Russian methods for assessing bankruptcy. Methodology for scoring the financial solvency of Dontsova and Nikforova Scoring model of Dontsova Nikforova

The essence of this technique is to classify enterprises by risk level based on the actual level of indicators financial stability and the rating of each indicator, expressed in points. In particular, in the work of L.V. Dontsova and N.A. Nikiforova proposed the following system of indicators and their rating assessment, expressed in points.

Grouping enterprises by class depending on the value financial indicators is given in the table.

Table - Grouping of indicators according to rating criteria

Index	Class boundaries according to criteria, value (point)
Absolute liquidity ratio
Quick ratio
Current ratio
Financial Independence Ratio
SOS security ratio
SK inventory coverage ratio
Minimum border value

Class I - enterprises with a good margin of financial stability, which allows you to be confident in the repayment of borrowed funds;

Class II - enterprises that demonstrate some degree of debt risk, but are not yet considered risky;

Class III - problem enterprises. There is hardly any risk of loss of funds, but the full receipt of interest seems doubtful;

Class IV - enterprises with a high risk of bankruptcy even after taking measures for financial recovery. Lenders risk losing their funds and interest;

V class - enterprises highest risk, practically insolvent;

Class VI - crisis enterprises.

Methodology for assessing the creditworthiness of the Moscow Industrial Bank

Specialists of JSCB Moscow Industrial Bank have proposed a borrower rating system based on three indicators in accordance with the instructions for “Providing loans to legal entities of JSCB IIB”.

Index

Table - Scoring of coefficients

Index	Number of points per category
Overall creditworthiness (sum of points)
Credit assessment	High level	Average level	Low level	The client is uncreditworthy

Reishakhrit E. I.

The article provides an overview of bankruptcy diagnostic methods of foreign and domestic economists, proposes an improved methodology for rating assessment and early diagnosis of bankruptcy, and performs a comparative assessment of the financial condition and rating assessment of one of the coal industry enterprises using the generally accepted and proposed methodology.

The article surveys bankruptcy diagnostics procedures developed by foreign and domestic economists, suggests an improved rating assessment and early bankruptcy diagnostics procedure, carries out a comparative assessment of the financial performance and a rating assessment of a coal mining enterprise based on the conventional and suggested procedures.

Key words: methodology, financial condition, bankruptcy, rating assessment.

Key words: procedure, financial performance, bankruptcy, rating assessment.

The economic conditions in which any company operates are characterized by an increased risk of bankruptcy, not only due to the conditions prevailing within the company itself and the situation in the country, but due to dependence on the global economic situation, which is quite difficult to predict. These circumstances increase interest in the issues of diagnosing the likelihood of bankruptcy, since in a crisis situation, in addition to the control function, diagnostics of the condition is a kind of system that warns management about dangerous situations for the business.

There are various methods for diagnosing the likelihood of bankruptcy, which can be combined into two groups: a) based on the classification of enterprises by risk level; b) methods for assessing financial stability based on an integral score. In accordance with these methods, risk is determined taking into account the actual level of financial stability indicators and the rating of each indicator, expressed in points, based on expert assessments.

In the first group the largestdistribution in foreign practice received Edward Altman's two-factor and five-factor models andWilliam Beaver scorecard. However, these methods are not without drawbacks and do not take into account the specifics of the economic situation and business organization in Russia, which necessitates the use of a different set of financial indicators.

Russian economists offer methods for diagnosing bankruptcy, taking into account the specifics of Russia. So, economists R. S. Saifulin and G. G. Kadykov calculated a complex indicator for predicting a company’s financial crisis:

R = 2*K 1 + 0.1 * K 2 + 0.08 * K 3 + 0.45 * K 4 +K 5 ,

where K 1 - coefficient of provision with own working capital;

TO 2 - current liquidity ratio;

TO Z - asset turnover ratio;

TO 4 - management ratio, calculated as the ratio of profit from sales to revenue;

TO 5 -return on equity.

If these indicators comply with their minimum standard levels, the valueR = l. If the valueR<1, then the financial condition of the organization is unsatisfactory ifR>1 - quite satisfactory.

However, this technique is mainly aimed at the diagnostic control function.

Currently, the emergence of crisis situations leading to bankruptcy of enterprises is caused not only by improper management, but also to a large extent by external factors characterizing the economic environment in which the company operates and the economic situation in the world, on which it cannot but depend. A crisis situation for a company is characterized by an increased risk of bankruptcy, a weak competitive position, and financial instability. In a crisis situation, in addition to the control function, condition diagnostics is a kind of system that warns management about dangerous situations for the business.

Under these conditions, in our opinion, the technique recommended by L.V. Dontsova and N.A. Nikiforova and based on an integral score, seems to be more effective.

The proposed L.V. Dontsova and N.A. Nikiforova, a system of financial indicators for diagnosing the likelihood of bankruptcy is shown in Table 1.

Table 1

System of financial indicators for diagnosing the likelihood of bankruptcy

However, this technique does not allow for early diagnosis of bankruptcy, as well as for assessing the actions of the organization’s management to improve financial stability over a number of years.

To expand the possibilities of using the technique of L.V. Dontsova and N.A. Nikiforova are proposed to introduce into the system of financial indicators (Table 1) additional four indicators shown in Table 2. In addition, for the purpose of early diagnosis of bankruptcy and timely development of an appropriate company strategy, it is proposed to introduce several bankruptcy forecasting models: a five-factor model Altman; Taffler's four-factor model; domestic two-factor model (Table 3).

table 2

Additional financial indicators for diagnosing the likelihood of bankruptcy

Table 3

Proposed bankruptcy forecasting models

Taking into account the proposed additions, the classification of organizations into bankruptcy risk classes should be carried out in accordance with the criteria given in Table 4. It must be borne in mind that as a result of the introduction of additional indicators and models, the rating of each indicator changes. Thus, the value of the rating of the indicator K ab according to L.V. Dontsova is 20, and according to the proposed method - 11, Kbl - 18 and 10.5, respectively. The sum of the ratings of all indicators in both the first and second cases for the 1st grade is 100 points, for the 6th grade it is 0. The point limits for intermediate classes of ratings change as follows (in the numerator - according to the method of L.V. Dontsova, in the denominator - according to the proposed method): for 2nd grade - 85.-78.2 / 80.95-79.05; 3rd class - 63.4-56.4/ 60-58.1; 4th grade - 41.6-28.3/ 39.05-38.1; for 5th grade - 13.5/19.05.

It should also be noted that the quantitative boundaries of risk classes do not overlap each other when calculating points to determine financial rating organization may receive values ​​that do not fall into any of the classes. In this case, the financier can assign a class of financial condition based on the result of an assessment close to the boundary of a particular class. For example, if the rating is 35 points, then this enterprise can be assigned class 4.

As a result of the proposed additions, the “price” of one point of reduction in the indicator compared to the minimum established also changes. When calculated according to Dontsova’s method, the “price” for each 0.1 point reduction in the value of the K ab indicator compared to the minimum established is 4 points, and according to the proposed method - 2.2 points; according to the Kbl indicator, the “price” values ​​are, respectively, 3 and 2.1 points.

To compare the proposed methodology and the methodology of L.V. Dontsova and N.A. Nikiforova performed an analysis of the financial condition and rating assessment over three years of dynamics of one of the enterprises in the coal industry that mines coal underground. The results obtained are shown in Table 5.

The table shows that when calculating indicators using the method of L.V. Dontsova and N.A. Nikiforova in the period from 2009 to 2011 there was a positive trend in the financial condition of the enterprise. However, the above methodology does not allow us to fully assess the effectiveness of management decisions of the enterprise management in the field of financial policy, since the calculations do not show significant changes in the risk class, which reduces its value for management.

Calculations performed using the proposed methodology allow us to track the improvement in the financial condition of the enterprise, as well as a noticeable reduction in the risk class. There is also a positive trend in the improvement of a number of indicators and a gradual transition from the lowest rating level to a higher one. This can serve as proof of the correctness of the financial policy of the enterprise management.

Thus, the improved methodology allows us to consider in more detail all significant changes in the financial condition of the enterprise through the use of a larger number of indicators, the ability to evaluate management decisions made in the field of financing current activities, and also to prevent the risk of bankruptcy through its timely diagnosis. This makes it possible for the management of the enterprise to take timely measures to prevent a financial crisis.

Table 4

Classes of bankruptcy risks according to criteria for assessing financial condition

Table 5

* When writing the article, materials from N. V. Reshetova were used.

Bibliography:

1. Bezhovets A.A., Linyucheva O.I. Diagnosis of the crisis state of the enterprise. Barnaul: Altai State University Publishing House, 2006. 2. Fomin Y.A. Diagnosis of the crisis state of the enterprise: tutorial. -M: UNITY - DANA, 2005. - 387 p. 3. Dontsova L.V., Nikiforova N.A. Analysis of financial statements: textbook.-M.: Business and Service, 2003. - 336 p.

References :

1. Bezhovets AA Linyucheva OI Diagnosis of the crisis in the company. Barnaul, Altai State University Publishing House, 2006. 2. Fomin YA Diagnosis of the crisis in the enterprise: a training manual. - M: UNITY - Dana, 2005. - 387 p. 3. Contains recommendations, Nikiforova N A. Financial Statement Analysis: A Training Manual. - M.: Business and Services, 2003. - 336.

