Economic Sciences/7. Accounting and Audit

Master of the 2^nd course, Sarinova A.E.

Kazakh National University named after Al-Farabi, Kazakhstan

Tendencies of accounting records improvement in the Republic of Kazakhstan

Change of social relations system, as well as civil environment predetermines the necessity of accounting records transformation. Connection of the accounting records with the aims of financial activity management and control, on one hand, and with the usage system of all the available economic resources of the organization, on the other hand, changes functional relation of accounting services in the organization turning them from economic life facts register into a financial analyst, consultant or manager.

It should be kept in mind that the aim of accounting records improvement is conformation of national accounting system with requirements of market economics and International Accounting System (IAS).

Existing world tendencies stipulate the necessity of full and unconditional acceptance of IFRS. Migration to international standards will allow organizations to increase management quality and internal control, will simplify access to the capital, as well as will provide with high quality, reliable and comparable information of both internal and external users [1].

IFRS as the modern style necessary for overall and unified understanding of financial reporting serves as the base for capital integration, economics accelerated development, is the compound of competitive ability and investment attractiveness of Kazakhstani enterprises and, as a consequence, of the entire Kazakhstan economics. And IFRS awareness and its operation skills are becoming the necessary qualitative lines of the image not only of a modern accountant and auditor, but also of a manager [2].

After analysis of accounting records development condition, the main directions of accounting records development in Republic of Kazakhstan are envisaged:

1. Government control of reporting in the country by means of the new “Law of accounting records and auditing activities in RK” adoption. The necessity of new law of accounting records and auditing activities adoption is governed by the range of reasons:

- confirmation of maintenance and organization obligation of accounting records and audit of all the commercial and non-commercial organizations, in other words, the law would develop the norm earlier assigned in the part of the civil code of RK;

- strengthening of reporting and audit activity statutory regulation system structure;

- creation of simplified taxation system, as well as records and reporting system for small business entities.

The following problems are supposed to concretize in the new Law:

1) Where and who implements the best practice guidance of accounting records;

2) The order of audit, as well as other solutions in the field of assets assessment and usage;

3) Financial reporting contents publicity, list of separate organization types publishing their financial reporting;

4) Degree of the manager responsibility for misstatement of accounting reporting indicators in the case of avoidance of accounting reporting maintenance, failure to meet the submission deadline;

5) Procedures of accounting department institution, rights and obligations of the chief accountant.

Transition to IFRS will also give a push to financial and fund markets development, as long as both potential investors and creditors are concerned in submission of information characterizing the actual economic activity condition of the organization and providing a chance to assess its effectiveness in accordance with present-day methods [3].

2. Standard regulations must characterize and partition the content of economic life facts of the organization and create the stable condition for accounting service employees. New approaches and rules encumbered in the law of accounting records and auditing activities in Republic of Kazakhstan must be developed in the standard regulations. In other words, the organizations migrating from January 1^st, 2015 maintain the accounting reporting and compose full financial reporting package for the year of 2004 in accordance with CCA (Coordinating Council accounting). The year of 2005 is the year of migration, adjustment or comparative data in accordance with IFRS, but the reporting for the year of 2005 is not the first financial records according to IFRS, and it will be the year of 2006 [4].

Applicative execution of the standard regulations are to be entrusted upon regulatory authorities of the government, in other words, it means that the affairs of accounting records and audit organization and methodology are to be run by so called “Accounting records affairs coordination board of Republic of Kazakhstan”. Such a non-government organization would run the development of official deeds, regulating of professional activity and code of accountants professional ethics. Lending of legal status for accountants non-government association would rise the role and influence of accounting skilled workers and create professionalism in the field of maintenance of accounting records on the basis of IAS (International accounting systems) and reporting principles.

In order the professional, non-government organization activity principles to be clear, first of all, for accountants, government and wide audience which would express the willingness to support such an organization, appropriate conditions are needed to be created in accomplishment of this important task.

