METHODOLOGICAL PRINCIPLES OF EVALUATION OF CAPITALIZATION OF ENTERPRISES OF UKRAINE BASED ON THE COST (INVESTMENT) APPROACH


Keywords: capitalization, assets, fixed assets, own and borrowed capital, type of activity, enterprise, estimation

Abstract

Topicality. The increase in the level of capitalization of the economy is of strategic importance to Ukraine, because, firstly, there is a direct link between capitalization and competitiveness, and secondly, because the market transformation in Ukraine is inherently capitalization of the economy. All this necessitates the further study of the theoretical and methodological principles of capitalization of enterprises of the country as a whole and by types of activity.
Aim and tasks. To consider the methodical principles of estimating capitalization of enterprises on the basis of cost (investment) approach and to evaluate it by types of activity for Ukrainian enterprises at actual and constant prices.
Research results. An assessment of the real capitalization of enterprises as a state can be considered as a "passive" assessment and it can be implemented even if the enterprise does not work. Such an assessment has a limited scope and should be used for enterprises whose activities are based on the use of fixed assets (machines, equipment, buildings, etc.), in which the results of the production process depends not only on the available intellectual capital, but on the available physical capital, and where there are no significant intangible assets. At the same time, the use of a cost-effective approach to enterprises that are based on education, knowledge and skills of staff (companies engaged in consulting and software development, retail and distribution companies, real estate agencies, travel agencies, etc.) do not provide adequate an idea of the level of their capitalization.
Accounting of assets of the enterprise in the balance sheet is carried out at the original cost. Exceptions are fixed assets, accounting for the original and residual value. Over time, such an assessment as a result of inflation, non-revaluation and other factors does not reflect the actual (actual) value of assets. Therefore, it is more appropriate to use the replacement value or the replacement value, which should be used to reproduce the same or create a similar asset.
The growth in the residual value of fixed assets of Ukrainian enterprises in 2012-2017 is due to two factors: net income of fixed assets (the difference between the amount of fixed assets received and which have left); indexing In general, in Ukraine the growth of residual value of fixed assets of enterprises in actual prices is mainly due to their indexation (77 %). At the same time, in agriculture and trade, the main role played by the receipt of fixed assets, and in the transport sector, the residual value of fixed assets in enterprises at actual prices is almost 100 % due to their indexation.
Negative trends occurred in relation to the share of own capital of enterprises of Ukraine, which decreased from 51.6 % in 2001 to 24.7 % in 2017. The same thing happened in agriculture and industry, and in construction and trade, it even got negative values.
An analysis of the dynamics of assets of Ukrainian enterprises in the prices of 2012 indicates a tendency to reduce their value. In 2017, their value amounted to 93.5 % of the level in 2012, in industry - 93.1 % and in transport - 96.2 %. In trade and construction, the reduction was more significant and amounted to more than 20 %. A completely different situation was in agriculture, where in the period of 2012-2017 the assets of enterprises increased by more than 1.5 times.
Conclusion. The assessment in actual prices reflects the current level of capitalization of enterprises. At the same time, due to inflation, the average level of which in 2014-2017 was about 20 %, makes it impossible to compare capitalization estimates for different years. In order to solve this problem, the evaluation of capitalization at constant prices was carried out, which showed that there was a decrease in the level of capitalization of enterprises in general in the country and in the main types of activity, the exception was agriculture, where the level of capitalization of enterprises increased more than 1.5 times. All this testifies to the negative processes in the country's economy, namely, the deindustrialization and domination of the raw materials industries.

Author Biography

Y.A. NAZARENKO

Postgraduate student
Institute of Market Problems And Economic&Ecological Research of the
National Academy of Sciences of Ukraine,
Frantsuzskiy Boulevard, 29, Odesa, Ukraine

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Published
2019-03-20