Analysis and diagnostics of methodological approaches to accounting for capitalized borrowing costs based on IFRS requirements in the management reporting of developers
https://doi.org/10.29030/2309-2076-2024-17-3-112-124
Abstract
An analysis of publicly posted reports of construction organizations-developers, formed according to the rules of IFRS, gives reason to believe that they can use different approaches when accounting for capitalized borrowing costs. In IFRS, general approaches to such accounting are formed in IAS 23 «Borrowing Costs», but this standard does not reflect the industry–specific capitalization of borrowing costs by construction organizations, developers, and therefore such features are formed and taken into account by developers when preparing reports independently, without generally accepted methodological recommendations on this issue. This determines the relevance of the conducted research.
The article analyzes the approaches used by developers to accounting for capitalized borrowing costs based on the requirements of IFRS, compiled on the basis of data from publicly posted reports of large construction organizations-developers. Previously, such a comprehensive analysis has not been carried out. The object of this study is the publicly posted management reports of large construction organizations, developers, compiled on the basis of IFRS requirements. The subject of the study is the approaches used by developers to capitalize borrowing costs based on the requirements of IFRS. The purpose of the study is to analyze and diagnose approaches to accounting for capitalized borrowing costs based on IFRS requirements for management reporting of developers. The results of the analysis can be used by different users for different purposes: responsible employees of construction organizations-developers (when compiling management reports based on IFRS requirements), auditors of construction organizations-developers, methodologists, independent expert analysts (when analyzing financial and economic activities of developers), accountants (when accounting in accordance with national standards accounting standards).
About the Authors
E. L. Mozhina
Moscow University of Humanities and Economics
Russian Federation
Russian Federation
Elena L. Mozhina – teacher
Moscow
V. E. Kerimov
Higher School of Public Audit of Lomonosov Moscow State University
Russian Federation
Russian Federation
Vagif E. Kerimov – doctor of economic sciences, рrofessor
Moscow
References
1. International Financial Reporting Standard (IAS) 23 «Borrowing Costs»: put into effect on the territory of the Russian Federation by Order of the Ministry of Finance of the Russian Federation dated 12/28/2015 No. 217n. URL: https://minfin.gov.ru/common/upload/library/2017/01/main/MSFO_IAS_23.pdf. (In Russ.).
2. Fedotova M.A., Maltsev A.S., Tazikhina T.V. Cost management of a high-tech project at the stage design and construction. Effektivnoe antikrizisnoe upravlenie = Effective anti-crisis management. 2015;(1(88)):68-89. EDN TPNZPH. (In Russ.).
3. Shmeleva G.A. The impact of capitalization of expenses on non-current assets and reflections in the current period on financial statements and financial indicators. Innovative scientific research: theory, methodology, practice : collection of Articles XVII of the International Scientific and Practical Conference : at 2 o'clock (Penza, May 27, 2019). P. 2. Penza : Science and Education (IP Gulyaev G.Yu.), 2019. Р. 70–74. EDN ZITOOL. (In Russ.).
4. Myrzaibraimova I.R. Features of accounting for borrowing costs in the housing and construction complex. Nauka i novye tekhnologii = Science and new technologies. 2010;(4):148-153. EDN VMQWNU. (In Russ.).
5. Brusnika LLC : [website]. URL: https://moskva.brusnika.ru/investors/finances/#financial. (In Russ.).
6. PJSC «Samolet» : [website]. URL: https://samolet.ru/investors. (In Russ.).
7. Glavstroy LLC : [website]. URL: https://www.glavstroy.ru/about/investors. (In Russ.).
8. PJSC «LSR Group» : [website]. URL: https://www.lsrgroup.ru/raskryitie-informaczii/buxgalterskaya-otchetnost-po-msfo. (In Russ.).
9. JSC «GC «Etalon» : [website]. URL: https://etalongroup.ru/company/about. (In Russ.).
10. LLC «A 101» : [website]. URL: https://a101.ru/company/investment. (In Russ.).
11. IAS Council document «Transfer of Constructed Goods over Time (IAS 23)». March 2019. URL: https://www.ifrs.org/projects/completed-projects/2019/over-time-transfer-of-constructed-good-ias-23/#published-documents. (In Russ.).
12. On participation in the shared construction of apartment buildings and other real estate objects and on amendments to Certain legislative acts of the Russian Federation : Feder. Law No. 214-FZ of 12/30/2004. URL: https://www.consultant.ru/document/cons_doc_LAW_51038. (In Russ.).
13. Basis for conclusions under IFRS 23 «Borrowing Costs». URL: https://library.croneri.co.uk/cch_uk/iaststd/ias23-basis-200703#toc-1. (In Russ.).
14. FAS 34 «Capitalization of interest costs». URL: https://www.fasb.org/page/PageContent?pageId=/reference-library/superseded-standards/summary-of-statement-no-34.html&bcpath=tff. (In Russ.).
15. International Financial Reporting Standard (IFRS) 15 «Revenue from contracts with customers» : introduction. effective by Order of the Ministry of Finance of the Russian Federation dated 06/27/2016 No. 98n. URL: https://minfin.gov.ru/ru/document/?id_4=117320. (In Russ.).
16. International Financial Reporting Standard (IAS) 2 «Inventories» : introduction. effective by Order of the Ministry of Finance of the Russian Federation dated 12/28/2015 No. 217n. URL: https://www.consultant.ru/document/cons_doc_LAW_193531. (In Russ.).
Review
For citations:
Mozhina E.L., Kerimov V.E. Analysis and diagnostics of methodological approaches to accounting for capitalized borrowing costs based on IFRS requirements in the management reporting of developers. Economic Systems. 2024;17(3):112-124. (In Russ.) https://doi.org/10.29030/2309-2076-2024-17-3-112-124
Views:
6
JATS XML
Email this article 