Modern practice of analyzing the financial and economic activities of foreign and domestic enterprises offers a large number of models and methods for assessing the likelihood of bankruptcy. However, discussions regarding the effectiveness of their use in practice continue unabated to this day, which is primarily caused by objective difficulties in identifying signs of trouble in the early stages of a crisis.
It is also necessary to take into account that attempts to apply methods for assessing financial insolvency developed abroad using a large amount of factual material regarding the work foreign companies, were not successful in assessing the performance of domestic companies.
In this regard, of particular interest are the models developed at different times by domestic economic researchers, namely:
1. Two-factor model M.A. Fedotova, represented by the equation:
(1)
where Ktl is the current liquidity ratio;
Kzs - relationships borrowed money to the balance sheet currency.
If Z<0 - вероятно, что предприятие останется платежеспо-собным; Z>0 - bankruptcy is likely.
A significant drawback of this model is that it does not take into account such equally significant financial characteristics of the enterprise’s activities as asset turnover, return on assets, the rate of change in sales revenue, etc.
2. Rating model for assessing the possibility of bankruptcy R. S. Saifulina - G. G. Kadykova
(2)
where R is a rating number that determines the level of threat of bankruptcy;
Ko - coefficient of security of current assets with own funds;
Ktl - current liquidity ratio, which characterizes the degree of total coverage of the amount of current liabilities by current assets;
Ki is the coefficient of intensity of turnover of advanced capital, which characterizes the volume of revenue from sales of products per 1 ruble of the company’s capital;
Km is the management coefficient, which is characterized by the ratio of profit from product sales and sales revenue;
Kpr is the return on equity ratio, which characterizes the profit before tax per 1 ruble of equity capital.
The authors of the methodology believe that the financial condition of enterprises whose rating number is less than 1 can be characterized as unstable (unsatisfactory). When R > 1, bankruptcy is unlikely, R = 1 is possible if the coefficient values ​​fully comply with the minimum regulatory levels.
3. Rating assessment of the financial stability of L.V. Dontsova and N.A. Nikiforova
The essence of this methodology is to classify organizations according to the degree of risk, based on the actual level of values ​​of financial stability coefficients and the rating of each indicator, expressed in points (Tables 2, 3).
Using the criteria from table. 2, you can determine the class of financial stability of the analyzed enterprise.
I Class - organizations that have absolute financial stability, which allows you to be confident in the timely fulfillment of financial and other obligations under concluded contracts. Enterprises belonging to this class have a rational structure of property and its sources, and are, as a rule, quite profitable.

table 2
Score assessment of financial stability proposed by L.V. Dontsova and N.A. Nikiforova

Index	Class boundary according to criteria
Absolute liquidity ratio	0.5 and above = 20 points.		0,3 = = 12 points			less than 0.1 =0 point.
Critical rating factor	1.5 and above = = 18 points		1,3 = = 12 points	1.2-1.1 = = 9-6 points.		less than 0.1 =0 point.
Current ratio	2 and above = 16.5 points.	1.9-1.7 = = 15-12 points.	1,6-1,4= = 10.5-7.5 points.	1,3 - 1,1 = = 6-3 points.	1 = 1.5 points	less than 1 = 0 point.
Financial Independence Ratio	0.6 and above = 17 points.	0,59-0,54= = 16.2-12.2 points	0,53-0,43 = =11.4-7.4 points.	0.47-0.41 = 6.6-1.8 points.		less than 0.4 = 0 point.
Property security ratio finance sources	0.5 and above = 15 points.					less than 0.1 =0 point.
Coef. finance independence in terms of stock formation and costs	1 and above = 13.5 points.	0.9 = 11 points.	0,8 = = 8.5 points.	0,7 - 0,6= = 6.0-3.5 points.		less than 0.5 = 0 point.
Class boundaries, points

II Class - organizations, the main part of the financial performance indicators of which are quite close in value to optimal ones, but some of them still have some lag from the norm. These enterprises, as a rule, have a non-optimal ratio of their own and borrowed sources of financing, and there may be a rapid increase in accounts payable compared to the growth of other borrowed sources and accounts receivable. Typically, organizations of this class are profitable.
III Class - these are problematic organizations, in relations with which there is, as a rule, no real threat of loss of funds, but it is rather doubtful whether they will fulfill their obligations on time.
IV Class - these are organizations with an unstable financial condition, having an unsatisfactory capital structure, the solvency of which is below the limits of acceptable values. Building partnerships with them is quite risky.
V Class - organizations of the highest risk, practically insolvent and absolutely unstable from a financial point of view.
A four-factor model for predicting enterprise bankruptcy (R-account model), developed in 1998 by specialists of the Irkutsk State Economic Academy (IGEA) A.Yu., has also become widespread. Belikov and G.V. Davydova for trade enterprises. This model is described by equation (3):
, (3)
where R is the enterprise bankruptcy rate;
K1 - share of working capital in total assets);
K2 - return on equity, calculated as the ratio of net profit to equity;
K3 - asset turnover ratio, defined as the ratio of proceeds (net) from sales to the total assets of the enterprise;
K4 - profitability of costs for sold (produced) products, calculated based on net profit and the full cost of production.
The analysis of the results obtained during the calculations is carried out in accordance with the rules set out in table. 3.
Table 3
Assessment of the probability of bankruptcy in accordance with the value of R

End of table. 3

However, some economists express the opinion that this forecasting technique only works when the obvious signs of a crisis situation at the enterprise are already quite noticeable. Moreover, in many cases, the R value does not correlate with the results obtained using other methods and models. As noted by Batasova E.O. , the dominant value in the R-account model is the ratio of current assets to the average value of assets for the period, however, according to the researcher, this indicator of assets is not the most important indicator of crisis phenomena.
It should be noted that in order to quantitatively assess the probability of bankruptcy of enterprises, the following can also be used: the five-factor model of A.D. Sheremet and R.S. Saifullina, six-factor model by O.P. Zaitseva, model of express diagnostics of enterprise bankruptcy by V.I. Barilenko, S.I. Kuznetsov, L.K. Plotnikova, O.V. Kairo, etc.
What is common to all of the above models is that they take into account factors that are calculated based on the initial data contained in Russian financial statements. In order to increase the correctness of assessing the probability of bankruptcy of an enterprise, it is advisable to carry out calculations not according to one, but according to a number of available models and methods, including those given in regulatory documents.
Let us give a brief overview of official Russian methods, enshrined in the relevant regulations and aimed at identifying signs of potential bankruptcy of domestic enterprises.
Until June 2003, recognition of an enterprise as financially unstable was carried out on the basis of the criteria established by Appendix 1 to the Decree of the Government of the Russian Federation of May 20, 1994 No. 498 “On some measures to implement the legislation on the insolvency (bankruptcy) of enterprises.” The methodology presented in this document was built on a system of criteria based on assessments of current liquidity, the provision of own working capital and the ability to restore (loss) solvency. It made it possible to identify two financial conditions of the enterprise: a satisfactory balance sheet structure of the enterprise and an unsatisfactory one. In the first case, a forecast was made for the possibility of loss of solvency over the next three to six months, in the second, the possibility of restoring solvency over the next six months was determined.
Despite the fact that in a number of economic literature this technique was recognized as far from imperfect, it is still widely used in practice when assessing the risk of loss of solvency.
Currently, the current official methodology for analyzing the financial condition of an enterprise (organization) in order to establish the likelihood of bankruptcy is the Rules for conducting financial analysis by an arbitration manager, approved by Decree of the Government of the Russian Federation of June 25, 2003 No. 367. These Rules “define the principles and the conditions for the arbitration manager to conduct a financial analysis, as well as the composition of the information used by the arbitration manager when conducting it.” They also provide a detailed description of the coefficients of the financial and economic activities of the debtor, as well as coefficients characterizing the solvency and financial stability of the debtor.
Order of the Ministry of Economic Development of the Russian Federation dated April 21, 2006 No. 104 approved the Methodology for conducting the Federal tax service accounting and analysis of the financial condition and solvency of strategic enterprises and organizations, the purpose of which is to assess solvency, identify facts of its deterioration and the emergence of a threat of bankruptcy in the organization.
The Ministry of Industry and Energy of the Russian Federation and the Ministry of Economic Development of the Russian Federation, in order to implement measures to prevent insolvency (bankruptcy) of enterprises and organizations, by Order of April 25, 2007 No. 57/134, approved Methodological recommendations for drawing up a financial recovery program that prepares an enterprise for submission to federal executive authorities in accordance with current regulations. According to legislators, it should contain: a list, economic justification and deadlines for the implementation of measures aimed at improving the financial condition and preventing bankruptcy of the enterprise.
One of the latest adopted regulations defining methods for establishing the threat of bankruptcy is Order of the Ministry of Economic Development of the Russian Federation dated April 18, 2011 No. 175, which approves the “Methodology for analyzing the financial condition of an interested party in order to establish the threat of signs of its insolvency.” -worthiness (bankruptcy) in the event of a one-time payment of tax by this person.” The need to develop such a methodology is dictated by clause 5.1 of Art. 64 (as amended by Federal Law No. 229-FZ of July 27, 2010) Part 1 of the Tax Code of the Russian Federation.

