Improving the Methodology for Assessing the Effectiveness of Economic Entities in Modern Conditions

Modern conditions impose special requirements to the assessment of economic entities. Efficiency is an important parameter of the activity of any business. The present research involved a critical analysis of standard methods for assessing the effectiveness of both domestic and foreign practices. The analysis revealed a need to apply new approaches to business efficiency assessment because the standard approach is not systematic and its indicators repeat themselves. The article offers a new conceptual methodological approach to understanding the term efficiency. The new methodological concept is hybrid in nature and includes classical economic, financial, and institutional methods. It also adopts some methods and approaches from management and natural sciences. The authors built a comprehensive model for assessing the effectiveness of an economic entity in modern conditions. It is based on the idea that the optimal methods are those that do not use relative indicators. This model includes three levels of indicators: standard, qualitative, and synergistic. The new approach is systemic and corresponds to modern economic environment, which resolves the issue of relative performance indicators.

Use of Strategic Management Accounting in the determination of costs in SMEs in the furniture sector

Determining cost in industry of all sizes represents a starting point for determining your desired returns. For this reason, the precise calculation matters greatly to the administration of any economic entity. We are currently facing the so-called knowledge era and where changes are looming permanent, so the colloquially called traditional accounting systems must be reinforced with innovative techniques. The objective of this research work is to propose to Small and Medium-sized companies (PYMES) dedicated to the manufacture of furniture an innovative tool with which the cost is determined starting from a hybrid counting system, a traditional system strengthened with a technique of Strategic management. The Cost Management System proposed by this research is based on the conclusion found in the theoretical framework that a system is not something isolated, but is formed as a gear of techniques, procedures and techniques; according to the needs of the companies under study. To carry out the present research work, a diagnostic analysis of the furniture SMEs was carried out, where information was obtained regarding the characteristics for the determination, measurement, analysis and cost management of these companies. According to the result of said analysis, the system proposal is presented, which is in the validation process for its dissemination and, where appropriate, commercialization, prior to its registration. If the SMEs dedicated to the manufacture of furniture have a system according to their characteristics, it will be possible to determine with certainty indicators that are essential for making strategic decisions that infer in the improvement of the administration of the SMEs under study.

SYSTEMATIZATION OF FACTORS AND CRITERIA OF INVESTMENT ATTRACTIVENESS

In conditions when own resources are limited, enterprises need cash receipts from investors, which will serve as a necessary complement to their own funds. For this reason, at the present stage, the relevance of scientific research and practical development in the field of research of investment attractiveness of enterprises is increasing. However, the issue of assessing the investment attractiveness of an enterprise has not yet been fully considered; there is no single theoretical and methodological base, which is due to the lack of an accurate interpretation of the term "investment attractiveness of an enterprise" itself, as well as the methodology and methodology for its assessment. Thus, the relevance of the study is due to the need to analyze and systematize existing approaches to the study of investment attractiveness of enterprises. In economic studies, investment attractiveness is understood as a complex indicator characterizing the feasibility of investing in an economic entity. The investment attractiveness of the enterprise depends both on external factors characterizing the level of development of the industry and the region in which the enterprise in question is located, and on internal factors - the results of the enterprise itself. Thus, an assessment of the investment attractiveness of an enterprise can be carried out by various methods aimed at identifying positive and negative factors of influence. The investment attractiveness of the enterprise is characterized by a set of indicators of its activity, which determines for the investor the area of the desired values of investment behavior. Investment attractiveness has a number of basic aspects: scientific, technical, commercial, environmental, institutional, social, financial and investment. The conclusions presented in the scientific article are the initial stage in the study of this topic.

