Ethical component of accounting policy of enterprises

Kubik Valentyna
Senior Lecturer, Department of Accounting and Audit, Odessa National Economic University, E-mail:kybikvalentina@rambler.ru, ORCID ID: https://orcid.org/0000-0002-5948-1385

Obniavko Oleksandr
PhD in Economics, Associate Professor, Department of Marketing, Odessa National Economic University, E-mail:deansfpk@ukr.net, ORCID ID: https://orcid.org/0000-0002-1299-3789

Cite this article:

Kubik, V., Obniavko, O. (2019). Ethical component of accounting policy of enterprises. Ed.: D. V. Zavadska (ed.-in-ch.) and others [Etychna skladova oblikovoi polityky pidpryiemstv; za red.: D. V. Zavadskoi (gol. red.)], Scientific Bulletin of the Odessa National Economic University, No. 6 (269), pp. 84-106.

Abstract

The article is devoted to the research of the essence and peculiarities of manifestation of ethical component of accounting policy of the enterprise as an important tool of enterprise management. It is emphasized that the fact that accounting policy is not limited by the order of the head of the enterprise, and the widespread approach to accounting policy as a list of the selected form of accounting, flow chart, certain methods of valuation of written off inventories, depreciation of fixed assets, etc is not a policy. The approach to accounting policy of the enterprise according to which accounting policy is a flexible tool for informational support of influence of the management system of the enterprise on the managed economic objects for achievement of the selected strategic, current and operational goals has been grounded. It is noted that professional accounting is effective in the conditions of observance by accounting employees of ethical behavior, as an important part of guaranteeing the quality of professional activity and high level of trust in accounting staff by senior management. The most common manifestations of the problems of adherence to the rules of professional ethics in «creative accounting» have been identified. Recommendations for the development of internal corporate codes of business based on the Code of Ethics for Professional Accountants, which demonstrate the openness, transparency, clarity and validity of management policies regarding the need for compliance with ethical, uniformity and value standards have been proposed. It is noted that in the absence of internal corporate codes of ethics it is advisable to indicate in the accounting policy of the company the mission, goals, development strategy, priorities of activities with mandatory coverage of aspects of ethics, accounting rules and rules of business etiquette.

Keywords

goals of enterprise activity, accounting, accounting policy, professional ethics, ethical behavior of accountant, professional judgment of accountant, creative accounting, business etiquette.