1. FINANCIAL (ACCOUNTING) REPORTING - INFORMATION BASE FOR FINANCIAL ANALYSIS 4 1.1. Purpose, basic concepts, tasks of analysis financial statements 4 1.2. Concept, composition and procedure for filling out financial (accounting) reporting forms 11 1.2.2. Requirements for the reliability of reporting 14 1.2.3. Users of financial statements 17 1.2.4. Reporting period and reporting date 20 1.2.5. The procedure for drawing up reporting forms 22 1.2.6. The role of the explanatory note in information disclosure 28 1.2.7. The procedure for signing financial statements 30 1.2.8. Addresses and deadlines for submitting financial statements 30 1.2.9. The procedure for making changes to the organization's reporting 31 1.2.10. Publicity of financial statements 33 1.2.11- Audit of financial statements 35 1.3. CONTENTS OF FINANCIAL REPORTING FORMS 36 1.3.1. Contents of the balance sheet 36 1.3.2. Contents of the income statement 49 1.3.3. Contents of the statement of changes in equity 62 1.3.4. Contents of the cash flow statement 65 1.3.5. Contents of the appendix to the balance sheet 67 1.4. Sequence of analysis of financial statements 72 1.5. The impact of inflation on financial reporting data 75 1.5.1. Comparability of reporting data 75 1.5.2. Inflation and financial reports 76 2. METHODOLOGICAL BASIS OF FINANCIAL ANALYSIS 91 3. ANALYSIS OF FORM No. 1 “BALANCE SHEET 109 3.1. General assessment of the structure of the organization’s property and its sources according to balance sheet data 109 3.2. Results of a general assessment of the structure of assets and their sources according to balance sheet data 117 3.3. Analysis of balance sheet liquidity 121 3.4. Calculation and assessment of financial solvency ratios 127 3.5. Criteria for assessing the insolvency (bankruptcy) of organizations 133 3.6. Determining the nature of the organization's financial stability. Calculation and assessment based on reporting data of financial ratios of market stability 156 3.6.1. Analysis of financial stability indicators 156 3.6.2. Analysis of the sufficiency of funding sources for the formation of reserves 160 3.7. Classification of the financial condition of an organization according to consolidated criteria for assessing the balance sheet. 164 3.8. Analysis of indicators of intra-annual dynamics 172 3.9. General assessment of the organization's business activity. Calculation and analysis of the financial cycle 184 ANALYSIS OF FORM No. 2 “PROFIT AND LOSS REPORT” 198 4.1. Analysis of the level and dynamics of financial results according to reporting data. 198 4.2. Analysis of costs incurred by the organization 204 4.2.1. Main types and characteristics of classification of expenses of an organization 204 4.2.2. Analysis of costs by element 207 4.3. Analysis of the influence of factors on profit. 209 4.4. Analysis of profit dynamics 214 4.5. Factor analysis of the organization's profitability. 217 4.6. Consolidated system of indicators of the organization's profitability 222 4.7. Assessing the impact of financial leverage 230 4.7.1. The essence of financial leverage 230 4.7.2. The relationship between economic profitability and return on equity 232 4.7.3. Calculation of the financial leverage ratio 236 5. ANALYSIS OF FORM No. 3 “REPORT ON CHANGES IN CAPITAL” 240 5.1. Sources of financing assets 240 5.2. Assessment of the composition and movement of equity capital 247 5.2.1. Analysis of the composition and movement of equity capital 247 5.2.2. Calculation and assessment of net assets 249 6. ANALYSIS OF FORM No. 4 “CASH FLOW REPORT” 253 6.1. Analysis of cash flows according to reporting data 253 7. ANALYSIS OF FORM No. 5. “APPENDIX TO THE BALANCE SHEET” 265 7.1. Composition and assessment of the movement of borrowed funds 265 7.2. Analysis of receivables and payables 268 7.2.1. Analysis of accounts receivable 268 7.2.2. Analysis of accounts payable 274 7.3. Analysis of depreciable property 277 7.3.1. Analysis of intangible assets 277 7.3.2. Analysis of fixed assets 285 7.4. Analysis of the flow of funds for financing long-term investments and financial investments 296 7.4.1. The essence and differences between the concepts of investment and financial investments 296 7.4.2. Problems of investment analysis 301 7.4.3. Main indicators of securities profitability analysis 302 7.5. Explanatory note to the annual accounting report 304 8. PREPARATION OF A FORECAST BALANCE SHEET 308 9. FEATURES OF PREPARATION AND ANALYSIS OF CONSOLIDATED REPORTING 313 9.1. The essence and basic concepts of consolidated reporting 313 9.2. Procedures and principles for the preparation and presentation of consolidated financial statements 329 9.3. Primary consolidation methods 335 9.4. Subsequent consolidation 342 9.5. Analysis of consolidated reporting 345 10. SPECIFICITY OF SEGMENTAL REPORTING OF AN ORGANIZATION 351 10.1 Essence and purpose of segmental reporting 351 10.2. Disclosure of information on reporting 355 10.3. Stages of creating segmental reporting for an organization 361

1. FINANCIAL (ACCOUNTING) REPORTING - INFORMATION BASE FOR FINANCIAL ANALYSIS

1.1. Purpose, basic concepts, tasks of financial reporting analysis

Financial statement analysis is the process by which we evaluate the past and current financial position and performance of an organization. However, the main goal is to assess the financial economic activity our organization regarding future conditions of existence. Financial (accounting) reporting is the information base of financial analysis, because in the classical sense, financial analysis is the analysis of financial reporting data. Financial analysis is carried out in different ways, depending on the task at hand. It can: be used to identify problems in managing production and commercial activities; serve to evaluate the activities of the organization’s management; be used to select areas for capital investment, and finally, act as a tool for forecasting individual indicators and financial activity in general

Analysis is a tool for cognition of objects and phenomena of the internal and external environment, based on the analysis of the whole into its component parts and the study of their interrelation and interdependence. Economic analysis is a system of specialized knowledge associated with research economic processes and phenomena in their interrelation, developing under the influence of objective and subjective factors.

Financial analysis as part economic analysis, represents a system of certain knowledge associated with the study of the financial position of an organization and its financial results, formed under the influence of objective and subjective factors, based on financial reporting data. The content of financial analysis is determined by its goals, objects of study and subject matter and, in essence, provides an answer to the questions: what is being studied, how and why the analysis is carried out. The purpose of analyzing financial statements is to obtain key (the most informative) parameters that provide an objective and most accurate picture of the financial condition and financial performance of the enterprise. The goal of the analysis is achieved as a result of solving a certain interrelated set of analytical problems. The analytical task is a specification of the goals of the analysis, taking into account the organizational, informational, technical and methodological capabilities of the analysis. The object of analysis is what the analysis is aimed at. Depending on the objectives, the objects of analysis of financial statements can be: the financial condition of the organization, or financial results, or the business activity of the organization, etc. The subject of analysis is a person engaged in analytical work and preparing analytical reports (notes) for management, that is, an analyst. Financial analysis solves the following problems

1) assesses the structure of the organization’s property and the sources of its formation; 2) reveals the degree of balance between the movement of material and financial resources; 3) evaluates the structure and flows of equity and debt capital in the process of economic circulation, aimed at extracting maximum or optimal profit, increasing financial stability, ensuring solvency, etc.; 4) evaluates the correct use of funds to maintain an effective capital structure; 5) assesses the influence of factors on the financial results of operations and the efficiency of use of the organization’s assets; 6) exercises control over the movement of the organization’s financial flows, compliance with norms and standards for the expenditure of financial and material resources, and the feasibility of spending. In today's conditions, most enterprises are characterized by a “reactive” form of activity management, i.e. making management decisions in response to current problems. This form of management gives rise to a number of contradictions between: the interests of the enterprise and the fiscal interests of the state; cost of money and profitability of production; return on equity and profitability financial markets; interests of production and financial services, etc. Analysis of financial statements acts as a tool for identifying problems in managing financial and economic activities, for choosing directions for investing capital and forecasting individual indicators. One of the objectives of enterprise reform is the transition to managing financial and economic activities based on an analysis of the economic situation, taking into account the setting of strategic goals for the enterprise’s activities that are adequate to market conditions, and the search for ways to achieve them. The results of the financial and economic activities of an enterprise are of interest to both external market agents (consumers and producers, creditors, shareholders, investors) and internal ones (employees of administrative and management departments, enterprise managers, etc.). Among the main, strategic, development tasks of any organization in the conditions of market economy relate

Optimizing the capital structure of the enterprise and ensuring its financial stability;

profit maximization;

ensuring the investment attractiveness of the enterprise; creation of an effective enterprise management mechanism; achieving transparency of the financial and economic state of the enterprise for owners (participants and founders), investors, creditors; the enterprise's use of market mechanisms to attract financial resources. The optimality of management decisions made depends on different directions of the enterprise’s development policy:, act as an economic category. The distribution and redistribution of value through finance is necessarily accompanied by the movement of funds, which take a specific form of financial resources. They are formed by business entities and the state at the expense of various types of cash income, deductions and receipts, and are used for expanded reproduction, material incentives for workers, for social needs, etc. Let's consider the financial model of the organization's economic activities (Fig. 1.1). It illustrates the formation of invested capital from equity and borrowed capital. Capital can be invested either in fixed or current assets, or - if there is some surplus - directed towards external investment. The part converted into working capital is spent on raw materials and materials and on converting them into finished products and goods, as well as converting all this into money. The flow of money to suppliers is interrupted by creditors in the same way that the debtor “barrier” slows down the return of money coming into circulation. The process of converting purchased materials into the final product involves spending money on labor, rent, taxes, insurance, utilities, etc. Some fixed assets are used entirely in the form of depreciation. In addition, there are many administrative expenses in the organization, which also require money. The sale of finished products (works, services) and goods can be carried out through direct payments or on credit. In the latter case, debtors slow down the process of cash flow into the organization. If an organization has invested money in external projects, then interest on investments comes from the “border” of working capital in the form of income from other non-operating activities. Finally, some money will be lost due to taxes, interest on the loan and other financial expenses. Cash turnover is a reflection of the relationships between participants in the production process. Financial activity as part of economic activity includes all monetary relations associated with the production and sale of products, reproduction of fixed and working capital, generation and use of income. Rice. 1.1 Financial model economic activity

1.2. Concept, composition and procedure for filling out financial (accounting) reporting forms

The main source of information for financial analysis is financial (accounting) reporting. Accounting statements are a unified system of data on the property and financial position of an organization and the results of its economic activities, compiled on the basis of data financial accounting in order to provide external and internal users with summarized information about the financial position of the organization in a form that is convenient and understandable for these users to make certain business decisions.