Applying the process approach in setting up the system of internal control in economic entities

Subject. The article addresses the organization and implementation of process approach when setting up a system of internal control of an economic entity, which ensures the management of effectiveness of divisions’ activities. Objectives. We aim at investigating the organization of the internal control system of an economic entity, based on its activities, accounting policies, classification of business processes, and risk identification. Methods. The study rests on methods of theoretical generalization, structural grouping, logical analysis, as well as the analysis of scientific and practical literature and accounting and control practice. Results. The analysis of practices revealed a number of problems in the implementation of the process approach in the accounting and control activities of economic entities, in particular, insufficient understanding and unpreparedness of management to implement the process approach, the lack of a system for regulating business processes, the lack of interconnection between the system of control indicators and the created business processes. It is advisable to divide the process of organizing the internal control system into a number of stages, i.e. the definition of activities, typology of business processes, risk identification, testing the internal control system’s quality. Conclusions. The introduction of the process approach in organizing an internal control system involves the systematization of information, depending on the nature of the business process, requiring permanent updating. The emergence of non-standard situations makes it necessary to adjust the boundaries of business processes. The resources of accounting business processes are personnel, software, equipment, and other infrastructure elements.

Risk-based internal control of key business processes as a mechanism of economic agent's sustainable development

Subject. The article discusses theoretical and practical principles of internal control from the building stage to maintaining its effectiveness at a high level. Objectives. The aim is to examine various interpretations of internal control and internal control procedure concepts, detect difficulties of economic entities in developing, implementing, and managing the internal control, offer a model, enabling to systematize these processes through focusing on risk management of key business processes and harmonization of internal control procedures. Methods. The study rests on general methods of research, like logical analysis, generalization, grouping, and modeling. Statutory instruments in the sphere of financial and fiscal accounting and works by domestic authors serve as a theoretical framework for the study. Results. I analyze the internal control, considering the industry affiliation of economic actors. The interpretation of internal control concept is supplemented by a new element, i.e. ‘identification of key business processes’. The paper presents a matrix of internal control management, which is intended to mitigate risks inherent in key business processes. Conclusions. The said matrix may be used by any economic entity as a theoretical and methodological basis for building internal controls. The offered model and matrix enable to cover risk areas and mitigate significant risks, ensure the accuracy of financial reporting, and, as a result, sustainable development of economic entity.

Organizational and Methodical Aspects of Accounting for Fixed Assets of Economic Entities in Various Areas of Activity

The authors propose a differentiated approach to the organization of fixed assets accounting, which consists in structuring the account 01 “Fixed assets” depending on their areas of activity of economic entities. This article also substantiates the composition of analytical accounts of fixed assets in the context of factors affecting the accounting. The study was carried out on an urgent topic - the accounting of fixed assets is undergoing changes due to legislative innovations. In addition, organizational and economic aspects and factors of a specific, industry-specific nature are of no small importance when building a system of accounting for fixed assets. The analysis of the role and significance of the influence of the characteristics of various types of activities of economic entities on the accounting of fixed assets allows us to identify the directions and methods, the use of which will ensure a positive dynamics of the efficiency of the use of fixed assets and the growth of labor productivity. In the course of the research, general scientific methods of cognition were used, such as analysis and synthesis, consistency and complexity, analogy, comparative and logical approach. The organizational and methodological provisions developed by the authors of the article contribute to the development of the methodology of accounting for fixed assets of economic entities engaged in various types of activities. Some of the results of this study can serve as a vector for further practical and theoretical developments, increase the transparency, relevance, and analyticity of information about the activities of an economic entity based on accounting and management accounting data. The recommendations and approaches proposed by the authors of the article can be applied as a basis for improving the accounting and methodological support for the management of fixed assets of an economic entity.

Hygienic analysis of violations of sanitary and epidemiological requirements for working conditions in the field of "Mining" before and after the introduction of a risk-oriented model of control and supervisory activities (on the example of the Perm Region)

