Accounting and Audit

Analysis of financial stability of a public company on the basis of accounting (financial) statements: russian and international experience

Authors: Gorbunova N. A.

Abstract

Financial stability of the organization is a concentrated indicator that reflects the degree of security of investment and development of business cooperation; reflects the ability of the organization to perform its main functions in the internal and external business environment. Financial stability has the characteristics of complexity and consistency. This category includes financial, economic, organizational and technological aspects of the organization. Financial stability indicators are key factors in assessing the investment attractiveness of Russian equity companies in international capital markets. The analysis of financial stability of public joint stock company on the basis of indicators of accounting (financial) statements is rather important. On its basis, counterparties can make informed decisions about the possibility of developing business ties, shareholders can assess the profitability of investments, top-management can identify reserves and determine the parameters of the organization’s development. The laws of the market, to which it is quite difficult for Russian enterprises and organizations to adapt, require a continuous circulation of funds in the economy, based on effective demand. The analysis of financial stability, the signs of which are solvency and availability of resources for development is among the most important not only financial, but also general economic problems. Various methods are used to assess financial sustainability, but many organizational and methodological issues are unresolved. Therefore, the study of financial stability requires the study of evaluation and operational management of financial stability of enterprises and organizations, accounting (financial) statements which should be public, different objectivity, reliability, comparability, materiality, reliability and relevance.

Key Words

Business, sources of financing, system of financial indicators, financial independence, return on capital, creditworthiness, business risk