EQUITY OF THE ENTERPRISE: ECONOMIC ESSENCE, ACCOUNTING PROBLEMS AND WAYS TO IMPROVE IT

Abstract

The article is devoted to topical issues of equity accounting. The article analyzed and systematized the opinions of economists on the interpretation of the term "equity" and summarized this concept. As a result of the study, it was proposed to put it in the following edition: equity is the amount of funds of the enterprise that was received by it as a result of activities either in the form of contributions of owners (participants) or as a reinvestment of net profit. Since the formation and use of equity components is influenced by the specifics of the activities of business entities, therefore, the article investigates the possibility of displaying this feature on accounting accounts. The article also discusses the procedure for displaying information about equity on accounting accounts and provides recommendations on the use of analytical accounts, in particular, the introduction of an additional analytical account 426 "Special Purpose Trust Fund". The use of this sub-account will provide the possibility of analyzing and controlling each source of additional capital, obtaining step-by-step information on its movement in equity. For annual deductions from the profit to the account 43 "Reserve capital" it is proposed to develop a template "Typical transaction-deduction". The implementation of these proposals will ensure the receipt of timely, complete, reliable and up-to-date information on the components of equity, which will be used in the preparation of the financial statements of the enterprise. The article also examines the procedure for displaying equity in various forms of financial statements of the enterprise and considers the forms of internal reports on accounting of components of the company's equity. Such forms of internal reporting as "Report on the movement of additional capital", "Report on trust funds of the enterprise" are distinguished. The use of the proposed forms of internal reporting will make it possible to form accounting and analytical support for control and analysis of equity components. It is proposed that in order to improve accounting, increase the efficiency of the enterprise, determine the procedure and conditions for the formation and change of components of equity, regulate them in the Order on Accounting Policy.