The concept of quantitative accounting of factors of reduction of long-term accounts receivable cost

Abstract

Aim. To propose the concept of quantitative accounting of factors of long-term receivables cost reduction and to develop a methodical approach to the realization of the mentioned concept.Tasks. To identify the factors of cumulative decrease in the value of long-term receivables. To propose a methodology of its quantitative assessment for each of the factors. To study the sensitivity of cumulative decrease in the value of long-term receivables to changes in each of the factors.Methods. The research utilized a systematic approach to identifying and assessing the factors of long-term receivables cost reduction. The methods of factor and correlation-regression analysis, as well as analytical dependencies determining quantitative estimates of individual factors were applied.Results. The concept on quantitative accounting of factors of receivables value decrease in the framework of the cumulative reduction factor φ methodology is proposed, where the generalized formula of its decomposition by four factors is given. In the study, the factors of receivables value reduction factors involved in the formula are digitized in terms of the impact on the value of receivables of each of them. In determining the factors K1 and K3, a five-factor regression equation and a two-factor regression equation are constructed respectively. The obtained results can be applied in the concept of development and realization of innovation policy of the enterprise. Two variants of calculation of the K2 factor, which give a quantitative assessment of debt obligations security, are proposed. The formula for calculating the factor K4, which reflects the cost of attracted short-term credit resources to cover cash gaps resulting from accounts receivable, is proposed. As a result of quantitative assessment of influence factors, the formula for calculating the determination of the value of receivables is derived, the application of which will provide a fair result of market value assessment, which will ensure the most effective management of long-term receivables in conditions of economic instability.Conclusions. Qualitative accounting of factors of decrease in the value of long-term receivables necessitates the use of a methodical approach for their quantitative assessment. Practical application of the proposed approach will give the most reliable result of determining the market value of accounts receivable, which, in turn, will allow market participants to improve the efficiency of asset management of the enterprise.