EVOLUTION OF THE CHART OF ACCOUNTS RUSSIAN PRACTICE: ACCOUNTING AND MANAGEMENT ASPECTS
E. A. Sharovatova
Rostov State University of Economics (RINH), Rostov-on-Don, Russia
e-mail: esharovatova@mail.ru
Abstract. The uniformity of approaches on the part of owners and investors to the strategic assessment of the results of the activities of economic entities obliges legislators to set certain requirements for the tools for the formation of accounting and reporting information in such entities. Such tools rightfully include the accounting chart of accounts, which allows you to transform analytical information about economic activity into accounting statements. At the same time, the chart of accounts is designed to provide not only the management strategy of the entity, but also the tactics of management actions. Nevertheless, on the part of legislators, such an orientation of the chart of accounts is not provided with any recommendations today.
In this regard, the article aims to analyze the evolution of national accounting plans of accounts in relation to cost accounting in order to identify current problems that hinder the use of the chart of accounts for the needs of management activities. The theoretical and methodological basis of the research in the article is the legally approved account plans in various historical periods. Using such general scientific methods as analysis and synthesis, as well as dialectical and logical approaches to the structure of the charts of accounts, the article substantiates the need to expand the resource of the modern chart of accounts to strengthen the management capabilities of the business.
The article summarizes the dynamics of changes in the cost accounting accounts in the account plans and the reasons for such changes. It was concluded that the state’s desire to unify cost information and calculation technology led to a uniform orientation of economic entities to use those accounts that were legally recommended in the plans of accounts. The consequences of this approach are analyzed, which consist in limiting the ability to determine the impact of business participants on the profit of an economic entity. Despite the updated chart of accounts in a market economy, the work focuses on its new capabilities for cost management. In this regard, the possibility of using the current chart of accounts to go beyond the historically established methods of cost accounting and develop management accounting techniques is justified. As recommendations, a component of the working chart of accounts for managerial cost accounting is proposed, which can be used in applied business administration as an application to accounting policy.
Key words: chart of accounts, methodology, accounting, management accounting, costs, management.
Cite as: Sharovatova, E. A. (2022) [Evolution of the chart of accounts Russian practice: accounting and management aspects]. Intellekt. Innovacii. Investicii [Intellect. Innovations. Investments]. Vol. 6, pp. 40–52, https://doi.org/10.25198/2077-7175-2022-6-40.
