The disclosure of receivables in the financial reporting

Abstract

Purpose: the author systematizes the requirements to information generation about receivables in the financial accountability of the economic entity. Current legislation regulates these requirements. Discussion: the existing practice of contractual relations between the parties results to the occurrence of receivables. Note that the existing practice of contractual relations between the parties implies the mismatch between the ownership transfer moment for finished product, goods (works, services) and their payment. The risk of default characterizes the researched category. Therefore the author uses the information on its availability and payment probability for the adequately assess of the enterprise financial position. Results: the author determined the nature and ordered of the classification criteria receivables. As well as the writer substantiated the possible options reflect a receivables in the balance sheet and disclose the procedure for preparation the explanation to the balance sheet and the statement of financial performance.