The organization must prepare interim financial statements for the month, quarter on an accrual basis for the reporting year, unless otherwise provided by law Russian Federation. When forming financial reporting indicators, it is necessary to be guided by

Federal Law “On Accounting” dated 21L 1.96 No. 129-FZ; Regulations on accounting

Nizations are recommended to additionally include a Report on intended use funds received (form No. 6). Standard option - for commercial organizations, belonging to the group of medium and large organizations. This option involves the formation of financial statements in relation to the sample forms shown in the appendix to order No. 4n, if the indicators given in these sample forms allow one to comply with the general requirements for financial statements set out in GTBBU 4/99, the rules for evaluating items of financial statements, as well as disclosure requirements contained in accounting regulations. Multiple option - for commercial organizations belonging to the group of largest organizations, and large organizations with several types of activities. With this option, the number of forms that make up the organization’s financial statements, as well as the variability in the presentation of reporting information, increases significantly for a number of reasons. Thus, it is advisable, instead of one form No. 5 (Appendix to the balance sheet), to present the indicators of its individual sections in the form of independent forms of financial statements, or to include a section characterizing the amount of current expenses incurred by the organization as an appendix to Form No. 2 (Profit and Loss Statement ). Information on segments (operational and geographic) plays an important role in large companies.

However, in terms of the preparation of financial statements, it is possible to identify a fourth option for a separate group of organizations - joint-stock companies, securities which are listed on stock market. They, along with financial statements prepared in accordance with Russian rules, prepare annual financial statements based on the requirements of International Financial Reporting Standards (IFRS) and present them to the organizer of trading on the securities market, investors and other interested parties at their request. Since January 1, 2000, annual financial (accounting) statements in accordance with the order of the Ministry of Finance of the Russian Federation dated January 13, 2000 No. 4n include the following forms: - Balance sheet (form No. 1); - Profit and loss statement (form No. 2); - Report on changes in capital (form No. 3); - Cash flow statement (form No. 4); - Appendixes to the balance sheet (form No. 5); - Report on the intended use of funds (form No. 6); - explanatory note; - the final part of the audit report.

1.2.2. Requirements for the reliability of reporting

When an organization independently develops financial reporting forms based on the sample forms given in the appendix to the order of the Ministry of Finance of the Russian Federation dated January 13, 2000 No. 4n “On forms of financial reporting of organizations”, the general requirements for financial reporting must be observed (completeness, materiality, neutrality , comparability, comparability, etc.). Financial statements must include information necessary to form a true and complete picture of the financial position of the organization, the financial results of its activities and changes in its financial position. If there is insufficient data to form a complete picture of the financial position of the organization, the financial results of its activities and changes in its financial position, then the organization includes relevant additional indicators and explanations in the financial statements. At the same time, the neutrality of the information contained in the financial statements must be ensured, i.e., the unilateral satisfaction of the interests of some groups of interested users of financial statements over others must be included. If, through selection or presentation, information influences the decisions and evaluations of users to achieve predetermined results, the information is not neutral. Data from the financial statements of the organization must include performance indicators of all branches, representative offices and other divisions (including those allocated to separate balance sheets). Indicators about individual assets, liabilities, income, expenses and business transactions, as well as components of capital, must be presented in the financial statements separately.

Especially in cases of their significance and if without knowledge of them by interested users it is impossible to assess the financial position of the organization or the financial results of its activities. Each material item must be presented separately in the financial statements. Immaterial amounts of a similar nature or purpose may be combined and not presented separately. An indicator is considered significant if its non-disclosure may affect the economic decisions of interested users made on the basis of the reporting information. The organization's decision on whether a given indicator is significant depends on the assessment of the indicator, its nature, and the specific circumstances of its occurrence. At a minimum, an entity must disclose in its financial statements the groups of items included in its financial statements. balance sheet, and items included in the profit and loss statement, in accordance with the requirements of the Accounting Regulations “Accounting Statements of an Organization” PBU 4/99. Explanation of the corresponding indicators of groups of balance sheet items or profit and loss statement items, taking into account the size and characteristics of the data included in the group of balance sheet items or profit and loss statement items, can be provided by the organization directly in the above forms (as “including” or “of these” to the relevant groups of items or items) or in the notes to the balance sheet and income statement. It should be borne in mind that an amount is considered significant if its ratio to the total of the relevant data for the reporting year is at least five percent. An entity may decide to apply a criterion different from the above for the purposes of reporting material information in the financial statements. When drawing up a balance sheet, profit and loss statement and explanations thereto, an organization must adhere to the contents and forms of financial statements adopted by it in the established manner from one reporting year to another. At the same time, if one or another article (line, column) provided for in the form adopted by the organization is not completed, due to the organization’s lack of relevant assets, liabilities, income, expenses, or business transactions during the reporting period, this article (line, column) is crossed out.

For each numerical indicator of financial statements, except for the report prepared by a newly created organization for the first reporting period, data must be provided for at least two years - the reporting year and the one preceding the reporting one. If an organization decides to disclose data for each numerical indicator for more than two years (three or more) in the financial statements presented, then the organization must ensure comparability of data for all periods. Comparative information for each numerical indicator can be included directly in the reporting forms accepted by the organization (including in the form of separate tables included directly in the forms of the balance sheet or profit and loss statement after the indicators, in the Appendix to the balance sheet (form No. 5), in forms developed and adopted by the organization independently) or in an explanatory note. The financial statements of the organization must ensure comparability of the reporting data with indicators for the previous reporting year (years) or corresponding periods of previous reporting periods based on changes associated with the application of the Accounting Regulations “Accounting Policies of the Organization” PBU 1/98, legislative and other regulations acts, taking into account the reorganization carried out, etc. If the data for the period preceding the reporting period are not comparable with the data for the reporting period, then the first of these data are subject to adjustment based on the rules established by regulatory acts on accounting. Each material adjustment must be disclosed in the notes to the balance sheet and income statement along with the reasons for the adjustment.

1.2.3. Users of financial statements

User of financial statements - legal or individual interested in information about the organization. Financial statement analysis work must satisfy many requirements. The range of users of the information contained in financial documents includes various categories - from serious analysts to casual “amateurs”. They all use information about your organization, but with varying degrees of understanding and competence. In PBU 4/99, a user of financial statements is defined as a legal entity or individual interested in information about the organization. Financial reporting in Russia is of interest to two groups of external and one group of internal users

External users: 1. Users directly interested in the activities of the organization; 2. Users indirectly interested in it. The first group of external users includes the following users: 1) the state, primarily represented by the tax authorities, who check the correctness of the preparation of reporting documents, tax calculations, and determine tax policy; 2) existing and potential lenders who use reporting to assess the feasibility of providing or extending a loan, determining loan terms, strengthening loan repayment guarantees, and assessing trust in the organization as a client; 3) suppliers and buyers who determine the reliability of business relations with a given client; 4) existing and potential owners of the organization’s funds who need to determine an increase or decrease in share own funds and evaluate the effectiveness of the use of resources by the organization’s management; 5) external employees interested in reporting data in terms of level wages and prospects for work in this organization. The second group of external users of financial statements are those who are not directly interested in the activities of the organization, but they need to study the statements in order to protect the interests of the first group of users of the statements. This group includes

1) audit services that check the compliance of reporting data with established rules in order to protect the interests of investors; 2) financial consultants who use the statements to make recommendations to their clients regarding the placement of their capital in a particular company; 3) securities exchanges, evaluating the information presented in the reports when registering relevant organizations, making decisions to suspend the activities of any company, assessing the need to change accounting and reporting methods; 4) legislative bodies; 5) lawyers who need reporting information to assess the fulfillment of contract terms, compliance legislative norms when distributing profits and paying dividends, as well as to determine the conditions of pension provision; 6) press and news agencies who use reporting to prepare reviews, assess development trends and analyze the activities of individual companies and industries, and calculate general indicators of financial activity; 7) government statistical organizations that use reporting for statistical generalizations by industry, as well as comparative analysis and performance assessment at the industry level; 8) trade unions interested in reporting information to determine their requirements regarding wages and terms of employment agreements, as well as to assess trends in the development of the industry to which the organization belongs. Internal users of reporting include: 1) senior management of the organization; 2) managers at the appropriate levels, who, based on reporting data, determine the correctness of the adopted investment decisions and the effectiveness of the capital structure, determine the main directions of the dividend policy, draw up forecast reporting forms and carry out preliminary calculations of financial indicators for upcoming reporting periods, evaluate the possibilities of a merger with another organization or its acquisition, structural reorganization.

