Genesis of the role of asset in different concepts of balance theories

Abstract

Introduction. The history of accounting has always been directly dependent on the

needs of users of such information. It was they who formed the queries for the financial statements that formed the basis of the management decision-making process. This historical process has contributed to the emergence of various balance theories. The assets of the company were recorded in the balance sheet for several stakeholder groups. It is the understanding of the dialectic of the formation of such requests that determines the process of displaying the assets of the enterprise.

purpose. The purpose of the article is to study the genesis of balance theories and to determine the list of factors that influenced the understanding of the essence of the assets of the enterprise. A historical approach to research allows you to identify trends and predict the formation of approaches to balance in the future.

Metods. To  achieve this goal, scientific methods were used, both at the empirical   and theoretical levels of research. The  methods  of  analysis  were  used  to  compare the determination of the essence of static and dynamic balance theories in different scientific calculations. The historical method was used to understand the logic behind the development of these theories. Modeling and abstraction techniques have been used to

address different situations related to the display of assets in different theoretical constructs of the balance sheet.

Results. The article discusses the development of static and dynamic balance theory in the context of the doctrines of different scientists and gives a critical analysis of the trade- offs. The dominant influence of conflicting interests of different groups of users of accounting information on the formation of variants of dynamic and static balances is proved. For the first time, the peculiarities of reflecting assets in general and intangible in particular, within the legal and economic concepts of the theories under study are identified. The risks that compromise approaches to forming the domestic balance are identified and the ways of overcoming them are identified.

Discussion. In order to increase the level of objectivity and materiality of the asset information presented in the financial statements, it is necessary to search for trade-offs between legal and economic concepts within separate balance theories. Studies have shown that attempts to synthesize the balance theories themselves and to bring them together into a single accounting document run into claims from users who have different interests. Consideration of issues regarding the priority of forming a balance sheet for the benefit of stakeholders allows to state the necessity of reporting on a specific purpose: solvency, investment attractiveness, etc.