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Financial statements- a set of accounting indicators reflected in the form of certain tables and characterizing the movement of property, liabilities and the financial position of the company for the reporting period. Financial statements are a system of data on the financial position of a company, financial results its activities and changes in its financial position and is compiled on the basis of accounting data.
There are four main types of financial statements:
- balance sheet groups the company's assets and liabilities in monetary terms.
- Profits and Losses Report contains data on income, expenses and financial results in cumulative total from the beginning of the year to the reporting date.
- statement of changes in equity discloses information on the movement of authorized capital, reserve capital, additional capital, as well as information on changes in the amount of retained earnings (uncovered loss) of the organization.
- cash flow statement shows the difference between the inflow and outflow of funds for a certain reporting period.
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Users and purpose of reporting
Bank financial statements 1906
Main goal financial statements is to provide information about financial condition, results of operations and changes in the financial condition of the company. The statements must contain information about the company's assets and liabilities, results of operations, events and circumstances that change assets and liabilities. This information is needed by a wide range of users when accepting economic decisions. It should be noted that the objectives set for financial reporting are various systems accounting are the same.
Users of financial statements can be investors, company employees, creditors, suppliers, customers, government bodies and other members of society. All users have different information needs.
Reporting principles
Reporting
Balance sheet
Balance sheet - one of the main forms of accounting reporting. In accordance with international financial reporting rules, the balance sheet contains data on assets, liabilities and equity. In Soviet, Russian, Ukrainian accounting practice- a method of grouping the assets and liabilities of an organization in monetary terms. The balance sheet characterizes the property and financial condition of the organization in monetary value as of the reporting date.
The balance sheet consists of three parts: assets, liabilities and equity. Basically, balance sheet items traditionally follow each other in order of liquidity, although there are exceptions. The main property of the report is that total assets are always equal to the sum of liabilities and equity. A balance sheet is simply two different views of the same business. Assets show what funds the business uses, and liabilities and equity show who provided these funds and in what amount. All resources that an enterprise has can be provided either by owners (capital) or creditors (liabilities). Therefore, the sum of the creditors' claims together with the owners' claims must be equal to the sum of the assets. This is also due to the fact that when recording transactions in double entry accounts.
The balance sheet does not reflect the movement of funds and the facts of specific business transactions, but shows the financial condition of an economic entity at a certain point in time. The main property of the report is that total assets are always equal to total liabilities. This is due to the fact that when reflecting transactions on accounts in the balance sheet, the principle of double entry is observed.
Gains and losses report
Statement of changes in equity
Traffic report Money - a company report on the sources of funds and their use in a given time period. This report directly or indirectly reflects cash receipts companies classified by main sources and their cash payments with classification according to the main areas of use during the period. The report gives an overall picture of operating results, short-term liquidity, long-term creditworthiness and makes it easier to conduct a financial analysis of the company.
Interim reporting
Interim financial statements contain a set of financial statements for a period shorter than the full reporting year. Interim reporting may consist of abbreviated forms of financial statements, although it is not prohibited to compile it in full.
The composition of the interim financial statements may be smaller than the annual statements.
Standards and regulation
Accounting reporting is regulated by national and international standards.
National standards regulate accounting reporting in individual countries: for example, in the USA - US GAAP, in the UK - UK GAAP.
In connection with the globalization of the world economy, International Financial Reporting Standards (IFRS), which are in force, for example, in the European Union and developed by the international organization International Accounting Standards Board (IASB), are becoming increasingly important.
According to RAS, the financial statements of companies (for organizations other than credit, insurance and budgetary organizations) consist of the following elements:
- appendices to the balance sheet and profit and loss account (lost force. See Order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n)
- Report on intended use funds received
Knowledge of accounting practices combined with constant monitoring of changing legislative framework ensure the correct preparation of financial statements, establishment and maintenance of accounting records, which is reflected in a reduction in the costs of maintaining the accounting department, in protection from penalties from outside tax authorities, and ultimately in increasing business efficiency.
Included financial statements With the order of the Ministry of Finance No. 66n dated 07/02/2010 “On forms of financial statements”, standard reporting forms have changed. The order comes into force starting from the annual financial statements for 2011.
Financial reporting transformations
That's it now more countries come to the decision to switch to accounting and the preparation of financial statements in accordance with international financial reporting standards.
