Environmental sustainability control system of economic entities

The monograph is devoted to a comprehensive analysis of the environmental sustainability control system of economic entities, both internal (internal control services) and external (state supervision (control) and audit). Effective control of the environmental sustainability of economic entities carried out by audit organizations and internal control units in cooperation with state supervision (control) and audit of nature users is carried out in order to verify the compliance of the nature of their environmental activities, products and environmental management systems with current legislation, standards, rules, requirements in the field of environmental protection and to confirm the reliability of their reporting. Confirming the reliability of the reporting of economic entities, environmental supervisors are able to conduct an independent assessment of the environmental sustainability and effectiveness of the environmental activities of the audited organizations, issue their proposals and recommendations for making informed decisions by various stakeholders. The interaction of audit organizations with the internal control (audit) services of enterprises and state supervision (control) and audit bodies will contribute to the timely preparation of reliable accounting and consolidated financial statements by enterprises and increase the efficiency of their environmental activities. It is intended for researchers, students, postgraduates and undergraduates, entrepreneurs, managers and anyone interested in the problems of environmental sustainability control of economic entities.

Market valuation of the world's leading public oil and gas corporations as an indicator of investment attractiveness of domestic vertically integrated companies

Subject. This article explores the market valuation ratios of the twenty five leading listed oil and gas companies between 2006 and 2018. Objectives. The article aims to identify key trends in the changes in market valuations of the largest listed oil and gas companies, and identify the factors that have caused these changes. Methods. For the study, I used comparative, and financial and economic analyses, and generalization of materials of the companies' consolidated financial statements. Results. The article shows certain changes in the main indicators of market valuation of the leading listed oil and gas companies and identifies the main factors that contributed to these changes. It establishes that the most significant for comparison and valuation are ratios based on balance sheet values of assets and equity, and net sales, EBITDA, DACF and net income ratios are appropriate as auxiliary ratios. The article says that the exchange segment of the industry has increased the debt load, so instead of market capitalization as a component of the coefficients of this group, it is advisable to apply the enterprise value indicator. Conclusions and Relevance. The article concludes that the market sentiments towards the stock market segment of the global oil and gas industry are getting impaired. This is quite natural against the background of falling profitability of most leading companies. The results of the study can be useful in evaluating, forecasting and developing measures to increase the market capitalization and value of listed oil and gas companies.

Internal Audit of Consolidated Financial Statements of Agricultural Holdings According to the International Standards for the Professional Practice of Internal Auditing

This paper reveals the issues of methodology of organizing and conducting of an internal audit of the formation of consolidated financial statements of agricultural holdings. The content of each stage of the proposed algorithm for the implementation of internal audit is presented in detail, new forms of working documentation for the internal auditor are proposed.

Current issues of using discounted value in financial statements

Subject. We address the determination and use of discounted value in the preparation of financial statements under IFRS and problems associated with this estimate, including in circumstances of pandemics. Objectives. We focus on a comprehensive study of the purpose, reasons, methods of calculating and applying the discounted value in the process of preparing the financial statements, and consider factors that affect the estimate and its changes, as well as its impact on the indicators of financial statements. Methods. The study employs methods of logical, statistical, comparative, and linguistic analysis. We also review foreign and Russian scientific and practical literature, the rules contained in the Conceptual Framework for Financial Reporting, consolidated financial statements of Russian public companies for 2019 and 2020. Results. We unveil problems associated with the use of discounted value and the area of its influence, make proposals to improve its measurement and disclosure in the preparation of financial statements. The scope of application of the results obtained includes: building up regular reporting by economic entities, primarily in terms of determining the discounted value, including in the direction of coordinating financial and non-financial reporting information and improving the reliability of disclosures and their analytic function. Conclusions. To improve the reliability of financial statements, it is crucial to expand disclosures about approaches and assumptions used in measuring the discounted value and coordinate information about the elements of discounted value with non-financial reporting data.

International Financial Reporting Standards

The textbook analyzes the system of international financial reporting Standards (IFRS): its principles, formation, advantages and feasibility of implementation. All IFRS are considered: presentation of financial statements; inventories; statement of cash flows; accounting policies, changes in accounting estimates and errors; contracts, etc. The financial lease is also reflected in the lessee's statements under RAS and IFRS, etc. Meets the requirements of the federal state educational standards of higher education of the latest generation. For students studying in the areas of "Economics" and "Management", as well as for everyone who wants to improve their level in the field of preparing consolidated financial statements.

