Profit formation of domestic enterprises under condition of risk: accounting and analytical aspects

Abstract

Introduction. The subject of this article is to examine the general condition of the formation of the financial performance of domestic enterprises of mining and mechanical engineering industries.

The purpose of the study is to carry out a retrospective analysis of the implementation of financial reporting of industrial enterprises in order to establish the main risks of the studied companies that affect their financial performance, and determination on this basis of the main directions of improving the system of accounting for profit for risk-oriented management needs.

Results. To analyze general trends in the formation of financial results it has been chosen the financial statements of largest mining and mechanical engineering companies in Ukraine for the period of 2013. The results of the economic analysis have shown that the most of the surveyed enterprises are unprofitable due to the presence of a number of external and internal risks for such enterprises. The main groups of risks are determined: human resources risks, protection and work safety risks, market, environmental, political, production and technological, macroeconomic, innovation, export risks, delivery risks and risks associated with litigation. Also the factors of occurrence of such risks that adversely affect the financial results have been determined. These factors are conventionally divided into administrative and organizational as well as accounting and information factors. Accounting and information factors are results of inefficient organization and methodology of accounting system for the needs of risk-oriented management at the enterprise. Taking into account the results of the research the basic risk management issues within selected risk groups have been outlined that will reduce the likelihood of their occurance. On the basis of the study the main directions for further researches have been highlighted. Their main goal is to improve the organization and accounting methodology with the aim to ensure risk-oriented management needs for improvement of informational support of structural departments of enterprise on external appearance and minimize risks, and in some cases for complete elimination of internal risks, which primarily occur in the system of accounting.