1.2.4. Reporting period and reporting date

The reporting year for all organizations is the calendar year - from January 1 to December 31 inclusive. Reporting date is the date as of which the organization must prepare financial statements.

For the purpose of preparing financial statements, the reporting date is considered to be the last calendar day of the reporting period. The organization must prepare periodic financial statements no later than 30 days after the end of the reporting period, unless otherwise provided by the legislation of the Russian Federation. The first reporting year for newly created organizations is considered to be the period from the date of their state registration to December 31 of the corresponding year, and for organizations created after October 1 - to December 31 of the following year. Data on business transactions carried out under the state registration of organizations are included in their financial statements for the first reporting year. Monthly and quarterly reports are interim and are compiled on an accrual basis from the beginning of the reporting period. In accordance with the Accounting Regulations “Events after the reporting date” (PBU 7/98), the procedure for reflecting events after the reporting date in the financial statements of commercial organizations is established. An event after the reporting date is recognized as a fact of economic activity that has had or may have an impact on the financial condition, cash flow or results of operations of the organization and that occurred in the period between the reporting date and the date of signing the financial statements for each year. The announcement of annual dividends based on the results of the joint-stock company's activities for the reporting year is also recognized as an event after the reporting date. Events after the reporting date include: events confirming the existence at the reporting date of the economic conditions in which the organization conducted its activities; events indicating the emergence of economic conditions in which the organization operates after the reporting date. An approximate list of facts of economic activity that can be recognized as events after the reporting date is given in the appendix to Regulation PBU 7/98.

1.2.5. Procedure for drawing up reporting forms

When preparing financial statements, it should be borne in mind that the accounting process in organizations is carried out on the basis

From the accounting policy adopted by them in accordance with the Accounting Regulations “Accounting Policy of the Organization” PBU 1/98, which presupposes the property isolation and continuity of the organization’s activities, the sequence of application of the accounting policy, as well as the temporal certainty of the facts of economic activity. The accounting policy must also meet the requirements of completeness, prudence, priority of content over form, consistency and rationality. In accordance with the requirements of the Accounting Regulations “Accounting Statements of an Organization” (PBU 4/99), offsetting between items of assets and liabilities, items of profit and loss is not allowed in financial statements, except in cases where such offset is provided for by the relevant accounting provisions. The balance sheet must include numerical indicators in a net valuation, i.e. minus regulatory values, which must be disclosed in the notes to the balance sheet and profit and loss account. Taking this into account, in the balance sheet, data on intangible assets and fixed assets are presented at their residual value (with the exception of tangible assets and fixed assets, for which depreciation is not accrued in accordance with the established procedure). If an organization that has investments in shares of other organizations listed on stock exchange, the quotation of which is regularly published, a reserve is formed at the end of the reporting year for the depreciation of investments in securities at the expense of the financial results of the organization; in the annual balance sheet, the balances of the corresponding financial investments are reflected at market value, if the latter is lower than the value accepted for accounting. In the liabilities side of the balance sheet, the amount of the reserve formed for the depreciation of investments in securities and recorded in the corresponding account is not reflected separately. If an organization creates, in accordance with the established procedure, reserves for doubtful debts for settlements with other organizations and citizens for products, goods, works and services, with the amounts of reserves attributed to the financial results of the organization listed in the accounting records accounts receivable, for which reserves are created, is shown in the balance sheet in the amount minus the formed reserve. In this case, the amount generated

The reserve called for and reflected in the accounting records is not reflected separately in the liability side of the balance sheet. When preparing financial statements, the requirements of accounting provisions and other regulatory documents on accounting must be met for the disclosure in financial statements of information about changes in accounting policies that have had or may have a significant impact on the financial position, cash flow or financial performance of the organization, about operations in foreign currency, on inventories, on fixed assets, on the income and expenses of the organization, on the consequences of events after the reporting date, on the consequences of contingent facts of economic activity, as well as on the disclosure in the financial statements of certain information about assets, capital and reserves and liabilities organizations. Such disclosure can be made by the organization by including relevant indicators, tables, transcripts directly in the financial reporting forms or in the explanatory note. When reflecting data in financial statements, it should be borne in mind that if, in accordance with regulatory documents on accounting, an indicator is subtracted from the corresponding indicators (data) when calculating the relevant data (interim, total, etc.) or has a negative value, then in the financial statements this indicator is shown in parentheses (uncovered loss, cost of goods sold, products, works, services, loss on sales, interest payable, operating expenses, use of funds (reserves), reduction of capital, direction of funds, disposal of fixed assets, etc. .). The header part of the forms is filled out in the following order

The reporting date or reporting period for which the report is compiled is indicated. financial statements(“for 200_”, “for 200_”); requisite “Organization” - the full name is indicated legal entity (in accordance with constituent documents

Requisite “Type of activity” - indicates the type of activity that is recognized as the main one in accordance with the requirements of regulatory documents approved by the State Committee of the Russian Federation on Statistics;

Small businesses, public organizations (associations) and other organizations with a small amount of assets included in the balance sheet and in order to avoid difficulties in using financial reporting data can prepare and submit annual financial statements in whole rubles. Financial statements must be prepared in Russian in the currency of the Russian Federation. An organization subject to liquidation or reorganization, changing the state form of ownership to another in the reporting year, submits a report on standard forms of annual financial statements for the period from the beginning of the year until the moment of liquidation (reorganization). The newly created organization shows funds in the reporting (at the cost of acquisition, receipt ) and their sources from the date of its state registration in the prescribed manner until December 31 inclusive of the reporting year, and an organization created after October 1 of the reporting year, including October 1, - until December 31 of the following year inclusive (this procedure does not apply to organizations created on database of liquidated (reorganized) organizations and their structural divisions). An organization that transfers and acquires (receives) new units not as of January 1, provides in an explanatory note an explanation for the discrepancy between the balance sheet data at the beginning and end of the reporting year. PBU 7/98 “Events after the reporting date” and PBU 8/01 “Contingent facts of economic activity” establish the rules for reflecting these events and facts in financial statements. In this case, events after the reporting date and contingent facts are reflected in accounting depending on their materiality (significance). The significance of facts and events is determined by the organization independently based on the requirements of accounting regulations. The consequences of events after the reporting date and contingent facts are assessed in monetary terms in a special calculation and shown in the financial statements either by reflecting in synthetic and analytical accounting the final turnover of the reporting period before the approval of the annual financial statements, or by disclosing the relevant information in the notes to the balance sheet and report about financial results. At the same time, conditional profit as fi-

The financial result of the conditional fact is disclosed only in the explanations to the balance sheet and the profit and loss account for the reporting period, and in the synthetic and analytical accounting of the reporting period, entries about the conditional profit are not made. The procedure for calculating and reflecting in accounting and reporting events after the reporting date and contingent facts is established by a separate accounting regulation. In some cases, when the disclosure of information on contingent facts of economic activity may negatively affect the probability of the occurrence of these facts, the organization may not disclose the information in full, but indicate in the explanations to the profit and loss statement only the general nature of the contingent fact and the reason why. beyond which more detailed information is not disclosed. Issues regulated by PBU 7/98 “Events after the reporting date” and PBU 8/01 “Contingent facts of economic activity” are closely related to PBU 4/99 “Accounting statements of an organization.”

1.2.6. The role of the explanatory note in information disclosure

The explanatory note to the annual financial statements must contain essential information about the organization, its financial position, comparability of data for the reporting and preceding years, valuation methods and significant items of the financial statements. The explanatory note should include: - brief description activities of the organization, i.e. provide key performance indicators, factors that influenced the financial results of the reporting period, as well as a decision based on the results of consideration of the annual financial statements and distribution of the organization’s net profit; - analytical indicators characterizing the condition, structure and efficiency of use of fixed assets, intangible assets, financial investments, etc.; calculate the profitability of the organization; - assessment of the financial condition of the organization for the short term based on indicators of the financial stability and solvency of the organization;

Assessment of the financial condition for the long term based on indicators of the structure of sources of funds, the degree of dependence of the organization on external investors and creditors, by determining the effectiveness of investments, etc.; - assessment of the organization’s business activity. The explanatory note must report the facts of non-application of accounting rules in cases where they do not allow to reliably reflect the property status and financial results of the organization with appropriate justification. Otherwise, non-application of accounting rules is considered as evasion of their implementation and is recognized as a violation of the legislation of the Russian Federation on accounting. In the notes to the financial statements, an entity announces changes to its accounting policy for the next reporting year. This article of Russian law corresponds to international standard Accounting No. 1 “Presentation of Financial Statements” (IAS 1-97). It states that “financial statements should provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions.” If a report is not clear and precise, it cannot be used to make responsible decisions or judgments. This should fully apply to the information contained in Russian financial statements. Standard No. 1 states that financial statements must contain relevant figures for the preceding period. This undoubtedly increases the analytical nature of the reports. “Comparative information must be disclosed in relation to the preceding period for all numeric information in the financial statements. Comparative information should be included in summary and descriptive information when relevant to an understanding of the financial statements for the current period.” In order to do correct conclusions and make the right decision, you need to have not only reports for the current period, but also for past periods, which are not available to every user.