The PJSC “Novatek” activity efficiency reserves identification based on the economic and accounting analysis

A comparative analysis of three large Russian companies – PJSC “Novatek”, PJSC “Gazprom”, PJSC “Surgutneftegaz”, – is presented. The study relevance is caused by the gas industry strategic importance of the country as a whole as well as the specifics of its current situation: a large-scale drop of world gas prices, the ruble depreciation in relation to the US dollar, the introduction of sanctions on Russia. The financial and economic activities of the company PJSC “Novatek” is examined in the article. Various approaches to the analysis and identification of the company’s activities potential are studied. The investment attractiveness of competitors’ companies is evaluated. The research methodology included: complex, empirical, retrospective types of analysis (since the calculations of the companies’ financial conditions indicators are based on their consolidated financial statements data as of December 31, 2015); comparative, horizontal and vertical types of analysis; grouping method is categorization. As a result methodological principles of carrying out an economic analysis of gas producing companies’ activities are formed in order to make effective management decisions in conditions of risk and uncertainty.

PROCEDURES FOR PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS

Помимо обычной финансовой отчетности некоторые предприятия Казахстана обязаны формировать и предоставлять консолидированную финансовую отчетность согласно требованиям международных стандартов финансовой отчетности. Статья посвящена особенностям составления и представления консолидированной отчетности в соответствии с международным стандартом финансовой отчетности 10 (IFRS) «Консолидированная финансовая отчетность». Целью исследования является рассмотреть понятие консолидированной отчетности, требования по ее составлению, порядок формирования и провести анализ потребность в составлении и представлении консолидированной финансовой отчетности. Наряду с этим представлена практика полной консолидации на условном примере с учетом требований международных стандартов финансовой отчетности, а также проблемы, с которыми сталкиваются представители бизнес-структур при формировании и представлении консолидированной финансовой отчетности. Научная новизна полученных результатов заключается в разработке приемов и методов составления и совершенствования консолидированной отчетности, которая позволит преодолеть сложности при формировании результатов деятельности за определенный отчетный период группы в целом. Along with the standard financial reports, some enterprises in Kazakhstan are required to form and submit consolidated financial reports in accordance with the requirements of international financial reporting standards. The article is devoted to the peculiarities of creating and presenting consolidated financial reports in accordance with International Financial Reporting Standard 10 (IFRS) «Consolidated Financial Reporting». The aim of the study is to examine the concept of consolidated financial statements, the requirements for its formation, and the analysis of the need for the preparation and presentation of consolidated financial statements. In addition, the practice of full consolidation was studied and presented on the example of all the consolidation requirements of IFRS 10 (IFRS) «Consolidated Financial Reporting», as well as various issues business structures deal with during the process of formation and presentation of consolidated financial statements. The scientific novelty of the results obtained is the development of techniques and methods for the preparation and improvement of consolidated reporting, which makes it possible to overcome the complexity of the formation of performance results for a certain reporting period of the group as a whole.

EBITDA and DACF multipliers as an indicator of investment attractiveness of domestic vertically integrated companies

Subject. The article addresses the EV/EBITDA and EV/DACF ratios of the twenty five largest public oil and gas corporations from 2008 to 2018. Objectives. The purpose is to identify key trends in the value of EV/EBITDA and EV/DACF ratios of biggest public oil and gas corporations, determine factors resulted in the changes over the studied period, and establish the applicability of these multipliers for assessing the business value within the industry. Methods. I apply methods of comparative and financial-economic analysis, and generalization of consolidated financial statements data. Results. The study revealed that EV/EBITDA and EV/DACF multiples are acceptable for valuing oil and gas companies. The EV level depends on profitability, proved reserves, and a country factor. It is required to adjust EBITDA for information on impairment, revaluation and write-off for assets that are reported separately from depreciation, depletion and amortization costs, as well as for income or expenses arising after the sale of fixed assets and as a result of effective court decisions or settlement agreements. It is advisable to adjust DACF for income, expenses and changes in assets and liabilities, which are caused by events that are unusual for oil and gas companies. Conclusions. The application of EV/EBITDA and EV/DACF multiples requires a detailed analysis and, if necessary, adjustments of their constituent components. However, they are quite relevant in the context of declining profitability and growing debt burden in the stock exchange sector of the global oil and gas industry.