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Kyiv National University of Trade and Economics, Ukraine
Championship participant: the National Research Analytics Championship - "Ukraine";
A specific character offinancial reserves formation of trade enterprises, their efficiency and expediency isinvestigated. It isproved the necessity offinancial reserves formation of trade enterprises. It is allocated mismatch concerning the process offinancial reserves formation and proposed the ways of solving them.
Keywords. Financial reserves.formation, trade enterprises,effectiveness.
Deepening of transformation processes in the economy, its adaptation to global structural change leads to growing attention to the effectiveness activities of trade enterprises, which is only possible using the generalized system evaluation of the results achieved in various forms of display. Such efficiency in the market environment is practically not regulated and is accompanied by the results of achieving the goal of trade enterprise and conditioned performance - arose dilemma of financial reserves and hedging.
The necessity reformation of economy is predefined the dynamics changes of economic relations, that confirms the necessity forming financial reserves. Every country creates reserves, taking into account a current legislation and national features, traditions. Most widespread are creations of the mandatory reserves capital and other reserves. The process of studying foreign countries experience allows to draw conclusion, that they have a far higher level development system of financial reserves.
The main goal of this work is to determine the efficiency formation financial reserves of trade enterprisesand proved the necessity them to achieve financial stability and economic growth in general.
Problems associated with the financial reserves formation of trade enterprises have not researched enough. Problems of financial reserves formation reduced to only two areas: the general provisions of the reserves, which was devoted the work of such scholars as O. Vasylyk, J. Veryha, M. Kozlova, N. Oryschenko, O. Parkhomchuk, and in part of effectiveness activities of trade enterprises - O. Berezina, S. Vasylchaka, N. Mitsenko, A. Horonzhoho, T. Chernychko and others.
An important moment in the classification reserves is the source of their formation. For example, companies of UK creates a reserve from profits and reserves from equity. Retained earnings, on the one hand, there is a reserve, the other - the main source of their funding. Forming reserves of equity is due to issue of shares at a price higher than the face value and the revaluation of fixed assets upward. An important fact is that the size of reserve capital in the world practice varies between 10-40% of the share capital, separate companies granted right to appoint a higher limit.
Today, most of trade enterprises do not form financial reserves, although it may adversely affect in their activities. For example, in Ukraine the share of trade enterprises, which form the reserve capital is only 5% (2012). Uncertainty and a high degree of risk in the modern economy causing necessity forming financial reserves of trade enterprises, which are created for ensure the stability and efficiency, is a protective mechanism of neutralization of business risks. Considering that every year in Ukraine increases number of unprofitable trade enterprises (2012 - 38.9%, that 0.9% more than in 2011), more meaningful is the use of financial reserves as means of influence to the financial result. Important characteristics functioning of trade enterprises that determine their role in the national economy is the number and scale of their activities. According to statistic data, the number of retailers has decreased. In 2012 compared to 2000 their number decreased by 47.4 thousand units.
Financial reserve characterizes the amount of commodity and money supply which are intended for unexpected occasions, for additional expenses that do not include the use of funds and stocks. It is talking about any significant disruptions in the activities under which the financial resources may be insufficient funds to quickly compensate the loss. For example, when company has natural disasters, it`s need to implement reimbursement losses, funds on which are taken as the relevant reserves.
Financial reserves are the subject of economic information, which is formed in managerial accounting. Financial reserves are the subject of accounting policies organization, completely dependent of the owner or his representative and will not affect the assessment of the legal rights and obligations and to regulate the influence certain facts of economic life in the real valuation of assets, capital and liabilities and financial results.
Financial reserves are created in monetary form and serve necessary condition for stable and balance development. An important problem is scientific substantiation size of such funds. Unjustified increase or decrease the financial reserves entails negative consequences: a significant distraction funds and deceleration of their turnover or shortage of funds if necessary funding unforeseen needs.
There are main problems of creating and using financial reserves:
The effect is a result that characterizes the performance, usefulness functioning of a particular process or system as a whole, that the positive trends in the development of trade enterprise. The effectiveness represents the ratio outcomes with the expenses after reaching. Basic principles of forming the system performance indicators and expression of its essence at all management levels are the ratio of the final result (volume of production or sale of goods) and effect (profit) with consume resources.
The efficiency of trade enterprise`s activity depends on volume of goods, that were sold. Enterprises increasing the sales, but save the positive trend over a long period is very difficult. The volume of realization formed under the influence factors external and internal environment. But there are factors that affect to the inefficiency of trade enterprises (inefficient use of squares, use of outdated methods of personnel management, low level of service culture, low level of automation, ineffective measures to control costs).
