How this can be seen in the assessment of business need to use a retrospective accounting information (financial statements) and the current financial and economic indicators of the company. Time of recording data used and the time of evaluation among themselves are not consistent. The discrepancy between the data over time creates the conditions for the emergence of these kinds of distortions. These include: changing accounting standards, baselines, denomination of currency, currency fluctuations, structural changes in prices, etc. These inconsistencies give rise to the problem of adjustment is used throughout the financial and accounting records in order to bring them to a common interim standard, which serves as a time of evaluation. Alignment and adjustment of financial reporting is regulated by a standard BVS-IX, the process may include: Reduction of financial information on the estimated company and peers to a single basis.
Applying the Restatement of values into the current. Adjustment of income and expenses so that they adequately characterize the company's results for the long period of time. Allowance for nonperforming assets and liabilities and related income and expenses. Bringing Financial Reporting to a uniform basis. Within the state accounting system the company always has the freedom to choose methods of accounting. This choice is fixed in order 'on the accounting policy of the enterprise' for one year and may change over the years. Principle drawing accounting does not require a reflection of the real market value of certain assets of the enterprise. In this situation, companies prefer to use those methods of accounting that would allow minimize taxes.