The development of institutional and methodological framework for accounting of collateral operations in credit unions

Herald of Ternopil National Economic University(2019)

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摘要
The article demonstrates a need for research into the issues of improving accounting of collateral operations in credit unions. This research paper sets out a number of unresolved issues and discussion points relevant to accounting of collateral operations, especially those linked to various types of collateral and activities of credit unions. In response to corporate scandals, some possible ways to improve the conceptual and methodological framework of accounting are identified. The authors demonstrate how further methodological advances in accounting depend on applying individual elements of accounting method to its main constituents. The study has found that it is advisable to add a set of documents for executing and registering collateral operations to the order on accounting policy. Based on the view that collateral is a way to ensure that the borrower meets his obligations to the credit union, it is proposed to change the name of off-balance sheet account 06 from “Guarantees and security received” to “Enforcement of obligations received”. The authors have developed a sample of working chart of accounts for recording collateral operations in credit unions by analytical accounts, which makes it possible to obtain detailed information. The article provides an analysis of specific features of accounting of collateral operations in credit unions and gives evidence of how procedures are performed in line with the standards of international financial reporting. It is offered to change the name of account 437 “Provision of warranty obligations” to ”Provision of contract obligations”. The study notes that a revaluation of collateral objects with high level of volatility, which are used for getting loans from credit unions, should occur on a regular basis. Using an invention patent as an example, it is shown how to calculate the cost of collateral at the pre-contractual stage. It is also specified how to make up inventories of collateral object in credit unions.
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关键词
collateral operations,accounting,institutional,credit
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