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Abstract
The concept of fixed assets is revealed in this article. The analysis of the depreciation degree of the fixed assets was carried out using the economic activity types in the period from 2011 to 2015. The existence and structure of fixed assets of commercial and non-commercial organizations using kinds of economic activity in 2015 are considered. The coefficients of renewal and retirement of fixed assets in bodies by means of the economic activity types are analyzed. Eight groups of typical mistakes are distinguished which accountants of industrial enterprises when accounting for fixed assets make and described in details. The emphasized problems are classified regarding audit criteria for the financial statements on a regular reflection of the condition and movement of fixed assets in the enterprise's business reports. A program of their internal control has been developed as a single possible solution of distortions in accounting indicators for fixed assets. The article also examines the valuation and revaluation of fixed assets in accounting. The main mistakes, violations, and facts of fraud are disclosed which made in the conduct of both assessment and reassessment of fixed assets, affecting the reliability of the indicators of financial statements. The analysis of additional signs of the fixed assets state is given characterizing the legality of revaluation of this type of assets.
Keywords: fixed assets; internal control; valuation; revaluation; expiry ratio; wear coefficient.
JEL Classification: G10; G12.
Introduction
In modern conditions, one of the leading factors of the sustainable economic development is the efficient use of the organization's capital, and the most critical resources are fixed assets. The transition from the planned economy to the market economy has also caused a transformation in accounting which oriented to the state's monopoly ownership of the production means in Russia. In the context of inflation, the question of the reliability of the financial statements of an organization and the reflection in it of a real valuation of a property is acute, for which they must periodically revalue their assets to their market value. Fixed assets are one of the most critical components of the organization's property, many times participating in the process of economic activity and transferring the used value to production parts (Borisova 2015).
1. Methods
The theoretical and methodological basis...