International Accounting
 

Analyzing the theoretical basis of the consolidated financial statements concept

Vol. 21, Iss. 11, NOVEMBER 2018

Received: 29 August 2016

Received in revised form: 13 September 2016

Accepted: 27 September 2016

Available online: 16 November 2018

Subject Heading: INTERNATIONAL STANDARDS OF ACCOUNTING AND REPORTING

JEL Classification: G34

Pages: 1314–1328

https://doi.org/10.24891/ia.21.11.1314

Plotnikov V.S. Novosibirsk State University of Economics and Management (NSUEM), Novosibirsk, Russian Federation
vcplotnikov@yandex.ru

https://orcid.org/0000-0001-7214-1847

Plotnikova O.V. Novosibirsk State University of Economics and Management (NSUEM), Novosibirsk, Russian Federation
vcplotnikov@yandex.ru

https://orcid.org/0000-0002-2384-6418

Subject The article reviews the general economic hypotheses that define the conceptual framework for consolidated financial statements.
Objectives The study aims to analyze the use of general economic theories to justify the concept of consolidated financial statements.
Methods The analysis rests on the economic theory of ownership, theory of business entity, the concept of control of investor over the investee.
Results The new version of international standard on consolidated financial statements can be regarded as the final stage of work on the concept of consolidated financial statements. International standards do not provide for an analysis of theoretical foundations of any concept, while they determine the content of the concepts. In the analyzed standard we offer a new definition of control for all types of companies. We prove the need for transformation of qualitative characteristics of the Conceptual Framework for Financial Reporting into the structure of the concept of consolidated reporting, taking into account the specifics of operations of consolidated Group of companies.
Conclusions and Relevance The analysis of general economic theories allowed us to form the conceptual framework for consolidated financial statements. The functional division of property rights enables to analyze changes in such a complex area as relationships between owners, and to determine the level of control of each investor.

Keywords: economic theory, property right, ownership, consolidated financial statements, investment

References:

  1. Plotnikov V.S., Shestakova V.V. Finansovyi i upravlencheskii uchet v kholdingakh [Financial and management accounting in holding companies]. Moscow, FBK-PRESS Publ., 2004, 336 p.
  2. Baetge J., Kirsch H.-J., Thiele S. Balansovedenie [Bilanzen]. Moscow, Bukhgalterskii uchet Publ., 2000, 454 p.
  3. Pankov V.V. [An institutional approach and the accounting theory]. Bukhgalterskii uchet = Accounting, 2008, no. 1, pp. 51–55. (In Russ.)
  4. Kondrakov N.P. Uchetnaya politika organizatsii 2013 v tselyakh bukhgalterskogo finansovogo, upravlencheskogo i nalogovogo ucheta [Accounting policy of organizations 2013 for the purpose of financial, managerial and tax accounting]. Moscow, Prospekt Publ., 2013, 287 p.
  5. Nechitailo A.I. Regulyativy finansovykh rezul'tatov v sisteme bukhgalterskogo ucheta [Regulatives for financial results in the accounting system]. St. Petersburg, Russian State Hydrometeorological University Publ., 2007, 167 p.
  6. Shneidman L.Z. [Transition to IFRS: Status and next steps]. Finansy = Finance, 2013, no. 1, pp. 6–10. (In Russ.)
  7. Shneidman L.Z. [New accounting law: Legal basis for accounting regulation and IFRS implementation in the country]. Bukhgalterskii uchet = Accounting, 2012, no. 2, pp. 6–10. (In Russ.)
  8. Shneidman L.Z. [Legislative regulation of accounting and auditing]. Audit, 2006, no. 3, pp. 18–20. (In Russ.)
  9. Burlakova O.V. Sovremennye metodologicheskie problemy konsolidirovannogo ucheta [Modern methodological problems of consolidated accounting]. Moscow, Bukhgalterskii uchet Publ., 2008, 368 p.
  10. Gorshkova N.V. Formirovanie konsolidirovannoi finansovoi otchetnosti v agroprodovol'stvennykh kholdingakh: teoriya, metodologiya, praktika [Preparation of consolidated financial statements in agricultural holdings: Theory, methodology, practice]. Volgograd, VolSU Publ., 2012, 362 p.
  11. Kovalev V.V. [Goodwill as an accounting category]. Bukhgalterskii uchet = Accounting, 2005, no. 8, pp. 52–59. (In Russ.)
  12. Plotnikov V.S., Plotnikova O.V. [A concept of financial statements preparation: The concept of consolidated financial statements and international concept of integrated reporting]. Auditor, 2014, no. 10, pp. 42–50. (In Russ.)
  13. Coase R.H. The Nature of the Firm. Economica, New Series, 1937, vol. 4, iss. 16, pp. 1386–405.
  14. Alchian A.A. Some Economics of Property Rights. Il Politico, 1965, vol. 30, iss. 40, pp. 816–829.
  15. Williamson O.E. Strategizing, Economizing and Economic Organization. Strategic Management Journal, 1991, no. 12, pp. 9–17.
  16. Williamson O.E. The Evolving Science of Organization. Journal of Institutional and Theoretical Economics, 1993, vol. 149, no. 1, pp. 36–63.
  17. Hendriksen E.S., Van Breda M.F. Teoriya bukhgalterskogo ucheta [Accounting Theory]. Moscow, Finansy i statistika Publ., 1997, 576 p.
  18. Meigs W.B., Johnson C.E., Keller T.F. Advanced Accounting. New York, Mc Graw-Hill, 1966, 941 p.

View all articles of issue

 

ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

Journal current issue

Vol. 21, Iss. 12
December 2018

Archive