“Financial and Accounting Consultations” E-Journal is Out

The March issue presents an overview of legislation amendments for January 2014 as well as the articles of FBK specialists on the topically important matters.

The article of “Forming an evaluation liability for the cost of fixed assets liquidation and restoration of the environment” by Elena Tyutyunnikova, the accounting process development and standardization department director, Elena Shcherbacheva, her deputy, and Viktoriya Petrova, the department consultant, summarizes the answers to numerous enquiries of companies - the owners of a great number of fixed assets, in particular, the wells and other industrial objects to be subsequently liquidated. Liquidation of such objects usually entails the company’s obligation of recultivation, restoration of the environment, which, as a rule, is an expensive process that needs a special provision against costs.

• What will be the right way to form the evaluation liabilities in this case?
• What normative acts govern the obligation to make a reserve?
• Based on what criteria should the list of objects be determined in relation to which the evaluation liability shall be formed?
• How to determine the estimated date of object liquidation, the date of reclamation?
• Can the estimated date of object liquidation be determined based on the useful life established for the object on commissioning?
• How can the calculated cost of liquidation or reclamation works be brought to the prices of the future periods (to calculate the rate of discount)?

These and other topical questions connected with the costs of fixed assets liquidation were answered by the FBK leading experts.

The pilot issue of the “Financial and Accounting Consultations” magazine was published in September 2009. The edition continues covering the subject matters of such business magazines as “Your Tax Advocate”, “The Novel Accounting” and “Financial and Accounting Consultations” that used to be published on paper.