+7 495 989 9610, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»






International Accounting

Issues of interpreting and reflecting the expenses of organizations in financial accounting

Vol. 24, Iss. 1, JANUARY 2021

Received: 3 December 2020

Received in revised form: 11 December 2020

Accepted: 21 December 2020

Available online: 14 January 2021


JEL Classification: М41

Pages: 48–71


Tat'yana Yu. DRUZHILOVSKAYA National Research Lobachevsky State University of Nizhny Novgorod (UNN), Nizhny Novgorod, Russian Federation


Subject. This article examines the problems associated with the interpretation of the concept of Expenses and their reflection by organizations in financial accounting.
Objectives. The article aims to identify and systematize the problems related to the interpretation of the concept of Expenses and their reflection by organizations in financial accounting.
Methods. For the study, I used the methods of critical analysis, synthesis, comparison, observation, and the analog approach.
Results. The article highlights the controversial aspects of the interpretation of the economic content of the concept of Expenses in the system of Russian Accounting Standards (RAS) and scientific literature. It compares different interpretations of the economic content of this concept in the systems of Russian and International Standards of Accounting and Reporting. The article also systematizes the impact of business types on recognition and reflection of the expenses of organizations in financial accounting.
Conclusions and Relevance. There are contradictions in the interpretation of the economic content of the concept of Expenses in the system of Russian Accounting Standards. There is no unity in the interpretation of Expenses in the scientific literature on accounting. Despite the closeness of the definitions of Expenses in RAS and IFRS systems, there are significant differences in regulations relating to the recognition and reflection of expenses in financial accounting. The results presented have both applied and theoretical applications in the field of financial accounting.