There are two main methods of reporting in accordance with any other type of financial reporting standards:
There are several transformation options:
| Type of transformation | Essence of the process |
|---|---|
| Complete transformation | As necessary, various adjustment entries are made to eliminate the identified differences between current system accounting and desired. Information from source documents is used to adjust certain accounts. |
| Complete transformation taking into account hyperinflation | The method provides for all changes carried out during a complete transformation and provides financial reports in local currency with necessary adjustments to reflect changes in the purchasing power of money. |
| Complete transformation taking into account the requirements for recalculating indicators into foreign currency | Hyperinflationary financial statements presented in local currencies are translated into stable foreign currencies to enable comparison with similar foreign companies or for consolidation with a foreign parent company. |
Analysis of financial statements
Depending on the purposes of financial statement analysis, various indicators are used:
- Absolute indicators are used to familiarize yourself with the reporting, allow you to draw conclusions about the main sources of raising funds, the directions of their investments, the amount of profit or loss.
- Comparable percentages are used to identify deviations and changes in the most important items of financial statements.
And different kinds analysis:
Audit
The information required for financial accounting includes balance sheet, statement of financial performance of enterprises, cash flow statement, etc. The list of published information is determined by the legislation of the country, and the methodology for determining indicators must comply with established standards, including international ones accounting standards, if provided by law.
Notes
- Financial reporting (Russian). Dictionary of economics and finance. Glossary.ru. http://www.glossary.ru/. ; Archived from the original on May 8, 2012. Retrieved April 25, 2011.
- Principles for the Preparation and Compilation of Financial Statements IASB 12
- SFAC No. 1-Objectives of Financial Reporting by Business Enterprises
- , With. 53
- Averchev I.V. IFRS. 1000 examples of application.. - M.: Reed Group, 2011. - P. 53. - P. 992.. - ISBN 978-5-4252-0230-7
- Raizberg B. A., Lozovsky L. Sh., Starodubtseva E. B. Accounting balance // Modern economic dictionary / Ed. A. B. Vasilyeva. - 5. - M.: INFRA-M, 2006. - 495 p.
- Williams Jan R. Financial & Managerial Accounting. - McGraw-Hill Irwin, 2008. - P. 40. - ISBN 9780072996500
- Daniels Mortimer Corporation Financial Statements. - New York: New York: Arno Press, 1980. - P. 13–14. - ISBN 0405135149
- [Asset Financial Statements]- article from
- [Passive Financial Statements]- article from the Great Soviet Encyclopedia
- biZataka.ru Assets and liabilities of the enterprise (Russian). Archived from the original on January 24, 2012. Retrieved November 30, 2011.
- Alla Petrovna Vitkalova, Dina Petrovna Miller How to draw up a balance sheet (Russian). Archived from the original on August 23, 2011. Retrieved June 7, 2011.
- K. Yu. TSYGANKOV Balance sheet in historical development (Russian). Archived from the original on August 23, 2011. Retrieved May 4, 2011.
- FAS 5 “Recognition and measurement in the financial statements of business entities” IASB, 1984, paragraph 13.
- Helfert Erich A. The Nature of Financial Statements: The Cash Flow Statement // Financial Analysis - Tools and Techniques - A Guide for Managers. - McGraw-Hill, 2001. - P. 42.
- Oksana Ezerskaya Training manual on IFRS (IAS) 7 “Statements of Cash Flows” (Russian). www.banks2ifrs.ru.
Let's consider financial reporting forms(accounting statements), in particular about public financial (accounting) statements.
Financial reporting forms
Exists 4 forms of financial (accounting) reporting:
- Balance sheet (it groups the assets and liabilities of the organization).
- Financial results report (the report presents data on the organization's income).
- Report on changes in capital (the report provides information on the movement of authorized, reserve and additional capital).
- Cash Flow Statement (the report displays information about cash flows).
The most used in the practice of financial analysis are the first two forms: Balance Sheet and Statement of Financial Results
The purpose of preparing financial statements of an enterprise
primary goal preparation of financial statements is a reflection of the results of production economic activity enterprises and the financial condition of the enterprise.
Where can I find financial reporting forms for business?
By law, all enterprises that issue shares must disclose their information (in accordance with the requirements of paragraph 1.7. “Regulations on the disclosure of information by issuers of securities”) valuable papers", approved by the Order Federal service on financial markets Russian Federation dated October 4, 2011 No. 11-46/pz-n). All financial statements joint stock companies now you can watch it.