In order to organize and increase simultaneously the image of Accounting records affairs coordination board and achieve its public recognition, the availability of corresponding legislative and legal frameworks determining the status of this organization is necessary. Non-government associations of accounting workers will be held in great respect in the society, if it proves itself as the organization which is interested in high quality services provided by accountants and if its official statement and policy will meet society interest.

For the purpose of creation of hands-on assistance for the organization upon migration to IFRS, Department of accounting records and audit is developing recommended practices on usage of IFRS in RK. Leading audit companies of the country and international consultants are attracted for this work.

Currently accounting records are becoming not the final product of accounting service, but informational base for the consequent financial calculations in order to take optimized effective managerial decisions. Owners of those enterprises which are included in the Eurasian industrial association spend definite funds in order migration on these enterprises to be after all conducted. The investors’ and owners’ most accurate interest consists in this, in order those assets they own to bring income, not losses. This is the aim of why IFRS are needed.

3. The profession of the accountant in our country grew more prestigious by virtue of that fact contingents of learners and educable ones on the specialization of “Accounting records and audit” changed over the last years.

Preparation of accounting skilled workers in RK is experiencing at the moment important radical transformation, first of all, in qualitative sense. Preparation of the skilled workers on accounting records is conducted almost in each higher education establishment and in all the colleges. In the conditions of increased demand for specialists of accounting and financial profile, solution of their preparation problem is still implemented on a low level. The main disadvantages in accountant preparation are limited to undeveloped concept of accounting education reconstruction and in the fact that higher educational standards and programs do not meet the IAS requirements, as well as lack of textbooks and manuals of high quality. Process of skilled worker preparation in the country commenced a few years ago. Educational program for all the Kazakhstani accountants was unfolded, at that, chief accountants were trained in Moscow and in London. This was the first what was made. Besides that, a group which prepares for migration of enterprises to IAS was created. The possibility to move with the times and be a desirable specialist predetermines the possibility to study English, and young generation choosing the profession of an accountant should be told that this was a professional demand [5].

Accountants are becoming financial directors, participants of organization’s asset management and effective resource distribution these days. Today accounting reports are becoming not the final product of accounting service, but informational base for the consequent financial calculations in order to take optimized effective managerial decisions.

Thus, it is necessary to adopt world practice experience and create professional organization of accounting workers for the purposes of stable condition formation in the society. Professional organization may include the various directions, starting from contribution to professional contacts development among accounting workers and ending with information and special knowledge representation, advocacy and introduction of professional standards and norm of professional ethics. Such an organization would be engaged to provision of competent services to consumers, as well as protect accountants’ public interests, as well as development of accounting records theory and practice. Professional association of accounting workers will be held in great respect in the society, if it proves itself as the organization which is interested in high quality services provided to the members of this organization.

The main aim of research and practice accounting workers activity association is mobilization of republican potential in the field of reporting for solution of qualitatively new tasks of specialist preparation. It is necessary to contribute to improvement of accounting specialization in accordance with the role of accounting reports production management, effective usage of financial resources.

Thus, improvement of Kazakhstani accounting records is significantly complex and longstanding process. From year to year the entire complex of new problems requiring the fastest solution is occurring. And, nevertheless, the most part of the work has already been done.

REFERENCES

1. Law “Of accounting records” of the Republic of Kazakhstan dated 26.12.1995 No. 2732

2. Conference on IFRS: first usage of IFRS, organization of real economy sector // Accountant bulletin, 49 December 2014.

3. Accounting standards of the Republic of Kazakhstan / Collector V.I. Skala. Collection of documents,- Almaty, LEM LLP, 2004.

4. Essentials of international financial reporting systems and their comparison with accounting standards of Kazakhstan /E.Nurseitov // Accountant bulletin, 48 November 2014.

5. “Perspectives of economics development in Kazakhstan” /A.A. Abdymanov // Accounting records, No. 6, 2012