scholarly journals ABOUT SOME APPROACHES TO THE DETERMINATION OF MARKET CAPITALIZATION COST OF A COMPANY WHILE PERFORMING FINANCIAL AND ECONOMIC EXAMINATION

2018 ◽  
Vol 18 ◽  
pp. 484-491
Author(s):  
K. O. Mamikonyan
Keyword(s):  
Economic Analysis ◽  
Cash Flows ◽  
Economic Activities ◽  
Factors Affecting ◽  
Market Capitalization ◽  
Investment Projects ◽  
Economic Entity ◽  
Value Determination ◽  
A Company

The article is devoted to the economic analysis of the so-called "existence of actual insolvency" in case of deliberate and false company bankruptcy. Approaches to value determination of market capitalization of an economic entity are considered, capital structure analysis and capitalization mechanisms are presented. It is emphasized that interest in this issue is justified taking into account the generation of corporate capital of emerging markets and development of capital market mechanisms. Following basic mechanisms influencing change capitalization are considered: speculative, brand, marketing, environmental, regional, as well as informative. It is demonstrated that, in practice, the forecasting of cash flows is carried out taking into account existing investment projects or company business plans by extrapolation of future cash flows for previous periods, while the indicator of used cash flows is important, and not the indicator of actual profit. Specifics of financial and economic examinations carried out in the context of both criminal cases on crimes directed against economic activity and those appointed by courts that relate to determination the amount of damage caused to a debtor or creditors as a result of the economic activities of the subjects are highlighted. The solution of the problem debated in the article can be realized only if as a result of the economic analysis the so-called concept of "existence of actual insolvency" the main causal factors affecting the market value of a company and the magnitudes of their influence will be considered separately. Thus, the approach proposed by the author will allow competent authorities initiating performing of expert researche to have a body of evidence regarding of caused damage in a large amount to a debtor or creditors as a result of deliberate or false bankruptcy.

Actual issues of valuation of businesses of the economic entity

2017 ◽  
Vol 31 (2) ◽  
pp. 156-162 ◽  
Author(s):  
O. V. Schneider
Keyword(s):  
Discount Rate ◽  
Accurate Prediction ◽  
Economic Activities ◽  
Business Valuation ◽  
Economic Entity ◽  
The World ◽  
Definition Of

The article summarizes the main approaches in the definition of business valuation the economic entity. In the process of business valuation, taking into account the risks of financial and economic activities necessary to obtain information on what stage the owner implements the business will receive income. The most difficult task is the impossibility of accurate prediction in determining the level of income and the determination of a discount rate capitalization of future incomes due to the instability of the economy, both in the country and around the world.

scholarly journals IMPROVING THE ACCOUNTING OF ADMINISTRATIVE EXPENSES OF COMPANIES ENGAGED IN MULTIPLE ACTIVITIES

2021 ◽  
pp. 223-229
Author(s):  
Vita Anatolievna Grekova
Keyword(s):  
Production Costs ◽  
Methodological Error ◽  
Economic Activities ◽  
Current Accounting ◽  
Trading Activities ◽  
Administrative Expenses ◽  
General Business ◽  
On Farm ◽  
A Company

Production costs and costs of selling products (works, services) are the main objects of on-farm control. Any change in them when a company conducts several activities leads to an incorrect determination of profit for each of the activities. Thus, the risk of material misstatement of production costs and sales costs increases, and hence the adoption on their basis of incorrect decisions on the future economic activities of the company. Organizationally and methodically correctly organized accounting of general business costs makes it possible to provide reliable information on the formation of the actual cost of finished products and goods. The paper analyzes unified approaches to the application of the Chart of Accounts for the financial and economic activities of organizations and the reflection of the facts of economic activity on the accounts of accounting, enshrined in the instructions for using the chart of accounts for the financial and economic activities of organizations. The analysis made it possible to identify a methodological error in the accounting of administrative and managerial expenses that arises when combining types of production activities with types of trading activities. An assessment of the information that the instructions on the use of the chart of accounts of the financial and economic activities of organizations on account 26 «General business expenses» and the actual data of the current accounting of a number of organizations that simultaneously carry out production and trade types of activities are recommended to summarize. The obtained result confirmed the overestimation of general business expenses while underestimating the costs of selling such economic entities. We see the prospect of further investigation of the problem in the elimination of the identified methodological error in accounting for administrative and management expenses with the introduction of adjustments to the instructions for using the chart of accounts of financial and economic activities of organizations.

