scholarly journals Assessment of the impact of the Covid-19 pandemic on the economic security of Russian oil companies based on IFRS reporting

2021 ◽  
Vol 9 (2) ◽  
pp. 21-25
Author(s):  
Mariya Bulatenko ◽  
Vera Grishina ◽  
Nadezhda Grishina
Keyword(s):  
Financial Stability ◽  
Financial Statements ◽  
Economic Security ◽  
Equity Capital ◽  
Energy Prices ◽  
Oil Companies ◽  
Financial Condition ◽  
Financial Investments ◽  
Crisis Conditions ◽  
The Impact

During the quarantine measures introduced due to the spread of COVID-19, there was a decrease in demand for energy resources, which, while maintaining supply from oil companies, led to a sharp decline in energy prices. As a result, oil industry enterprises are in crisis conditions and now it is important to assess the level of their economic security. In the article, the source of information on the financial results and changes in the financial position of oil companies is their public financial statements prepared in accordance with IFRS. The authors assess the impact of the Covid-19 pandemic on the economic security of PJSC NK Rosneft, PJSC NK Lukoil, PJSC NK Bashneft, PJSC Tatneft, PJSC Gazprom Neft on the basis of a horizontal analysis of financial investments, reserves, equity capital and revenues of oil companies under IFRS for 2019 and 2020. The article provides a calculation and analysis of liquidity and financial stability indicators, as well as an assessment of the likelihood of bankruptcy of enterprises according to three models based on IFRS reporting. The most vulnerable to the consequences of quarantine measures was PJSC NK Rosneft, which is confirmed by the data of an assessment of its financial condition.

scholarly journals DIAGNOSTICS OF THE ENTERPRISE’S FINANCIAL CONDITION DURING THE CRISIS

2021 ◽  
Author(s):  
Daria Yasynska ◽  
◽  
Olena Dobrovolska ◽  
Keyword(s):  
Economic Activity ◽  
Financial Stability ◽  
Economic Security ◽  
Working Capital ◽  
Systematic Calculation ◽  
Financial Condition ◽  
Normal Limits ◽  
Accounts Payable ◽  
Crisis Conditions

The paper reveals the essence of diagnostics of the financial condition of an agricultural enterprise during crisis and stipulates the necessity for its systematic implementation. As there are a lot of companies in Ukraine facing the crisis and as a consequence go bankrupt, which in turn negatively affects the dynamics of repayment of accounts payable, it is extremely important to study the financial condition of the company, dynamics of its payables and receivables in order to find the best ways to overcome the crisis and the normalize its economic activity. The article offers economic proposals for stabilizing the economic activity of the enterprise during the crisis. The article also proposes the systematic calculation of the enterprise’s liquidity and keep to these indicators within the normal limits. In its turn, there are several levels of financial security of the enterprise: absolute (the enterprise has sufficient working capital for operation); normal (the enterprise has enough funds to buy inventory and cover costs); satisfactory (the enterprise does not have enough working capital and it resorts to medium-term or long-term liabilities); critical (the company uses long-term loans to finance its activity) and crisis (the company is unable to meet its obligations). The financial condition and financial and economic activity of the enterprise is assessed by its solvency. Solvency acts as an external sign of financial stability, the essence of which is the security of current assets by long-term sources of formation. The success of the enterprise depends on the analysis of risks of threats to the management of financial and economic security of the business entity and leveling and consolidation of efforts in times of crisis. Thus, by analyzing the financial and economic activity of the enterprise, you can determine the dynamics of changes in economic performance. Control of financial and economic security of the enterprise will allow to carry out economic activity at a normal level and in case of deterioration to predict and prevent the onset of crisis conditions that can lead to bankruptcy.

