Analytical indicators in ensuring the sustainable development of entrepreneurship

Abstract

The article is devoted to the most important analytical indicators in ensuring sustainable business development. Key financial indicators in conjunction with the basic concepts of International Financial Reporting Standards are considered: the concept of continuity and the concept of preservation of physical and financial capital. The accounting features of profit calculation lead to the fact that this indicator is "detached" from cash and may not be sufficiently objective to interpret the financial condition. The necessity of introducing a financial monetization ratio into the current practice, which makes it possible to confirm the filling of profits with cash, which makes it possible to combine the accrual method and the cash method in this indicator is argued. The balance of profit and net cash flow over time is a guarantee to finance future expenses in a timely manner and in full. The value of the monetization ratio in the long term ≈1, which will be a real confirmation of business efficiency and solvency, the ability to continue activities, is substantiated. The monetization ratio fully complies with the requirements of IFRS and its conceptual basis. CZU: 005.915:334.722(477); JEL: G34, M21, M40, P43, O12.