scholarly journals Problems Related to Determining of a Single Economic Entity under Competition Law

2017 ◽  
Vol 10 (16) ◽  
pp. 107-125
Author(s):  
Raimundas Moisejevas ◽  
Danielius Urbonas
Keyword(s):  
Competition Law ◽  
Important Criterion ◽  
Main Criterion ◽  
Economic Unit ◽  
The Third ◽  
Economic Entity ◽  
Decisive Influence ◽  
The Relationship ◽  
A Company

The article explores the problems related to the determination of a single economic unit under competition law. The first part of the article addresses the concept of a single economic entity. It is presumed that companies belonging to a group are separate undertakings, but under certain circumstances the group might constitute a single economic entity. The second part refers to the analysis of the concept of ‘control’, which is the main criterion describing the relationship inside a group of companies. The third part refers to the analysis of the cases when de jure separate undertakings are recognized as a single economic entity. When a company exercises decisive influence over another company, they form a single economic entity and, hence, are part of the same undertaking. Decisive influence is the most important criterion for recognizing that de jure separate undertakings constitute a single economic unit. Finally, the fourth part refers to problems concerning the presumption of the decisive influence. It is presumed that a parent company exercises a decisive influence over a subsidiary where it holds 100 percent of capital. Thus, separate companies are recognized as a single economic unit, if 100 percent of a company’s capital is owned by the controlling entity.

ASSESSING THE MORTALITY RISK OF A BUSINESS

1999 ◽  
Vol 07 (01) ◽  
pp. 65-88
Author(s):  
DENISE GUITHUES AMRHEIN ◽  
JEROME A KATZ
Keyword(s):  
Mortality Risk ◽  
Cash Flows ◽  
Net Income ◽  
Working Capital ◽  
Bottom Line ◽  
Business Decisions ◽  
Factors Affecting ◽  
Critical Measure ◽  
Start Up ◽  
A Company

A number of studies have examined the factors affecting the mortality risk of a business. One factor that has not been given sufficient attention is the area of cash flow and working capital management. In order to make informed business decisions, the business owner is dependent on cost estimates and other financial projections that provide a view of the business in its entirety. Regardless of whether a company is a start-up or an ongoing business, financial projections are crucial to successful management, providing an important test of feasibility for new firms and giving existing businesses a chance to spot problems and make corrections before it's too late. Ultimately, the true test of survivability of a business is its bottom line. However, in the interim, the degree of a company's liquidity provides a critical measure of its mortality risk. Even if a company is earning net income, it still takes cash to pay the bills. Properly managing the area of working capital and cash flows is essential to the survival and growth of a business. This is particularly true of smaller firms who experience different circumstances than large firms including fewer available resources.

IMPROVEMENT OF METHODOLOGICAL SUPPORT OF INTERNAL MONEY CONTROL OF THE ENTERPRISE

2021 ◽  
Vol 16 (3) ◽  
pp. 112-120
Author(s):  
Alsu Zakirova ◽  
Guzaliya Klychova ◽  
Amina Husainova ◽  
Angelina Dyatlova ◽  
Igor' Nikitenko
Keyword(s):  
Internal Control ◽  
Control Program ◽  
Cash Flows ◽  
Effective Control ◽  
General Strategy ◽  
Accounting System ◽  
Economic Activities ◽  
Managerial Decisions ◽  
Economic Entity ◽  
Control Procedures

Today, most of the business transactions carried out by an economic entity, including in the process of settlements with counterparties, are associated with cash flows. Therefore, the issues of internal control are of particular relevance, which contributes to information and consulting support and optimization of the financial and economic activities of the enterprise. The purpose of the work is to develop methodological tools for internal control of funds at the enterprise. In the course of the study, forms of working documents for internal control were developed. To determine a general strategy and a detailed approach to conducting effective control procedures, it was proposed to use an internal control program, which should take into account its resource support, namely, the personnel who will carry out the audit; normative and informational support of the audit; methodological support of verification. The proposed working document of internal control “Test for assessing the accounting system for cash transactions” is designed to collect complete and reliable information about the organization of the accounting system of cash flows, assess the degree of ensuring their safety and intended use at the enterprise. To summarize the results of checking cash flow operations at the cash desk of the enterprise and in bank accounts, their expediency and validity, as well as fixing violations identified in the process of internal control, reports on the results of the audit and detected violations were developed such working documents as: “Report on results checks of cash transactions”, “Checking operations on the movement of funds on settlement accounts in the bank” and “Revealed violations in the accounting of banking operations”. Based on the results of the audit, summarized in the proposed working documents of internal control, the company's management can make managerial decisions to improve the efficiency of the use of funds based on the creation of a liquidity management system.

