Methodological Aspects of ISFA Provisions and their Impact on Managerial Accounting of Developers

On the basis of all the changes that took place in housing construction of the Russian Federation during the previous years, we can point out volatility of some industry indicators while general dynamics of its grows remains. 

The development of housing construction industry in Russia is essential for economy within the frames of the federal project ‘Building Comfortable Urban Environment’. To provide timely and full analysis of their economic activities developers during the last decade more and more often use managerial accounting made up on the basis of the requirement of the International Standards of Finance Accounting (ISFA). The mentioned managerial accounting gives developer an opportunity to get necessary information within a short period of time in general for the group of companies, which is essential to diagnose key activity by developer top-management, especially in times of changes in related processes. ISFA provisions are renewed every year and upgraded. These changes require analysis of methodological aspects and estimation of their impact or its absence on methodology of shaping managerial accounting of developers, which explains topicality of the research. The research includes 2 stages. The 1st section confirms the hypothesis of the impact of methodological aspects of ISFA provisions on methodology of preparing managerial accounting of organizations-developers. To verify the hypothesis comparison of different information in a number of lines is carried out: the degree of the topic study in academic literature, experts’ practical observation of specificities of adaptation and integration of ISFA provisions in the Russian Federation after their arising till the present moment. As the result the hypothesis was confirmed about the impact of ISFA provisions on methodology of shaping managerial accounting. The 2nd section of the research gives a list of methodological aspects of ISFA provisions, classified by survey respondents by different signs, including both new ones that are being introduced right now in methodology of shaping managerial accounting of developers and establishes ones. At the same time a list of factors influencing the process of ISFA provisions impacting on methodology of shaping managerial accounting was put forward as well as duration of their impact, cyclic nature of the process of introduction, adaptation and approval of methodological aspects of ISFA provisions as established ones. The key findings of the research can help identify impact of ISFA provisions on managerial accounting of developers and identify a list of methodological aspects of ISFA provisions with classification by different lines, including necessary for its timely renewal and upgrading.

1. Ageeva O. A., Rebizova A. L. Perekhod na mezhdunarodnye standarty finansovoy otchetnosti (MSFO): problemy teorii i praktiki [Transition to International Financial Reporting Standards (IFRS): Problems of Theory and Practice]. Vestnik universiteta [Bulletin of the University], 2012, No. 3, pp. 10–15. (In Russ.).

2. Gadzhiev N. G., Gadzhiev T. H., Shanavazov I. A. Formirovanie upravlencheskoy otchetnosti s ispolzovaniem printsipov MSFO [Formation of Management Reporting Using the Principles of IFRS]. Mezhdunarodniy bukhgalterskiy uchet [International Accounting], 2010, No. 10 (142), pp. 19–23. (In Russ.).

3. Zavodskov N. A. Formirovanie upravlencheskoy otchetnosti s ispolzovaniem printsipov MSFO [Formation of Management Reporting Using the Principles of IFRS]. Colloquium-Journal, 2019, No. 23-6 (47), pp. 36–39. (In Russ.).

4. Zakirova A. R. MSFO – osnova postroeniya sistemy upravlencheskogo ucheta [IFRS – the Basis for Building a Management Accounting System]. Sovremennye aspekty ekonomiki [Modern Aspects of the Economy], 2011, No. 9 (169), pp. 95–98. (In Russ.).

5. Kerimov V. E. Problemy vnedreniya mezhdunarodnykh standartov finansovoy otchetnosti v rossiyskoy uchetnoy praktike [Problems of Implementation of International Financial Reporting Standards in Russian Accounting Practice]. Konsultant direktora [Consultant to the Director], 2004, No. 11, pp. 8–12. (In Russ.).

6. Kerimov V. E., Mozhina E. L. Sovershenstvovanie metodiki rascheta i ucheta effekta eskrou zastroyshchikami na osnove trebovaniy MSFO [Improving the Methodology for Calculating and Accounting for the Escrow Effect by Developers Based on the Requirements of IFRS]. Ekonomicheskie sistemy [Economic Systems], 2024, Vol. 17, No. 3, pp. 96–111. (In Russ.).

7. Kovaleva N. A. Vnutrennyaya upravlencheskaya otchetnost i MSFO: skhodstvo i razlichiya printsipov postroeniya [Internal Management Reporting and IFRS: Similarities and Differences in the Principles of Construction]. Uchet i statistika [Accounting and Statistics], 2012, No. 2 (26), pp. 22–27. (In Russ.).

8. Kovalenko D. D. Upravlencheskiy uchet i MSFO: osobennosti formirovaniya upravlencheskoy otchetnosti na osnove MSFO [Management Accounting and IFRS: Features of the Formation of Management Reporting Based on IFRS]. Ekonomika i upravlenie: problemy, resheniya [Economics and Management: Problems, Solutions], 2024, Vol. 8, No. 6 (147), pp. 83–90. (In Russ.).

9. Kosonogova E. S., Krylov D. B. Razvitie otraslevoy upravlencheskoy otchetnosti [Development of Sectoral Management Reporting]. Moskovskiy ekonomicheskiy zhurnal [Moscow Economic Journal], 2017, No. 4, pp. 47. (In Russ.).

10. Mozhina E. L., Kerimov V. E. Analiz i diagnostika metodicheskikh podkhodov k uchetu kapitalizirovannykh zatrat po zaimstvovaniyam na osnove trebovaniy MSFO v upravlencheskoy otchetnosti zastroyshchikov [Analysis and Diagnostics of Methodological Approaches to Accounting for Capitalized Borrowing Costs Based on IFRS Requirements in Management Reporting of Developers]. Ekonomicheskie sistemy [Economic Systems], 2024, Vol. 17, No. 3, pp. 112–124. (In Russ.).

11. Slobodnyak I. A. Ispolzovanie printsipov MSFO v kachestve metodologii formirovaniya uchetno-analiticheskoy informatsii vnutrenney bukhgalterskoy upravlencheskoy otchetnosti [Using the Principles of IFRS as a Methodology for the Formation of Accounting and Analytical Information for Internal Accounting Management Reporting]. Mezhdunarodniy bukhgalterskiy uchet [International Accounting], 2011, No. 3 (153), pp. 16–27. (In Russ.).

12. Smirnov V. Sushchnost i formy izmeneniy. Puti povysheniya upravlyaemosti izmeneniyami [The Essence and Forms of Changes. Ways to Increase the Manageability of Changes]. Finansovaya zhizn [Financial Life], 2012, No. 3, pp. 61–71. (In Russ.).

13. Stepanova O. A., Piskunov V. A. Vnedrenie MSFO v praktiku stroitelnykh kompaniy [Introduction of IFRS into the Practice of Construction Companies]. Problemy sovershenstvovaniya organizatsii proizvodstva i upravleniya promyshlennymi predpriyatiyami: mezhvuzovskiy sbornik nauchnykh trudov [Problems of Improving the Organization of Production and Management of Industrial Enterprises: Interuniversity collection of scientific papers], 2017, No. 2, pp. 196–200. (In Russ.).