Allowance for doubtful debts as a financial instrument of the organization

UDC 330.1

Authors

Sinyanskaya E.R., Balina A.V.

Abstract

The article discusses the possibility of using reserves for doubtful debts as one of the instruments of the organization’s financial policy. Due to the generalized methodology for the formation of these reserves, a unified information base is created that allows to reduce the tax burden on income taxes, conduct operational control over the dynamics of receivables and increase the reliability of financial statements in accordance with the requirements of Russian standards and IFRS.

Keywords

bad debt reserve, income tax, financial policy, financial result, tax optimization, accounting policy.