scholarly journals Improvement of methodological support of internal control in the cash management system of the enterprise

2021 ◽  
Vol 284 ◽  
pp. 07011
Author(s):  
Alsou Zakirova ◽  
Guzaliya Klychova ◽  
Svetlana Doronina ◽  
Olga V. Abasheva ◽  
Nuriya Nigmatullina
Keyword(s):  
Internal Control ◽  
Management System ◽  
Cash Flows ◽  
Control Measures ◽  
Accounting System ◽  
Economic Activities ◽  
Bank Account ◽  
Economic Entity ◽  
Business Operations ◽  
Control Procedures

Currently, most business operations conducted by an economic entity, including the implementation of settlements with counterparties, associated with the movement of cash flows. Consequently, of particular relevance acquired questions implementation of internal control, which contributes to information and advisory support and optimization of financial and economic activities of the enterprise. The purpose of the article is to develop the system of methodological support of internal control of funds at the enterprise. In article theoretical bases of realization of control procedures are studied. The basic principles, the purpose and methods of internal control of funds are defined. For the development of methodological tools it is suggested to use the developed forms of working documents of internal control. These documents allow to systematize control measures, to evaluate the efficiency of accounting system organization, to generalize the results of cash and bank account transactions inspection, their appropriateness and validity; to record the revealed violations by the results of cash and bank account transactions inspection. Based on the results of internal control, the company’s management makes a decision to improve the efficiency of cash usage based on the creation of a liquidity management system.

scholarly journals ИССЛЕДОВАНИЕ ФАКТОРОВ ВЛИЯЮЩИХ НА ЦЕНУ НЕФТИ

2020 ◽  
pp. 115-122
Author(s):  
A. Syzdykova ◽  
C. Tanrioven ◽  
A. Omarova ◽  
М. Мunassipova ◽  
А.О. Сыздықова ◽  
...  
Keyword(s):  
Supply And Demand ◽  
Oil Prices ◽  
Cash Flows ◽  
Raw Material ◽  
Oil Refining ◽  
Production Forecast ◽  
Political Factors ◽  
Factors Affecting

In modern conditions, it is very difficult to estimate the price of oil, therefore, many oil producing countries have to predict the price of oil in the future and develop various scenarios for the development of the state. Moreover, oil has become not only a raw material for the oil refining, petrochemical and chemical industries, but also a tool for investment, which in turn creates the basis for speculation and causes significant price fluctuations. In this article, the authors examined the dynamics of oil prices from 1950 to the present day and described in detail the factors affecting oil prices. Kazakhstan must forecast oil production, forecast future cash flows, formulate long-term budget plans and an appropriate investment policy. Therefore, for the most effective determination of oil prices, it is necessary to take into account not only supply and demand, but also other factors. The most important of these are economic, political, geographical, social and political factors. В современных условиях очень трудно определить цену на нефть, поэтому многим нефтедобывающим странам приходится прогнозировать цену на нефть в будущем периоде и разрабатывать различные сценарии развития государства. К тому же нефть стала не только сырьем для нефтеперерабатывающей, нефтехимической и химической промышленности, но и инструментом для инвестиций, которые в свою очередь создают основу для спекуляций и вызывают значительные колебания цен. В этой статье авторы исследовали динамику цен на нефть с 1950 года до сегодняшнего дня и подробно описали факторы, влияющие на цены на нефть, которые имеют большое значение для Казахстана. Казахстан, который получает большую часть своих доходов от продажи нефти, должен прогнозировать объемы производства нефти, прогнозировать будущие денежные потоки, формировать долгосрочные бюджетные планы и соответствующую инвестиционную политику. Поэтому для наиболее эффективного определения цены на нефть необходимо учитывать не только спрос и предложение,но и другие факторы. Наиболее важные из них это - экономические, политические, географические, социальные и политические факторы.

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