INVENTORY, ACCOUNTS AND DOUBLE ENTRY AS METHODS OF IMPACT ON THE FINANCIAL RESULTS ACCOUNTING OF CONSTRUCTION COMPANIES

Abstract

The theoretical bases of inventory are investigated. The principles, functions and tasks of inventory are stated. The economic essence of inventory is identified. It is established that inventory is a method of accounting, which helps to determine the actual availability, condition and valuation of property and financial liabilities of the organization. It is a way of checking that the actual availability of assets and financial liabilities is consistent with accounting data. The cases of its carrying out stipulated in the legislation are outlined. The mechanism of its holding is declared procedurally. The tasks of the permanent and working inventory commission are formed. The procedure for displaying the inventory results is described. The impact of inventory results on the financial results of construction enterprises is thoroughly analyzed. At the same time the accounting for excesses and deficiencies identified as a result of inventory is highlighted. It is established that the inventory is provided by the owner or the authorized body, which manages the construction company in accordance with the legislation and constituent documents, creates the necessary conditions for its implementation, determines the objects, periodicity and timeframe, except when an inventory is required. The historical aspect of the occurrence of double entry is investigated. Accounts and double entry as elements of the method of accounting developed simultaneously with the formation of socio-economic relations, the evolution of society, the globalization of the world economy. Schematic representation of the financial results ofconstruction companies by closing the income and expense accounts  is given. Depending on the status of the construction company, the overall accounting methodology differs and the display of transactions on the accounts has its own characteristics. The impact of a double entry on the financial results of construction companies with the cooperation of the general contractor and the subcontractor shown on the example, is formed in the article. Depending on the status of the construction company, the general accounting methodology will differ and the display of transactions on the accounts has its own characteristics. The balance sheet as equally important element of the accounting method will be the object of further research.