Kozmenkova S.V.Lobachevsky State University of Nizhny Novgorod - National Research University (UNN), Nizhny Novgorod, Russian Federation skozmenkova@yandex.ru
Subject The subject of the study is the government assistance influence on financial and economic activities of agricultural organizations in the course of audit. Objective The main objective of the scientific article is to analyze the importance of government assistance impact on business continuity and financial results of an agricultural organization, the size of its net assets and financial statements. To achieve this objective the authors have analyzed the importance of government assistance to the agricultural sector of the country as a whole, considered the Russian and international regulatory documents, which require the going concern principle observance and define its materiality for an auditor and an auditee. Methods The authors have studied the government assistance impact on business continuity and financial results by means of comparison, systematization and generalization of information from regulatory documents and scientific sources. Results Using the case studies, the authors have analyzed the impact of subsidies on financial performance and financial statements of an economic entity, in particular, line 1370 "Retained Earnings" of balance sheet and the bottom-line result of section III "Equity and reserves", line 1300 of balance sheet, and, as a consequence, net assets figure, which goes hand in hand with going concern and influences the audit report. In addition, the authors propose to include the government assistance in the income from core business. Based on the results of the analyzed influence of subsidies on economic entity's balance sheet figures, the authors give examples of audit report content depending on different circumstances, which are revealed during the audit. Conclusions and Relevance The material of the scientific article can serve as a practical instrument for auditors during government assistance audit and analysis to consider the impact of government assistance on financial stability of an organization and its business continuity, and, as a consequence, on auditor's opinion in audit report. The conclusions of the article enable to emphasize substantial impact of government assistance means on financial statements of an economic entity, the size of its net assets and compliance with going concern principle as one of fundamental principles for financial statements preparation.
Keywords: government assistance, going concern, principle, financial result, auditee, audit report, financial statement, net assets
References:
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National report “On Process and realization in 2012 of the Russian program of agricultural development and regulation of agricultural production, raw material and foodstuffs market for 2008–2012”. Moscow, Ministry of Agriculture of Russian Federation Publ., 2012.