JEL classification: M410; DOI: 10.32680/2409-9260-2019-6-269-84-106

UD classification: 657: 334.716

References

1. Akatyeva, M. D. (2017). Neobhodimye umeniya glavnogo bukhgaltera: organizatsionnye i raschetnye aspekty [Necessary skills of chief accountant: organizational and estimated aspects], Buhgalterskiy uchet v izdatelstve i poligrafii – Accounting in publishing and printing industry, 3, 29–37 [in Russian]
2. Butynets, F. F., Voinalovych, O. P. (2009). Orhanizatsiia bukhgalterskoho obliku [Organization of accounting], Zhytomyr: Ruta, 528 s. [in Ukrainian]
3. Ruzmaikina, I. V. (2010). Oblikova polityka yak skladova zahalnoi stratehii upravlinnia pidpryiemstvom [Accounting policy as a component of the overall enterprise management strategy], Ekonomist, 5 (283), 36–41 [in Ukrainian]
4. Valuev, B., Drozdova, E. (2012). Uchetnaya politika predpryatiya: spornost iskhodnoy kontseptsii [Enterprise accounting policy: controversial initial concept], Ekonomist, 7, 58–62 [in Russian]
5. Valuev, B. I. (2012). Sistema khozyaystvennogo ucheta v promyshlennosti: voprosy teorii i metodologii: monografiya [Economic accounting system in the industry: theory and methodology questions: monograph], Odessa: Palmira, 216 s. [in Russian]
6. Lokhanova, N. O. (2014). Oblikova polityka yak instrument upravlinnia ekonomichnoiu bezpekoiu kompanii [Accounting policy as a tool for company’s economic security managing], Investytsii: praktyka ta dosvid – Investment: practice and experience, 11, 12–13 [in Ukrainian]
7. Kantaieva, O. V. (2013). Istorychni aspekty i suchasni pidkhody do rozhliadu znachennia kreatyvnoho obliku v Mizhnarodnykh standartakh finansovoi zvitnosti [Historical aspects and modern approaches to reviewing the value of creative accounting in International Financial Reporting Standards], Visnyk Universytetu bankivskoi spravy Natsionalnoho banku Ukrainy – Bulletin of Banking university of the National Bank of Ukraine, 3 (18), 215–221 [in Ukrainian]
8. Sochynska-Sybirtseva, I. M. Povedinkovi aspekty upravlinskykh rishen [Behavioral aspects of management decisions], Nauka, osvita, suspilstvo: realii, vyklyky, perspektyvy – Science, education, society: realities, challenges, prospects, 146–148. Retrieved from: http://jnos.donnu.edu.ua/ article/download/6533/6565 [in Ukrainian]
9. Vysochan, O. S., Lutsiuk, I. V. (2017). Perspektyvy vidrodzhennia bikheviorystychnykh pohliadiv na rozvytok obliku v Ukraini [Prospects for the revival of behavioral views on accounting development in Ukraine], Naukovyi visnyk Khersonskoho derzhavnoho universytetu – Scientific bulletin of Kherson state university, 24 (2), 118–122 [in Ukrainian]
10. Balashova, E. A. (2016). Eticheskoe povedenie bukhgaltera – osnova professionalnogo soznaniya [Accountant’s ethical behavior is a basis of professional consciousness], Sibirskiy torgovo-ekonomicheskiy zhurnal – Siberian trade and economic journal, 3 (24), 1–7 [in Russian]
11. Bychkova, S. M., Itygilova, E. Ju. (2011). Etika professionalnogo bukhgaltera: ucheb. posob. po Programme podgotovki i attestatsii professionalnykh bukhgalterov [Professional accountant ethics] / Pod red. S. M. Bychkovoy, 2-e izd., Moskva: BINFA, 160 s. [in Russian]
12. Ageev, A. Tvorchestvo, ozarennoe idealami [Creativity, illuminated by ideals]. Retrieved from: http://www.odnako.org/ magazine/material/tvorchestvo-ozarennoe-idealami [in Russian]
13. Gordova, E. E. (2012). Ekonomicheskaya etika: prikladnoy i professionalnyy kharakter [Economic ethics: applied and professional character], Sovremennye issledovaniya sotsialnykh problem – Modern studies of social problems, 1 (09). Retrieved from: www.sisp.nkras.ru [in Russian]
14. Mizhnarodnyi kodeks etyky profesiinykh bukhgalteriv [International Code for professional accountants]. Retrieved from: https://www.pabu.com.ua/ua/mediacentr-3/profesiini-novyny/1199-novyi-kodeks-etyky-profesiinykh-bukhhalteriv- nabuv-chynnosti [in Ukrainian]
15. Petrenko, N. I., Stoliarenko, O. M. (2014). Sotsialno-psykholohichni aspekty bukhgalterskoi profesii yak odyn iz faktoriv vplyvu na realizatsiiu pryntsypu bezperervnosti [Socio-psychological aspects of accounting profession as one of the factors influencing on the continuity principle implementation], Naukovyi visnyk Khersonskoho derzhavnoho universytetu – Scientific bulletin of Kherson state university, 9 (5), 236–239 [in Ukrainian]
16. Sokolov, Ya. V., Terentyeva, T. O. (2001). Professionalnoe suzhdenie bukhgaltera: itogi minuvshego veka [The professional accountant judgment: outcome of the last century], Bukhgalterskiy uchet – Accounting, 12, 53−57 [in Russian]
17. Gubaydullina, A. R. (2012). Printsypy ucheta, opredelyayushchie primenenie professionalnogo suzhdeniya bukhgaltera v usloviyakh perekhoda k Mezhdunarodnym standartam finansovoy otchetnosti [Accounting principles that determines of accountant professional judgment application in the conditions transition to International Financial Reporting Standards], Mezhdunarodnyy bukhgalterskiy uchet – International accounting, 28 (226), 39–48 [in Russian]
18. Rasskazova-Nikolaeva, S. A. (2007). Obuchenie professionalnomu suzhdeniyu [Professional judgment training], Bukhgalterskiy uchet – Accounting, 17, 44–50 [in Russian]
19. Kutsynska, M. V. (2015). Analiz sutnosti ta isnuiuchykh vydiv kreatyvnoho obliku [Analysis of the essence and existing types of creative accounting], Hlobalni ta natsionalni problemy ekonomiky – Global and national problems of economy, 3, 895–898 [in Ukrainian]
20. Baranov, P. P. (2017). Kreativnyy uchet v kontekste kontseptsii dostovernogo i dobrosovestnogo vzglyada: Pro et contra [Creative accounting in the context of a reliable and conscientious sight concept: Pro et contra], Mezhdunarodnyy bukhgalterskiy uchet – International accounting, 20 (1), 16–34 [in Russian]
21. Legenchuk, S. F. (2009). Kreatyvnyi oblik v natsionalnii systemi bukhgalterskoho obliku [Creative accounting in the national accounting system], Teoriia ta metodolohiia bukhgalterskoho obliku, kontroliu i analizu – Theory and methodology of accounting, control and analysis, 2 (14), 88–101 [in Ukrainian]
22. Oliinyk, S. O. (2018). Rol kreatyvnoho obliku ta yoho proiavy [The role of creative accounting and its manifestations], Naukovyi ohliad – Scientific review, 7 (50), 6–13 [in Ukrainian]
23. Ustinova, Ya. I. (2018). Kreativnyy uchet: byt ili ne byt? [Creative accounting: to be or not to be?], Mezhdunarodnyy bukhgalterskiy uchet – International accounting, 21, 5, 502–519. DOI: https://doi.org/10.24891/ia.21.5.502 [in Russian]
24. Mikhaylova, G. V., Gorlova, E. B. (2016). Eticheskie aspekty sovremennykh bukhgalterskikh problem [Ethical aspects of modern accounting problems], Bukhgalterskiy uchet v izdatelstve i poligrafii – Accounting in publishing and printing industry, 3, 10–21 [in Russian]
25. Kubik, V. D., Obniavko, O. V. (2017). Etychnyi aspekt zastosuvannia oblikovoi polityky pidpryiemstva [Ethical aspect of enterprise’s accounting policy applying], International scientific conference «Anti-crisis management: state, region, enterprise»: Conference proceedings, Part III, November 17th, 2017б Le Mans, France: Baltija Publishing, 74–77 [in Russian]
26. Voronova, E. Yu. (2017). Islamskaya model bukhgalterskogo ucheta: sotsialnye, eticheskie i dukhovnye aspekty razvitiya [Islamic accounting model: social, ethical and spiritual development aspects], Uchet. Analiz. Audit – Accounting. Analysis. Audit, 4, 93–98 [in Russian]
27. Davydova, O. A. (2017). Professionalnoe suzhdenie kak element sistemy normativnogo regulirovaniya bukhgalterskogo ucheta [Professional judgment as an element of a regulatory accounting system], Diskussiya – Discussion, 10 (84), 16–22 [in Russian]