Financial capital: theoretical and methodological aspects

Abstract

The article deals with the theoretical and methodological aspects of financial capital in the basic concepts of international financial reporting standards. Basic conceptual bases are logically linked to the financial condition, as the relationship of assets, liabilities and equity. In this case, the assets and liabilities associated with future economic benefits and equity - the difference between them. The preservation of financial capital is a prerequisite for recognition of profits in the reporting period that is closely related to the increase in net assets after removing any payments to owners or owners of contributions during this period. Going concern assumes the existence and timely fulfillment of obligations, which largely depends on the volume of activity. Fulfillment of obligations is carried out mainly in the form of money, which in turn implies the need for a positive net cash flow. The key to the successful operation of the business in the long run is the balance of net income and net cash flow, which leads to the need of introducing a coefficient of "monetization", based on the ratio of these two indicators.