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International Accounting
 

Developing the methodology for assessing and accounting of financial investments

Vol. 18, Iss. 18, MAY 2015

Available online: 23 June 2015

Subject Heading: THEORY OF ACCOUNTING

JEL Classification: 

Pages: 15-31

Selezneva I.P. Izhevsk State Agricultural Academy, Izhevsk, Udmurt Republic, Russian Federation
ip.selezneva@gmail.com

Vladimirova A.V. Izhevsk State Agricultural Academy, Izhevsk, Udmurt Republic, Russian Federation
alexwlad74@mail.ru

Importance The research examines issues of financial investment measurement and accounting, adjustment of its value, making an impairment provision, and documenting the related changes. We pursue devising appropriate approaches to address the above issues through specific activities that help eliminate them, form reasonable accounting policies on financial investment, and solve various management tasks.
     Objectives The objective of the research is to investigate the contemporary problems and prepare recommendations on the application of financial investment measurement and accounting methods.
     Methods The methodological framework for this research comprises regulations, scientific proceedings by national experts in accounting and our own researches. We apply such methods as modeling, comparison, systematization techniques, generalization of theoretical aspects and practical recommendations on modeling and implementing the proposed activities in order to improve accounting in a specific entity.
     Results We determined types of key financial risks associated with financial investment, described them, systematized signs of impairment of financial investment, proposed methods for assessing the estimated price and estimated cost of various types of financial investment, drew up templates of source documents that would allow documenting any adjustments of, and changes in the value of financial investments.
     Conclusions and Relevance Issues of financial investment measurement and accounting, as set forth in economic literature, call for finding solutions. If the proposed activities are performed, it will eliminate some challenging matters; help obtain unbiased and reliable information on the property and financial position, rather than on financial investment only.

Keywords: financial investment, provision, depreciation, estimated value, estimated cost, financial risks, net assets, discounted value, fair value, accounting policies

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