Financial Statements Of Enterprises Research Articles

Study on Financial Risk and Countermeasures in Enterprise Mergers and Acquisitions--Take LVMH’s Acquisition of Tiffany as an Example

M&A is an important approach for enterprises to achieve industrial upgrading and scale effect, reduce operating costs, and promote the diversified development of enterprises. The financial risks that often appear in the process of M&A are the key to the success of M&A and the reorganization of enterprises. Existing equity and economic problems make enterprises easily fall into financial disputes and cause huge losses. Investment and mergers are important ways for enterprises to expand scale, enter new markets, and acquire new technologies or mature brands. Through investment and merger, market share can be increased, competitiveness can be enhanced, and the financial statements of enterprises can be enhanced, but risks in merger and acquisition are also accompanied. Through the case study of LVMH Group’s merger and acquisition of Tiffany, this paper will analyze the financial risks and countermeasures in the merger and acquisition and extract feasible and effective measures from LVMH Group’s treatment methods to help both parties control the risks in the merger process and achieve the purpose of merger and acquisition.

Khả năng tiếp cận vốn tín dụng chính thức của doanh nghiệp nhỏ và vừa trên địa bàn tỉnh Bình Dương

The study evaluated several factors affecting the ability to access credit capital of small and medium enterprises in Binh Duong province. Through survey data from 450 enterprises, the authors analyzed several factors, including enterprise capacity, social relations of enterprises, business plans, financial statements of enterprises, institutional quality, ability to adapt to risks of enterprises, banks, and credit institutions, and entrust loan organization. The results show that, in addition to businesses needing to improve their internal capabilities, they need to improve the support from banks, credit institutions, and entrust loan organizations that could help enterprises to access formal credit.

Assessment of the Quality of Transformation of Financial Reporting of Entities According to IFRS

Background: Mandatory application of IFRS for a specified list of entities brings about additional costs in terms of material, financial and labour resources. Consequently, this encourages the search for ways to minimise costs related to the transition to IFRS adoption, that is, its formalisation. Under such conditions, the need to improve the methodological toolkit for evaluating the process of transformation of financial statements in accordance with the requirements of the IFRS is actualised. This article aims to develop a methodological toolkit for assessing the quality of the financial reporting transformation process per IFRS requirements, using Ukrainian dairy industry enterprises as a case study. Methods: The assessment of the impact of the transition to IFRS reporting on changes in the financial status of entities was carried out using statistical methods of comparison, generalisation, grouping, and coefficients. Conclusions were drawn based on the research findings employing the method of logical generalisation. Results and Conclusions: The method of assessing the impact of the application of IFRS on the financial condition of enterprises in the dairy industry of Ukraine has been improved, particularly in terms of accounting for changes in financial statements as a result of transformational adjustments before and after the date of transition to IFRS. This refinement involves employing financial coefficients as a means of assessment, facilitating the determination of the quality assessment of the process of drawing up the first financial statements of enterprises in accordance with IFRS. New methodological aspects and recommendations for assessing the quality of the transformation process in the context of the application of IFRS will ensure effective management of enterprises in the dairy industry of Ukraine, leading to an increase in the attraction of foreign investments amidst the conditions of European integration processes and the post-war period.

Assessing the Impact of International Cash Accounting Standards on Financial Statements of Enterprises

The adoption of international cash accounting standards by enterprises has become an important topic in the accounting and finance literature. This study assesses the impact of these standards on the financial statements of a sample of enterprises, including their net income, total working capital, and cash flows. The study finds that the adoption of international cash accounting standards leads to improvements in financial reporting quality, including increases in net income, total working capital, and cash flows from operating activities. The study also discusses the advantages and disadvantages of adopting these standards and provides recommendations for improving cash accounting in enterprises based on international standards. Overall, this study contributes to our understanding of the impact of international cash accounting standards on enterprises and provides valuable insights for practitioners, policymakers, and researchers.

