INFLUENCE OF CONCEPTUAL FRAMEWORK AND METHOD OF FINANCIAL REPORTING ON ANALYSIS RELEVANCE OF ENTERPRISE PROFIT

Анотація

Introduction. The purpose of the study is to reveal potential differences, to clarify the advantages and disadvantages of up-to-date concepts of preparing financial statements; to develop approaches to interpretation of financials. Methods. The article provides the analysis and synthesis of determining the essential characteristics of such economic category as "financial results". Comparative approach to examining up-to-date concepts of preparing financial statements was used in the study. System and structural method of identifying the interplay and relationship between base, specified and closing indexes of financial results of the enterprise, deduction and induction in identifying the influence of transparency level, consistency, appropriateness and adequacy of analytical information of financial results on the quality of informative needs of financial information users taking into account conflict of interests are used in the paper. Results. It has been found that providing accurate information to investors and loan suppliers about the market value of the company, improving asset profile with the help of write-offs of their risk assets, increasing the liquidity ratio are amenities of fair value accounting. Consequently, the danger of management misinvoicing (especially in terms of fair value accounting of objects when there is no public information about their market value), a risk of asset write-downs, decreasing the financial soundness, regression of gross margin and finally, the boot of self-sustained reverse deflationary spiral are negative effects. Discussion. The obtained results of the study make it possible to avoid differences in the systems of financial reporting. The author suggests a further research on nonagreements of bottom line of financial statements written according to different standards. The influence of concept of profit accounting on the quality of satisfaction of informative wants among information users taking into account conflict of interests is identified. The results of the study can be used in practical administrative, accounting and analytical work in determining certain aspects of corporate accounting policy, strategic budgeting, adaptive and innovative decision making. The further research can be connected with empiric observation focused on adjustment of financial statement range according to different accounting methods and development of adaptive analytic model for increasing the accuracy of comparative procedures.

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