CONVERGENCE OF IFRS, RAS AND TAX ACCOUNTING OF RESERVES FOR DOUBTFUL DEBTS

Abstract

IFRS (International Financial Reporting Standards), RAS (Russian Accounting Stadnards) and tax accounting apply different approaches to the assessment of reserves for doubtful debts, what causes the complexity of the calculations and complexity of multi-aspect accounting. However, different approaches to assessing reserves for doubtful debts do not exclude the possibility of finding common ground. This predetermined the subject of this study: the convergence of IFRS, RAS and tax accounting of reserves for doubtful debts; and led to the goal– the development of a system of assessment and accounting of reserves for doubtful debts on the basis of convergence of IFRS, RAS and tax accounting. The methodology of the work involves the search for common ground in the assessment of reserves for doubtful debts under IFRS,RAS and tax accounting and the development of a single model for their assessment and accounting on the basis of harmonization of international and Russian standards and norms. The initial decision to achieve this goal, on the basis of which the following results were obtained, was to establish, as a basic formula, a model for determining the difference between the transaction price without VAT and the current value of cash flows, which implies the use of discounting incorporated in IFRS. The application of the proposed methodology for assessing and approximating the accounting of reserves for doubtful debts will significantly simplify accounting and improve the system of control over deferred taxes that adversely affect the financial well-being of an enterprise.