Contingency Information Disclosure and Corporate Tax Avoidance

Despite there is a large amount of relevant literature on the two main topics of contingency information disclosure and corporate tax avoidance, no one has yet focused on the relationship between the two. The study in this paper aims to fill this gap. Based on the empirical data of Chinese A-share listed companies from 2007 to 2020, we empirically examines the impact of contingency information disclosure on corporate tax avoidance, using the expected liabilities presented in the financial statements of enterprises. The results of the study found that the degree of information disclosure of contingencies is significantly and positively related to corporate tax avoidance, and the financing constraints brought by contingencies to enterprises are an important channel to influence corporate tax avoidance; further study found that the positive influence of the degree of information disclosure of contingencies on corporate tax avoidance significantly weakened with the improvement of the quality of corporate internal control. The findings of this paper provide important empirical insights for listed companies to improve the quality of accounting information, curb the opportunistic tendency of management and manage corporate tax avoidance.

Comparison and prospect of Chinese and Western accounting standards based on SWOT-PEST model

Accounting is a language to record economic life, and with the rapid development of productivity and economic and social progress in China, accounting standards are constantly updated to meet the needs of accounting practice and promote the effective operation of socialist market economy. China promulgated the Accounting Standards for Business Enterprises in 1992 as the highest authority of accounting regulations, which has been developed and improved for nearly 30 years, but it is undeniable that the current Chinese accounting standards (CAS) have borrowed from Western accounting standards especially the International accounting standards (IAS) to a considerable extent. In this paper, from the development history of CAS, through the analysis of the causes and effects of the overall differences and specific differences between the two systems on the financial statements of enterprises, combined with the SWOT-PEST model, we make a reasonable outlook on the development of CAS.

CONVERGENCE OF REPORTING ON QUALITY COSTS AND THE SUSTAINABLE DEVELOPMENT REPORTS OF MACHINE-BUILDING ENTERPRISES

The convergence of reporting information on quality costs and reporting on sustainable development of machine-building enterprises, the study of theories and terminology of corporate social responsibility and the role of quality costs in its context as well as reporting standards in the field of sustainable development regarding disclosure of non-financial information. Methodology. Analysis of the theoretical foundations and terminology of corporate social responsibility and the role of quality costs in its section, reporting standards in the field of sustainable development regarding the disclosure of non-financial information, the convergence of reporting information on quality costs and reporting using the methods of theoretical generalization, grouping and comparison. The convergence of quality cost reporting and sustainability reporting is based on synthesis and system analysis methodology. Results. The development of theories and terminology of corporate social responsibility and the role of quality costs in its context was summarized. The principles of ensuring sustainability, which include a comprehensive approach to the assessment of management decisions in managing the enterprise and the effective use of all material and non-material resources of the enterprise, were considered. Forecasting a decrease in integral indicators of enterprise sustainability has a direct impact on the number of quality costs. It was established that the traditional financial reporting of enterprises does not disclose all data on quality costs. A comparative characterization of the standards of sustainable development reports regarding the disclosure of non-financial information was carried out. An attempt to converge quality cost reporting and sustainability reporting using internationally recognized sustainability reporting has been made. The conditions for improving analytical support for quality cost management have been determined. The problems of displaying data on quality costs, mainly due to incomplete disclosure of information in the financial statements of enterprises, were identified. The possibilities of expanding reporting information on quality costs in the existing practice of sustainable development reporting were outlined. Scientific novelty. It is proposed to shift from financial accounting to sustainability accounting by adjusting the main reports, which should include profits and losses, to show how quality-related costs and revenues can directly affect the financial performance of the enterprise. Practical significance. The results of this study contain practical recommendations regarding the convergence of reporting information on quality costs and existing reporting on sustainable development in the implementation of economic activities of machine-building enterprises.

ОЦІНКА РІВНЯ ВНУТРІШНЬОЇ СОЦІАЛЬНОЇ ВІДПОВІДАЛЬНОСТІ ПІДПРИЄМСТВА

The relevance of research on the socially responsible economic activity of Ukrainian business is exacerbated by the fact that the domestic economic environment has not passed in its historical development the necessary stages, which in Western society have led to an awareness of the importance of the philosophy of social responsibility. More obvious is becoming the fact that the reputation of domestic companies is increasingly dependent not only on their profitability, share value, and product quality but also on their activity in the field of social responsibility. However, different approaches to the understanding of social responsibility, inconsistency of actions, and lack of purposeful assessment and management mechanisms provide an unstable platform for further implementation of social responsibility principles in the overall strategy of an enterprise. The purpose of this article is to justify the need to present indicators of social responsibility in the financial statements of enterprises, as well as to deepen the methodological principles and develop practical recommendations regarding the provisioning of a system for assessing the strategic development of an enterprise on the basis and principles of social responsibility. The article uses econometric methods that were used to build models of an integrated approach to assessing the social responsibility of the food industry enterprises. It has been found that social responsibility is a vital component of the sustainable functioning of enterprises and is one of the strategic priorities of their development in the long term. The study showed that the need to implement the paradigm of social responsibility in the activities of domestic business structures for sustainable development and recovery from the socio-economic crisis can be resolved by methodological support for assessing the level of social responsibility of enterprises, which involves a combination of qualitative and quantitative indicators of assessment, determined by expert method and evaluated with a scoring method, with the identification of specific sectoral indicators of social responsibility, typical for the food industry enterprises, and the definition of its mandatory and voluntary levels.