In the Russian Federation, "Mining" is a priority activity in the group "Activities in the field of industry and agriculture" for the potential risk of harm to health. The study aims to perform a hygienic analysis of violations of sanitary and epidemiological requirements for working conditions in the field of "Mining" (on the example of the Perm Region) before and after the introduction of a risk-oriented model of control and supervisory activities to manage risks to the health of the working population. Scientists performed a study according to the data of 49 inspection acts by the Rospotrebnadzor Department in the Perm Region to facilities operating in the field of "Mining," before and after the introduction of a risk-based approach (for the periods 2013-2016 and 2017-2019), using standard analysis methods. Implemented in practice in 2016, the risk-oriented approach to the control and supervision of working conditions provides for the attribution of the activities of a legal entity, an individual entrepreneur, and (or) production facilities used by them in the implementation of this activity to a particular risk category under MP 5.1.0116-17. The study used data from the Federal Register of economic entities (legal entities/sole proprietors) subject to sanitary and epidemiological supervision as of 2020; data from Rosstat and Permstat on the number of employees engaged in work with harmful and(or) dangerous working conditions, data from Rospotrebnadzor and the Department of Rospotrebnadzor in the Perm Region on occupational morbidity for 2019. The average number of violations of sanitary and epidemiological requirements to working conditions per year per economic entity in the field of Mining in the Perm Region since 2017 (since the introduction of the risk-based model of sanitary and epidemiological surveillance) has significantly decreased (p<0.05) from 62 violations (in 2013-2016) to 31 (in 2017-2019), mainly due to a significant 2.5-fold decrease in the number of breaches of the requirements of Federal Law No. 52-FZ per entity - from 30 violations to 12. In 2017-2019, the average number of violations of the requirements for working conditions per year per subject significantly decreased compared to 2013-2016 (p<0.05) due to a reduction in violations of the requirements for the maintenance of industrial and household premises (by 11.9 times). In the period 2017-2019, regarding 2013-2016, the contribution of violations under requirements for the maintenance of industrial and household premises, ventilation decreased by an average of 5.37 and 6.07 times, respectively, increased to overalls and PPE, production control by 3.16 and 1.67 times. The results obtained indicate that introducing a risk-based approach has led to a decrease in the number of violations of sanitary and epidemiological requirements for working conditions in the field of Mining in the Perm Region since 2017. As well as an increase in the overall structure of violations of the proportion of violations of requirements, non-compliance with which can lead to severe consequences for human health (increased the proportion of violations of requirements for overalls, PPE, working conditions with a PC, production control).

Ecological State of Lake Gusinoe—A Cooling Pond of the Gusinoozersk GRES

The study of the transformation of substances in the basin of the Selenga River—the main tributary of Lake Baikal—under anthropogenic pressure and in the context of global climate change, is especially important for the lake, a globally important source of drinking water. The ecosystem of Lake Gusinoe is one of the key objects in the Selenga River basin that is exposed to significant anthropogenic pressure. This study presents the results of an analysis of water level changes and physicochemical parameters of the water mass of Lake Gusinoe; literature data from 1951 to 2017 and own data from 2017 to 2021. The water level in the lake had depended on natural factors before the Gusinoozersk GRES was launched; however, since the plant has begun using the lake as a cooling pond, its level has actually been regulated by the economic entity. Over the years, there has been a significant increase in mineralization, sulfate, sodium, fluoride and organic matter fractions resistant to oxidation. Seasonal increases in iron and manganese concentrations in water were detected. Increased concentrations of nutrients and organic matter fractions resistant to oxidation were registered at the wastewater discharge sites. Heavy metals in the bottom sediments of Lake Gusinoe accumulate mainly in the silt of the deep zone of the lake. Plants growing in the zones of influence of the Gusinoozersk GRES and Gusinoozersk wastewater discharge accumulate the largest amount of metals.