Public reporting means that it is publicly available to all users. For example, on enterprise websites you can see the “Information Disclosure” section and there, as a rule, there is a “Shareholders and Investors” tab. It will contain the financial results of the year or financial reports by quarter.
The figure below, on the website of JSC Tupolev, shows the financial statements of the enterprise for 2013. There are 4 forms of financial reporting. Audit report– this is the fact of verification of financial statements by an independent body. There's no point in watching it for us. We also don’t really need explanations for the balance sheet to carry out financial analysis.
Forms of financial (accounting) statements of JSC Tupolev on the company website
Who needs business financial reporting forms? Types of financial statements
Let's take a look: who needs data from the financial reporting forms of an enterprise? Typically this is investors and shareholders. They use a company's financial statements to evaluate the return on investment of their investments. The table below presents all users of the enterprise's financial statements.
|
Financial Statement User |
Purpose of financial statement analysis |
| Investors and shareholders | Assessing the profitability of your investment in the enterprise |
| FTS (Federal Tax Service) | Assessment of an enterprise for its taxability |
| Counterparties | Assessing the partner’s financial condition |
| Banks | Enterprise assessment for issuing a loan |
| Arbitration court | To assess the fact of bankruptcy of an enterprise |
Transformation of the old form of financial reporting into a new one (after 2011)
After 2011, new forms of financial reporting appeared. It is often necessary to convert old forms of financial (accounting) reporting to new ones. Below is a table of translation (Forms No. 1 and Forms No. 2 into the new forms “Balance Sheet” and “Financial Results”). The old lines (designated by Order of the Ministry of Finance No. 66n) are matched with new lines (designated by Order of the Ministry of Finance No. 67n).
|
Indicator name |
Old codes (before 2011) |
New codes (after 2011) |
| Intangible assets | ||
| Fixed assets | ||
| Construction in progress | ||
| Profitable investments in material assets | ||
| Long-term financial investments | ||
| Deferred tax assets | ||
| Others fixed assets | ||
| FIXED ASSETS | ||
| Reserves | ||
| VAT on purchased assets | ||
| Accounts receivable(more than a year) | ||
| buyers and customers | ||
| Accounts receivable (less than a year) | ||
| buyers and customers | ||
| Short-term financial investments | ||
| Cash | ||
| Other current assets | ||
| CURRENT ASSETS | ||
| ASSETS total | ||
| Authorized capital | ||
| Extra capital | ||
| Reserve capital | ||
| reserves formed in accordance with legislation | ||
| reserves formed in accordance with the establishment. documents | ||
| Retained earnings (uncovered loss) | ||
| CAPITAL AND RESERVES | ||
| Loans and credits (long-term) | ||
| Other long-term liabilities | ||
| LONG TERM DUTIES | ||
| Loans and credits (short-term) | ||
| Accounts payable | ||
| debt to the government off-budget funds | ||
| Debt to participants (founders) for payment of income | ||
| revenue of the future periods | ||
| Reserves upcoming expenses and payments | ||
| Other current liabilities | ||
| SHORT-TERM LIABILITIES | ||
| LIABILITIES total | ||
| Sales proceeds (excluding VAT, excise taxes...) | ||
| Cost of goods, products, works, services sold | ||
| Gross profit | ||
| Business expenses | ||
| Administrative expenses | ||
| Profit (loss) from sale | ||
| Interest receivable | ||
| Percentage to be paid | ||
| Income from participation in other organizations | ||
| Other income | ||
| Other operating expenses | ||
| Profit (loss) before tax | ||
| Current income tax | ||
| Net profit |
Download financial reporting forms
Summary
In the future, forms of domestic financial (accounting) reporting created according to RAS will increasingly be transformed into the IFRS standard ( International standard financial statements).
Thank you for your attention! Good luck!
Two mechanisms that ensure the connection between the enterprise and financial market through financial statements
Financial reporting in market conditions, in addition to a tool for assessing plan targets, summarizing statistical data and calculating tax deductions, should become a means of interaction between the enterprise and the market, so that the market is an effective source financial resources for the enterprise. The mechanisms that provide financial reporting with such a role are standards. financial accounting and reporting and auditing.