The reserves and the ways of improving trade enterprise`s effectiveness must become attracting foreign business models, enhance the use of management, marketing research, demand analysis population through experiments with product differentiation, interesting approaches in the advertising. Conducting events for buyers, searching of cheaper sources of production, optimizing use of time, staff incentives, directing available funds to optimize the transport of goods, the location of such enterprises should be such that it was close to home, so it was a big supermarket, this also has to be comfortable running time. That is a specific approach to the buyer which by the concepts of the market is always right.
Along with the economic component effectiveness, great value has social component that characterizes the degree of use trade enterprise potential opportunities of the personnel, its creative skills, success for solving social problems, improve working and living conditions.
The economic effect has social meaning for both sides, because funds revolve in order to give pleasure to the buyer that he once again buy the product in this trade enterprise, creating a closed circle in passing, and someone who sells goods, because spends money on themselves, as part of society, thereby going to another store to satisfy their needs.
There are preconditions for forming competitive environment in the trade:
Nowadays the economic development at the national and state level, the degree of regulation the process of forming financial reserves for trade enterprises is problematic. Remains unsolved aspects regarding the process reserving grouped into three categories:
Research practice of activity trade enterprises certifies inadequate degree of attention to the formation of reserves, lack of understanding leadership their necessary, reluctance accountants form any reserves other than mandatory.
For eliminating inconsistencies in existing legislation of reserves must by studied problematic questions:
The implementation of the recommendations will improve the information function of legislation, will lead to unambiguous interpretation of the organizational aspects on the formation and use of reserves.
Trade is one of few sectors of the national economy, employed maintenance of population. Therefore it is normal development largely determines the social climate in society. Trade directly felt the severity of the crisis: a sharp drop in output, price liberalization, and lower income population. The main task managers of trade enterprises are to find ways to optimize business processes that would help reduce operating costs, and therefore receive higher profits, which, in turn, are directed to the reproduction and development of enterprise.
Financial reserves as an effective means of ensuring the sustainable development trade enterprises manifests in ensuring:
Important conditions for effective functioning of trade enterprises is realization diagnostics of forming financial reserves and its adaptation to modern methods of information tools, including reporting, and use the electronic system of economic information processing. Received from these sources primary information processed, built analytical tables, calculated system of synthetic and analytical indicators. On this basis, determined the most reasonable source of funding, basic resources needed to increase productivity, reduce costs, potential for improving the efficiency of capital use, optimized organizational structure. In summary, based on the study all aspects of trade enterprise`s activity are developed recommendations for the improvement of the economic mechanism, improving the efficiency of its operation, creation and implementation of control technologies for financial and economic situation of trade enterprises.
The formation of financial reserve is an instrument of influence on the value of financial results by alignment revenues and expenses, with an increased focus on examination of financial reserves enterprise trade as a measure of direct influence on the amount of profit realized, should improve existing methods of compulsory and initiative auditing operations with the formation and distribution financial results.
The audit of financial reserves while checking the financial statements is retrospective and reconstructive character, oriented to determining the correct formation of financial reserves and assessing the impact of their formation on the financial results. Its purpose is to provide guarantees users report on their reliability in terms of reserves. Initiative, thematic audit operations development and use of financial reserves is to adjustments reservation policy, auditor expresses recommendations, initiative to expand the list of formation reserves, updating accounting policies. Providing accounting consulting services on problem issues of accounting for transactions with financial reserves associated with the company reserving policy analysis, determining its effectiveness and efficiency and may require long-term analysis and forecasting calculations have strategic and preventive nature.
During the audit of financial statements, content audit procedures are following:
The most common errors and irregularities in accounting financial reserves are:
Therefore, financial reserves formation of trade enterprises is important for their effective functioning. Thus, оne of the main problems of trade enterprises are evaluating and planning its effectiveness, ensure that sufficient financial results for the survival and development. The effectiveness of trade enterprises is a comprehensive reflection of the final results of its operations during the sale of goods, provided a certain level use of its potential. To ensure stable development, the possibility of withstand external factors, timely neutralize the possible negative effects, trade companies require creating financial reserves. The process of forming financial reserves is one of the most effective tools to ensure the stability activity of the enterprise and self-insurance from risks. Financial reserves are made for unforeseen expenses, special needs, eliminating temporary financial difficulties and ensure normal operating conditions. Efficiency financial reserves formation of trade enterprises are still relevant and important to study.