Quality and Innovations in the Financial Reporting as a Way to Increase Attractiveness for Institutional Investors

At the present stage of global development there is a transition from understanding the financial statements of enterprises not only as a source of quantitative indicators of the company's development but also as a reputable tool for its reliability and readiness for transparent relations with counterparties. Investment decision-making has always been characterized by balancing profitability and reliability of capital investment. Accordingly, this requires increasing emphasis on the quality and complexity of companies' financial reporting, allowing you to maximize the amount of information provided to potential investors. The article aims to test the hypothesis about the impact of qualitative characteristics of financial reporting on the attractiveness of companies to investors. The study analyzes the evolution of financial reporting, the causes and consequences of innovative approaches to its preparation, and the dissemination of national and international standards. The second stage of the analysis involves modeling the impact of financial reporting and investment attractiveness of enterprises at the national level through economic and mathematical modeling (the specificity of the model is determined by testing the quantitative input data). According to the results of the study of financial reporting quality indicators, the general parameter is the strength of auditing and reporting standards, which the World Economic Forum assesses based on a survey of business leaders. Indicators of the country's investment attractiveness calculated by the World Bank's global statistical base were chosen as dependent variables. Calculations are performed on panel data for a sample of more than 20 countries (Azerbaijan, Belgium, Bulgaria, Canada, China, Czech Republic, Germany, Spain, Estonia, Georgia, Ghana, Greece, Hungary, India, Israel, Italy, Japan, Kazakhstan, Lithuania, Morocco, Mexico, Mongolia, New Zealand, Romania, Turkey, United States) over ten years. The obtained results of calculations are the basis for finding ways to improve further the quality of financial and nonfinancial disclosure of companies to increase their competitiveness in the investment market.

ФІНАНСОВА СПРОМОЖНІСТЬ ДОРОЖНІХ ПІДПРИЄМСТВ — ЯК ОДИН ІЗ КРИТЕРІЇВ ДЛЯ УЧАСТІ У ПРОЦЕДУРІ ЗАКУПІВЛІ

Introduction. Financial capacity is a complex concept that is influenced by various financial and economic factors and is determined by the ability of the enterprise to perform its financial activities. One of the qualification criteria provided in [1] is the financial capacity availability, which is confirmed by financial statements. When fulfilling this criterion, enterprises are allowed to participate in the procurement procedure for performing of road works or services. Today, the analysis of financial condition according to the financial statements is a needed condition for evaluation the quality of financial and economic activities of the enterprise, and the determination of financial capacity of enterprises is essential and practical, because the economic level of the enterprise and the ability to analyze financial and economic activities depend on it. Problem statement. Requirements to the tender documents are set by the customer in order to verify the bidder, his ability to ensure the implementation of the procurement project and meet all the needed requirements. The customer needs to make sure that the public funds spent on the purchase will not be lost due to the financial problems of the contractor, as well as whether the contractor has sufficient financial capacity to perform road works. The criterion of financial capacity can be applied to any procurement, because it provides confirmation of the financial capabilities of the bidder. The need to consider this topic is to evaluate the financial capacity of road enterprises, the application of theoretical and practical approaches during the evaluation. Assessing and determining the level of financial capacity of road enterprises is an important task both in view of the needs of the enterprises themselves and in view of the customers of road works and services. Purpose. The purpose of the article is to highlight the theoretical and practical approaches to evaluation of the financial capacity of road enterprises, determination of the effectiveness of their activities based on the results of the evaluation and determination of bidders that will be allowed to participate in the procurement procedure. Given the need to establish the level of financial capacity as a result of the road company’s realization of its potential, it is important to identify and justify specific indicators of financial capacity and proposals for their practical application. Materials and methods. To determine the financial capacity of road enterprises, a set of scientific and methodological tools, economic and mathematical techniques and methods based on financial and statistical information about the activities of enterprises and indicators that affect it is used. In general, the procedure for evaluation of the financial capacity of road enterprises involves the following stages: collection of needed information and data on specific indicators that will characterize the financial state of the enterprise; calculation of indicators; comparing them with normative values. The financial statements of enterprises contain information on the state of enterprise finances, based on the analysis of which the main trends in the formation and use of financial resources of the enterprise, the reasons for changes, identifying strengths and weaknesses of the enterprise are determined, as well as reserves to improve financial condition in the future. It is for the assessment of the financial capacity of road enterprises a set of indicators for analyzing the financial condition of the enterprise is formed. Financial reporting data serve as a basis for calculating indicators. Results. The paper highlights the mechanism for evaluation of the financial capacity that will help to perform a comprehensive analysis of the financial activity of road companies and determine whether the company is allowed, given its financial capabilities, to participate in road works or services procurements. Evaluation of financial indicators and ratios will help for planning and forecasting the future activities of road companies for their participation in the procurement procedure for road works or services. Conclusions. When writing of the article provides an example of evaluation of the financial capacity, as well as its significance for the activities of road enterprises is determined. The coefficients and indicators proposed in the work can be used for objective evaluation of the financial capacity of road enterprises and will allow the following: to determine the degree of solvency of road enterprises, liquidity, the level of their financial stability and business activity, to determine their creditworthiness.

