisions that takes into account their reserve base and owner's equity, which allows carrying out the integrated analysis of enterprise's reserves and obtaining the information on the expected utilization period. The author proposes the project of Accounting Standard "Reserves", which aims at elimination of law problems. It contains all obtained recommendations on the further improvement of the theory and procedures of future costs and payment provisions in accounting. The Standard accepting will create the single accounting base for all reserves. Extent of implementation: research results have been implemented into practice of Limited Liability Company "Krimsplav" (Sevastopol) and Limited Liability Company "Furniture Works "Lydia" (Donetsk). Particular results have been applied to the studying process of Donetsk National University of Economics and Trade named by M. Tugan-Baranovskiy while teaching disciplines as follows: "Financial Accounting", "Organization of Accounting".