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Development of a mathematical apparatus for consolidated accounting

Vol. 20, Iss. 5, MARCH 2017

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Received: 11 October 2016

Received in revised form: 23 November 2016

Accepted: 7 December 2016

Available online: 15 March 2017


JEL Classification: C81, G34, M41

Pages: 258-280

Izhevskii V.L. Nosov Magnitogorsk State Technical University; Economist, Magnitogorsk, Russian Federation

Kononov V.N. Nosov Magnitogorsk State Technical University, Magnitogorsk, Russian Federation

Subject Effective functioning of any accounting system depends on the accuracy and clarity of the used algorithms and mathematical tools. The research focuses on the issue of formalization of consolidated accounting.
Objectives The study aims to formalize mathematical tools and supporting algorithms for consolidated accounting systems in groups of companies.
Methods The International Financial Reporting Standards basic provisions relating to groups and associations of companies are the methodological basis of the study. As well, we used algorithmic methods and the methods of mathematical modeling of economic systems and processes.
Results We present formalized mathematical techniques and supporting algorithms for consolidated accounting systems in groups of companies.
Conclusions and Relevance Consolidated accounting systems must be able to address the full range of tasks related to the management of the group of companies. Mathematical tools and supporting algorithms should be regarded as a recipe for successful implementing the consolidation procedures in practice. The results of this research can be applied when forming systems of consolidated financial and management accounting in the group of companies, as well as developing software for such systems.

Keywords: consolidated accounting, consolidation, mathematical techniques, consolidated reporting


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