Relevance of financial statements for investors

N. V. Tkachuk ()

Scientific notes of the Russian academy of entrepreneurship, 2023, vol. 22, issue 2

Abstract:   The subject of the article is to improve the relevance of reporting information for investors.  The author concluded that the legislative protection of the financial interests of creditors is expressed in the regulation of the ratio between the assets of the organization and its accounts payable through the indicators of the authorized capital and the reserve fund. It is proved that the financial interests of the owners are subject to protection by the legislator only in certain situations and are expressed in the ability to present a share or share for redemption by the issuer at a certain price. The article highlights the following features of modern financial statements: the presence in its composition of the organization’s assets as objects of property and property rights, as well as expenses, which corresponds to the interpretation of assets in IFRS and the prevalence of the principle of conservatism. The author made suggestions to improve the relevance of reporting data from the position of its creditors: the presentation of assets by objects that can be a means of repaying accounts payable using the principle of conservatism in their assessment. The article suggests ways to improve the relevance of reporting from the position of its owners, based on an assessment of the value of equity as a property complex or business value. The conclusion is made about the expediency of applying the second approach from the position of assessing investments and redistributing property.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:cvt:journl:y:2023:id:809

DOI: 10.24182/2073-6258-2023-22-2-71-77

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