ACCOUNTING TREATMENT OF DIRECT CONTRACT COSTS

Angela Popovici ()
Additional contact information
Angela Popovici: Academy of Economic Studies of Moldova, Moldova

European Journal of Accounting, Finance & Business, 2023, vol. 11, issue 1, 26-33

Abstract: This article examines the content and application of the provisions of the National Accounting Standard "Construction Contracts," the General Plan of Accounting Accounts, and other normative acts related to contractual cost accounting. The results presented mainly refer to issues related to direct contractual costs, such as the classification and characteristics of costs in construction contracts, the recognition, evaluation, documentation, accounting, and disclosure of information related to contractual costs in financial statements. These aspects are the result of changes made in the National Accounting Standards and the General Plan of Accounting Accounts, which were developed based on Directive 2013/34/EU and the General Framework for Financial Reporting and came into effect on January 1, 2020. To address the aforementioned issues and ensure proper implementation of national accounting regulations, it is recommended to review the composition of direct contractual costs in accordance with legislative provisions, specify the recognition and evaluation of contractual costs, include a separate section in the accounting policies of construction entities for primary documents and accounting registers established by the entity independently based on the specificity of the activity and information needs of users, properly account for direct contractual costs, and make changes to accounting programs to generalize the information needed to prepare financial statements and their explanatory notes.

Date: 2023
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accounting-management.ro/getpdf.php?paperid=31_5 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:scm:ejafbu:v:11:y:2023:i:1:p:26-33

Access Statistics for this article

European Journal of Accounting, Finance & Business is currently edited by Stefan cel Mare University of Suceava, West University of Timisoara

More articles in European Journal of Accounting, Finance & Business from "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Liviu Scutariu ( this e-mail address is bad, please contact ).