Problematic issues relating to the quality of information used for accounting and management accounting of low-cost assets

Abstract

The article presents an analysis of research practice on the classification criteria of current assets, noncurrent assets and low-cost assets. It is proved that the main feature for dividing assets into current and noncurrent (capital) ones should be seen in their planning operation period. It is reasoned that low-cost assets include assets worth up to UAH 2,500. It is proposed to change the name of Account 22 “Low-cost items” to “Non-durables” and to consolidate there its subsidiary accounts, respectively, “expensive”, “cheap” and “low-cost” non-durable items. Working clothes, safety footwear, and tools, whose planning operation period exceeds one year, should be attributed as noncurrent assets and presented on Account 10 “Capital assets” and Account 11 “Other noncurrent tangible assets”. The necessity of reducing primary documentation for accounting durable items is proved. It is substantiated that accounting treatment of intangible assets should be carried out not only as part of noncurrent assets on Account 12 “Intangible assets”, but also as part of current assets on Account 29 “Current intangible assets”. It is shown that the proposed changes will give internal users and investors an opportunity to receive more transparent and reliable information about enterprise’s financial health.