ANALYSIS OF MANAGEMENT OF PRODUCTION POTENTIAL OF MACHINE-BUILDING ENTERPRISES OF KHARKIV REGION

The purpose of the article is to study the management of production potential of machine-building enterprises in the Kharkiv region, 9 enterprises were analyzed and their production indicators were studied. The effectiveness of the production potential is characterized by production, technological, financial and innovative components. It should be noted that since the production potential is a component of the economic potential of the enterprise, the structure presented in Fig. 1 is quite conditional. If we consider the production potential from this point of view, then, for example, its innovative component is inextricably linked with the innovative potential, and the financial component – with the financial potential. Sustainable development and competitiveness of an industrial enterprise depends on the level of production potential, which is the foundation of production activity. The production potential of an industrial enterprise is a complex, dynamic and stochastic system consisting of a number of interconnected components. At the legislative level, an attempt has been made to build a single model of an integrated indicator of the financial condition of large, medium and small enterprises. According to the approved IFI Procedure for assessing the financial condition of a potential beneficiary of an investment project, the level of financial condition of the enterprise is determined depending on the value of the integrated indicator, which allows the classification of enterprises in the industry or region. At the same time, questions about the structure of innovation potential remain controversial in the scientific literature. The development of an integrated module for the assessment of production potential is the first stage of the presented methodological approach. The next step is to improve the information subsystem of monitoring the financial and economic activity of industrial enterprises, which in turn is an integral part of the IT system of enterprise management. At this stage, it is necessary to develop software that provides analysis and comprehensive assessment of production capacity. After integrating the software module with IS monitoring, we have to test the software using the collected database on the financial and economic activity of the enterprise. Comparing the results of the assessment with the assessment from the analytical reports of independent experts will allow to determine the level of adequacy of the presented model and software. Methodology. The analysis was conducted on the basis of financial statements of enterprises of the machine-building industry of Kharkiv region for the period 2018, 2019, 2020. Results of the study show that the enterprises of the machine-building industry have low indicators of production potential, so enterprises need to change the strategy in the market to improve production capacity to increase competitiveness and improve. Practical implications. Given that companies have lost traditional markets in recent years and products are not in high demand in European markets, it is necessary to develop ways to improve the management of the potential of machine-building enterprises, seek new markets and strengthen cooperation with international companies. Value/originality. The study will help the management of enterprises to more effectively manage the enterprise and improve their production capacity.

