ACCOUNTING AND REPORTING OF EQUITY: PRACTICAL COMPONENT

Abstract

The article examines practical aspects of accounting and financial reporting of equity capital of enterprises. The purpose of the work is to study practical aspects of regulatory, documentary and methodological support for accounting and reflection in reporting of information about equity capital and the formation of ways to solve them on its basis. Accounting ensures the formation of high-quality and reliable information about equity and its further disclosure in the financial statements of the enterprise. It has been established that a feature of equity accounting is the absence of a separate national and international standard that would regulate the procedure for its maintenance. It is clear that such information is primarily a preliminary source for making decisions on changing the capital structure, paying dividends, using the profit of attracting or making investments, and as such should be characterized by: accessibility, low cost, clarity and sufficiency. Further actions may be accompanied by obtaining additional accounting and analytical information, involving consulting, auditing or expert companies. This will help protect the property of both owners and potential investors, reduce their business risks, and avoid tax penalties. The existence of various organizational and legal forms of business and, accordingly, regulatory acts on their creation, activity, accounting, financial reporting and taxation leads to the emergence of practical situations in which business transactions with equity capital are not properly reflected in the accounting and reporting system, leading to the emergence of practical problems regarding: the reliability of the assessment and documentation of non-monetary contributions of founders to the authorized capital; the contribution of shares to the authorized capital without the appropriate registration of its increase; the creation, use and accounting of the equity capital of private enterprises; ensuring the possibility of actual verification of the completeness of the formation of the authorized capital on the date of acquisition of the enterprise by new owners, etc.