Financial Accounting and Reporting Standards- these are certain rules for maintaining financial accounting and reporting in order to reflect the effectiveness of financial decisions, taken for reporting period the relevant company, which are reflected in its financial position and place in the securities market.
Standards are a legally binding agreement among various stakeholders market economy and are developed based on accumulated experience, practical necessity, results scientific research, common sense, traditions and other factors. There are national and international standards.
Auditing - this is an independent examination and analysis of the public financial statements of an enterprise by authorized persons (auditors) in order to determine its reliability, completeness and compliance current legislation and requirements for maintaining accounting and preparation of financial statements.
The main forms of financial reporting are: balance sheet (form No. 1), profit and loss statement (form No. 2), capital flow statement (form No. 3), cash flow statement (form No. 4), appendix to the balance sheet ( form No. 5).
Balance allows you to assess the effectiveness of the placement of the enterprise's capital, its sufficiency for current and future economic activities, assess the size and structure of borrowed capital, as well as the effectiveness of their attraction.
Based on the study of the balance, external users can: make decisions on the feasibility and conditions of doing business with this enterprise as a partner; assess the creditworthiness of the enterprise as a borrower; assess the possible risks of your investments, the feasibility of purchasing shares of this enterprise etc.
The balance sheet characterizes the enterprise's funds by their composition (asset) and sources of education (liability).
Currently, the balance sheet structure is as follows (see Table 3).
Table 3 – Presentation of Balance Sheet
Enterprise assets- these are economic resources or means that should bring benefits to the enterprise in the future.
Non-current assets are funds that are used for more than one reporting period, are acquired for the purpose of use in business activities and are not intended for sale during the year. Non-current assets, as a rule, are represented by the following groups of articles: “Intangible assets”, “Fixed assets”, “Construction in progress”, “Long-term financial investments”, “Other non-current assets”.
Current assets are funds used, sold or consumed during one accounting period, which is usually one year. Current assets are represented by the following groups of articles: “Inventories and costs”, “Accounts receivable”, “Short-term financial investments”, “Cash”.
Liabilities of the enterprise- These are the obligations of the enterprise to the owners and external obligations.
Long-term and short-term liabilities are called external liabilities. External liabilities are future losses in a company's economic benefits that may arise as a result of that company's existing obligations to transfer funds or provide services to other enterprises in the future as a result of transactions entered into or events that have occurred.
Own capital or, if the enterprise is a joint-stock company, share capital, as a rule, is represented by the following articles and groups of articles: “Authorized capital”, “Additional capital”, “Reserve capital”, “Funds” special purpose", "Retained earnings".
Long-term liabilities are obligations that must be repaid within a period exceeding one year. Long-term liabilities include long-term loans, long-term loans and other long-term liabilities.
Current liabilities are liabilities that are covered by current assets or are repaid as a result of the formation of new short-term liabilities. These obligations are usually repaid within a relatively short period of time (no more than a year). Short-term liabilities are characterized by the following articles and their groups: “Short-term loans and borrowings”, “Accounts payable”, “Deferred income”, “Other short-term liabilities”.
Gains and losses report contains a comparison of the sum of all income of the enterprise from the sale of goods and services or other items of income and receipts with the sum of all expenses incurred by the enterprise to maintain its activities for the period from the beginning of the year. The result of this comparison is the gross profit or loss for the period. The income statement consists of two sections. The first section reflects the stages of calculating financial results (gross profit or losses), the second section shows the directions for using the enterprise’s profit in the reporting period: for paying taxes, forming reserve and special funds, calculating dividends, etc.
The profit and loss statement gives an idea of the company's development trends, its financial and production capabilities, not only in the past and present, but also in the future.
For investors and analysts, the profit and loss statement is in many respects a more important document than the balance sheet of the enterprise, since it contains not frozen, one-time, but dynamic information about what successes the enterprise has achieved during the year and due to what aggregated factors, what is the scale of its activities.
Statement of capital flows consists of two sections, and reference information. Section I “Equity capital” reflects the presence and movement of all types of sources own funds organization: authorized capital, additional capital, reserve fund, retained earnings past years, accumulation funds, fund social sphere. Targeted financing funds received from the budget and from industry and intersectoral funds are also shown here. off-budget funds. In section II, “other funds and reserves” reflect the presence and movement of consumption funds, reserves for future expenses and payments, and estimated reserves.