Approaches to Forming the Rating of Automotive Industry Enterprises Based on Financial Statements

The article presents the results of developing a methodology for rating the enterprises of the automotive industry. The tasks formulated in the Consolidated Strategy for the Development of the Manufacturing Industry require an increase in innovation activity and the development of the export potential of enterprises in the automotive industry. The formation of a monitoring system for this sector of the economy will contribute to the achievement of the planned indicators. A review of the rating methods used in practice has shown that most of them are based on the assessment of traditional areas, including the level of business activity, profitability, and financial condition of enterprises. With regard to high-tech enterprises the ratings cover a limited number of organizations, due to the specifics of the information used and the declarative nature of participation.The methodology developed by the authors for rating enterprises in the automotive industry is based primarily on taking into account the innovative component of organizations’ activities. For these purposes, a system of indicators based on information reflected in the financial statements of enterprises has been proposed, which increases the objectivity of the results of comparative analysis and allows it to be used for mass valuation of enterprises.

Вплив процесів злиттів і поглинань на конкурентоспроможність галузі сільського господарства

Mergers and Acquisitions (M&A) are widespread in the business world, being one of the means of competition. They belong to agreements between two companies that become combined in one form or another. Although mergers and acquisitions are used as synonyms, they have different meanings. When merged, two companies of the same size are combined into one new enterprise. Acquisitions are a situation in which a larger company acquires a smaller company, thereby taking over the business of the latter. M&A agreements may be friendly or hostile, depending on their approval by the board of directors (management) of the target company. The main reasons for mergers and acquisitions can be called the desire of companies to increase the growth rate, strengthen and stabilize supply chains and sales of products, diversify production, optimize the tax burden, as well as strengthen their market positions due to reputational advantages. The article analyzes the normative and legislative acts of Ukraine regulating the procedure for concluding M&A agreements, as well as displaying information about them in both the accounting and the financial statements of enterprises. Regarding the regulation of the procedure for concluding M&A agreements, there are no clear definitions of these terms. These concepts are considered only in the context of methods of formation, reorganization or liquidation of enterprises. The authors have allocated some aspects of taxation of operations on the purchase and sale of assets and shares in the implementation of M&A agreements. The relevance of the chosen topic is due to the strengthening of the tendency to the concentration of resources (land banks) by large agricultural enterprises in Ukraine. The statistics on M&A agreements in the agro-industrial sector of Ukraine for the period 2018-2020 are to testify to this tendency. Positive aspects of mergers and acquisitions for agricultural enterprises, as well as risk factors that may appear as a result of an increase in the share of foreign companies in the agro-industrial sector of Ukraine, have been allocated.

ФІНАНСОВА ЗВІТНІСТЬ ЯК ІНСТРУМЕНТ ДІАГНОСТУВАННЯ В СТРУКТУРІ ІНФОРМАЦІЙНО-АНАЛІТИЧНОГО ЗАБЕЗПЕЧЕННЯ ФІНАНСОВОЇ СКЛАДОВОЇ СИСТЕМИ ЕКОНОМІЧНОЇ БЕЗПЕКИ ПІДПРИЄМСТВ

The article considers the influence of information about the financial statements of enterprises on the diagnosis of economic reliability of external counterparties in the financial security of enterprises. Economic security of Ukrainian enterprise of any sector of economy today is a qualitatively important characteristic of its financial and economic state. Internal and external environment of economic entities in Ukraine is full of various threats and dangers, which are formed by peculiarities of economic relations between them. It was analyzed and determined that the globalization of economic relations, the ongoing digitalization of processes generates new solutions and opportunities and requires a dynamic enterprise management information system in general. The effectiveness of the individual enterprise depends on the economic relations with economic entities. To ensure the possible negative consequences of unscrupulous economic relations it is necessary to introduce the process of diagnostics of external counterparties into the economic security system of enterprises. The risks of ensuring the financial security of the enterprise were identified. The conclusions on the diagnosis of economic reliability of counterparties in the system of economic security of enterprises in modern conditions were substantiated. It was determined that when ensuring economic security, the need to assess the reliability and security of accounting information, the subordination of accounting information to the general interests of the corporate information system increases. This will prepare a qualitative retrospective information about events and transactions that have already occurred and are reflected in the financial statements, establish modern effective forms of financial monitoring and forecasting of management accounting information to ensure the financial security of Ukrainian enterprises.

