Abstract: this article examines in detail the issues of forming the elements that make up the equity capital of an enterprise, based on the requirements of international financial reporting standards. Problems that may arise when reclassifying elements of equity capital have been developed, as well as scientifically based proposals and recommendations for solving them.

Key words: equity capital, authorized capital, reserve capital, added capital, ordinary shares, preferred shares, repurchased own shares, retained earnings, target revenues, reserve for future expenses and payments.

Introduction 

The essence of the reforms being carried out in our country is aimed at being on par with countries with developed economies. This, in turn, is considered a problem related to how efficiently and quickly the place of economic and technological development, which has stopped for several decades, can be covered. The skills of the planned economy formed over the years are one of the biggest obstacles for the country to join the ranks of developed countries.

In order to meet the needs of today's and all times, which are not limited by limited resources, and to implement economic measures aimed at development, first of all, there is a need for large financial resources. The purpose of the Resolution of the President of the Republic of Uzbekistan No. PD-4611 dated February 24, 2020 "On additional measures for the transition to international standards of financial reporting" is to achieve the formation of the information environment based on the requirements of world standards in order to attract the necessary financial resources to the country.

As a result of harmonizing the accounting system in the country with the International Standards of Financial Reporting (IFRS), we will be able to meet the requirements of foreign investors for financial information, create opportunities for them to read the reports presented freely and without any difficulties, and use the available financial resources in the international arena, which the countries of the world want to attract for themselves. the main goal is to attract us to develop the country's economy.

For this reason, the organization of accounting in our country based on the requirements of the National Accounting Standards and the harmonization of national accounting standards (NAS) with international standards is considered one of the most urgent issues of the current period.

The main purpose of this research work is to study the accounting of private capital, which is the financial source of the initial activity of all business entities, in accounting based on the requirements of the National Accounting System and to determine the differences of the national accounting system from international standards. In order to achieve this goal, the task of comparing the structural elements of private capital according to national standards and international standards, identifying existing differences, and developing scientifically based proposals and recommendations on how to eliminate them in the accounting process is defined.

Methodology

During the preparation of the research paper, observation, comparison, abstraction, induction, deduction, systematic approach, comparative analysis, and grouping methods were used. These methods ensured the achievement of the research goal and the full fulfillment of the tasks assigned to it.

Research result

The conducted observations showed that the requirements for accounting for private capital in the system of national accounts and in the current legislation on the organization and management of accounting are different from the requirements of IFRS. According to the comparative table created to see these differences, it can be seen that several objects of accounting, which can be included in the structure of private capital in the system of national accounts, are considered in the structure of private capital (see Table 1).

Table 1

Structural structure of private capital elements according to NAS and IFRS requirements

In the system of national accounts, the item described as liabilities according to the requirements of the National Accounting System "Accounts accounting for reserves of future expenses and payments" of the enterprise included in the private capital is counted. Because this article is not formed from the final financial result of economic activity, but is considered an obligation formed to include the expenses that need to be realized in the future in the financial results of previous periods, to ensure the fulfillment of the principle of compliance of the account. It would not be logical for these reserves to be placed in the private capital of the company. These formed funds are unappropriated funds by the enterprise, and they are earmarked allocations destined to be spent for specified purposes in the near future.

It is recommended to reflect the allocated funds in the accounts of liabilities during the specified periods for their utilization, even when accounting for targeted revenues in enterprises.

Annex 1 to the decision of the President of the Republic of Uzbekistan No. PD-4611 of February 24, 2020 "Roadmap for the gradual introduction of international standards of financial reporting and modern methods of personnel training in this field, taking into account the best international experience" 5 "Implementation of quality control on the compliance of annual financial statements of joint-stock companies with the IFRS" is planned for the event. The purpose of this is to ensure the transparency of financial reporting information, increase the investment attractiveness of enterprises, and achieve the structure of reports at the level of international standards.

Figure 1. New classification of equity capital elements

It is recommended to form the following elements of private capital based on the research conducted to achieve the intended goals. It is appropriate to divide these elements into groups of substances developed by the enterprise, given by the founders and formed in the enterprise under the influence of economic changes independent of the enterprise. Recommended private equity items:

- Posted promotions,

- Added capital

- Purchased own shares;

- Reserve capital;

- Undistributed profit (unreimbursed loss);

- Other temporary income and expenses not related to business activity.

Table 2.

Recommended system of accounts for synthetic accounting of elements of private capital

The classification of the elements of private capital according to the above-mentioned groups facilitates the full assessment and analysis of the composition of the private capital of the enterprise. The possibility of evaluating sources that formed private capital will increase.

The following accounts were also recommended to organize the synthetic account of private capital elements recommended in the system of national accounts.

The use of these accounts makes it possible to account for the elements of private capital in accounting and to correspond with other accounts. It allows to aggregate the changes in the composition of equity capital during the period to the end of a certain reporting period. As a result, the information collected in these accounts is transferred to the financial statement by reflecting it in the transformation tables. During the reporting period, the passive part of the accounting balance is the basis for forming the data of the first section. The use of these accounts has been designed to be suitable for joint-stock companies, depending on the need, there are opportunities to adapt accounts for enterprises of other organizational and legal forms.

We believe that "Targeted receipts" and "Accounts for future expenses and payments reserve account" reflected in the structure of private capital according to the system of national accounts can be added to the structure of long-term accounts based on the plan of national accounts for consideration in the financial accounting process. Because these accounts are long-term and correspond to the obligation tariff, it is appropriate to consider them as part of 7900 accounts.

Discussion

In the conditions of reducing the hidden economy and organizing the accounting process on the basis of MFRS, the composition of private capital, the special features of accounting for its elements, the problems of organizing private capital accounting based on international standards of financial reporting and the issues aimed at solving them are considered one of the urgent problems of today.

Grouping of structural elements of private capital based on the new classification proposed in table 2 for accounting, and taking into account the characteristics of formation, the new group of accounts recommended allows for synthetic accounting of these elements.

Summary

The redistribution of private capital elements according to the requirements of IFRS makes it possible to reliably assess the financial condition of the enterprise by foreign investors. As a result of this opportunity, investors coming to our country and their financial and technological investments will create great opportunities to ensure the stable development of the economy.

The information of this article can be used by employees of the accounting department of joint-stock companies, scientific researchers, bachelor and master students of higher educational institutions, and those who want to study independent accounting.

References:

1. Resolution of the President of the Republic of Uzbekistan dated February 24, 2020 No. PD-4611 "On additional measures for the transition to international standards of financial reporting". Source: www.lex.uz
2. Law of the Republic of Uzbekistan "On protection of rights of joint-stock companies and shareholders". Approved by LRU-370 on May 6, 2014 (source: www.lex.uz).
3. Law of the Republic of Uzbekistan "On Limited Liability and Additional Liability Companies". 2001
4. Approved by No. 310-II on December 6 (source: www.lex.uz).
5. NAS No. 1 "Accounting policy and financial reporting". Source: https://lex.uz/docs/828581
6. NAS No. 7 "Private capital". Source: https://lex.uz/docs/627308
7. NAS No. 14 "Report on Equity". Source: https://lex.uz/docs/834244
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