PROSPECTS FOR THE APPLICATION OF THE PRINCIPLE THE PRIORITY OF SUBSTANCE OVER FORM IN THE ACCOUNTING PRACTICE OF RUSSIA AND VIETNAM

DOI: 10.36871/ek.up.p.r.2021.02.02.025
UDC 657.1

Authors

N. K. ROZHKOVA,
Professor of the Department of Accounting, Audit and Taxation, State University of Management, Moscow, Russia
D. Yu. ROZHKOVA,
Assistant Professor of the Department of KPMG, Financial University under the Government of Russia, Moscow, Russia
U. Yu. BLINOVA,
Professor of the Department of Audit and Corporate Financial Statement, Financial University under the Government of Russia, Moscow, Russia

Abstract

The starting point of this study is Russian accounting, as well as the process of its harmonization with IFRS. It is well known that within the Anglo-American school of accounting it is necessary to proceed from the principle of "priority of content (essence) over form". This is a principle that causes a special discussion, especially in Russian realities. Based on the analysis of the accounting practices of Russia and Vietnam, the main reasons that impede the application of this principle in full are highlighted. In order to improve the ac-counting practice in Russia, a conceptual approach is proposed for the implementation of the principle of "content priority over form" taking into account the economic and accounting foundations. The proposed con-ceptual approach is an attempt to standardize accounting procedures, as well as a specific mechanism for implementing the accounting function using professional judgment.

Keywords

IFRS, accounting principles, substance over form, accounting.