Cash flow statement complements the balance sheet. If the balance sheet reflects the financial position of the organization at a certain point (the end of the reporting period), then the cash flow statement explains the changes that occurred in one of the components of the financial statements - cash from one balance sheet date to another. Information about an organization's cash flows is useful as a basis for assessing its ability to raise and use cash.
The report shows cash receipts and payments in the context of current, investment and financial activities. This grouping of cash flows allows us to reflect the impact of each of the three areas of the organization’s activities on cash. Their combined effect on cash determines the net change in cash for the period, which is reconciled with the initial and ending balance Money.
Current activities are defined as the activities of an organization that pursues making a profit as the main goal or does not have making a profit as such a goal in accordance with the subject and goals of the activity, i.e. production of industrial products, implementation construction work, trade, catering and other similar activities.
Under investment understand the organization's activities related to capital investments organization in connection with the acquisition land plots, buildings, other real estate, equipment, intangible assets and other non-current assets, as well as their sale; with implementation of long-term financial investments to other organizations, by issuing bonds and other long-term securities, etc.
Financial activities are defined as the activities of an organization related to the implementation of short-term financial investments, the issuance of bonds and other short-term securities, the disposal of previously acquired shares, bonds, etc. for juice up to 12 months. An organization is considered to be engaged in financial activities when it receives resources from shareholders, returns resources to shareholders, borrows money from creditors, and repays amounts received as loans. Information about cash flows associated with financing activities is very important because it allows one to predict the future amount of cash to which the organization's capital providers will be entitled.
Balance sheet application enterprise contains a breakdown of individual balance sheet indicators characterizing the value of property, the source of its formation, and obligations to other enterprises. Changes that have occurred in the account of each shareholder are reflected here. The balance sheet appendix also includes auxiliary data that allows information users to obtain additional information about the financial condition of the enterprise, the composition and size of its funds, the presence of fixed assets and intangible assets, the composition of receivables and payables.
CHAPTER 6. ECONOMIC ANALYSIS – THE FOUNDATION FOR DECISION MAKING IN FINANCIAL MANAGEMENT
Financial statements are a collection of various forms compiled on the basis of financial accounting data in order to collect and summarize information necessary for further planning of the company’s activities.
There are four main types of financial statements, as well as additional applications. Depending on the duration of the billing period, each type can be annual or intermediate.
The main forms of financial reporting at an enterprise include:
Gains and losses report.
Statement of changes in equity
Cash flow statement.
Recommended forms of financial statements, as well as instructions for their completion, are established by the Ministry of Finance of the Russian Federation. Each of these types of financial statements discloses certain information necessary for specific purposes. Let's look at them separately and in more detail.
Balance sheet is a form of financial reporting that reveals the characteristics of a company's assets and liabilities in monetary terms. Externally, the balance sheet is a table containing information on the property (asset) and financial (liability) state of the enterprise as of a certain date. The main characteristic of such a form of financial reporting as the balance sheet is valuation, that is, all the indicators under consideration have a monetary measurement. The construction of a balance is based on the balance between the sources of capital and its direction.
Profit and loss statement is a type of financial reporting containing information on income and expenses, as well as financial results, presented in cumulative total from the beginning of the year to reporting date. This form of financial reporting of an enterprise allows you to assess the organization’s activities for a certain period. Unlike the balance sheet, which is a static characteristic, the profit and loss statement reflects the dynamics of the business process.
Statement of changes in capital - a form of accounting financial statements showing the movement of authorized capital, reserve capital, additional capital, and also reflecting all changes in the amount of retained earnings ( uncovered loss) enterprises. This type The financial statements of an enterprise consist of two parts, presented sequentially one after another. The first part discloses information for the previous reporting period, the second - for the current one. In accordance with paragraphs. 3 and 4 of the Order of the Ministry of Finance of the Russian Federation dated July 22, 2003 No. 67n small businesses not subject to mandatory audit, and non-profit organizations may not include a statement of changes in equity.
Cash flow statement is a form of financial reporting that characterizes the difference between the inflow and outflow of cash for the reporting period and the previous reporting period. This type of financial statements reflects information about the actual receipt and expenditure of funds, that is, about debit and credit turnover in accounts 50 "Cash" (not counting the amount in the subaccount " Money documents"), 51 "Current accounts", 52 "Currency accounts", 55 "Special bank accounts" and 57 "Transfers in transit."