НОРМАТИВНО-ПРАВОВЕ РЕГУЛЮВАННЯ БУХГАЛТЕРСЬКОГО ОБЛІКУ ПОДАТКОВИХ РІЗНИЦЬ

With the adoption of the Tax Code of Ukraine, the harmonization of accounting and tax accounting was carried out. However, taking into account the interests of the business community in streamlining relations and building mutual responsibility, the state is constantly faced with the question of preventing the possibility of tax evasion, optimization and narrowing of the tax base. Due to possible discrepancies between the criteria for recognizing income and expenses in accounting and tax law, there are tax differences. Tax differences are related to different approaches to determining income in accounting and tax accounting. They arise as a result of business transactions for which there are different assessments and recognition criteria in accounting and tax law. Every year the number of differences that arise in determining the pre-tax financial result increases and the regulatory framework changes, which makes adjustments to reflect the differences in the financial statements of enterprises. The article analyzes the regulatory framework governing the accounting of tax differences in Ukraine. The author considers the main documents, which contain information about the nature of tax differences and methods of accounting. The main problem is the imperfection of regulations approved at the state level and the need to refine the methodology for reflecting in the accounting and financial reporting of tax differences. The article discloses the rules that reflect the tax differences in the financial statements. The changes that took place during the years of Ukraine’s independence in terms of reflecting differences in accounting are analyzed and the dynamics of changes in legislation is traced. The positive and negative moments of changes concerning the accounting and reflection in the reporting of differences before the taxation are allocated. The problematic issues of reflection in the accounting and financial reporting of tax differences that need to be addressed are highlighted. The article considers the main prospects of accounting for tax differences in Ukraine, accounting problems and methods of solving them.

Звітність підприємств в умовах сталого розвитку: сучасний стан, проблеми, перспективи, інформаційне забезпечення

The current stage in the development of mankind is characterized by low problems that cause serious concerns internationally. To solve them, a so-called "conception of sustainable development" was developed. Most scientists to the main components of sustainable development include respect and concern for the community; environmental dignity; social and economic justice; Democracy, non-violence and peace. One of the main components that ensure the implementation of the concept of sustainable development is its information provision, one of the sources of which is the financial statements formed in the accounting system. However, the modern stage of development is characterized by the discrepancy of information provision of financial statements of enterprises in the needs of users in this direction. This caused the birth of a new reporting paradigm. The emergence of a new reporting paradigm - integrated - is logical, since changes that have taken place over recent years in the institutional accounting environment must be taken into account by improving the accounting methodological apparatus. Integrated reporting makes it possible to combine in a single form of diverse information resources, which informs the adoption of optimal management decisions. In this case, transparency is achieved for all users of the enterprise, its advantages and disadvantages. It is the inability of the existing paradigm of accounting reporting to solve the issues that modern society puts forward to it, caused the need for a new one. The main prerequisite for its emergence was the position of international organizations on sustainable development of society as a single direction, which provides an opportunity to provide both modern and future generations. Integrated reporting is closely linked both with financial and non-financial, is the result of the evolution of the accounting system to ensure information needs of users, increasing the transparency of data, relevancy of the accounting information.

Staff-Related Disclosures as an Element of Social Policies on the Model of Bulgarian Black Sea Hotels

The main aim of the study is to analyse published information on staff-related social policies on the websites and in the annual financial statements of enterprises that manage hotels and provide hotel services in the territory of Varna and Burgas Black Sea regions in Bulgaria. In addition, analysed are some factors that impact disclosures in the financial statements of enterprises. The adopted research methods are the logical, deductive and comparative methods, as well as the methods of analysis and synthesis. To verify the author's hypotheses the IBM – SPSS Statistics software, ver. 19 has been used. The main results of the study show that the analysed hotel enterprises disclose scarce or no information on staff related data and social policies on their websites or in their financial statements. Disclosures mainly focus on compliance with legal requirements and they are most significantly influenced by available audit control and selected accounting basis. This could lead to asymmetry in the data, lowering the prestige of the organisation, problems with recruitment of qualified staff and unjustified economic decisions by data users

Determination of Industry Indicators of Financial Analysis of Enterprises (on the Example of the Industry for the Production of Crude Oil and Natural Gas)

