-
CLASSIFICATION, EVALUATION
AND ACCOUNTING POSSIBILITIES
FOR DERIVATIVE FINANCIAL INSTRUMENTS
The undeniable interest of economic theory and practice towards financial derivatives makes them a current subject of analysis. The existence of derivatives raises the logical question about their purpose. If an investor participates in the distribution of a company’s profits by holding its shares, why do they apply another instrument that is ...
The undeniable interest of economic theory and practice towards financial derivatives makes them a current subject of analysis. The existence of derivatives raises the logical question about their purpose. If an investor participates in the distribution of a company’s profits by holding its shares, why do they apply another instrument that is related to owner’s equity? The derivative markets create favorable opportunities by improving the efficiency of the underlying assets markets. Derivatives have lower transaction costs compared to other transactions with basic instruments on the spot market, they are more liquid and the risk can be transferred into a more effective, simple and inexpensive way. Proof for the significance of derivative instruments is also the EU-accepted IFRS 9 Financial Instruments. Therefore, it is important that the management of every organization is aware of the regulatory framework for financial instruments, as well as the effects of each transaction with financial instrument.
The main purpose of the study is to define a classification of derivative instruments and to mark key points in their accounting. The specific objectives that have to be solved are to highlight the alternatives for classifying derivatives and to focus on their immediate current accounting. The thesis is that the adequate classification and evaluation of these instruments are important factors for their correct accounting. The main conclusion is that proper classification of derivatives has a practical significance because there has to be determined whether the instrument has a value at the beginning, which has a timely accounting impact. Their internal and time values have a significant role as well, because in the changes they must be clearly distinguished from the change in the fair value of the derivative itself.
-
APPLICATION OF THE EUROPEAN FREE TRADE AGREEMENTS WITH THIRD COUNTRIES
AND THEIR IMPORTANCE FOR THE POSITION
OF CUSTOMS CONTROL IN BULGARIA
Goods origin should be regarded as a complex economic category, which, from a customs perspective, predetermines the existence of specific control guidelines. The variety of free trade agreements between the EU and third countries introduces a number of requirements, the compliance of which must be verified by the customs authorities. This ...
Goods origin should be regarded as a complex economic category, which, from a customs perspective, predetermines the existence of specific control guidelines. The variety of free trade agreements between the EU and third countries introduces a number of requirements, the compliance of which must be verified by the customs authorities. This necessitates the availability of clear technological provisions regarding the issue of proofs of origin by the Union and the verification of such proofs provided by beneficiary countries.
The study aims to assess the feasibility of the free trade agreements between the EU and third countries in our country and thus define and justify the specific characteristics of the customs procedures with regard to the origin of imported goods. This aim has been achieved through:
First. Assessment of the free trade agreements between the EU and third countries in terms of their importance;
Second. Assessment of the relevance of the European free trade agreements for the Republic of Bulgaria;
Third. Discussing the specific characteristics of the main customs procedures for control of the origin of the goods.
The main research thesis is that the provisions of free trade agreements and the related origin of imported goods are the main subject of customs control and, as being such, they have a significant impact on the foreign trade relations of our country.
As a result of the study, the importance of EU free trade agreements with third countries has been justified by the position of the customs control carried out in the Republic of Bulgaria. The foreign trade relations of our country have been analyzed and conclusions have been drawn as to the extent to which the Bulgarian business benefits from the possible customs preferences based on the origin of the goods.
-
CURRENT PROBLEMS IN THE ORGANIZATION
OF ACCOUNTING IN THE PUBLIC SECTOR
In the accounting legislation in the sphere of the public sector in our country conceptual amendments have been made, which has reflected on the overall organization of the accounting process in the budgetary organizations. However, these changes affect individual aspects of the budgetary organizations' accounting, which is why there is currently ...
In the accounting legislation in the sphere of the public sector in our country conceptual amendments have been made, which has reflected on the overall organization of the accounting process in the budgetary organizations. However, these changes affect individual aspects of the budgetary organizations' accounting, which is why there is currently no entirely new framework for accountability of public sector enterprises.
This in turn is a prerequisite for insufficient clarity and, in certain cases, a contradiction in the accounting of specific business operations and processes in the budgetary enterprises.
The main purpose of this study is to examine the organization of current and periodic accounting in public sector enterprises.
The fundamental research thesis that is being defended is that the improvements in the organization of the current and periodic accounting of the activities of the public sector enterprises are a prerequisite for a true and fair presentation of their financial situation.
Proof of the presented thesis requires the fulfillment of the stated tasks: to clarify the significance of the process of convergence of the national accounting rules in the public sector with the international accounting legislation; to outline the main theoretical, methodological and practical problems; to offer reasoned opportunities for improving the current and periodic accounting and reporting process in order to better reflect business operations in the public sector enterprises.
As a result of the survey, problems, referred by the authors as main problems, have been outlined in relation with the accounting in these enterprises, and argued opportunities for improvement related to the Chart of Accounts of the budgetary organizations and the presentation of the information in the financial statements have been presented.
