Reserves In Traditional And Contemporary Accounting

Katarzyna Klimczak ()
Additional contact information
Katarzyna Klimczak: Accounting Department, Collegium of Management and Finance, Warsaw School of Economics, katarzyna

European Journal of Business and Economics, 2013, vol. 8, issue 2, 6-14 volume1: 8

Abstract: The main aim of the article is to analyse concepts of reserves in traditional accounting models and the characteristics of the area of reserves in contemporary global accounting standards. Concepts of reserves in different countries are deeply rooted in the socio-economic environment of accounting. The differences in the significance, role and the scale of creation of reserves are especially evident in the Anglo-Saxon and continental accountingReserves play a very important role in the accounting system of IFRSs– they provide a specific control mechanism which enables companies to verify economic benefits embodied in their net assets.The analysis of the IFRSs rules concerning the creation of valuation reserves and provisions may lead to the conclusion that they are- above all – subject to true and fair view concept. The only purpose of reserves is to present faithfully the estimated loss in value of net assets. There are many requirements which are intended to prevent the undue use of reserves.The area of reserves is becoming more and more complex. The sources of complexity of reserves go beyond their inherent features and stem from the general orientation of contemporary accounting towards a model of anticipated losses/gains in net assets.

Keywords: ReservesValuation Reserves; Provisions. (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://ojs.journals.cz/index.php/EJBE/article/view/375/405 (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:aad:ejbejj:v:8:y:2013:i:2:p:6-14

DOI: 10.12955/ejbe.v8i2.375

Access Statistics for this article

More articles in European Journal of Business and Economics from Central Bohemia University
Bibliographic data for series maintained by Petr Hájek ().