FRAUD TRIANGLE ANALYSES IN DETECTING FRAUDULENT FINANCIAL STATEMENT USING FRAUD SCORE MODEL

2020 ◽  
Vol 25 (1) ◽  
pp. 29-44
Author(s):  
Mariati ◽  
Emmy Indrayani
Keyword(s):  
Financial Stability ◽  
Linear Regression Analysis ◽  
Financial Statements ◽  
Multiple Linear Regression Analysis ◽  
External Pressure ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Financial Statement Fraud ◽  
Financial Condition ◽  
Score Model

Company’s financial condition reflected in the financial statements. However, there are many loopholes in the financial statements which can become a chance for the management and certain parties to commit fraud on the financial statements. This study aims to detect financial statement fraud as measured using fraud score model that occurred in issuers entered into the LQ-45 index in 2014-2016 with the use of six independent variables are financial stability, external pressure, financial target, nature of industry, ineffective monitoring and rationalization. This study using 27 emiten of LQ-45 index during 2014-2016. However, there are some data outlier that shall be removed, thus sample results obtained 66 data from 25 companies. Multiple linear regression analysis were used in this study. The results showed that the financial stability variables (SATA), nature of industry (RECEIVBLE), ineffective monitoring (IND) and rationalization (ITRENDLB) proved to be influential or have the capability to detect financial statement fraud. While the external pressure variables (DER) and financial target (ROA) are not able to detect the existence of financial statement fraud. Simultaneously all variables in this study were able to detect significantly financial statement fraud.

scholarly journals Analysis of sensitivity of a company's financial sustainability to random factors

2020 ◽  
Vol 210 ◽  
pp. 13002
Author(s):  
Ilona Avlasenko ◽  
Lyudmila Avlasenko ◽  
Isa Peshkhoev ◽  
Yuri Podkolzin ◽  
Oksana Savelyeva
Keyword(s):  
Financial Stability ◽  
Unstable State ◽  
Financial Indicators ◽  
Financial Condition ◽  
Distribution Parameters ◽  
Normal Stability ◽  
Normal Law ◽  
The Impact ◽  
Enterprise Activity

In this article the problem of influence of accidental changes of financial indicators of enterprise activity (equity, long-term/short-term borrowed capital, reserves and costs, etc.) caused by uncertainty of market conditions on values of indicators of financial stability is considered. The study is conducted on the basis of the assumption that the studied financial indicators of the enterprise are random values with a normal law of distribution. To estimate the distribution parameters of these random values, statistical data on the values of the financial indicators of the enterprise for previous years are used. Following estimates of probabilities of financial stability levels were built: absolute stability, normal stability, unstable state and crisis financial state. With the help of statistical modeling, numerical experiments were conducted in order to determine the level of financial condition and conclusions were formulated on the impact on the financial condition of the enterprise of the parameters of the distribution of probabilities of random variables - indicators of the financial and economic activity of the enterprise.

scholarly journals Influence of financial sustainability of households on default risks of regulated banks

2020 ◽  
Vol 159 ◽  
pp. 05015
Author(s):  
Zuhra Yergasheva ◽  
Saltanat Kondybayeva ◽  
Ryszhan Kabylkairatkyzy ◽  
Gulmira Yesengeldiyeva
Keyword(s):  
Financial Stability ◽  
Financial Sector ◽  
Financial Sustainability ◽  
The Real ◽  
Household Sector ◽  
Financial Condition ◽  
Credit Risks ◽  
Default Risks ◽  
The Republic ◽  
The Impact

The purpose of the article is to assess the financial sustainability of the household sector of the Republic of Kazakhstan and its impact on the real and financial sector in the context of minimizing the credit risks of the regulated banks of the Republic of Kazakhstan. The paper analyzes various points of view on assessing the financial sustainability of the household sector, makes a successful attempt to assess at a macroeconomic level the financial sustainability of households and the drawing potential of households in Kazakhstan using the OECD and IMF methods. The work made a holistic analysis of the financial condition and solvency of households in Kazakhstan, a forecasted VAR-model for assessing the impact of household financial sustainability on the state of the real sector of the economy has been developed; a regression model for assessing the impact of financial stability of households on the financial sector of Kazakhstan has been developed.

scholarly journals Business Planning and Assessment of Its Impact on the Enterprise Financial Stability

2020 ◽  
pp. 78-84
Author(s):  
Kateryna Shtepenko ◽  
Lyudmyla Svystun ◽  
Iryna Krekoten
Keyword(s):  
Financial Stability ◽  
Business Processes ◽  
Functional Relationship ◽  
Financial Analysis ◽  
Business Activity ◽  
Financial Independence ◽  
Financial Condition ◽  
Content Ratio ◽  
Asset Turnover ◽  
The Impact