THE RISKS OF OPERATING A CRYPTOCURRENCY BUSINESS

The article is devoted to the study of theoretical and practical aspects of the risks that accompany the activities of economic actors in the cryptocurrency market (both mining and trading) at the micro­ and macro­economic level at the beginning of the third decade of the XXI century. The risks associated with the functioning of economic entities in the market of cryptocurrency coins and such risks are the following: lack of legal regulation on the cryptocurrency market and insurance of owners of assets stored on crypto wallets; use of malware in order to access assets rotating on the cryptocurrency market; hacking attacks on cryptocurrency wallets and exchanges in order to steal cryptoassets; loss of assets deposited into accounts of cryptocurrency exchanges in case of bank-ruptcy or closure of these exchanges; loss of the password used to access the crypto wallet; loss of a secret personal PIN code, which is the key to access funds deposited into the crypto wallet at the exchange and used to transfer assets (cryptocurrencies or fiat currencies) to other crypto wallets or a bank card; erroneous transaction due to one number or letter mistake when transferring from one crypto wallet to another or error (when entering bank card number), when transferring funds from crypto wallet to bank card, a mistake of one or more numbers is possible and funds will be transferred to the wrong addressee, in both cases it is impos-sible to cancel the transaction and funds are lost irrevocably; significant volatility in the value of cryptocurrencies, because of which an investor can go bankrupt. It was revealed that the functioning of the cryptocurrency market is also associated with risks to the national economy and security: monetary policy (reduction of control over monetary circulation due to the replacement of national fiat currency with cryptocurrency coins and the loss of the central bank monopoly on the emission of money and reducing the country's income from seigniorage due to mining cryptocurrencies), financial stability (because of the threat of the outflow of deposits from the banking system and replacing them with investments in cryptocurrencies, the possibility of replacing traditional banking, as well as the possibility of avoiding taxation and shadowing the economy) and national security. It has been proven that the intensive activity of an economic entity associated with mining, trading, investing or other economic activities in the cryptocurrency market requires significant theoretical and practical training of the individual and patience and faith in the future of cryptocurrency market activity because of the probability of losing savings invested in cryptocurrencies or investments.Keywords: risk, cryptocurrency, cryptocurrency market, crypto coin, crypto wallet, Bitcoin, Ethereum, cyberattack. Статтю присвячено дослідженню ризиків, які супроводжують діяльність ринку криптовалют, як майнінгу, так і трейдингу. Охарактеризовано ризики, з якими пов’язане функціонування ринку криптовалют, і такими ризиками є: відсутність правового регулювання та страхування власників криптогаманців; використання шкідливих програм та здійснення хакерських атак на криптогаманці і біржі криптовалют; утрата активів, розміщених на рахунках криптовалютних бірж, у разі банкрутства чи закриття цих бірж; утрата паролю від криптогаманця чи втрата секретного персонального PIN­коду, що є ключем доступу до коштів, розміщених на криптогаманці на біржі; помилкова транзакція (через помилку на одну цифру чи букву) під час переказу з одного криптогаманця до іншого (також під час переказу грошових коштів із криптогаманця на банківську картку можлива помилка на одну чи кілька цифр, і кошти будуть переказані не тому адресанту, якому вони передбачалися); значна волатильність вартості криптовалют. Виявлено, що функціонування ринку криптовалют пов’язане з ризиками для національної економіки: монетарної політики, фі-нансової стабільності, інвестиційної та банківської діяльності. Доведено, що активна діяльність економічного суб’єкта, пов’язана з майнінгом, торгівлею, інвестуванням чи іншою економічною діяльністю на ринку криптовалют, вимагає значної теоретичної і практичної підготовки особи через імовірність утратити заощадження, вкладені у криптоферми чи інвестиції.Ключові слова: ризик, криптовалюта, крипторинок, криптомонета, криптогаманець, Bitcoin, Ethereum, хакерська атака.

Impact of innovative activity on the economic security of the enterprise

The article deals with issues related to the assessment of the economic security level taking into account the innovative activity of the enterprise. The relevance of the problem of increasing the degree of economic entities protection in modern conditions with high competition is reflected. The main components that form the economic security of the organization are listed, and their brief characteristics are given. Besides, the article presents the author's step-by-step procedure for assessing the economic security level. Special attention is paid to the impact of effective innovation on the economic security level of the enterprise. The mathematical calculation for determining the economic security level is shown in more detail on the example of the technical and technological direction of the enterprise, which involves active innovation. The resulting calculations prove the high impact of successful innovations on the economic security of an economic entity due to the priority of this area of activity, as well as the possibility of extracting a significant share of profit. Thus, the article proves the statement about the feasibility of evaluating the innovative potential of the enterprise, as well as analyzing the level of its compliance with the requirements of external and internal environments.