Technology for Solving the Problems Related To the Implementation of the Concept of Preserving Capital in Accounting and Statistics

• Published in: International journal of recent technology and engineering Vol. 8; no. 3; pp. 789 - 792
• Main Authors: Kosolapova, Marina V., Muravitskaya, Nataliya K., Tolmachev, Mihail N., Melnikova, Lyubov A., Petrov, Alexander M.
• Format: Journal Article
• Language: English
• Published: 30.09.2019
• ISSN: 2277-3878; 2277-3878
• DOI: 10.35940/ijrte.C4020.098319

At the present stage of economic theory development, a special role as a comprehensive indicator of the efficiency of activity is acquired by the current cost of the organization’s capital. The definition of the value of an asset was first explained by Fisher “The cost of a capital asset equals the sum of the present value of all future cash flow receipts” [17]. The concept of the current value of invested capital is the main tool for increasing the transparency of financial statements and a component of the concept of value and capital. In his work “The Nature of Capital and Income,” the American economist Fisher stated that "The theory of capital is that the value of an asset is equal to future cash receipts, reduced to present value based on the appropriate discount rate ”[1]. As for John Barr William, a well-known investor wrote in his book “The Theory of Investment Value” that “the value of any company is determined by incoming and outgoing cash flows, adjusted at a discount rate” [5]. The specific interpretation of capital by international standards largely determines the methodology for accounting for specific facts of economic life, as well as the approach to providing the financial position of an organization in its financial statements.