At the present stage of the company development as an open social and economic system the question of how existing methods of financial analysis meet the needs of users considering the dynamism and complexity of business processes remains relevant. The purpose of the article is study relationships between static and dynamic indicators of financial condition, to reflect its characteristics such as business activity and financial stability. The article defines the functional relationship between dynamic business activity indicators and static indicators of financial stability, grounds technique of factor analysis of financial stability. The economic content ratio of the assets turnover and equity is defined. The nature of its relationships with the dynamics of assets is considered. Both theoretically and practically it is determined that if the correlation of ratio of asset turnover and equity is bigger than the ratio of financial independence at the beginning of the period under study, the positive dynamics of the property will affect the company’s final financial stability and vice versa, if the ratio is less than the rate of financial independence at the beginning of the period under study, the impact of positive dynamics of property on the final financial stability will be positive. It is proposed to consider this dependence both for factor retrospective analysis and for financial stability forecasting.

scholarly journals Pest-Method Development to Assess the Financial Stability of Logistic Companies

2019 ◽  
Vol 9 (1) ◽  
pp. 4597-4601
Keyword(s):  
Financial Stability ◽  
Method Development ◽  
Qualitative Assessment ◽  
Internal Environment ◽  
Economic Activities ◽  
Financial Condition ◽  
Expert Assessments ◽  
Quality Of Products ◽  
Effective Development ◽  
The Impact

Financial stability and solvency of the company is a guarantee of effective development and the basis for making effective management decisions by management. This approach to business planning makes it possible to conduct a qualitative assessment of operating and investment activities and reflects the ability to timely repay its debt obligations. In Russian and world practice, there are many approaches to assessing the financial condition, however, the peculiarity of our study is the use of methodological tools that allow us to assess the profile of the organization when assessing the external and internal environment of the company. The paper identifies the elements of the macroenvironment, types of financial stability of the organization. Based on the system of expert assessments for PEST-metod, environmental factors are determined, including the probability of an event, the impact on the organization, the direction of influence, and the degree of importance. The assessment is based on conditions of an economic, political, socio-cultural and technological nature. This technique is a systematic approach to the study of the influence of conditions that form the external and internal environment of the company, market and production factors on the quantity and quality of products, services rendered. The results of the study indicate possible prospects for the development of further economic activities of the organization in the selected functioning environment.

ASSESSMENT OF FINANCIAL STABILITY AND PROFITABILITY OF THE INSURANCE COMPANY

2020 ◽  
Vol 2 (10) ◽  
pp. 80-86
Author(s):  
E. A. RUSETSKAYA ◽  
◽  
L. V. AGARKOVA ◽  
V. V. AGARKOV ◽  
◽  
...  
Keyword(s):  
High Risk ◽  
Financial Stability ◽  
Insurance Company ◽  
Large Share ◽  
Insurance Contracts ◽  
Financial Condition ◽  
Insurance Portfolio ◽  
Standard Values ◽  
The Impact ◽  
Authorized Capital

The study of the issues of financial stability and profitability of an insurance company showed that its financial condition is assessed as financially stable and highly profitable. Most of the calculated indicators correspond to the standard values. The company possesses a large share of highly liquid assets, is provided with its own funds, has a paid authorized capital, insurance reserves are sufficient to fulfill obligations under insurance contracts. The main directions of improving financial stability can be increasing the level of profitability and reducing the impact of risks by increasing the competitiveness of services, current forecasting of activities, optimization of the insurance portfolio, as well as reducing the share of high-risk investments.

Formation of the financial and economic security system at the enterprise

2021 ◽  
Vol 72 (5) ◽  
pp. 78-84
Author(s):  
A. Dovgal ◽  
N. Parkhomenko
Keyword(s):  
Financial Stability ◽  
Negative Impact ◽  
Legal Protection ◽  
Economic Security ◽  
Economic Activities ◽  
Financial Flows ◽  
Financial Activity ◽  
Financial Condition ◽  
Security Indicators ◽  
The Right

