Rudejchuk S. Development of Accounting for Transactions with Bonds

Purpose of research: scientific grounding of the theoretical and methodological statements, as well as working out of the practical recommendations on improvement of accounting for transactions with bonds. Object of research: the process of accounting reflection for transactions with bonds by issuer and investor. Subject of research: theoretical, methodological and practical statements of reflection of the transactions with bonds by issuer and investor. Methods of research: theoretical generalization, logical analysis and synthesis, abstractly-logical, cause-and-effect relation, systematization and grouping, analogy, dialectical, systematic, graphical. Scientific novelty of the results obtained lies in the working out of the theoretical and methodological statements and practical recommendations on improvement of the accounting reflection of transactions with bonds by issuer and investor for the effective management of the loan capital of the enterprise. Basic grounds of scientific novelty lie in the following: for the first time the results as follows have been obtained: the system of accounting objects for transactions with bonds to improve accounting system in terms of information provision of the financial position management of an entity in the market environment has been obtained; the issues have been improved as follows: the organizational and methodological statements of accounting for the transactions with own issued bonds as a source of borrowed means to improve information support of the optimal ratio of the loan capital sources at the enterprise; the accounting support for the management of transactions with acquired bonds as a means of investment of temporarily available funds and sources for income acquisition due to clarification of purpose and composition of synthetic accounts in order to form a complete and reliable information about the company's investment activity; the methodological approaches to accounting for transactions with issue, purchase, exchange of convertible bonds for equity capital instruments in terms of propositions for its reflection on the accounts and in the financial statements which will improve reliability of reflection of such transactions and evaluation of investment risks; the requirements for the content of the informational indicators of internal reports about convertible bonds taking into consideration the changes at stock market, the expected benefits from conversion of bonds and determined informational requests of reporting users to effective management decisions; The following issues undergone for the development: the interpretation of the term "bonds" that takes into account their economic substance under conditions of stock market development and promotes unification and improvement of accounting terminology; the organizational provisions in order to form analytical information on transactions with bonds based on their grounded classification as debt securities and corresponding organization of analytical accounting, that made it possible to optimize the set of accounts for accounting reflection of transactions with bonds; the organizational support for transactions with bonds in terms of working out the recommendations for improving state regulations, which enables to adapt the system of corresponding provisions to the peculiarities of activity of the enterprise at the level of its accounting policies; the accounting provision for estimation mechanism of convertible bonds as objects of accounting at the fair value taking into consideration the peculiarities of transaction with its issue, acquisition and conversion into the equity capital instruments, that made it possible to create conditions for effective use of loan capital of the enterprise. Implementation extent: research results have been implemented into the practice of PLC "Lvivgas", PLC "Prikarpatyaoblenergo", LLC "AMC "Prestige Capital". Some results have been applied in the educational process of Ternopil National Economic University within the study process of "Accounting (theory)", "Financial Accounting I", "Financial Accounting II".