FINANCIAL LOANS OF PAWNSHOPS: EVALUATION AND DISCLOSURE IN ACCOUNTING.

Abstract

The article highlights the main results of the study on the assessment and presentation of the activity of pawnshops in accounting, taking into account special features. The factors that have a significant impact on the informativeness of the financial statements of pawnshops, prepared in accordance with the requirements of International Financial Reporting Standards (IFRS), were investigated. The special features of pawnshops activity in the part of granting of loans are considered, in particular: secured loan, the absence of a purpose for its sale as an asset, short-term credit granting. The following is presented: schematics of the process of crediting by a pawnshop, criteria and groups for the classification of financial assets of pawnshops. It was determined that the financial assets of pawnshops are formed from contractual cash flows consisting of payments for repayment of the principal amount of the asset and interest on its outstanding share. It is determined that: financial assets of the pawnshops can be evaluated at amortized cost or at fair value - accounts receivable that arise in the pawnshop in the lending process are financial assets that should be evaluated at amortized cost. The lack of recommendations and explanations for the pawnshops in calculating the effective interest rate has been identified. Recommended for calculating the effective interest rate for the pawnshops, using: basic provisions for calculating the effective interest rate for the bank's financial instruments; functions: IRR and XIRR of the Microsoft Excel software package. Situational examples are given for determining the impact on the financial result of the package of additional services in the process of applying the loan assessment at amortized cost using the effective interest rate method. The recommendation for the calculation of the effective interest rate, taking into account special features of the pawnshop's activity, is included in the part: short-term loans and one-time repayment of the principal amount of debt and interest at the end of the contract.