The necessity of formation of financial and economic security at the enterprise in modern conditions of unstable financial situation in the country is defined. The concept of «financial and economic security» is substantiated, especially that financial and economic security is the financial and economic condition of the enterprise, through which the financial and economic interests of the company should be protected from negative external and internal factors and create the necessary financial and economic conditions for continuous successful activity and sustainable development of the enterprise. Statistics on the difficult financial security situation for both enterprises and the country are presented. The main indicators of the system and components for the formation of financial and economic security at the enterprise are analyzed. It is determined that the main factors of financial and economic security of the enterprise are: the level of financial resources; stability and firmness of the financial condition of the enterprise; balance of financial flows; the nature of financial and economic activities of the enterprise and the degree of its efficiency. Stages of formation of financial and economic security are to determine the types and causes of negative impact on the company and determine its financial condition, assessment of the current level of its security. Indicators for assessing the efficiency of the enterprise and the current state of financial and economic security of the company are presented. All these measures are aimed at ensuring the balance and sustainability of financial and economic security of the company, which consists in the effective implementation of currency, investment, settlement, stock, monetary policies, etc. as a prerequisite for the effectiveness of economic activity of the business entity. The following ways of improvement of financial and economic system are offered: improvement of normative-legal protection of all spheres of activity; ensuring the reliability of staff; protection of information used by the enterprise; effective monitoring of finances and risks of financial activity; increasing financial stability and independence by ensuring the efficiency of core activities, competitiveness of products and / or services; the right choice of strategies for market behavior.

The impact of mandatory IFRS adoption on capital markets: evidence from Korea

2018 ◽  
Vol 26 (1) ◽  
pp. 38-58 ◽  
Author(s):  
Saerona Kim ◽  
Haeyoung Ryu
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Joint Effect ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Content Type ◽  
Ifrs Adoption ◽  
The Cost ◽  
The Impact

Purpose The purpose of this paper is to examine the effects of adoption of the mandatory International Financial Reporting Standards (IFRS) on the cost of equity capital in a unique Korean setting. In Korea, individual financial statements were taken as primary financial statements. Before the adoption of IFRS, consolidated financial statements were taken as supplementary financial statements. Design/methodology/approach The authors measure the cost of equity using the average estimates from the implied cost of capital models proposed by Claus and Thomas (2001), Gebhardt et al. (2001), Easton (2004) and Ohlson and Juettner-Nauroth (2005), using it as the primary dependent variable. Mandatory IFRS adoption, the independent variable in this study, is assigned a value of 1 for the post-adoption period and 0 otherwise. Findings Using a sample of listed Korean companies during the period from 2000 to 2013, the authors find evidence of a significant reduction in the cost of equity capital in Korean listed companies after mandatory adoption of the IFRS in 2011, after controlling for a set of market variables. Originality/value This study is one of a growing body of literature on the relations between mandatory IFRS adoption and the cost of equity capital (Easley and O’Hara 2004; Covrig et al. 2007; Lambert et al. 2007; Daske et al. 2008). According to the results of this study, increased financial disclosure and enhanced information comparability, along with changes in legal and institutional enforcement, seem to have had a joint effect on the cost of equity capital, leading to a large decrease in expected equity returns.

scholarly journals Equity capital: approaches to definition, classification and its structure

2019 ◽  
Vol 11 (2) ◽  
Author(s):  
T. Markova ◽  
O. Volodina ◽  
O. Mytrofanov ◽  
A. Chehlatonieva
Keyword(s):  
Financial Stability ◽  
Financial Statements ◽  
Financial Economic ◽  
Practical Aspect ◽  
Equity Capital ◽  
Equity Structure ◽  
Debt Capital ◽  
Correct Calculation ◽  
Legislative Changes

The article examines the essence of the concept of "equity capital" and conceptual approaches to itsdefinition and classification. It has been determined that the concept of "capital" has had roots since antiqu ity, and meant a source of accumulation of wealth. However, in today's conditions of the market system capital is generalizing and at the same time varied, because it covers intellectual, natural, social capital. The importance of the correct calculation of structural equilibrium, which is a guarantee of financial competitiveness,financial stability and solvency in modern fast financial, economic and legislative changes, has been substantiated. Three approaches to the classification of the structure of the enterprise according to the normativelegislative base (national and international) and practical aspect has been determined. The practical analytical analysis of the equity structure based on the financial statements of the enterprise indicates that the equity of the enterprise in the current conditions of management decreases, in particular, by increasing the uncovered loss. The advantage of debt capital in the form of payables proves the need to make optimal decisionson timely control and adjustment of the capital structure of the enterprise due to the dynamics and featuresof socio-economic and financial processes in Ukraine.

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