Formation of methodological approaches to budgeting of capital investments and sources of financing

Abstract

Introduction. Depreciation of objects of centralized water supply and sanitation, worsening of crisis manifestation in the economy have necessitated the planning of capital investments and sources of funding. In the article it has been proved that the prognostication of indicator of capital investment, which forsees the purchase, repair, and improvement (renovation, modernization) of fixed assets, is an important step towards the development of financial plans and budgets to ensure the production process. It is necessary to take into account the peculiarities of entities and the structure of dependent and result indicators.

Purpose. The purpose of the article is to improve methodological approaches to qualitative and quantitative assessment of the impact of capital investment indicators, sources of their funding for future budgeting.

Method (methodology). The main methods that are used in the article are: a comparative analysis - to characterize the peculiarities of different methodological approaches to forecasting; method of analysis and synthesis - to study the factors that most influence the capital investment (acquisition, repair, improvement (renovation, modernization) of fixed assets; econometric modeling techniques - for construction of models depending on the amount of capital investment finance sources, Fourier analysis - to build prediction model of dependent parameter.

Results. The algorithm for forecasting and budgeting of capital investment into fixed assets of water supply and sewerage companies. The analysis by this algorithm has been carried out. It has also been proved the possibility of its practical use. The application of polynomial trend during the forecasting at the initial stage eliminates the errors which have been committed at the previous stage. However an the final stage it requires a thorough check on conformity to criteria as a model. It is concluded that if cyclic component has a great influence at the stage of calculation. The calculation of the parameters of this components should be conducted by its decomposition in Fourier series. This approach will improve accuracy and quality of available funding sources and planning of (budgeting) capital investments in fixed assets.