Depreciation Capital as a Source of Financing of Mining Companies Activities

The issue discussed in the paper is highly relevant and topical in economic practice because of changes in the recognition of certain assets and their depreciation. The author’s research established that depreciation write-off in financial terms constitute capital comprising two components: depreciation and the tax shield effect. The non-tax shield is more important relative to other tax shields because the vast majority of entities in the raw materials industry own assets which are depreciated for the purposes of balance sheet accounting and tax accounting. As a cost depreciation, on the one hand, reduces the financial result and on the other, generates additional operating cash flows. Depreciable assets account for a large portion of coal companies’ assets. In addition, due to the implementation of IFRS 16 on leasing their share increased as did the amount of depreciation. Hence, its share in operating cash flows in Polish coal companies is slightly higher than in global companies. An overwhelming part of the additional depreciation arising from the inclusion in the assets reported in the balance sheet of assets used based on contracts of lease, lending or rental does not reduce the tax basis and does not constitute a tax shield. Consequently, it creates a disparity between the gross profit/loss and taxable income, thereby increasing the effective tax rate. An increase in the depreciation level in coal companies facilitates maintenance of liquidity and provides financing for investment projects and improves debt servicing, especially in times of declining financial result when coal prices are low.

Hybrid Model Of Structural Equation Modeling Pls And Rfm (Recency, Frequency And Monetary) Model To Improve Bank Average Balance

As a business players, entrepreneurs certainly need bank products and supports that provide fast and easy services with wide-spread network in Indonesia. In this study, Structural Equation Model (SEM) identify the transaction that influence the average balance. The objects of the RFM segmentation on the selected transaction is to understand customer segment score and build a marketing strategy for each segment with different levels of loyalty for the Financial result of higher Average Balance. The segmentation results found three driver categories, High Recency, Mid Recency and Low Recency category. High Recency is considered Active customer where campaign category can be cross/up-selling and promotional accordingly with their Frequency and Monetary category. Mid Recency category is considered Risky customer where campaign category can be retention program accordingly with their Frequency and Monetary. Last, Low Recency is considered already Churn customer where campaign category is to conduct reactivation.

PROBLEMS OF DEVELOPMENT OF THE ENERGY INDUSTRY IN THE ARCTIC TERRITORIES

The electric power industry is a branch of energy that includes the production, transmission and subsequent sale of electricity. Generating companies do not sell electricity directly to the population, but produce electricity and supply it to the wholesale market, where it is bought by sales companies, guaranteeing suppliers, independent energy marketing companies and large industrial consumers. Based on the results of a comparative analysis of the financial activities of energy marketing enterprises of the Russian Federation, problems are identified, imbalances and strategic plans for their development are determined. The results showed that the development of the energy industry as a whole depends on the financial activities of guaranteeing electricity suppliers. Unlike an independent power supply company, the activity of guaranteeing suppliers is less profitable and low-profitable, and the financial condition, in turn, is characterized by low solvency and financial stability. The authors have identified the weaknesses and strengths of this development. It is noted that the weakest side is the violation of the repayment terms of funds in settlements by electricity consumers, which leads to the formation of a negative financial result. The identified problems of financial development allow production us to form direction.

Pharmaceutical manufacturers ranking by sales profit for 2020

The amount of sales profit is one of the indicators of the manufacturer’s business performance. This is the financial result from the main activity of the manufacturer, which can be carried out in any form registered in its charter (and not prohibited by law). The product sales profit is defined as the difference between the proceeds from sales (without value added tax and excise taxes) and the costs of production and sales included in the product costs.

Information technology for forecasting the financial results of insurance companies

The purpose of time series modelling is to predict future indicators based on the study and analysis of past and present data. Various time series methods are used for forecasting. The article uses econometric extrapolation research methods. Analyzed scientific works are related to extrapolation methods for forecasting time series. The dynamics of the financial formation related to results of Ukrainian insurance companies by the types of their activities have been analyzed. The main factors that determine the effectiveness are determined. It was found that the most rational approach to short-term forecasting of the financial results of insurers is the use of exponential smoothing. The optimal parameters are selected for the model of exponential smoothing of the first and second order by the method on the grid. The following indicators of the quality of the model were used: the mean value of the standard deviation of the model error to the actual data, Theils coefficient of discrepancy, mean absolute percentage error MARE. The net financial result of the activities of Ukrainian insurers was predicted, the lower and upper bounds of the forecast for 2021 for a reliability level of 0.95. To predict the net financial result of the activities of Ukrainian insurers, statistical data for 10 years from 2011 to 2020 were used, the financial results of the main (insurance and other operating) activities before tax, the results of financial activities before tax, the financial results of other ordinary activities (extraordinary events) before tax, income tax. The prototype of the software module for predicting the financial performance of insurance companies was developed in Statistica and Excel. Forecasting results based on the use of econometric modelling make it possible to identify permanent positive shifts in the domestic insurance market and the activities of insurers on it; to confirm the effectiveness of the adopted strategic and tactical financial decisions of insurance companies; to increase the efficiency of insurers management based on the results of quantitative determination the degree of influence of each factor on the formation of the financial results related to their activities; to identify trends in the development of the situation in the future, to more accurately form a set of measures to maximize profits and minimize costs of insurance companies to ensure guarantees of reliable insurance protection and satisfy the interests of their owners. Keywords: financial results; insurance companies; net financial result; exponential smoothing; time series; econometric forecasting methods.

