THE IMPACT OF THE TAX CODE ON THE ACCOUNTING AND REPORTING

The processes of market relations� formation, civil society, integration of Ukraine into the world community led to a transformation of the national accounting system. The necessity of the state�s fiscal functions contributed to the release of a particular type of accounting � tax.

The need to conduct at least two types of accounting � accounting and tax makes a lot of organizational, technical, methodological and other problems. According to the data of the World Bank Ukraine is among ten countries with the most difficult conditions of calculation and taxpayment and occupies 181 position out of 183 countries entered the rankings. Thus Ukraine has the largest number of taxes and mandatory fees (payments) per year � 135, taking in the ranking last place [1].

These problems led to the need for convergence of these two types of accounting, because accounting data is automatically the basis for tax reporting of the enterprise . International experience shows that it is impossible to refuse completely from tax accounting , as it performs fiscal function that is different from the purpose of accounting. Thus, in Ukraine there is a need of reforming the current system of taxation in accordance with international standards. This resulted in the adoption of the Tax Code of Ukraine at the end of 2010, which significantly affected the accounting and reporting [1].

The purpose of writing this article is to review and analyze the impact of recent tax law changes on the accounting and reporting.

Adoption of the Tax Code in Ukraine significantly affected the organizing of accounting and reporting. These changes, as any others, have their advantages and disadvantages. In our view, the main positive outcomes of this process were the following:

1) rejection of the special "tax" notions in favor of the terminology used in accounting;

2) change in the calculation of taxable income � before replacing the current "rules of the first event" accrual basis;

3) denial of a special calculation of depreciation on a tax method in favor of existing accounting five methods of depreciation;

4) using the primary documents and summary ledgers in calculating taxable profits;

5) option of methods used in accounting for assets and liabilities [1].

Although some steps have been made towards harmonization of accounting and taxation , but they failed.

Simplified accounting in small enterprises is a very serious problem, which will work under the general taxation system. Code defines a circle of small businesses that are eligible for a special procedure for recording � without doing double entry, but with a prerequisite reflect revenues and expenditures in accordance with the requirements of tax legislation, rather than Regulations (standards) of accounting. These entities are legal entities that meet the criteria:

1) first , if the company is not VAT (Value Added Tax) payer;

2) second, if the amount of income tax in each reporting period cumulatively since the beginning of the year does not exceed the three million mark for each month of the reporting period wages (income) of employees who are in labor relations, not less than two minimum wages, the size which is set by law and which meet any of the following criteria:

- formed in the manner prescribed by law after April 1, 2011;

- acting , in which during the previous three consecutive years (or for all prior periods, if the moment of their formation was less than three years), annual income declared in an amount not to exceed three million, and in which an average number of employees during this period did not exceed 20 persons;

- who have been registered as single tax payers in accordance with legislation in the period prior to the enactment of the Tax Code and in which for the last calendar year revenues from the sale of products (goods and services) amounted to one million and an average number of employees amounted to 50 persons [1].

Subjects that will not be eligible for a simplified accounting and financial reporting referred to in paragraph 154.6. of the Tax Code of Ukraine . These include companies formed since the enactment of this Code by reorganization (merger, accession, division, separation, transformation), privatization and corporatization, and those that operate in the entertainment, manufacturing, wholesale, export, imports of excisable goods, manufacturing, wholesale and retail sale of fuels and lubricants, mining, manufacturing and mass production of precious metals and precious stones, the activities of currency exchange, real estate, leasing (including leasing of commercial sites in the markets and / or commercial facilities), activities to provide services Post and telecommunication, etc. [2].

