CAPITAL RESERVE MANAGEMENT OF PUBLIC COMPANIES: ACCOUNTING TOOLS AS INFORMATION FUNCTION OF TARGET MECHANISM

##plugins.themes.bootstrap3.article.main##

##plugins.themes.bootstrap3.article.sidebar##

  Olesia Lemishovska

  Iryna Yaremko

Abstract

The purpose of the article is to present the financial and economic content and purpose of capital reserves, insurance funds to ensure future costs and payments as the main components of the reserve system of public companies. The methods of theoretical and comparative analysis allowed to expand the view of the objects of reservation in the global space by comparing the norms of international standardization of financial reporting and the mandatory requirements of individual states in the field of reservation. The research methodology covers the analysis of reserved sources for Ukrainian and global companies in the context of the large-scale socio-economic crisis caused by the global COVID-19 pandemic. Based on a comparative assessment of the potential of reserve sources of surveyed companies, reservation in today’s crisis economy and in the foreseeable future is one of the most necessary and important means of ensuring the stable operation of socially significant companies. The study of regulatory norms of different states and principles and norms of standardization of public financial reporting led to the conclusion that for internal management purposes and market counterparties and public administration in the face of increasing unpredictability and depth of risk requires a more detailed and reliable information base on existing modern companies reserved funds to overcome the risks of loss (reduction) of capital. The practical consequences of weak imperatives on the obligation to create reservation facilities have been reflected in the allocation of subsidies from the state budgets of different countries to commercial structures in many areas of the economy. The existing issues actualize multi-vector developments in the system of interdisciplinary research, which substantiates the scientific legitimacy and relevance of our study. The results of analytical and logical approaches in assessing the state of backup support for Ukrainian and well-known international companies became the basis for obtaining evidence and arguments in formulating the parameters of adequate information for the current needs of targeted management of backup processes. The methods of verification of reserve system components proposed in this study can be used to establish general trends in the development of information parameters (accounting and public reporting system) in the field of reserve management and future losses (reduction) of capital of modern public companies.

How to Cite

Lemishovska, O., & Yaremko, I. (2021). CAPITAL RESERVE MANAGEMENT OF PUBLIC COMPANIES: ACCOUNTING TOOLS AS INFORMATION FUNCTION OF TARGET MECHANISM. Baltic Journal of Economic Studies, 7(3), 150-158. https://doi.org/10.30525/2256-0742/2021-7-3-150-158
Article views: 106 | PDF Downloads: 47

##plugins.themes.bootstrap3.article.details##

Keywords

management, company, equity, reserves, trust funds and provision, formation, use, accounting and analytical support

References

Evstafeva, E. (2011). Zarubezhnaya praktika formirovaniya uchetno-analiticheskogo obespecheniya upravleniya sobstvennym kapitalom kommercheskikh organizatsiy [Foreign practice of formation of accounting and analytical support of equity management of commercial organizations]. Mezhdunarodnyy bukhgalterskiy uchet, vol. 38 (188), pp. 57–68. (in Russian)

Mekh, Ya. V., & Havryshkiv, I. R. (2004). Monitorynh v systemi vyiavlennia i vykorystannia vnutrishnikh rezerviv [Monitoring in the system of detection and use of internal reserves]. Naukovi zapysky, vol. 13, part 2, pp. 19–21. (in Ukrainian)

Mathews, M. R., & Perera, M. Kh. B. (1996). Accounting Theory and Development. Thomson Publishing Company, pp. 103–156.

Hendriksen, E. S., & Van Breda, M. F. (1991). Accounting Theory. Richard d Irwin; Subsequent edition.

Ponokova, D. I. (2007). Bukhgalters'kiy uchet rezervov i regulyativov [Accounting reserves and regulators] (PhD Thesis) Krasnodar: Kubanskiy gosudarstvennyy universitet. (in Russian)

Pylypenko, L. M. (2016). Rozvytok kontseptsii pobudovy systemy publichnoi zvitnosti korporatsii v umovakh postindustrialnoi ekonomiky [Development of concepts for building a system of public reporting of corporations in a post-industrial economy]. Lviv: Vydavnytstvo Lvivskoi politekhniky. (in Ukrainian)

Krutova, A. S., & Tarasova, T. O. (2016). Oblikovo-analitychne zabezpechennia upravlinnia rezervamy yak dzherelamy pokryttia ryzykiv [Accounting-analytical provision of management of reserves as a source coverage of risk]. Ekonomichnyi prostir, vol. 115, pp. 212–224. (in Ukrainian)

Haiduk, I. S. (2016). Teoretychni aspekty formuvannia rezerviv v systemi bukhhalterskoho obliku [Theoretical aspects of the formation of reserves in the accounting system]. Ekonomichnyi visnyk universytetu, vol. 31 (1), рр. 130–136. (in Ukrainian)

Gerster, P. (1926). Interesnye sluchai iz bukhgalterskoy praktiki [Interesting cases from accounting practice]. Moskva: Makiz. (in Russian)

Financial statements for 2019 of LLC AMC Capital Group. Available at: http://capital-group.com.ua/finansova-zvitnist-kompanii

Financial statements for 2019 of Ukrgazvydobuvannya JSC. Available at: https://ugv.com.ua/page/docs?count=1

Financial statements for 2019 of Energoatom NNEGC. Available at: http://www.energoatom.com.ua/ua/actvts-16/financial_statements-126

Financial statements for 2019 of Ukrtransgaz JSC. Available at: https://ugv.com.ua/page/docs?count=9

Financial statements for 2019 of Kyiv Metro ME. Available at: https://http://metro.kiev.ua/node/5985

Financial statements for 2020 of Volkswagen AG. Available at: https://annualreport2020.volkswagenag.com/notes/balance-sheet-disclosures/liabilities/equity.html

Financial statements for 2020 of Nestle Group. Available at: https://www.nestle.com/aboutus/mediadocuments

Financial statements for 2020 of Samsung Electronics Co., Ltd. Available at: https://www.samsung.com/global/ir/financial-information/audited-financial-statements/

Financial statements for 2020 of Roche Holding, Ltd. Available at: https://www.roche.com/dam/jcr:988cc95a-0813-4e70-a7c8-f61a4b902749/en/fb20e.pdf

Financial statements for 2020 of Bayer AG. Available at: https://www.bayer.com/sites/default/files/2021-02/Bayer-Annual-Report-2020.pdf/