Enterprise assets- household resources that should bring benefits to the enterprise in the future. Balance sheet asset items are placed according to the degree of liquidity (in descending order or increasing).
Assets are divided into current and non-current. Non-current assets are used for more than 1 reporting period and are not intended for sale during the year. (NMA)
Current assets - funds used, sold, consumed during 1 reporting period (comparison with sales volume for this period) (receivables, inventories, costs)
Liabilities of the enterprise– obligations to owners and external obligations. External obligations are future losses in the economic benefits of a company that may arise from existing obligations in this company to transfer funds (provide services) to other enterprises in the future as a result of transactions (events that have occurred) ( authorized capital, creditor, dividend debt)
Profit report provides information reflecting the formation of net profit for the reporting period.
Accumulated profit report reflects information on accumulated profit at the beginning of the reporting year, net profit for reporting year, the amount of dividends paid for ordinary and preference shares, the balances of retained earnings that are carried forward to the next year.
Net working capital– the difference between the company’s current assets and its short-term liabilities.
Cash flow statement designed to analyze current cash flows; estimates of future cash flows; assessing the company’s ability to repay its debt and pay dividends; analysis of the need to attract additional finance. resources. Compiled for the needs of internal finance. management. The advantage is that it allows, in a simple and analytical form, to identify the factors that influenced changes in cash flows for the reporting period and determine through which activities the company receives the greatest increase in cash.
To report cash flows grouped into 3 types of activities - economic, investment and financial.
In the section of production and economic activities items used in calculating net profit are reflected (cost structure, etc. obligatory payments). In chapter
In chapter investment activities transactions that lead to changes in non-current assets are reflected mainly (sales, purchase of real estate, securities; long-term loans to other companies; repayment of loans)
In the financial activities section presents the results of operations leading to changes in long-term commitments and equity (purchase and sale of own shares; payment of dividends; repayment of long-term liabilities.
Statement of net worth may be devoted either to more detailed disclosure of information in the income statement, or to more detailed disclosure of the contents of the “Equity” section.
Financial position commercial organization.
Methods of its analysis
Fin. position is a set of indicators reflecting the availability, placement and use of financial resources. resources. Financial analysis provisions - part of the financial analysis, which in turn is an integral part of the overall complete AFCD.
Finnish users analysis can be:
1) directly employees of the enterprise management;
2) persons who may not directly work at the enterprise, but have direct financial support. interest: shareholders, investors, buyers and sellers of products, various. creditors;
3) persons who have indirect financial interest: tax services, decomp. Finnish institutes, statistical authorities.
It is customary to distinguish 2 types of finance. analysis - internal and external. Internal analysis carried out by employees of the enterprise. Its information base includes any enterprise information useful for making management decisions. External analysis carried out by auditors (other bodies) monitoring the implementation of the laws of the Russian Federation.
Fin. analysis based on accounting data. reporting are in the nature of external analysis, and the analysts conducting this analysis do not have access to the company’s internal information. Therefore, this analysis is less detailed and more formalized.
The main content of the external analysis is:
1. analysis absolute indicators arrived;
2. analysis relative indicators profitability (P sales = profit / revenue);
3. financial analysis condition, market stability, balance sheet liquidity and solvency of the enterprise);
4. analysis of the efficiency of use of borrowed capital (income from the use of borrowed capital / loan amount);
Information base external analysis are:
1. Form No. 1 “Balance Sheet”;
2. Form No. 2 “Report on financial results” (revenue, cost, direct costs, commercial costs, net profit);
3. Form No. 3 “Statement of Capital Movements” (structure of funds);
4. Form No. 4 “Cash Flow Statement”;
5. form No. 5 " Annual form reporting."
Annual financial reporting is open for publication and analytical work is usually carried out in 2 stages: preliminary assessment (express analysis of financial status) and detailed analysis of financial status. reporting.
The purpose of express analysis is a simple assessment of financial position and dynamics of development of the enterprise. This analysis carried out by “reading” the statements, on the basis of which a conclusion is made about the main sources of raising funds for the enterprise, the directions of their investments, and the main sources of profit.
The following conditions are positive for the enterprise:
· equity is growing;
· the debtor is in accordance with the creditor both in absolute value and in terms of growth rates;
· non-current assets do not exceed equity capital;
· the amount of reserves and costs is provided by our own working capital, long- and short-term loans and borrowings.