Technology for Solving the Problems Related To the Implementation of the Concept of Preserving Capital in Accounting and Statistics
Marina V. Kosolapova1, Nataliya K. Muravitskaya2, Mihail N. Tolmachev3, Lyubov A. Melnikova4, Alexander M. Petrov5
1Marina V. Kosolapova, Doctor of Economic Sciences (Advanced Doctor), Professor of the Accounting, Analysis and Audit Department of the Financial University under the Government of the Russian Federation, Moscow, Russia.
2Nataliya K. Muravitskaya, Ph.D., professor of the Accounting, Analysis and Audit Department of the Financial University under the Government of the Russian Federation, Moscow, Russia.
3Mihail N. Tolmachev, Doctor of Economic Sciences (Advanced Doctor), Professor of the Accounting, Analysis and Audit Department of the Financial University under the Government of the Russian Federation, Moscow, Russia.
4Lyubov A. Melnikova, Ph.D., associate professor of the Accounting, Analysis and Audit Department of the Financial University under the Government of the Russian Federation, Moscow, Russia.
5Alexander M. Petrov, Doctor of Economic Sciences (Advanced Doctor), Professor of the Accounting, Analysis and Audit Department of the Financial University under the Government of the Russian Federation, Moscow, Russia.
Manuscript received on 15 August 2019. | Revised Manuscript received on 25 August 2019. | Manuscript published on 30 September 2019. | PP: 789-792 | Volume-8 Issue-3 September 2019 | Retrieval Number: C4020098319/19©BEIESP | DOI: 10.35940/ijrte.C4020.098319
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: At the present stage of economic theory development, a special role as a comprehensive indicator of the efficiency of activity is acquired by the current cost of the organization’s capital. The definition of the value of an asset was first explained by Fisher “The cost of a capital asset equals the sum of the present value of all future cash flow receipts” [17]. The concept of the current value of invested capital is the main tool for increasing the transparency of financial statements and a component of the concept of value and capital. In his work “The Nature of Capital and Income,” the American economist Fisher stated that “The theory of capital is that the value of an asset is equal to future cash receipts, reduced to present value based on the appropriate discount rate ”[1]. As for John Barr William, a well-known investor wrote in his book “The Theory of Investment Value” that “the value of any company is determined by incoming and outgoing cash flows, adjusted at a discount rate” [5]. The specific interpretation of capital by international standards largely determines the methodology for accounting for specific facts of economic life, as well as the approach to providing the financial position of an organization in its financial statements.
Index Terms: accounting, reporting, the concept of saving capital, the concept of preservation of cost, and transparency
Scope of the Article: Problem Solving and Planning