Keywords: expenses, profit, loss, other comprehensive income


  1. Sheshukova T.G., Lenina V.V., Vorozhtsova K.A. [Activity-Based Costing for management costs distribution at industrial enterprise]. Vestnik Permskogo universiteta. Seriya: Ekonomika = Perm University Herald. Economy, 2014, iss. 1, pp. 64–69. URL: Link (In Russ.)
  2. Bobryshev A.N., Fes'kova M.V. [Improvement of cost calculation in wine and brandy production]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2014, vol. 17, iss. 10, pp. 22–27. URL: Link (In Russ.)
  3. Kolesnik N.F., Osipov V.I. [Controlling the consumption of resources in the system of regulatory cost accounting]. Vestnik Nizhegorodskogo universiteta im. N.I. Lobachevskogo = Vestnik of Lobachevsky University of Nizhny Novgorod, 2013, iss. 1-1, pp. 263–268. URL: Link (In Russ.)
  4. Erofeeva S.S. [Analysis of costs by cost element by example LLC "LVZ "Saranskiy"]. Vektor ekonomiki, 2018, no. 2. (In Russ.) URL: Link
  5. Pivkin S.A. [Indirect costs and expenditures of funds of the production company]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2011, vol. 10, iss. 9, pp. 34–41. URL: Link (In Russ.)
  6. Lermontov Yu.M. [The procedure for accounting for material costs]. Vse dlya bukhgaltera = All for Accountant, 2010, no. 10, pp. 10–16. URL: Link (In Russ.)
  7. Derbicheva A.A., Gubernatorova N.N. [Main directions of optimization of the expenses listed in the cost structure and system of calculation of the cost in the organization]. Kaluzhskii ekonomicheskii vestnik, 2017, no. 3, pp. 18–23. (In Russ.)
  8. Schastlivenko E.V., Litvin V.A. [Assessing a company's costs based on variable costs (direct costing)]. Belgorodskii ekonomicheskii vestnik, 2017, no. 1, pp. 177–182. (In Russ.)
  9. Klimova M.A. [Representation expenses: expenses for business meetings and negotiations]. Nalogovaya politika i praktika = Tax Policy and Practice, 2019, no. 2, pp. 70–74. (In Russ.)
  10. Popov A.V. [Formation of costs for various environmental protection measures in the aggregate of costs of business entities]. Tendentsii razvitiya nauki i obrazovaniya, 2018, no. 42-2, pp. 31–34. (In Russ.) URL: Link
  11. Klychova G.S., Khairullin R.R. [Organizational and economic essence of the costs, expenses and expenses of the enterprise]. Bukhgalterskii uchet v byudzhetnykh i nekommercheskikh organizatsiyakh = Accounting in Budgetary and Non-Profit Organizations, 2016, no. 13, pp. 31–36. URL: Link (In Russ.)
  12. Druzhilovskaya T.Yu. [Characteristics of ''expenses'' and ''costs'' for financial accounting]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2015, vol. 18, iss. 2, pp. 31–45. URL: Link (In Russ.)
  13. Tkach A.S. [The problem of differentiating the concepts of "costs", "expenditures" and "expenses"]. Novaya nauka: Ot idei k rezul'tatu, 2017, no. 1-1, pp. 155–157. (In Russ.)
  14. Sytnik O.E., Ledneva Yu.A. [The economic essence of the categories "costs", "expenditures" and "expenses", and their industry characteristics]. Vestnik Severo-Kavkazskogo gosudarstvennogo tekhnicheskogo universiteta, 2009, no. 4, pp. 241–245. URL: Link (In Russ.)
  15. Mukhina E.R. [Costs, expenditures, expenses: classification and relationship]. Vestnik sovremennoi nauki, 2016, no. 1-1, pp. 95–97. (In Russ.)
  16. D'yachenko O.G., Borodina T.A. [Conceptual apparatus "costs", "charges", "expenditures"]. Vestnik Kras GAU = Bulletin of KrasGAU, 2010, no. 11, pp. 16–23. URL: Link (In Russ.)
  17. Demchenko D.N. [Analysis of the concepts of "costs", "expenditures", "expenses"]. Dostizheniya vuzovskoi nauki, 2015, no. 16, pp. 119–122. URL: Link (In Russ.)
  18. Zambrzhitskaya E.S., Kalinina T.V., Shchepot'eva E.Yu. [The concepts of "costs", "expenditures", and "expenses": similarities and differences]. Ekonomika i politika = Economics and Politics, 2014, no. 2, pp. 58–63. (In Russ.)
  19. Ponokova D.I., Khuranova D.R. [Costs, expenditures and expenses as economic and accounting categories]. Vestnik nauchnykh konferentsii = Bulletin of Scientific Conferences, 2017, no. 10-1, pp. 94–95. URL: Link (In Russ.)
  20. Biryukova O.A., Serebryakova T.Yu. [Cost accounting (expenses) in building organizations in the light of IFRS 15 "Revenue from Contracts with Customers" and PBU 2/2008 "Accounting for Construction Contracts"]. Bukhuchet v stroitel'nykh organizatsiyakh = Accounting in Construction Organizations, 2019, no. 1, pp. 13–24. (In Russ.)
  21. Druzhilovskaya T.Yu., Druzhilovskaya E.S. [IFRS 15: New requirements and their correlation with the Russian Accounting Standards]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2015, vol. 18, iss. 15, pp. 22–36. URL: Link (In Russ.)
  22. Lugovskii D.V., Kadremetova K.V. [Development of accounting methods for costs and expenses and disclosure of information about them in financial statements]. Ekonomika ustoichivogo razvitiya = Economics of Sustainable Development, 2018, no. 4, pp. 362–368. (In Russ.)
  23. Druzhilovskaya T.Yu. [Reports on the financial position and performance of organizations in the light of modern requirements of Russian and international standards]. Vestnik Nizhegorodskogo universiteta im. N.I. Lobachevskogo = Vestnik of Lobachevsky University of Nizhny Novgorod, 2011, no. 3-1, pp. 222–229. URL: Link (In Russ.)
  24. Alborov R.A., Khoruzhii L.I. [Organization of cost accounting and production in dairy and beef cattle breeding according to the ''production – output – output-production'' management model]. Bukhuchet v sel'skom khozyaistve = Accounting in Agriculture, 2019, no. 5, pp. 12–21. (In Russ.)
  25. Sorokina V.V., Shaparina S.V. [Cost accounting and calculation of production costs under RAS and IFRS: The OAO AvtoVAZ case]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2017, vol. 20, iss. 19, pp. 1134–1146. (In Russ.) URL: Link
  26. Mizikovsky I.E., Druzhilovskaya T.Y., Druzhilovskaya E.S., Garina E.P., Romanovskaya E.V. Accounting for Costs and Expenses: Problems of Theory and Practice. In: Popkova E. (eds) The Impact of Information on Modern Humans. HOSMC 2017. Advances in Intelligent Systems and Computing. Springer, Cham, 2018, vol. 622, pp. 152–162. URL: Link
  27. Kostyukova E.I., Vakhrushina M.A., Shirobokov V.G., Feskova M.V., Neshchadimova T.A. Improvement Cost Management System for Management Accounting. Research Journal of Pharmaceutical, Biological and Chemical Sciences, 2018, vol. 9, no. 2, pp. 775–779. URL: Link/[94].pdf
  28. Kulikova L.I., Sokolov A.Y., Ivanovskaya A.V., Akhmedzyanova F.N. Lowest Value Principle Implementation in Inventory Measurement of Financial Statements of the Enterprises. Mediterranean Journal of Social Sciences, 2015, vol. 6, no. 1S3, pp. 406–410. URL: Link
  29. Klychova G.S., Zakirova A.R., Zakirov Z.R., Valieva G.R. Management Aspects of Production Cost Accounting in Horse Breeding. Asian Social Science, 2015, vol. 11, no. 11, pp. 308–312. URL: Link
  30. Gerasimova L.N. Construction: Innovative Approach to Cost Accounting. International Journal of Engineering and Technology (UAE), 2018, vol. 7, no. 4, pp. 195–198. URL: Link
  31. Umavova K.M., Ibragimova A.Kh. [Difference between the concepts of costs and expenses]. Nauchnoe obozrenie. Seriya 1. Ekonomika i pravo = Scientific Review. Series 1. Economics and Law, 2016, no. 2, pp. 64–68. (In Russ.)

View all articles of issue


ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

Journal current issue

Vol. 25, Iss. 5
May 2022