Application of methodology: economic entities of the Republic of Belarus
Characteristics: the methodology is intended to optimize the accounting policies of organizations in the sector of valuation of fixed assets and depreciation methods. The main direction of work implies maximal approximation of book value of fixed assets to their fair value; effectiveness analysis of amortization policy aiming at an optimal amortization method from the perspective of improving competitiveness of products and organization profit.
Advantages in comparison to analogues
This methodology allows revealing deficiencies in accounting policies in the sector of valuation of fixed assets and calculation of depreciation expense. Owing to optimization of accounting policies, organizations can improve their profitability and competitiveness of products (goods and services). Advantages of the methodology offered also include its academic novelty, simplicity and transparence.
Economic effectiveness:
- Reduction of production cost;
- Improvement of competitiveness of domestic manufacturers’ products
- Increase of organization productivity
- Accelerated upgrade of the equipment installed at an organization
Level of preparedness: optimization methodology of accounting policies in the sector of valuation of fixed assets and depreciation methods is formed as a result of research work within the frames of the grant of Belarusian Republican Foundation for Fundamental Research, considered in the monographs of the Department and research articles and ready for practical application.
Commercial proposal: to accountant services of enterprises based on various forms of ownership willing to get services on correction and optimization of accounting policies in rder to calculate the fair value of fixed assets and increase of effectiveness of amortization policy.
Victoria KOVALCHUK
Head of Economic Informatics, Accounting, and Commerce Department
Candidate of economics, Docent
phone, fax +375 232 57-80-08
e-mail: buchchair@gsu.by, http://economics.gsu.by/?page_id=26966