The aim of the study is the development of theoretical and methodological principles of the analysis of industry financial indicators. The relevance of the topic is confirmed on the one hand by the demand for industry indicators for all persons interested in financial and comparative analysis of enterprises, on the other hand by the complexity and lack of methods for deriving industry indicators of the financial analysis of enterprises.Materials and methods. The study used a system and comparative analysis, methods of economic and financial analysis of the financial statements of enterprises in the industry, and methods of statistical evaluation of the main parameters of the sample with a lognormal distribution. The main attention is paid to the use of multivariate statistical analysis, the use of the model of lognormal distributions recommended for distributions with pronounced right-hand asymmetry. As the statistical material, the accounting data of the enterprises of the industry for the extraction of crude oil and natural gas for 2016 were used. The sample size was 185 enterprises. In the course of the study, the authors solved the following tasks: proposed stages of analysis for determining industry financial indicators, tested the hypothesis of a lognormal distribution of marginal distributions of the main financial indicators of the sample, tested the hypothesis of a jointly normal distribution of a multi-factor random vector of financial indicators of the sample, obtained the most likely values of financial analysis indicators for the industry of crude oil and natural gas production.Results. The theoretical significance of the work is the algorithm proposed by the authors for calculating industry-specific indicators of financial analysis, characterized by obtaining modal values based on the analysis of the multidimensional logarithmically normal distribution of the vector of financial indicators of a sample of enterprises. In the course of the study, the authors obtained distributions for the main indicators with a pronounced right-hand asymmetry and tested the hypothesis of the lognormal distribution of marginal distributions. The paper presents an algorithm for testing the hypothesis of joint normality of a ninedimensional random vector. Median and modal values of industry and financial indicators were obtained. The authors analyzed the differences between the median and modal results of the study. For analysis, a three-dimensional random vector is considered, including revenue, return on equity and turnover of accounts receivable. The difference between median and modal results is explained by the right-hand asymmetry of the distribution. The recommendations, given by the authors for determining industry indicators of financial analysis of enterprises in the industry for the extraction of crude oil and natural gas are practical in nature and are applicable to all industries.Conclusion. In the work, it is shown that the orientation toward generally established recommended values of coverage indicators, financial leverage, immobilization, profitability and turnover seems incorrect due to the variety of specific features of enterprises in various industries. We recommend calculating the most likely industry coefficients by groups depending on the size of the enterprise (revenue or capitalization).

The Evolution of the Industrial Specialization of the Radio Electronics Industry of Saint-Petersburg

Purpose: to reveal possible directions of the development of the radio electronics industry of Saint-Petersburg on the basis of the research of its features, and to propose economically reasonable alternative in relation to the current situation.Methods: the article is based on the analysis of modern literature on the development of Russian mechanical engineering, in particular the radio electronics industry, processing of annual financial statements of enterprises of the radio electronics industry of St. Petersburg for the period 2013–2017. The article uses the following methods: analysis, synthesis, grouping, comparison, observation, generalization.Results: the literature devoted to the radio electronics industry, its transformation and development is critically analyzed. It is concluded that there are only theoretical developments and it is necessary to research the dynamics of cost indicators and qualitative transformations of the production activity of enterprises. The scheme of composition of radio electronics industry products in relation to production processes is presented. Data sources for the enterprises of the radio electronics industry are described. The author presents a sample of enterprises.To obtain the results of the study, the following feature of the radio electronics industry in Saint Petersburg is highlighted: the concentration of many manufacturers of various products with almost identical production processes. Various scenarios of development of the explored enterprises are described.On the basis of research of coefficients of input of the equipment and sales growth for the period of 2013–2017 we grouped the enterprises. We revealed, that the greatest economic effect from optimizing the organization of production activity can be achieved in medium-sized enterprises.A way of the most effective use of the current situation in the industry is proposed, which consists in creating a software platform that unites the production equipment of enterprises of the radio electronics industry. The prerequisites for the implementation and usage of the proposed software platform are researched.Conclusions and Relevance: the author propose the option of the most efficient use of the existing situation in the modern industry (nonoptimal distribution of the equipment). The option consists in creating a software platform that will unite all the production equipment of the enterprises in the information network for the purpose of optimization of the machine utilization. This suggestion matches the trends of modern scientific researches and may be carried out by using modern digital technologies. The proposed recommendations and results are reasonable to use in the development of the state industrial policy and in designing a strategy for the production by the enterprises.

Modern approaches of detecting financial statement fraud

The paper considers the modern methods for detecting financial statement errors and fraud with respect to their application to Russian corporate companies. The study methods evaluating the financial statements of companies allow getting a comprehensive and quick assessment of the financial condition of the company based on open sources. An assessment of the financial statements of enterprises according to the Roxas model showed that the composite index of the model is applicable to Russian companies.