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






International Accounting

Debating points of accounting to reflect escrow account transactions by the developer organization

Vol. 24, Iss. 4, APRIL 2021

Received: 4 March 2021

Received in revised form: 22 March 2021

Accepted: 5 April 2021

Available online: 15 April 2021

Subject Heading: CONTROL AND AUDIT

JEL Classification: М41

Pages: 438–458


Margarita F. SAFONOVA Kuban State Agrarian University named after I.T. Trubilin (Kuban SAU), Krasnodar, Russian Federation


Yuliya V. MARCHENKO Kuban State Agrarian University named after I.T. Trubilin (Kuban SAU), Krasnodar, Russian Federation

ORCID id: not available

Subject. This article discusses the issues of reflection of information on settlements with equity construction investors both on off-balance and balance sheet accounts of the developer.
Objectives. The article aims to determine the extent of the transition to project financing of housing construction using escrow accounts, explore options for accounting for incoming funds of equity construction investors, and develop a methodology that helps avoid tampering with the balance sheet total of developers.
Methods. For the study, we used induction, deduction, analysis, synthesis, and the calculation and graphic, monographic, and accounting and analytical methods.
Results. In some cases, the findings have revealed significant discrepancies the way funds available to escrow accounts get accounted for. An analysis of the causes of these deviations confirms the need to develop an off-balance sheet accounting methodology.
Conclusions and Relevance. The updated methodology is structured in such a way that the investors' funds are accounted by the developer in one account, another account is used for settlements with the equity construction investors, and the funds placed by the bank on the escrow accounts are reflected in the off-balance sheet of the developer, without misrepresenting the balance sheet total. The results can be used in the theory and practice of construction companies in the process of accounting and reporting by business entities of various forms of ownership, as well as for further scientific developments and practical applications.

Keywords: developer, equity holder, escrow accounts, off-balance accounting, target financing funds, depositor, beneficiary


  1. Fetisov A.Yu., Serebryakova T.Yu. [Techniques and methods of management of tax risks at the enterprise specializing in the sphere of housing construction]. Vestnik Rossiiskogo universiteta kooperatsii = Vestnik of Russian University of Cooperation, 2018, no. 1, pp. 80–83. URL: Link (In Russ.)
  2. Ilysheva N.N., Bel'skikh V.B. [Accounting model as a management tool for construction organizations: International and Russian practices]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2010, vol. 13, iss. 8, pp. 7–16. URL: Link (In Russ.)
  3. Kozmenkova S.V., Antsiferova A.I. [Distinctive features and prospects of development of audit in the sphere of construction].Vestnik Nizhegorodskoi gosudarstvennoi sel'skokhozyaistvennoi akademii = Vestnik of Nizhny Novgorod State Agricultural Academy, 2015, no. 3, pp. 58–64. URL: Link (In Russ.)
  4. Zhukov A.L., Kisilevich T.I. [An audit of the organizations under contracts of a joint construction]. Ekonomika i predprinimatel'stvo = Journal of Economy and Entrepreneurship, 2015, no. 6-3, pp. 419–422. (In Russ.)
  5. Mel'nik M.V. [Transparency of information about industrial capital in the organization's reporting]. Innovatsionnoe razvitie ekonomiki = Innovative Development of Economy, 2017, no. 1, pp. 111–118. URL: Link (In Russ.)
  6. Karpova T.P., Sharafutina S.F. [Features of reflection of escrow accounts in the accounting of developers]. Bukhgalterskii uchet i nalogooblozhenie v byudzhetnykh organizatsiyakh, 2019, no. 11, pp. 60–70. (In Russ.)
  7. Safonova M.F., Kalinina I.N. [Accounting policies as a critical source information for the audit of accounting (financial) statements of construction organizations]. Estestvenno-gumanitarnye issledovaniya = Natural Humanitarian Studies, 2020, no. 30, pp. 248–252. URL: Link (In Russ.)
  8. Goponinko A.O., Makarenko S.A. [Methodological recommendations for the implementation of control procedures of payments to contractors at construction organizations]. Innovatsionnoe razvitie ekonomiki = Innovative Development of Economy, 2018, no. 5, pp. 256–264. (In Russ.)
  9. Makarenko S.A., Grabovets O.V. [Method of internal control of receivables and payables]. Audit i finansovyi analiz = Audit and Financial Analysis, 2017, no. 3-4, pp. 169–173. URL: Link (In Russ.)

View all articles of issue


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

Journal current issue

Vol. 24, Iss. 4
April 2021