Equity Capital Maintenance as the Cash Flow Net Assets of an Organisation for a More Accurate Assessment of Its Financial Sustainability
- 10.2991/aebmr.k.200312.349How to use a DOI?
The article considers the problem of the creation of an equity capital in an organisation as a net asset, and the influence of financial tools and unfunded items on it. A number of items are identified that are included in stock capital and connected with financial instruments and re-evaluation of capital assets without monetary substance. Part of financial accounting indicators are represented by comprehensive items and items shown as accrued total. The article shows adjustment indicators that specify the sum of equity capital and are used for the calculation of financial sustainability of an organisation. A comparative analysis aimed at finding methods that could improve financial sustainability assessment was conducted on their basis and showed that after adjustments, coefficients began to more accurately show the financial state of a company. The article presents the conclusion that the contents and structure of existing financial accounting affects negatively the creation of an accurate database for the purposes of financial assessment of the company in terms of capital equity maintenance in the form of net assets.
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - O G Zhitlukhin AU - AE Jafarova PY - 2020 DA - 2020/03/17 TI - Equity Capital Maintenance as the Cash Flow Net Assets of an Organisation for a More Accurate Assessment of Its Financial Sustainability BT - Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2020) PB - Atlantis Press SP - 2501 EP - 2506 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200312.349 DO - 10.2991/aebmr.k.200312.349 ID - Zhitlukhin2020 ER -