1.

Definition of expenses - they represent a decrease in economic benefits during

the reporting period in the form of a decrease (leakage) of assets or an increase in
liabilities, which results in a decrease in equity, without prejudice to distributions
between owners. Expenses are accounted for on an accrual basis but are not assets.

2. Definition of revenue - revenue represents the gross flows of economic benefits

during the period created in the ordinary course of business of the enterprise,
manifesting itself as an increase in assets or a decrease in liabilities resulting in an
increase in equity, regardless of distributions between owners.

3. Basic accounting principles in accounting for expenses and revenues:

a) current reduction - income and expenses are accounted for. E.g. accrued wages,
we recognize them as expenses, regardless of whether we paid them. Budget
exclusion
(b) the comparability of revenue and expenditure

4. Cost accounting
The expenses for the activity of the enterprise are reported in two aspects - by
economic activity (gr. 60) and by functional purpose (gr. 61 - Activity expenses).
The financial expenses are accounted for in the accounts of UAH 62 - accrued
expenses for interest, fees, commissions, foreign exchange transactions with
securities and more.
Expenses that do not relate to the current period - subscriptions paid in advance,
insurance, are recorded as Expenses for future periods. These expenses do not
contribute to the formation of the financial result for the current year and are stated
as an item in the balance sheet.
All other expenses must be completed at the end of the rep