This article is the third in the cycle of articles about the drawbacks of the International Financial Reporting Standards (IFRS). This cycle aims at exchanging opinions and discussing the possible ways to improve the IFRS.This article is the last in the cycle of articles about the drawbacks of IAS 2 “Inventories”. The first article focused on defining what inventory is, the second one discuses the problem of their valuation. In this paper the authors criticize the recommendations of IAS 2 “Inventories” about disclosing information about inventory in financial reporting.

Questions about economic security of the enterprise are becoming particularly relevant nowadays, due to the deterioration of external and international situation and as the result of the crisis in the economy. The general understanding of economic security is understood as the protection against external and internal threats. However, the economic analysis of the “threat” as a concept is not used yet, which does not allow us to give an objective assessment of the origin and manifestation of the threat. This article proposes an approach which allows us to identify the threat as a stage of risk development. The most important characteristic feature ofeconomic security is expressed in the indicators of the materiality threshold values of the economic activity. The comparison between the achieved development indicators and the threshold values will first of all allow to assess the activities of the enterprise, and secondly, to determine the safety limits within which the company should operate. The article stipulates the methods of determining indicators of the threshold values as well as the area of their application. Finally, an obligatory condition for the economic security analysis is considered to be the standardization of the rules of analysis, which will allow us to use the most effective techniques in the practice of enterprises.

Integrated reporting and integrated accounting are the categories recently introduced by professional communities which call for scientific research and systematization. How are they related to the accounting (financial) reporting, accounting itself, what is their position within the information system of organizations? The article justifies the necessity of introducing into accounting science such categories as “integrated accounting” and “integrated reporting” and shows the extent of interrelation between accounting and reporting and the newly introduced categories. The article also compares the theoretical definitions of the categories of accounting and reporting with the principles of integrated reporting published by the International Integrated Reporting Council and criticallyevaluated the provisions of integrated reporting as professional community see it. Finally, the conclusion is drawn of insufficient objectivity in criticizing financial reporting for the lack of information provided. The author questions the objectivity of integrated reporting based on the principles developed by the International Integrated Reporting Council. At the same time the author proves that integrated reporting as a result of integrated accounting has the right to live, but in this case it won’t be able to fully comply with the international principles developed by the International Integrated Reporting Council.

The article is devoted to the approaches to analyze the solvency of companies debtors. The system of indicators and ratios is proposed to analyze the financial position of companies debtors.The subject of credit analysis is closely related to the problems of effective management of the company. Thequality of credit analysis depends on how close the relationship between a company and its stakeholders is. Mutually beneficial relationships ensure the control over the quality of products and the pricing process. Building relationships with customers implies the achievement of an acceptable level of customer satisfaction and increases the efficiency of client base management. The key to the success of credit analysis is the initial grouping of companies debtors to identify those objects of analysis relationship which differ from the pattern. The method of analysis of creditworthiness of debtors is presented in two versions: full (integrated) and abridged (express diagnostics). The author proposes to use the complex of measures to control the status of accounts receivable. Managers of the company face the problem of formalizing the debtor analysis procedures, regulating the work with receivables, including the possibility of their adaptation to the internal and external business environment changes.

The article examines the concept of the amortized cost, which is the basis for the modern system of international reporting standards. This article develops the accounting procedure of an object with a complex irregular structure of payments, which is based on the concept of the amortized cost with the application of the effective interest-rate method. The procedure is applicable in the situation of the discrepancy between the time of payment (for bonds - coupons, for credit - interests, as well as the repayment of the principal of the loan or the face value of the bond)and the time of drawing up of the interim and the closing annual accounts reporting. The procedure is applicable for almost all the cash flows, including non-recurrent, which allows to use its algorithm for accounting purposes in accordance with IFRS for the debt financial instruments, leases and other situations. The proposed algorithm in its general form provides for the revaluation of the financial instruments in the framework of the accounting procedures in accordance with the concept of the amortized cost at any moment of their existence.

The implementation of a subsystem of tax accounting in the system of Russian economic accounting is still causing questions and misunderstanding regarding its practical application and expediency. The distinctions in the principles of grouping of income and expenses of the organization, their recognition in accounting and for the taxation purposes, in ways of assessment of the work in progress and finished goods and some other discrepancies have no economic justification. It should be noted that independently tax accounting is applied rather seldom while the methodology of its record-keeping is based on the accounting methodology practically everywhere. One of the arguments for the conducting of tax accounting as an independent subsystem is the big amount of distinctions in rules of formation of most indicators for accounting purposes and for the taxation purposes.

