Actuarial Basis of Triple Entry Accounting System in the Context of Internal Control Perfection

Economic Annals-ХХI: Volume 148, Issue 1-2(2), Pages: 67-70

Citation information:
Evdoschak, V., & Manachynska, J. (2015). Actuarial Basis of Triple Entry Accounting System in the Context of Internal Control Perfection. Economic Annals-XXI, 1-2(2), 67-70. https://ea21journal.world/index.php/ea-v148-17/

Volodymyr Evdoschak
PhD (Economics),
Associate Professor,
Chernivtsi Trade and Economic Institute of Kyiv National Trade and Economic University
7 Central Square, Chernivtsi, 58002, Ukraine
vovaevi@mail.ru

Julia Manachynska
PhD (Economics),
Senior Teacher,
Chernivtsi Trade and Economic Institute of Kyiv National Trade and Economic University
7 Central Square, Chernivtsi, 58002, Ukraine
manachyuliya@mail.ru

Actuarial Basis of Triple Entry Accounting System in the Context of Internal Control Perfection

Abstract. Introduction. Investigational maintenance of the triple entry accounting system is a basis of actuarial accounting construction. Opening of the «three-window» accounting system essence is carried out using foreign experience in accounting. It is suggested to build foundation of actuarial record-keeping on the fully new priority set of accounts which follows up the strength of changes in both internal and external environment of an enterprise. Expedience of internal control construction on the basis of actuarial record-keeping exits nowadays. An accent is made on a necessity for complete transition of traditional registration paradigm from establishment of facts of past events on changing of potential attractiveness of business in the future, at the conditions of its sale as an integral property complex. Purpose. To open up the actuarial basis of the triple entry accounting system and its impact on internal controls procedures at the enterprise. Methods. The methodical tool of the triple entry accounting system construction is based on the method of triple record and measure of entropy of capital concentration at the enterprise in accordance with the laws of thermodynamics. Results. In conditions of the actuarial stage of record-keeping development, there is an urgent necessity for the change of the methodological basis of facts fixing in the set of accounts. The triple entry system of accounting by the selection of actuarial accounts, which after semantic filling would consider potential of business profitability increase, overcomes the limits of traditional decimal notation of accounts. It is suggested to perfect the sets of such actuarial accounts in business. Conclusion. Application of the proposed suggestions in relation to the improvement of modern registration paradigm and construction on this basis of the rational internal control will be instrumental in creation of high-quality information provision of management and show the perspective of business development potential as well as ways for its market value increase.

Keywords: Actuarial Account; Triple Entry; Accounting System; Internal Control

JEL Classification: M40; M41; M49

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Received 16.12.2014