Analyzing the factors of financial strategy of recreational sphere enterprises

Subject. This article analyzes the role of the factors of the modified model, taking into account the specifics of the recreational sphere. Objectives. The article aims to assess the role of the factors of the modified model for recreational enterprises. Methods. For the study, I used general scientific research methods. Results. Peculiarities of the recreational sphere cause the need to modify the DuPont model. The model is obtained in a mixed form. The model is obtained in a mixed form. This helps take into account the factors of operating and other activities in the financial result and profitability separately. The obtained results help assess the role and importance of factors in the financial management strategy, as well as the reasons for their impact on the efficiency of recreational enterprises. Conclusions. The importance of resource productivity and the increase in the share of operating activities remain underestimated in the model if considering a single enterprise case. For enterprises of the recreational sphere as a whole, there is a need to further study the model by establishing correlations of factors with the performance indicators.

The Third-Party Funding in Arbitration: A Challenge in Times of Crisis

Arbitration as a way of resolving disputes between companies is essentially linked to the advantages of arbitration, especially with the speed and neutrality of arbitration, as well as the confidentiality, the possibility of choosing arbitrators with precise technical knowledge in the area of litigation, among others. The parties choose arbitration as a means of resolving disputes, relating to interests of an equity nature, bearing in mind that for some legislators the emphasis is on the availability of rights, arising from the contractual relationship that unites them. The payment of costs is a sine qua non condition for the constitution of the arbitral tribunal. The parties must proceed with the payment of taxes and fees, respectively to the arbitration center they have chosen and the arbitrators they have chosen. Considering that the economic situation of the companies may fluctuate, either during the execution of the main contract, or when the dispute arises, the constitution of the arbitral tribunal and during the procedural iter, the possibility of financing the arbitration was outlined. Third-Party Funding is a figure that involves a third-party, unrelated to the litigation, who will defray the expenses due by one of the parties to the arbitration. It will have as a counterpart the participation in the eventual financial result achieved through the success of the arbitration. As a methodology, in addition to analyzing the state of the art, we will indicate real cases and the reasons for the growth of this instrument, without forgetting the ethical issues involved.

Assessing the financial result at the early development phase of the accounting methodology

Subject. The article discusses methods and techniques for assessing the financial result at the early development phase of the accounting methodology. Objectives. The study is intended to find the evidence of the evolutionary coherence of methods and techniques used to assess the financial result through the single-entry and double-entry bookkeeping. Methods. I combined the analysis and synthesis, induction and deduction, the historical and logic methods of research. Results. I proved the existence of two methods for assessing the financial result through the single-entry accounting. As part of the first one, the financial result is assessed in accounts (first of all, the account of goods and account of payables). As part of the second one, the financial result is assessed by comparing the value of property, which is not encumbered with debts (net property) as of the beginning and end of the accounting period. To do so, the opening and closing inventory lists are compared. Illustrating the balance prepared by J. Gottlieb, I show the coherence of methods and techniques for assessing the financial result through the single-entry and double-entry bookkeeping methodology. Conclusions. The article presents two methods for assessing the financial result through the single-entry method and shows the relationship of methods used to determine the financial result in the single-entry and double-entry methods. In the single-entry and double-entry bookkeeping, the economic substance of the financial result was found to have been interpreted as a growth in net assets for a certain period. The findings are applicable to explain the nature of the financial result, define it and develop the accounting methodology for assessing the financial result.

Does the Pandemic Matter? Diagnosing the Immediate Effects of the Covid-19 Pandemic on the Financial Security of Small Enterprises in Poland

The Covid-19 pandemic broke out unexpectedly, and it is difficult to anticipate its future effects. As a result of the lockdowns, many enterprises were forced to curtail their business as early as in the first months of the pandemic. In view of such unprecedented phenomena, a question arises about possible effects of the pandemic on the financial standing of enterprises. The authors of this paper aimed to assess the immediate effects of the Covid-19 pandemic on the financial security of small enterprises in Poland, since the financial security is seen as an important factor influencing organizational resilience. This article applies the desk research and comparative analysis methods, which were conduct based on statistic office data. The studied enterprises were analysed in terms of changes in their liquidity ratios, sales profitability ratios as well as their revenue and profit levels – the results have shown a considerable diversity across sectors. Based on the assessment of changes in the indicators, the analysed sectors were categorised as: resistant sectors, hardly affected sectors, moderately affected sectors, severely affected sectors. The analysis of the selected indicators of financial security has shown that the financial result as well profitability levels were the indicators that deteriorated in the greatest number of sectors. Surprisingly, financial liquidity remained the most stable indicator. The research results can be helpful in proper channelling aid to enterprises to recover from crisis, since in first month of the pandemic most of financial support was not diversified