What is normative accounting regulation

The most Important task of our country at the present stage can be considered normative regulation of accounting. Accounting is a source of information for external users, including tax and other state bodies. Therefore, normative regulation of accounting is extremely important in modern conditions for making right decisions. It all depends on how quickly the government will respond to changes in the economic environment, developing new forms and methods that form the basis of this concept.

General rules and standards which must be applied by all organizations engaged in economic activities, represents the legal regulation of accounting. Existing problems, gaps and contradictions in the regulation of accounting significantly complicate the professional activities of all employees of the accounting Department of various companies and organizations lead to misunderstandings and disputes with auditors and regulatory authorities. However, without exception, all facts of economic activities of the firm or enterprise, even if the legal regulation is, any problems should be reflected in accounting documents.

The Normative regulation of accounting in Russia is represented by the following hierarchy:

1. Legislative level of regulation.

2. Regulatory levels.

3. Methodical level.

4. Organizational level.

As already noted, currently, our country has formed a four-level system of regulatory accounting.

The name of the first level of regulation speaks for itself: this includes various legislative acts, including the Constitution, Federal laws and codes, regulations and ordinances, and many other normative documents, which are binding on the entire territory of the country. The greatest role, of course, is playing the law “On accounting", which is a kind of Foundation for accounting in organizations. Now it is the law No. 129-FZ, adopted in 1996. While 2013 is starting to act advanced accounting law – №402-FZ.

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The Next level is represented by the Provisions on accounting. At this stage approved and are available for 24 positions. Some of them are refined and change over time and the change in the economic situation.

The Meaning of PBU is that they reveal aspects of accounting, as well as its variability for individual objects. However, the PBU are General in nature, without revealing specific mechanisms. That is why regulatory accounting is enabled, the third level, called methodical. This level presents different guidelines for making any business transactions, for example, by holding inventory.

In addition, an important role at this level assign a special document – chart of accounts. The principle of the dual system is specified in paired document – instructions for its use. This level includes documents such as instructions for completing reporting forms, various guidelines for the measurement of financial liabilities and the inventory of the property, recommendations on accounting costs, which are included in costs, the financial results of the enterprise of public catering and so on.

It Should be noted that the normative regulation of accounting often involves the variability of the reflection of those or other operations. Therefore, based on the documents of the above levels of an organization constitute its accounting policy, which refers to the fourth level of regulation. The fourth level is the regulation of organizational-administrative documentation forming the accounting policy of a specific organization. These documents are developed by consulting firms on behalf of the organization or directly by the organization itself. The documents include orders, work instructions, instructions, instructions for specific operations or objects.

In the framework of the accounting policies company has the right to choose the methods of accounting the most optimal option for themselves, and to develop, on the basis of a common chart of accounts that would take into account the specifics of activity of the enterprise. You can also develop your own primary documents that meet certain requirements.

Thus, the regulation of accounting in our country is centralized and provides a variety of methods of recording transactions.