1 Recognition of profit and losses (revenue recognition) is based on the principle of charges (accrual) and means their reflection in the account and the reporting at the time of obtaining the income (a loss incurring, but not at the time of realization. For example, sales are distinguished usually after the firm satisfied all essential conditions in order that goods (services were provided to the consumer and the income can be measured with sufficient degree of probability. Usually, such sufficient condition is delivery of goods (providing service) potrebitelyu.i Also reserves on doubtful debts are created at the time of definition of that payment on a debt is improbable, but not at the time of a non-payment dolga.ii
1 The principle of compliance (matching) of correlation demands correlation of the income and the expenses generating them on time. Respectively, expenses (prepaid expenses) generating the income in other reporting period are considered separately, also as expenses (deferred charges, accrued expenses) which will be incurred later, but already brought dokhodyiii, also the income expenses on which are not incurred yet, and the gained income which recognition is postponed (deferred income) will be suffered later (accrued income) and, at last.
1 The principle of full disclosure of information (full disclosure) demands disclosure of all essential information, including not belonging to this reporting period if the possession of this information significantly influences possible behavior of the user. This principle, on the one hand, demands disclosure of all extraordinary incidents taking place after the end of the registration period, but before publication (representation in official body, obtaining the conclusion the auditor of financial statements, and, on the other hand, demands disclosure of essential plans of management and other expected and other information which can be essential to the user.
1 Definition of a ratio of costs benefit (cost-benefit approach) demands correlation of costs for obtaining information with probable or valid usefulness of this information. It is natural that precisely to define usefulness of this information extremely difficult and costs of its receiving it is not always possible precisely opredelit.item not less this principle finds a certain application, usually in cases when information connected with uncertainty is considered, and its specification costs disproportionately much. Also this ratio in many respects defines, what volume and ways of disclosure of information have to be applied at distribution of financial statements.
By documents all operations finding reflection in registration registers have to be made out, and they have to be created before the most economic operation or if it is impossible, right after its end. The order of filling of documents is defined - in them there should not be admissions (if information is absent that to be put a crossed out section), all corrections are made in the certain way, in some types of documents of correction are not allowed at all.
Besides the main requirements to quality of the prepared information also requirements to the process of preparation of information are allocated. These requirements and assumptions concerning process of measurement and recognition of the facts of economic activity and also ways of their disclosure in the reporting in turn share on the following groups:
In the USA the structure of financial statements is defined less accurately. Its approximate structure is given in the Scheme As on it it is visible, the quantity of types of obligatory disclosures is less, but generally their structure is similar. It is also possible to note that quite often the report on own capital is replaced with the report on retained earnings (Retained Earnings Statement) if changes in the share capital did not happen.