Equity Capital Maintenance as the Cash Flow Net Assets of an Organisation for a More Accurate Assessment of Its Financial Sustainability

DOI

10.2991/aebmr.k.200312.349How to use a DOI?

Abstract

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.

Copyright

© 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/).

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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  -