Regulation and function of financial accounting

11:52 PM    

The social role of accounting is to transfer the financial statements for external users needs first and is implemented through government regulation. In Ukraine, the laws governing the conduct and organization of financial records should be strictly deterministic nature. Banks, like other business entities, the management of financial records must comply with current legislation. Rules, methods and accounting procedures are detailed in this and the regulated. In Ukraine, the banks are strict requirements on accounting, disclosure of information about their activities and bringing it to the public. These issues are regulated by the following laws: "On Accounting and Financial Reporting in Ukraine", "On Banks and Banking Activity", "On the National Bank of Ukraine", "About auditor activity in Ukraine", "On securities and stock market." The legal basis for regulation of financial accounting and financial reporting are defined by law "On accounting and financial reporting in Ukraine". Government regulation of financial accounting is aimed at creating uniform rules for accounting and financial reporting, which are mandatory for all enterprises and safeguard and protect the interests of users. The highest authority in the area of ​​state regulation of financial records owned by the Ministry of Finance. His credentials include developing a methodology for financial accounting, which embodies the above definition of the principles of accounting and financial reporting principles. Ministry of Finance implements the functions assigned to it by regulation of financial reporting through the mechanism of regulation of the development process and approval of national accounting standards. The purpose of these standards - to prevent use by enterprises, including banks, different approaches to the analysis of important economic indicators, to ensure consistency of approach to the formation of financial statements. Topic: The role of accounting in the management of the bank, its types and destination