The current stage of management accounting development is characterized by the lack of balance between its theory and practical applications. One of the key features of this process is that management accounting theory along with its development in the context of the accounting theory and related science is not researched deep enough. The purpose of the article is to define the subject of the management accounting and its objects through the development of accounting theory. In the study the following research methods were used: analysis, synthesis, induction, deduction, comparison, generalization, and a system approach. The author studies the evolution of capital as a subject of accounting theory, considers a modern approach to capital as an object of integratedreporting, defines the subject of management accounting. The article proves that management accounting is a research direction of accounting theory as a science of higher level, provides the classification of management accounting objects based on the forms of capital and the way they are related to the state and changes in capital. This classification can be used to make charts of accounts for management accounting, based on the forms and transformations of capital in the system of double-entry or triple-entry bookkeeping.

This paper proves that accounting and financial reporting is one the main tools for effective economic decision-making and, therefore, for transparency of economic activity of a business entity. When generating accounting and financial reports it is necessary to follow three basic principles: fairness, completeness and neutrality of the information disclosed. Compilation of accounting and financial statements involve two stages: first, the preparation stage where special attention should be paid to the information component (accounting records, inventory take) to compile accounting and financial statements and second, the stage of the very generation of the accounting and financial statements. The objective of the latter stage is to follow all the obligatory accounting norms and regulations eliminating material misstatements.

The article describes the methods which external quality auditors could use to assess the quality of the system of internal auditing standards in audit companies. By setting the forms to execute the internal control of the system of internal auditing standards of the organization being audited, quality auditors should determine the procedures which are aimed at checking if the staff of the audit organization reviewed follow the professional requirements. The two main methods to get evidence that the employees of audit organizations are familiar with the text of internal standards are the following: review of acknowledgment sheets and questionnaires. In the process of studying the internal standards of auditing the audit team addresses the issues of completing the review check by the auditors. Quality auditors should pay special attention to the provisions which establish the principles and procedures of the review. Having summarized the methods of control of the internal auditing standards system in audit companies the authors conclude that the check of internal standards provisions by itself does not permit to make a clear judgment if the quality of work of auditors is high or low.

The article is dedicated to one of the most controversial and debated issues among persons who are engaged in auditing activities at the present stage - the assessment of audit risk while conducting the auditing of financial statements. In the field of auditing, risk can be viewed as the probability of admitting some wrong actions or the appearance of some inaccurate information that could influence the auditor’s opinion. The importance and timeliness of the study of this issue boils down to the fact that the omissions and errors in the financial statements will always be present due to the influence of various external and internal factors both on accounting itself and onthe preparation of financial statements. The auditor, in turn, has to assess the risk of failing to detect these mistakes and to develop certain procedures to reduce this risk to an acceptable low level. The article provides a description of the components of auditing risk, models of risk assessment and models for its calculation, assessment approaches; it also presents different methods of auditing risk assessment.

In the global economy, there are common patterns and trends, including problems and preferences in the labour market and in the area of educational services accordingly. In the light of growing competition and the increase of influence of international factors on the economy, the leading role in the innovational rise of states is played by a system of vocational education. Its purpose is to prepare highly skilled staff who are in-demand in the economy and who are capable of implementing the best ideas in scientific projects and business practices. The author considers business-analysis as the contemporary trend of higher professional economic education of the new generation. The innovative aspects of the master program for the business analysis which are forming the most important qualification characteristics of modern demanded professions of the financial analyst and business analyst are proved in the article. In this respect, the author justifies and reflects the main competitive advantages of theprofession of a business analyst, as well as an objective need for the formation of a professional standard which is “business analyst”.

The development of the accounting system is accompanied by an increase in the number of situations, when the facts of economic activities are reflected depending on judgments, especially on the criteria of materiality.The article considers two groups of materiality criteria, which are the result of the professional judgment of an accountant and are therefore necessary for the reflection of the facts of economic activity in the accounting system as well as the disclosure of the information about the financial condition and the financial results of the organization in accounting (financial) statements.Approximate approaches to the identification of criteria in various situations basing on the requirements of normative documents are proposed in the article.The necessity of applying analytical indicators as the criteria for the identification of significant changes in the financial position of the organization is justified, which creates an impact on the disclosure procedures in the accounting (financial) statements.Thorough and elaborate development of the combination of the materiality criteria in the accounting system will help to ensure the increased quality level of accounting information.