Analysis of the business activity of an organization based on simplified financial statements

Abstract

Importance: despite the active digitalization of the economy, the emergence of many publicly available sources of data on the activities of economic entities, the main resource on which the assessment of their business activity is based remains accounting (financial) reporting. The Federal Law «On Accounting» provides for the possibility for a number of entities to compile it in a simplified format. When forming simplified reporting, a balance of simplicity and informativeness should be maintained, as well as the possibility of evaluating the dynamics of the financial condition of an organization, including its business activity, on its basis. The subject of the study is the possibility of a comprehensive assessment of the business activity of an economic entity according to its simplified accounting (financial) statements. Purpose: to propose a methodological approach to the analysis of an organization’s business activity based on simplified accounting (financial) statements, the results of which will be comparable with the results of such an analysis in relation to other economic entities conducted on the basis of standard (uncomplicated) reporting. Research design: the research was based on the principles of consistency, complexity, efficiency, methods of analysis, synthesis, modeling, and a logical approach. The theoretical basis of the research was the scientific works of leading Russian and foreign experts in the field of economic analysis. Results: it is proposed to clarify the content of the simplified balance sheet in order to increase its informational value for analyzing the business activity of an organization; a methodological approach to a comprehensive analysis of the business activity of an economic entity based on its simplified accounting (financial) statements has been developed, the results of which will be comparable with the results of the business activity of an organization with standard reporting, which is especially important in conditions of a frequent organization business in the form of a group of non-public companies that do not make up the consolidated financial statements.