RESERVE OF DOUBTFUL DEBTS: FEATURES OF ACCOUNTING

Abstract

Abstract. In the process of economic activity at the enterprise may arise short-term or long-term buyers receivables. In today's conditions, the issue of doubtful or bad debts has become particularly acute. After completing the next steps in tax and accounting harmonization, this issue becomes particularly relevant. In accordance with the current regulatory framework, the creation or non-creation of a reserve may directly affect the amount of income tax. Current receivables, which are the financial assets, are included in the balance sheet by their net realizable value. To determine the net realizable value fot the particular balance sheet date, the amount of the reserve of doubtful debts must be calculated. The formation of the reserve of doubtful debts is due to the principle of prudence, according to which the valuation methods used in the accounting of the enterprise, should prevent a reduction in the assessment of liabilities and costs and overestimation of valuation of assets and income of the enterprise. Thus, the accrual of the reserve of doubtful debts of receivables is one of the fundamental positions in the accounting system, and for income taxpayers, the expediency and necessity of calculating the reserve of doubtful debts is indisputable.