Proceedings of the 5th International Conference on Accounting, Auditing, and Taxation (ICAAT 2016)

Accounting Policies and Procedures in the Preparation of the Annual Report

Authors
Ave Nukka, Malle Kasearu
Corresponding Author
Ave Nukka
Available Online December 2016.
DOI
https://doi.org/10.2991/icaat-16.2016.38How to use a DOI?
Keywords
Annual report, accounting policies, internal accounting regulations, inventory, accounting estimates
Abstract
In accordance with Para 14 in the Estonian Accounting Act (AA) all accounting entities are compelled to prepare the annual report for the year ended, which consists of the financial statements and the management report. To ensure that the prepared annual report would meet its purpose the legislative requirements have to be followed and any peculiarities arising from an accounting entity's field of activity should be regulated in the entity's accounting policies and procedures. The objective of the given article is to give an overview about activities required for the preparation of the annual report, alternative accounting policies and accounting estimates, and their presentation in the internal regulations based on companies used as internship bases. The results of the survey revealed that the accounting policies were disclosed according to the rules in the majority of larger internship companies. Inventory taking procedure was established by the internal accounting regulations and implemented in practice in 83% of the companies/organisations that participated in the survey. Based on the results of the survey we may conclude that medium-sized and large enterprises are more likely to be accurate while establishing internal regulations and the related documentation. Micro- and small enterprises showed more deficiencies in working out their internal regulations as well as in the details to which the given rules were followed. The investigation of the documents revealed that the activities required to prepare the annual report are performed in companies and this provides a prerequisite for the annual report to give a true and fair view.
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Proceedings
5th International Conference on Accounting, Auditing, and Taxation (ICAAT 2016)
Part of series
Advances in Economics, Business and Management Research
Publication Date
December 2016
ISBN
978-94-6252-261-9
ISSN
2352-5428
DOI
https://doi.org/10.2991/icaat-16.2016.38How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Ave Nukka
AU  - Malle Kasearu
PY  - 2016/12
DA  - 2016/12
TI  - Accounting Policies and Procedures in the Preparation of the Annual Report
BT  - 5th International Conference on Accounting, Auditing, and Taxation (ICAAT 2016)
PB  - Atlantis Press
SN  - 2352-5428
UR  - https://doi.org/10.2991/icaat-16.2016.38
DO  - https://doi.org/10.2991/icaat-16.2016.38
ID  - Nukka2016/12
ER  -