Organization and Methods for Assessing the Capital Reserves in Accounting

The process of capital reservation is important measure for maintaining the enterprise economic potential, ensuring the financial and economic conditions for the activities of enterprise in periods of uncertainty, as well as preserving the enterprise capital from reduction. From an economic point of view today the reservation turned into accounting procedures that ultimately do not provide for the formation of real assets and funds to cover future expenses, the allocation of any stock of cash or other assets. For this reason, the organization of accounting for capital reserves needs to be updated. Especially acute is the problem of estimating capital reserves, since an insufficient amount of reserves negates their protective function, and too much amount of reserves restricts the distribution of capital. The purpose of the article is to analyze and disclose the existing approaches to assessing the capital reserves of an enterprise. Organizational and methodical approaches to the assessment of capital reserves were investigated based on the existing types of value and taking into account the accounting principles. The influence of accounting principles on the formation of capital reserves was disclosed. The conditions for recognizing and accounting of reserves to cover the forthcoming expenses were systematized. The methods for estimating the capital reserves were analyzed and ways to improve them were suggested. Organizational and methodical stages of capital reserves formation at the enterprise were developed and the role of assessment at each of these stages was determined. Based on the generalization of the theory and practice of accounting, three approaches to the assessment of the capital reserves were outlined: 1) based on legislative instructions; 2) taking into account the experience of previous years; 3) in accordance with the financial policy of the enterprise.