Objectives of the recognition:
In accordance with the Federal Law «On Accounting», to ensure the accounting and reporting data reliability, the organizations shall recognize their assets and liabilities and in the course of recognition the availability, status and value of the assets and liabilities shall be checked and confirmed by the documents. The recognition terms and procedure shall be determined by chief executive officer of organization, except for the cases when recognition is mandatory. In accordance with instructions of the Ministry of , Finance on asset and liability recognition, the organization’s assets shall mean fixed assets, intangible assets, financial contributions, inventories, finished products, goods, other stocks, monetary assets and other financial assets, and the organization’s liabilities shall mean accounts payable, bank loans, borrowings and reserves.


Situations when support is used:
1. Impossibility (reluctance) to perform formal recognition.
Normally, recognition performed by organization’s accounting or financial staff has no positive effect because:
usually, recognition is performed not to the fullest extent, i.e. not all of the assets and liabilities available in organization are recognized;
disinterest of employees in the recognition outcomes and conventionalism of the recognition procedure do not allow identification of surpluses and deficiencies of capital equipment, inventories, finished products, monetary assets and other assets and liabilities to the fullest extent;
available assets are not checked for their suitability for further use;
capital cost objects are not checked for their  ready to use condition and  often are not recognized in fixed assets in a timely manner;
actual cost at which some kinds of assets (for example, financial contributions) are recorded in the books is not appraised;
account reconciliation reports are issued and signed not with the all creditors and debtors of organization, i.e. accuracy and completeness  of accounting data and records are not ensured;
incurred liability is not checked for its enforceability that does not allow director and owner to understand the real financial position of organization;
“concealed” debts resulted from coming into force of decisions of courts, tax authorities, etc., are not taken into account.


2. Independent support in recognition will help to:
adhere to recognition procedure in accordance with the applicable laws;
perform actual, full and comprehensive check of availability and status of the organization’s assets and liabilities;
identify and recognize in loss an existing shortage of tangible assets, uncollectable debt, etc.;
identify and write off  assets unsuitable for use;
reveal errors in accounting and qualification of assets and liabilities;
take prompt measures to recover an outstanding debt;
comply with the accounting laws.


Economic benefits from tax saving as a result of write-off of tangible asset shortage and uncollectable debts and from fines saving as a result of prompt recognition of assets as fixed assets and reveal of outstanding but collectable debts may exceed the price of recognition support services.


Scope of work:
•    Full organizational and legal support of asset and liability recognition activities.
•    Preparation and assistance in issue of documents associated with recognition procedure.
•    Control over recognition of all the assets available in organization.
•    Supervision of compliance with recognition procedure.
•    Identification of  actual outstanding property including:
- fixed assets,
- assets under construction,
- raw and other materials,
- goods and finished products,
- monetary assets,
- other assets.
•    Identification of actual outstanding debts pertaining to accounting items: trade accounts payable, trade accounts receivable, settlements with staff, accountable persons, budgetary and non-budgetary institutions, founders and other debtors and creditors.
•    Correlation between actual recognition data and accounting data.
•    Determination of time and causes of occurrence of accounts receivable and accounts payable, check of availability and correctness of confirming primary accounting documents.
•    Identification of debt collection feasibilities (check of actual availability of debtor or creditor, statute of limitations, availability of required documents).
•    Correction of errors in existing system of asset and liability accounting.
•    Updating of accounting data based on the actual results of recognition.
•    Preparation of methodological recommendations on the use of recognition results.


Work product:
Written report with information regarding identified breaches and deviations, and recommendations on their elimination.
Objectives of the recognition:
In accordance with the Federal Law «On Accounting», to ensure the accounting and reporting data reliability, the organizations shall recognize their assets and liabilities and in the course of recognition the availability, status and value of the assets and liabilities shall be checked and confirmed by the documents. The recognition terms and procedure shall be determined by chief executive officer of organization, except for the cases when recognition is mandatory. In accordance with instructions of the Ministry of , Finance on asset and liability recognition, the organization’s assets shall mean fixed assets, intangible assets, financial contributions, inventories, finished products, goods, other stocks, monetary assets and other financial assets, and the organization’s liabilities shall mean accounts payable, bank loans, borrowings and reserves.


Situations when support is used:
1. Impossibility (reluctance) to perform formal recognition.
Normally, recognition performed by organization’s accounting or financial staff has no positive effect because:
usually, recognition is performed not to the fullest extent, i.e. not all of the assets and liabilities available in organization are recognized;
disinterest of employees in the recognition outcomes and conventionalism of the recognition procedure do not allow identification of surpluses and deficiencies of capital equipment, inventories, finished products, monetary assets and other assets and liabilities to the fullest extent;
available assets are not checked for their suitability for further use;
capital cost objects are not checked for their  ready to use condition and  often are not recognized in fixed assets in a timely manner;
actual cost at which some kinds of assets (for example, financial contributions) are recorded in the books is not appraised;
account reconciliation reports are issued and signed not with the all creditors and debtors of organization, i.e. accuracy and completeness  of accounting data and records are not ensured;
incurred liability is not checked for its enforceability that does not allow director and owner to understand the real financial position of organization;
“concealed” debts resulted from coming into force of decisions of courts, tax authorities, etc., are not taken into account.


2. Independent support in recognition will help to:
adhere to recognition procedure in accordance with the applicable laws;
perform actual, full and comprehensive check of availability and status of the organization’s assets and liabilities;
identify and recognize in loss an existing shortage of tangible assets, uncollectable debt, etc.;
identify and write off  assets unsuitable for use;
reveal errors in accounting and qualification of assets and liabilities;
take prompt measures to recover an outstanding debt;
comply with the accounting laws.


Economic benefits from tax saving as a result of write-off of tangible asset shortage and uncollectable debts and from fines saving as a result of prompt recognition of assets as fixed assets and reveal of outstanding but collectable debts may exceed the price of recognition support services.


Scope of work:
•    Full organizational and legal support of asset and liability recognition activities.
•    Preparation and assistance in issue of documents associated with recognition procedure.
•    Control over recognition of all the assets available in organization.
•    Supervision of compliance with recognition procedure.
•    Identification of  actual outstanding property including:
- fixed assets,
- assets under construction,
- raw and other materials,
- goods and finished products,
- monetary assets,
- other assets.
•    Identification of actual outstanding debts pertaining to accounting items: trade accounts payable, trade accounts receivable, settlements with staff, accountable persons, budgetary and non-budgetary institutions, founders and other debtors and creditors.
•    Correlation between actual recognition data and accounting data.
•    Determination of time and causes of occurrence of accounts receivable and accounts payable, check of availability and correctness of confirming primary accounting documents.
•    Identification of debt collection feasibilities (check of actual availability of debtor or creditor, statute of limitations, availability of required documents).
•    Correction of errors in existing system of asset and liability accounting.
•    Updating of accounting data based on the actual results of recognition.
•    Preparation of methodological recommendations on the use of recognition results.


Work product:
Written report with information regarding identified breaches and deviations, and recommendations on their elimination.