Issues of interpreting and reflecting the expenses of organizations in financial accounting

Abstract

Subject. This article examines the problems associated with the interpretation of the concept of Expenses and their reflection by organizations in financial accounting. Objectives. The article aims to identify and systematize the problems related to the interpretation of the concept of Expenses and their reflection by organizations in financial accounting. Methods. For the study, I used the methods of critical analysis, synthesis, comparison, observation, and the analog approach. Results. The article highlights the controversial aspects of the interpretation of the economic content of the concept of Expenses in the system of Russian Accounting Standards (RAS) and scientific literature. It compares different interpretations of the economic content of this concept in the systems of Russian and International Standards of Accounting and Reporting. The article also systematizes the impact of business types on recognition and reflection of the expenses of organizations in financial accounting. Conclusions and Relevance. There are contradictions in the interpretation of the economic content of the concept of Expenses in the system of Russian Accounting Standards. There is no unity in the interpretation of Expenses in the scientific literature on accounting. Despite the closeness of the definitions of Expenses in RAS and IFRS systems, there are significant differences in regulations relating to the recognition and reflection of expenses in financial accounting. The results presented have both applied and theoretical applications in the field of financial accounting.