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ИД «Финансы и кредит»






International Accounting

Homeowner associations: the challenging issues of accounting, internal controls and mechanisms for addressing them

Vol. 18, Iss. 31, AUGUST 2015

Received: 10 June 2015

Accepted: 14 September 2015

Available online: 22 October 2015


JEL Classification: 

Pages: 32-46

Usacheva O.V. Siberian University of Consumer Cooperation, Novosibirsk, Russian Federation

Chistyakova O.A. Siberian University of Consumer Cooperation, Novosibirsk, Russian Federation

Importance The article presents findings of the research into national standards and rules governing accounting practices in homeowner associations and internal control methods as an integral tool to improve the performance of any homeowner association.
     Objectives The research identifies the challenging issues in accounting methods and internal controls in homeowner associations.
     Methods Based on a critical comparative analysis, we study various aspects of accounting and internal controls, and propose our own methods to keep accounting records of payments in homeowner associations. The methods rely upon analytical accounting of payments and settlements with consumers of services. We also describe our own approach to internal control.
Having analyzed the legal and accounting legislative framework, we proved that special-purpose finance should be accounted for in detail, with consumer of services divided into members of the homeowner association and those who are not members. We examined scientific and applied researches of national scholars and summarized the existing approaches to setting up internal controls and proposed internal control methods specific to homeowner association.
     Conclusions and Relevance If practiced, the proposed internal control and accounting will allow increasing the quality of accounting procedures and transparency of information presented, thus satisfying needs of external and internal users.

Keywords: housing and utilities, homeowner association, accounting, internal control, audit committee


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