Significant changes in the project are about accounting in companies with long-term technological cycle of production. Previously the law provided an opportunity to gain a special order of taxation (optional) for companies whose production is associated with fixed assets and intangible assets, if the term of the contract exceeds 9 months. Now, if the technological cycle of production exceeding 1 year, and if the contracts for such production is not foreseen to delivery of goods and services, income has a taxable basis of the degree of completion of production, which is determined by the Specific Gravity of expenditure incurred in a tax period the total expected amount of such costs and Specific Gravity of services rendered in the reporting tax period, in total services to be provided. The Tax Code provides the change of the amount of money or value of goods that you can include in the expenses during the reporting year listed (transferred) to the state budget or budgets of local self-government, or certain nonprofit organizations � not more than 4% of income tax the previous reporting year (now � at least 2% and not more than 5% of such earnings) [3].

The greatest criticism, despite the undeniable positivity capabilities simplify accounting procedures, deserves norm of the Regulation (standard) of accounting 25 "Financial Report of the small business", which was adopted as a result of the Tax Code. According to this norm by small businesses who are eligible to use simplified accounting of revenues and expenses recognized costs and revenues to meet the requirements of the Tax Code and include amounts that are not recognized by the Tax Code as expenses or income, directly on the financial result after tax . This means that Ukraine is to develop indicators of financial reporting rules also apply national accounting standards, based on international standards and norms of the Tax Code. This situation reinforces the level of disparity of indicators of financial reporting. If by that time it was impossible to compare the performance of financial statements of small companies and medium and large due to the mismatch in content, but now it becomes impossible even within groups of "small business" [1].

With the entry into force of the Tax Code taxpayers do not have to carry out the calculation of growth (attrition) stocks. According to the Tax Code fixed assets include other non-tangible assets. Fixed assets are divided according to the Tax Code by 16 groups that correspond to the sub account 10 "Fixed Assets" and 11 "Other non-current tangible assets". Another innovation is that the depreciation will take place on accounting rules (monthly, separately for each item of plant, by any of the methods which are prescribed by accounting standards).

As for revenues and expenditures in accordance with the Tax Code, these changes are as follows: date will receive income during the reporting period in which such revenues were, regardless of the actual accession funds (accrual method). Thus costs are determined by the date of accrual of income, advances (prepayment) for goods (works, services) in tax accounting will not participate [2].

Significant impact of changes in tax legislation have caused the organization of accounting work in government-funded institutions. In the course of their activity which is associated with the implementation of budgets, budgetary institutions serve payers of various taxes and fees. This applies to income tax. In accordance with the provisions of the Tax Code of Ukraine authorities, local governments and institutions or organization established by them that are held by the respective budgets, belong to nonprofit organizations, taxation of which is regulated by paragraph 157. Preferential tax treatment is introduced for these institutions , which involves the application of exemptions specified in paragraph 157 of the income of nonprofit organizations. Taxation of income received by budget institutions from sources that are not listed among the sources of income which are exempt, that is taxable income in accordance with the requirements of paragraph 157.11. In particular, income tax is the amount of proceeds received from such other sources, reduced by the amount of costs associated with obtaining such other income. This spending can not exceed such gains. At the same, the cash method of displaying income and expenditure is applied in the national accounting practice. Thus, simultaneous use of different methods of accounting revenues and expenditures questioned the reliability of the information contained in the financial statements of budgetary institutions [1].

Thus, the accounting has changed significantly under the influence of the adopted Tax Code of Ukraine. An important problem is the harmonization of tax and accounting, because the tax code should be based only on accounting rules, and Ukraine will not be able to move to a single accounting system for one year. All entrepreneurs, and especially those who are deprived of the opportunity to be " uproschentsam " and go on general taxation, will have to maintain accounting records on a mandatory basis and in full, which can lead to doing double-entry bookkeeping.

The list of references:

1. �� .�. �� [ Web resource ] / �.�. �� , �.�. �� , �.�. �� . � Access mode: http://dspace.uabs.edu.ua/handle/123456789/6171

2. �� [ �� ] . � �� : http://zakon.rada.gov.ua/cgi-bin/laws/main.cgi?nreg=2755-17

3. �� .�. �� [ Web resource ] / �.�. �� , �.�. �� . � Access mode: http://www.sworld.com.ua/index.php/ru/economy/accounting-and-auditing/2860-valkova-nv-tkachenko-ob

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