OPTIMIZATION OF RESERVATION IN ACCOUNTING OF THE ENTITIES

The organizations can use a reservation method in accounting. Allowances for the purpose of the taxation allow firms to receive from the state free delay on the tax discharge on profit. Allowances in financial accounting can provide inflow of own financial resources. A research purpose – to reveal optimal variants of forming of allowances in accounting for improvement of economic indicators of activities of the entities, is including – for development of innovative activities. Research materials: the existing regulations, accounting policy of the organizations of various sizes and fields of activity. Research methods: monographic, observation, comparison, analysis. During the research the author systematized theoretical aspects of creation of allowances in financial and tax accounting, analyzed the corresponding accounting practice of the separate entities, proved alternative methods of reservation. An optimum set of allowances includes: a doubtful debt allowance, an allowance for payment of  a vacation pay to workers (for subjects of small business), an allowance on repair of a property, plant and equipment, an allowance for scientific research (for subjects of any sizes).