Assessment of Liquidity Ratios as Indicators of an Organization’s Economic Security: Accounting Aspects

DOI

10.2991/aebmr.k.200114.036How to use a DOI?

Keywords

economic security, indicators of economic security, liquidity ratios, financial statements, accounting policy, professional accountant judgment

Abstract

The paper provides an overview of the organization’s indicators of economic security proposed by various researchers, as well as evaluates the impact of the accounting policies of an economic entity and the professional judgment of an accountant on the formation of key indicators of an enterprise’s economic security – liquidity ratios. The main theses in relation to the formation of balance sheet items used to calculate liquidity ratios have been disclosed, and the problems in relation to the formation of a number of papers have been identified, taking into account the norms of the current accounting legislation and the prevailing practice in Russia in the formation of financial statements. The considered features of calculating financial reporting indicators, included in the calculation of liquidity ratios, justify the n need to consider the variability of the formation of indicators and the inadmissibility of a formalized approach to their assessment. Accordingly, in order to make informed decisions regarding the management of the organization and ensure its economic security, it is necessary to take into account the provisions of the accounting policy, especially the economic activities of the organization and the principles used by the organization for the formation of financial statements.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Svetlana A. Boronenkova
AU  - Olga A. Mironova
AU  - Aleksey Yu. Popov
PY  - 2020
DA  - 2020/01/18
TI  - Assessment of Liquidity Ratios as Indicators of an Organization’s Economic Security: Accounting Aspects
BT  - Proceedings of the First International Volga Region Conference on Economics, Humanities and Sports (FICEHS 2019)
PB  - Atlantis Press
SP  - 156
EP  - 160
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200114.036
DO  - 10.2991/aebmr.k.200114.036
ID  - Boronenkova2020
ER  -