Diagnostic of compliance with payability to basic concepts of accounting.

Abstract

The theoretical and practical aspects of solvency diagnostics in the short and long-term periods of time have been studied in the contours of the basic concepts of international financial reporting standards: the concept of continuous business and the concept of financial capital preservation, taking into account updated requirements for opening bankruptcy proceedings in accordance with the Bankruptcy Code of Ukraine.

Analytical tools and analytical procedures for diagnosing solvency on the basis of potential cash flows, positive potential net cash flow, which are reflected in working capital, availability of working capital, financial ratios of mobility and security, coefficient of concentration of equity are proposed.

Based on the significance of these indicators in the diagnosis of the timely identification of the inability to fulfill their obligations, it is proposed to unify their calculation, a single terminology in their name in the existing methods of financial analysis approved by the executive authorities.