Accounting estimates as the most important factor in the formation of the book value of accounting objects

Abstract

Subject. This article discusses the category of Accounting Estimates, which is important from the methodological and practical points of view, including the upcoming transition to Federal Accounting Standard 6/2020 (FAS 6/2020) – Property, Plant and Equipment. Objectives. The article aims to analyze the essence of the category of Accounting Estimates, including from the standpoint of the transformation of these estimates and their impact on the book value of fixed assets accounted for in accordance with FAS 6/2020. Methods. For the study, we used the methods of systems analysis and generalization. Results. Using some cases of transactions in fixed assets, the article shows that before the transition to FAS 6/2020, it is necessary to analyze which accounting estimates may get changed and how these changes will affect the dynamics of depreciation elements and financial statements indicators. Conclusions and Relevance. One of the reasons for the likelihood of practical difficulties associated with the justification and correct reflection of accounting estimates is the lack of knowledge of regulatory documents and international accounting practices. Therefore, it is advisable to prepare methodological recommendations on the reflection of changes in accounting estimates, given the upcoming transition to new accounting standards, and expand the practice of effective implementation of IFRS. The results of the study are intended for scientific and practical activities and training of specialists in the field of accounting, as well as the development of proposals for improving the Russian accounting methodology, focused on convergence with current international practice.