OVERVIEW OF THE PRINCIPLES OF THE MODERN ACCOUNTING SYSTEM AND FINANCIAL REPORTING IN UKRAINE

Abstract

The article examines and defines the areas of application of the accounting and financial reporting principles that are widespread in the accounting practice of Ukrainian enterprises. The authors have studied their classification according to various characteristics, the emergence of the need and possibilities of their approximation, and the harmonisation of national standards. We analyse the appropriateness of using the principles for types of the accounting necessary to reflect the facts of economic functioning, observed phenomena, and processes. The article considers the peculiarities of the functioning of the modern accounting system and financial reporting of Ukraine according to the principles of autonomy, continuity, and matching of income and expenses and examples of their use in modern enterprises of Ukraine. Per the principles of the predominance of substance over form and a single monetary measure, the historical (actual) value is considered a base indicator. The principles of periodicity, consistency, and full disclosure are a prerequisite for the emergence of the principle of prudence (when receiving doubtful debts). Therefore, when evaluating the information provided in the reports, one should not overstate assets and income or understate expenses and liabilities. The principle of balance between monetary and non-monetary indicators indicates the need to use a complex of different indicators when displaying the accounting object of separate levels of management and various forms of reporting, thus forming an array of relevant information. The study’s results consider principles as the core initial provisions of accounting, the basic concept that is the basis of assessment and recognition in accounting processes, and disclosure of the economic activity results in financial statements. The principle of timeliness should be considered the main accounting principle. We propose to add the principles of representativeness, impartiality, and comparability to the existing principles. Keywords: accounting, business operations, accounting system principles, accounting system, financial reporting.