1.2.7. Procedure for signing financial statements

Accounting statements are signed by the head and chief accountant (accountant) of the organization. In organizations where accounting is carried out on a contractual basis by a specialized organization (centralized accounting department) or a specialist, the financial statements are signed by the head of the organization, the head of a specialized organization (centralized accounting department) or a specialist conducting accounting. In organizations where accounting is maintained by a centralized accounting department, a specialized organization or a specialist accountant, the reporting is signed by the head of the organization, centralized accounting department or a specialized organization or by a specialist accountant conducting accounting. PBU 7/98 “Events after the reporting date” introduces a new concept of “date of signing of financial statements” into the accounting regulation system. The date of signing of the financial statements is the date indicated in the financial statements submitted to the addresses determined by the legislation of the Russian Federation when they are signed in the prescribed manner.

1.2.8. Addresses and deadlines for submitting financial statements

Organizations, with the exception of budgetary ones, submit annual financial statements in accordance with the constituent documents to the founders, participants of the organization or owners of its property, as well as to the territorial bodies of state statistics at the place of their registration. State and municipal unitary enterprises submit financial statements to bodies authorized to manage state property. Financial statements are presented to other executive authorities, banks and other users in accordance with the legislation of the Russian Federation. Organizations, with the exception of budgetary ones, are required to submit quarterly financial statements within 30 days

At the end of the quarter, and annually - within 90 days after the end of the year, unless otherwise provided by the legislation of the Russian Federation. The submitted annual financial statements must be approved in the manner established by the constituent documents of the organization. Budgetary organizations submit monthly, quarterly and annual financial statements to a higher authority within the deadlines established by it. The day an organization submits financial statements is determined by the date of their mailing or the date of actual transmission by owner. If the date of submission of financial statements falls on a non-working (weekend) day, then the deadline for submission of financial statements is considered to be the first working day following it.

1.2.9. The procedure for making changes to the organization’s reporting

To ensure the reliability of accounting and financial reporting data, organizations are required to conduct an inventory of property and liabilities, during which their presence, condition and valuation are checked and documented. The inventory is carried out in accordance with the Guidelines for the inventory of property and financial obligations, approved by order of the Ministry of Finance of the Russian Federation dated June 13, 1995 No. 49. In cases where an organization identifies an incorrect reflection of business transactions of the current period before the end of the reporting year, corrections are made by entries in the relevant accounting accounts in the month of the reporting period when the distortions were identified. If an incorrect reflection of business transactions is detected in the reporting year after its completion, but for which the annual financial statements have not been approved in the prescribed manner, corrections are made by entries in December of the year for which the annual financial statements are prepared for approval and submission to the appropriate addresses.

If an organization reveals in the current reporting period that business transactions were incorrectly reflected in the accounting accounts last year, corrections are not made to the accounting records and financial statements for the previous reporting year (after the annual financial statements are approved in the prescribed manner). From the date of entry into force Tax Code RF organization is responsible for every tax violation, and even in those cases when it was identified and corrected by her independently. Errors made in accounting lead to incorrect calculation of the taxable base or the amount of tax itself. As a result, the organization fills out the tax return incorrectly and the tax amount is not transferred to the budget in full. When a taxpayer discovers an error on his own, he must amend the tax return. In this case, the organization will have to pay the unpaid amount of tax, pay penalties for late payment of tax and, in some cases, a fine for violating the rules for preparing a tax return.

1.2.10. Publicity of financial statements

Open joint stock companies, banks and others credit organizations, insurance organizations, exchanges, investment and other funds created at the expense of private, public and public funds(contributions) are required to publish annual financial statements no later than June 1 of the year following the reporting year. The Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, their representative offices and branches on the territory of the constituent entities of the Russian Federation, the Federal Compulsory Medical Insurance Fund and territorial compulsory medical insurance funds, as well as in cases established by federal laws, other organizations are required to publish annual financial statements. The publicity of financial statements consists of their publication in newspapers and magazines accessible to users of financial statements, or the distribution among them of brochures, booklets and other publications containing accounting records.

Terek reporting, as well as in its transfer to the territorial bodies of state statistics at the place of registration of the organization for provision to interested users. In this regard, the Ministry of Finance of the Russian Federation approved the procedure for publishing financial statements (Order of the Ministry of Finance of the Russian Federation dated November 26, 1996 No. 101). In particular, this order states that joint stock companies can publish an abbreviated form of the balance sheet and profit and loss statement. The balance sheet can be presented only with totals for the sections provided for in clause 20 of PBU 4/99, if the following conditions are simultaneously present; 1) the balance sheet currency (at the end of the reporting period) should not exceed 400,000 times (400,000 minimum wage) the minimum wage; 2) revenue (net) from the sale of goods, products, works, services for the reporting period should not exceed 1,000,000 times (1,000,000 minimum wage) of the minimum wage. If the organization has more of these indicators, then the balance sheet is published in full. As for Form No. 2 “Profit and Loss Statement”, when publishing it, you can not include the interim results provided for in paragraph 23 of PBU 4/99, and also not provide report items for which the company does not have indicators. The form of the profit and loss statement in an abbreviated version must contain the following indicators: revenue from the sale of goods, products, works, services, cost of goods sold, products, works, services, gross profit, commercial, administrative expenses, distribution of profits or coverage of losses. Information on the results of the audit must be published along with the financial statements. The publication must contain the opinion (assessment) of an independent auditor or audit firm on the reliability of the financial statements. If the financial statements are published in full, the publication must include the full text of the final part of the auditor's report.

1.2.11- Audit of financial statements

In cases provided for by the legislation of the Russian Federation, financial statements are subject to mandatory audit. The final part of the auditor's report must be attached to the financial statements. Federal Law “On Auditing Activities” No. 119-FZ dated 08/07/2001 established criteria for organizations whose financial statements are subject to mandatory annual audit

Organizational and legal form - open joint stock company; - credit organizations; insurance organizations or mutual insurance societies; commodity or stock exchange; investment funds, state extra-budgetary funds, the source of funds of which are mandatory calculations provided for by the legislation of the Russian Federation, made by individuals and legal entities; funds, the sources of which are voluntary contributions from individuals and legal entities; - if the organization’s revenue or individual entrepreneur from the sale of products (performance of work, provision of services) in one year exceeds the minimum wage established by the legislation of the Russian Federation by 500,000 times or the amount of balance sheet assets at the end of the reporting year exceeds the minimum wage established by the legislation of the Russian Federation by 200,000 times; - organizations that are a state unitary enterprise, a municipal unitary enterprise based on the right of economic management, if the financial indicators of its activities meet the established criteria. For municipal unitary enterprises, by law of the constituent entity of the Russian Federation, financial indicators may be lowered. The final part of the audit report issued based on the results mandatory audit financial statements must be attached to these statements.

Section 1 “Non-current assets” of the balance sheet presents the following groups of items: - intangible assets; - fixed assets; - Construction in progress; - profitable investments in material values; - long-term financial investments; - Other noncurrent assets. Intangible assets are shown in the balance sheet at their residual value, i.e. at the actual costs of acquisition, production and costs of bringing them to a state in which they are suitable for use for the intended purposes, minus accrued depreciation. Intangible assets used in the production of products, performance of work, provision of services during a period of economic activity exceeding 12 months, and bringing economic benefits (income), include intellectual property objects: - the exclusive right of the patent holder to an invention, industrial design, utility model; - exclusive copyright for computer programs, databases; - the exclusive right of the owner to a trademark and service mark, the name of the place of origin of the goods. In addition, intangible assets may include organizational expenses (expenses associated with the formation of a legal entity, recognized in accordance with the constituent documents as the contribution of participants (founders) to the authorized (share) capital), as well as the business reputation of the organization. A breakdown of the composition of intangible assets is given in the appendix to the balance sheet (form No. 5). The balance sheet shows data on fixed assets, both active and mothballed or in reserve, at their residual value.

This subsection also reflects capital investments for land improvement (reclamation, drainage, irrigation and other works) and leased buildings, structures, equipment and other objects related to fixed assets. In the amount of actual acquisition costs are shown land, environmental management objects acquired by the organization into ownership in accordance with the law.

A breakdown of the movement of fixed assets during the reporting year, as well as their composition at the end of the year, is given in the appendix to the balance sheet (form No. 5). The item “Construction in progress” shows the costs of construction and installation work carried out both on-site and by contract, the acquisition of buildings, equipment, Vehicle, tools, equipment, durable material objects, other capital work and costs (design and survey, geological exploration and drilling work, diversion costs land plots and resettlement in connection with construction, for training of personnel for newly constructed organizations, etc.). This article reflects the cost of capital construction projects that are in temporary operation until they are put into permanent operation, as well as the cost of real estate for which there are no documents confirming the state registration of real estate in established by law cases. Unfinished capital investments are reflected in the balance sheet at actual costs for the developer (investor). In addition, this item reflects the costs of forming the main herd, the cost of equipment that requires installation and is intended for installation. A breakdown of information on the movement of funds under the item “Construction in progress” is given in form No. 5. The item “Income-generating investments in material assets” reflects income-generating investments in assets provided under a lease (hire) agreement for a fee for temporary possession and use in order to receive income. Long-term financial investments are long-term investments of an organization (for a period of more than a year) in income-generating assets (securities) of other organizations, authorized (stock)

Capital of other organizations created on the territory of the Russian Federation or abroad, government securities, as well as loans provided by the organization to other organizations. Financial investments are taken into account in the amount of actual costs for the investor. For debt securities, the difference between the amount of actual acquisition costs and the nominal value during their circulation period is allowed to be attributed evenly, as the income due on them accrues, to the financial results of the organization. Objects of financial investments (except for loans) that have not been paid in full are shown on the asset side of the balance sheet in the full amount of the actual costs of their acquisition under the agreement with the assignment of the outstanding amount to creditors in the liability side of the balance sheet in cases where the rights to the object have been transferred to the investor. In other cases, amounts contributed to the account of financial investment objects subject to acquisition are shown in the asset balance sheet under the item debtors. An organization's investments in shares of other organizations listed on a stock exchange or special auctions, the quotes of which are regularly published, are reflected at the end of the year at market value, if the latter is lower than the value accepted for accounting. The specified difference is written off to the reserve formed at the end of the year for the impairment of investments in securities, created at the expense of the financial results of the organization. The item “Other non-current assets” reflects funds and investments of a long-term nature that are not reflected in section I of the balance sheet. Section 2 “Current assets” of the balance sheet is presented by the following groups of items: - inventories; - value added tax on purchased assets; - accounts receivable (payments for which are expected more than 12 months after the reporting date); - accounts receivable (payments for which are expected within 12 months after the reporting date); - short-term financial investments; - cash; - Other current assets.

