Accounting as an integral part of financial and economic ­assessment of business entities

Abstract

Purpose. To determine the impact of accounting for the activities of economic entities on the general state of financial and economic activities of mining enterprises on the basis of the statistical method of analysis. Methodology. The theoretical and methodological basis of this study includes scientific works by national and foreign scientists in terms of formation of the accounting system of enterprises (economic entities), legislative and regulatory documents which regulate accounting. The study used a set of general and special methods of cognition: content analysis, logical generalization, quantitative and qualitative comparison, scientific abstraction and systematization. Findings. It is established that in the conditions of the growing national economy there occurs dynamic strengthening of the influence of science and R&D on the socio-economic development of the country. It is proposed to consider accounting as a component of financial and economic evaluation of business entities. The financial analysis of activities of 40 leaders of the mining industry market of the world is provided. Originality. The study analyzed the financial and economic condition of economic entities and provided recommendations in terms of management and accounting. In contrast to the existing ones, these recommendations are as follows: formation, composition, powers and procedure of enterprise committees; the role of the works council in ensuring the effective functioning of the internal control system at the enterprise; implementation of an effective remuneration policy; disclosure of corporate management information by enterprises. It has been proven that the mining industry, along with the oil and gas industry, distributes more of its revenues to the state than any other sector of the economy. This is due to the fact that in addition to direct and indirect taxes, mining companies pay significant amounts of royalties in the form of resource rents for non-renewable resources. Practical value. The results of the study can be used by practitioners, scientists, civil servants (the Ministry of Education and Science of Ukraine and its structural units, local governments in the field of education and science) to monitor economic development and improve state regulatory impact on economic entities.