The items in the “Inventories” group show the remaining stocks of raw materials, basic and auxiliary materials, fuel, purchased semi-finished products and components, spare parts, containers and other material assets. In accordance with PBU 5/01, inventories are taken into account at actual cost. The actual cost of inventories purchased for a fee is the amount of the organization's actual costs for the acquisition, with the exception of value added tax and other refundable taxes (except for cases provided for by the legislation of the Russian Federation). When releasing inventories (except for goods accounted for at sales value) into production and otherwise disposing of them, they are assessed in one of the following ways: - at the cost of each unit; - at average cost; - at the cost of the first acquisition of inventories (FIFO method); - at the cost of the most recent acquisition of inventories (LIFO method). The article “Costs in work in progress (distribution costs)” shows the costs of work in progress and unfinished work (services), which are accounted for in the corresponding accounting accounts for production costs. Organizations (construction, scientific, engaged in geology, etc.) that carry out settlements with customers in the current year in accordance with concluded contracts for completed stages of work that have independent significance, reflect on this line the stages accepted in the prescribed manner by the customer at the contractual cost. In this case, the customer reflects the cost of work in accounting upon completion of all stages. Selling expenses take into account the amount of distribution costs attributable to the balance of unsold goods in organizations operating in accordance with the constituent documents in trade, supply and other intermediary activities. If organizations do not recognize the recorded distribution costs in the cost of goods (services) sold in full in the reporting period as

If expenses are incurred for ordinary activities, then the amount of distribution costs (in terms of transportation costs) attributable to the balance of unsold goods and raw materials is reflected in the balance sheet under the item “Costs in work in progress (distribution costs).” The article “Finished products and goods for resale” shows the actual production cost of the balance of finished products that have passed testing and acceptance, complete with all parts in accordance with the terms of contracts with customers and the relevant technical specifications and standards. Products that do not meet the specified requirements and undelivered work are considered unfinished and are shown as part of work in progress. This article shows the cost of remaining goods purchased by an organization operating in trade and public catering. At the same time, the organization of public catering under this article also reflects the remains of raw materials in kitchens and pantries, and the remains of goods in buffets. Organizations operating in industry show in this line products purchased specifically for sale. The article “Shipped Goods” reflects data on the actual cost of shipped products (goods) if the contract stipulates a different moment from the general procedure for the transfer of the right to own, use and dispose of it and the risk of accidental death from the organization to the buyer, customer. The item “Deferred expenses” includes the amounts of expenses incurred in the reporting year, but subject to attribution to the costs of production of products (works, services) in the following reporting periods. The article “Value added tax on acquired assets” reflects the amount of value added tax on acquired material resources, low-value and wear-and-tear items, fixed assets, intangible assets and other valuables, works and services, subject to attribution in the prescribed manner in the following reporting periods in reducing the amount of tax to be transferred to the budget or reducing the corresponding sources of their opening. Two subsections of section 2 of the balance sheet reflect the organization’s settlements with other organizations and persons and are presented in detail.

In simple form: balances on analytical accounting accounts for which there is a debit balance - in assets, for which there is a credit balance - in liabilities. For the group of articles “Receivables, payments for which are expected more than 12 months after the reporting date” and “Receivables, payments for which are expected within 12 months after the reporting date,” data on receivables is shown separately. A breakdown of the status of accounts receivable is given in the appendix to the balance sheet in form No. 5. The article “Buyers and customers” shows, at the contractual or estimated cost, goods shipped, work delivered and services rendered to customers (buyers) until payments for them are received at the settlement ( or other) account of the organization or offset of mutual claims, and the item “Bills receivable” shows the debt of buyers, customers and other debtors for shipped products (goods), work performed and services rendered, secured by bills received. The assets and liabilities of the balance sheet under the items “Debt of subsidiaries (dependent) companies” and “Debt to subsidiaries (dependent) companies” reflect data on current transactions with subsidiaries (dependent) companies. Under the article “Debt of participants (founders) for contributions to authorized capital» shows the debt of the founders (participants) of the organization for contributions to the authorized (share) capital of the organization. The article “Advances issued” shows the amount of advances paid to other organizations for upcoming settlements in accordance with concluded agreements. The article “Other debtors” of the specified groups of articles shows the debt for financial and tax authorities, including overpayments of taxes, fees and other payments to the budget; debt of employees of an organization for loans and borrowings provided to them at the expense of this organization or bank loan, for compensation of material damage to the organization; debt owed by accountable persons; debt on settlements with suppliers for shortages of inventory items discovered upon acceptance; fines, penalties and penalties recognized by the debtor or for which court decisions have been received ( arbitration court) about their collection.

The subsection “Short-term financial investments” shows short-term (for a period of no more than one year) loans provided to organizations, reflects its own shares purchased from auctioneers, and the organization’s investments in securities of other organizations, government securities, etc. Subsection " Cash" includes the articles "Cashier", " Current accounts", "Currency accounts", which reflects cash balances in the cash register, on settlement and foreign currency accounts in credit institutions. Section 3 of the balance sheet “Capital and reserves” combines the organization’s own sources and consists of the following items: - authorized capital; - Extra capital; - Reserve capital; - social sector fund; - targeted financing and revenues; - retained earnings from previous years; - uncovered losses from previous years; - retained earnings of the reporting year; - uncovered loss of the reporting year. The article “Authorized capital” shows the amount of the authorized or share capital in accordance with the constituent documents. An increase or decrease in the authorized (share) capital, made in accordance with a certain procedure, is reflected in accounting and reporting after amendments are made to the constituent documents. The article “Additional capital” reflects the share premium of the joint-stock company, the increase in the value of property when revaluing non-current assets, and part of retained earnings in the amount allocated for capital investments. The item “Reserve capital” includes the amounts of balances of reserve and other similar funds created in accordance with the legislation of the Russian Federation or if the creation of funds is provided for by the constituent documents or accounting policies of the organization. The article “Social Sphere Fund” shows the balance of the social sector fund formed by the organization in the case of the presence of housing facilities and external improvement objects (received free of charge, including under a gift agreement, acquired by the organization), previously not taken into account.

Tenniy as part of the authorized (share) capital, authorized capital, additional capital. A breakdown of the composition and movement of the fund during the reporting year is given in Form No. 3 “Report on Changes in Capital”. Under the article “Targeted financing and revenues,” non-profit organizations reflect the balances of received and unused targeted funds as entrance membership and voluntary contributions, as well as other sources. Data on the balances of target financing funds at the beginning and end of the reporting period by their types and sources, on their movement during the reporting period by non-profit organizations are given in the Report on the targeted use of funds received (form No. 6). The article “Retained earnings of previous years” shows the profit remaining at the disposal of the organization based on the results of work for the previous reporting period. The article “Retained earnings of the reporting year” shows the retained earnings of the reporting period in a net amount, calculated as the difference between the identified financial result for the reporting period and the amount of taxes and other obligatory payments for the reporting period in accordance with the legislation of the Russian Federation. The article “Uncovered loss of previous years” shows the balance of uncovered loss resulting from the results of the organization’s activities for the periods preceding the reporting period. The article “Uncovered loss of the reporting year” shows the organization’s loss for the reporting period as the difference between the identified financial result for the reporting period and the amount of taxes and other similar mandatory payments due. Uncovered losses are reflected in the balance sheet as negative indicators and reduce the amount of the organization's equity capital. When considering the results of the organization’s activities for the reporting year, a decision must be made on the sources of covering losses. Retained earnings from previous years, a reserve fund, and additional capital (with the exception of amounts of additional valuation of property) can be used for these purposes. Section 4 “Long-term liabilities” is presented by the following items: - bank loans subject to repayment more than 12 months after the reporting date;

Loans due to be repaid more than 12 months after the reporting date; - other long-term liabilities. Section 5 “Current Liabilities” combines the amounts of accounts payable due to be repaid within 12 months after the reporting date: bank loans due to be repaid within 12 months after the reporting date; loans due to be repaid within 12 months after the reporting date; accounts payable, including: - suppliers and contractors; - bills payable; - debt to subsidiaries and dependent companies; - debt to the organization’s personnel; - debt to state extra-budgetary funds; - debt to the budget; - advances received; - other creditors; debt to participants (founders) for payment of income; revenue of the future periods; reserves for future expenses; other Short-term liabilities

The article “Debt to the Budget” shows the organization’s debt for all types of taxes and fees to the budget; the article “Advances received” shows the amount of advances received from third-party organizations for upcoming settlements under concluded contracts; the item “Other creditors” shows the organization’s debt for settlements that are not reflected in other items. A breakdown of the status and movement of accounts payable is given in the appendix to the balance sheet (form No. 5). The article “Debt to participants (founders) for payment of income” shows the amount of debt of the organization for accrued but not paid dividends, interest on shares, bonds. The article “Deferred income” shows income received in the reporting period, but relating to the following reporting periods. The article “Reserves for future expenses” shows the balance of reserves formed by the organization in accordance with regulatory system accounting, such as reserves for vacation pay, repairs of fixed assets, for preparatory work in connection with the seasonality of production, etc. In addition, behind the balance sheet, the certificate of the availability of valuables accounted for in off-balance sheet accounts provides data on leased fixed assets, inventory -material assets accepted for safekeeping, goods accepted for commission, etc.

Let's consider the procedure for generating indicators of Form No. 2 “Profit and Loss Statement”. The classification of income and expenses is established in the Accounting Regulations “Income of the Organization” (PBU 9/99) and “Expenses of the Organization” (PBU 10/99). PBU 9/99 provides a definition of the organization’s income as a whole, its types, as well as revenue. The regulation determines the procedure for recognizing income in accounting and the procedure for disclosing information about the organization’s income in financial statements.

An organization's income is recognized as an increase in economic benefits as a result of the receipt of assets (cash, other property) and (or) repayment of liabilities, leading to an increase in the capital of this organization, with the exception of contributions from participants (owners of property). For the purposes of the Regulations, the following receipts from other legal entities and individuals are not recognized as income of the organization: - amounts of value added tax, excise taxes, sales tax, export duties and other similar mandatory payments; - under commission agreements, agency and other similar agreements in favor of the principal, principal, etc.;

Taking into account the variety of financial processes, the multiplicity of indicators of financial condition, differences in the level of critical assessments, the emerging degree of deviation from them of the actual values ​​of the coefficients and the difficulties arising in connection with this in the overall assessment of the financial position of the organization, it is recommended to conduct a rating assessment of the financial condition.

The essence of this technique is to classify organizations by level financial risk, that is, any analyzed organization can be assigned to a certain class depending on the number of points “scored”, based on its actual financial ratios.

1st class - these are organizations with absolute financial stability and absolutely solvent, whose financial condition allows you to be confident in the timely fulfillment of obligations in accordance with contracts. These are organizations that have a rational structure of property and its sources, and, as a rule, are quite profitable.

2nd class - these are organizations with normal financial condition. Their financial indicators as a whole are very close to optimal, but there is some lag in certain ratios. These organizations, as a rule, have a suboptimal ratio of their own and borrowed sources of financing, shifted in favor of borrowed capital. At the same time, there is a rapid increase in accounts payable compared to the increase in other borrowed sources, as well as compared to the increase in accounts receivable. These are usually profitable organizations.

3rd class - these are organizations whose financial condition can be assessed as average. When analyzing the balance sheet, the weakness of certain financial indicators is revealed. Either their solvency is on the border of the maximum acceptable level, and their financial stability is normal, or, on the contrary, they have an unstable financial condition due to the predominance of borrowed sources of financing, but there is some current solvency. When dealing with such organizations, there is hardly a threat of loss of funds, but fulfilling obligations on time seems doubtful.

4th class - these are organizations with an unstable financial condition. There is a certain financial risk when dealing with them. They have an unsatisfied capital structure, and their solvency is at the lower limit of acceptable values. Such organizations, as a rule, have no profit at all or very little, sufficient only for mandatory payments to the budget.

5th class - these are organizations with a crisis financial condition. They are insolvent and completely unsustainable from a financial point of view. These enterprises are unprofitable.

Table 3

Class boundaries by indicators according to criteria

No.	Index	Criterion reduction condition	Class boundaries according to criteria
I	II	III	IV	V
1.	Absolute liquidity ratio	For every 0.01 point reduction, 0.3 points are deducted	0.70 and more 14 points	0.69 - 0.50 from 13.8 to 10 points	0.49 - 0.30 from 9.8 to 6 points	0.29 - 0.10 from 5.8 to 2 points	Less than 0.10 1.8 - 0 points
2.	Critical rating factor	For every 0.01 point reduction, 0.2 points are deducted	1 or more points	0.99 - 0.80 10.8 - 7 points	0.79 - 0.70 6.8 - 5 points	0.69 - 0.60 4.8 - 3 points	0.59 and less than 2.8 - 0 points
3.	Current ratio	For every 0.01 point reduction, 0.3 points are deducted	1.70 - 2.0 19 points	1.69 - 1.50 18.7 - 13 points	1.49 - 1.30 12.7 - 7 points	1.29 - 1.00 6.7 - 1 points	0.99 and less than 0.7 - 0 points
4.	Own funds ratio	For every 0.01 point reduction, 0.3 points are deducted	0.5 or more 12.5 points	0.49 - 0.40 12.2 -9.5 points	0.39 - 0.20 9.2 - 3.5 points	0.19 - 0.10 3.2 - 0.5 points	Less than 0.10 0.2 points
5.	Capitalization rate	For every 0.01 point increase, 0.3 points are deducted	0.70 - 1.0 17.5 -17.1 points	1.01 - 1.22 17.0 - 10.7 points	1.23 - 1.44 10.4 - 4.1 points	1.45 - 1.56 3.8 - 0.5 points	1.57 or more 0.2 to 0 points
6.	Financial Independence Ratio	For every 0.01 point reduction, 0.4 points are deducted	0.50 -0.60 and more 9 - 10 points	0.49 - 0.45 8 - 6.4 points	0.44 - 0.40 6 - 4.4 points	0.39 - 0.31 4 - 0.8 points	0.30 and less than 0.4 - 0 points
7.	Financial stability ratio	For every 0.1 point reduction, 1 point is deducted	0.80 and more than 5 points	0.79 - 0.70 4 points	0.69 - 0.60 3 points	0.59 - 0.50 2 points	0.49 and less 1 - 0 points
	Class boundaries	-	100-97.6 points	93.5-67.6 points	64.4-37 points	33.8-10.8 points	7.6 or less points

1. Absolute liquidity ratio - a financial ratio equal to the ratio of cash and short-term financial investments to short-term liabilities (current liabilities). The source of data is the company’s balance sheet in the same way as for current liquidity, but only cash and cash equivalents are taken into account as assets:

Cal = (Cash + short-term financial investments) / Current liabilities

Cal = (Cash + short-term financial investments) / (Short-term liabilities - Deferred income - Reserves for future expenses)

2. Quick (term) ratio - a financial ratio equal to the ratio of highly liquid current assets to short-term liabilities (current liabilities). The source of data is the company’s balance sheet in the same way as for current liquidity, but inventories are not taken into account as assets, since if they are forced to sell, losses will be the greatest among all working capital.

Kbl = (Current assets - Inventories) / Current liabilities

Kbl = (Short-term accounts receivable + Short-term financial investments + Cash)/(Short-term liabilities - Deferred income - Reserves for future expenses)

K = (A1 + A2) / (P1 + P2)

The ratio reflects the company's ability to pay off its current obligations in the event of difficulties with the sale of products.

3. Current ratio or coverage ratio - a financial ratio equal to the ratio of current (current) assets to short-term liabilities (current liabilities). The source of data is the company’s balance sheet (form No. 1):

Ktl = (OA - DZd - ZU) / KO

K = (A1 + A2 + A3) / (P1 + P2)

where: Ktl - current liquidity ratio;

OA - current assets;

DZd - long-term receivables;

ZU - debt of the founders for contributions to the authorized capital;

KO - short-term liabilities.

The ratio reflects the company's ability to pay off current (short-term) obligations using only current assets. The higher the indicator, the better the solvency of the enterprise. Taking into account the degree of liquidity of assets, it can be assumed that not all assets can be sold urgently.

4. The coefficient of provision with own working capital (SOS) shows the sufficiency of the organization's own funds to finance current activities.

Security ratio SOS = (Equity capital - Non-current assets) / Current assets

5. Capitalization ratio is an indicator that compares the size of long-term accounts payable with total sources long-term financing including, in addition to long-term accounts payable, the organization's own capital. The capitalization ratio allows you to assess the adequacy of the organization's source of financing its activities in the form of equity capital.

The capitalization ratio is calculated as the ratio of long-term liabilities to the sum of long-term liabilities and the organization's equity capital

6. Financial independence ratio - a financial ratio equal to the ratio of equity capital and reserves to the total assets of the enterprise. The data for its calculation is the organization’s balance sheet.

The financial independence ratio shows the share of the organization's assets that are covered by its own capital (provided by its own sources of formation). The remaining share of assets is covered by borrowed funds.

7. Financial stability coefficient - a coefficient equal to the ratio of equity capital and long-term liabilities to the balance sheet currency. The data for its calculation is the balance sheet.

The financial stability coefficient shows what part of the asset is financed from sustainable sources, that is, the share of those sources of financing that the organization can use in its activities for a long time.

Absolute liquidity ratio = A1/(P1+P2)

Intermediate liquidity ratio = (A1+A2)/(P1+P2)

Current ratio = (A1+A2+A3)/(P1+P2)

Mobility coefficient = current assets/balance sheet currency

Working capital ratio (SOS) = SOS/current assets

Financial risk coefficient (financial leverage) = Debt capital (LC) / Equity capital (SC)

Financial independence ratio = Own capital / Total capital

Financial stability coefficient = Constant capital (PC) / SovK,