Audit and economical analysis

Problematic aspects of financial analysis (comparative analysis of periodic intervals, comparisons between different enterprises, problems of information exploitation)

The number of publications published by domestic and foreign authors on the financial analysis is so great that it can be concluded on the basis of their study, that the wider audience is interested in the efficiency and effectiveness of the business entities (managers, owners and counterparts). By analyzing the financial situation and the developments in it, it is predicted that not only the efficiency and effectiveness of the processes will be fulfilled, but also their future expectations.²⁴ This is more important in the competitive economy.

There are a lot of similar aspects of domestic and foreign practice in evaluating and analyzing the financial situation and business environment of managing subjects. Because the global economy needs to be integrated in the accounting, auditing and analysis systems of all countries. For this reason, international standards of accounting and audit, financial reporting have been developed and implemented. That is, the only "business language" of international economic relations is formally formed. Therefore, the analysis of the financial situation and the change in it in all developing countries, based on the law of the market economy, is essentially one-to-one, though different from the organizational, methodological aspect.

The main differences in the financial position analysis can be seen in the diversity of managerial conditions, accounting and reporting rules and methodologies, as well as on theoretical basis.

There are many different aspects of farming. First of all, it is characterized by systemic economic development and management contrast.

Different aspects of economic management certainly have a significant impact on the current state of information flow. The inclusion of one of the major entities, large, medium and small businesses, is fundamentally different among countries.²⁵

In developed countries, the main task of accountants is to address the tasks of ensuring the effective management of ownership and managers, rather than solving the information obligations of the enterprise before the state (through financial, tax, customs, statistical reporting).

The similarities in the financial analysis can be explained by the principle of predominance of the content, which is an important principle of accounting. There is no difference in the number and types of financial reporting forms developed by business entities in Uzbekistan with the financial statements of developed countries.

The main form of the financial reporting that is being compiled and presented is not fundamentally different from that of the "Accounting Balance" (Figure 1) and its foreign practice.

Many authors point out that the accounting balance and the structure of its assets, which are the most important source of the financial position of economic entities, should be re-structured into liquidity levels for a wide range of stakeholders.²⁶

There are some differences in the methodological aspects of the financial situation analysis. But in most cases it is possible to observe their uniformity.

In assessing the financial situation in Uzbekistan and abroad, the following system of indicators is used:

1. Liquidity indicators. In international practice, these systems are called "liquidity ratios"²⁷.

2. Financial sustainability indicators. In international practice, these indicators are called "financial leverage"²⁸, and "leverage ratios" in some sources.

3. Profits, profitability indicators. In international practice, these indicators are called "profitability ratios".

4. Business activity indicators. In international practice, these indicators are called "efficiency ratios".

From the above, it is possible to conclude that there is no significant difference in the financial analysis of Uzbekistan and international practice. What is the problem? The problem is that they are not unique and methodological, methodological basis is different.

Another important aspect is the emphasis on the analysis of market value of the company's business indicators in foreign practice. These indicators include: the ratio of net profit to the number of outstanding shares; the share of dividend payments in the net profit; the ratio of annual dividend payments to shares to their average market value; stock market price indices and net profit ratio corresponding to one share. Based on these indicators, market performance indicators of firms and companies are assessed. In practice, this type of analysis is not included in the scope of financial condition assessment, and key performance indicators are studied individually. Identification of these analytical indicators, the importance and significance of comparative study are determined by the degree of participation and activity of the financial market in the enterprise. That is, investment activity and attractiveness indicators will be assessed by evaluating market activity indicators.

In assessing the financial position of foreigners, all analytical procedures are often carried out on the case of firms and companies (Coca-Cola, PepsiCola, Adidas, etc.), which are largely based on the fact that the firm is diagnosed, and in the future the company will be given important strategies for developing the company's financial strength.

The financial situation of the enterprises is rarely appealed to the practice of comprehensive study in Uzbekistan. There is no realistic analytical finding on the basis of the data of some sources in the economy of Uzbekistan, which is one of the most important locomotives (in the case of Mining and Metallurgical Combine, Uzbekistan Railways, Uzbekistan Airways, automotive enterprises). Often, analytical calculations are based on supposed sources. This difference can be observed not only on the basis of the real sources of analysis, but also on dynamic changes in the years. And, in the foreign practice, special attention will be paid to the different aspects of the company, its activities and network links.

Another important aspect of foreign operations is that in different nomenclature of indicators (current assets 'current assets, turnover assets, current liabilities of short-term liabilities, creditors' obligations, non-current assets of non-current assets of long-term assets, names of immovable assets, etc.) long-term and current assets, sources and liabilities of own funds, principal financial result, earnings and operating expenses), benefits (general profit, net profit, results of economic activity, , net profit, EBIT, EBITDA). That is why, in published sources, the figures should be presented in a clear manner in which data are presented in the financial statements of the real (case study) sample and the sources in which they are derived from reports. It is possible to ensure their accuracy and uniformity by way of doing so.

An important way of solving the most important problems in the field is to match the financial reporting form and content with international norms.

Failure to create computer programs for analytical processing of financial reports and their database is also a bit more complicated by the industry. The beginning of this work

No software has been licensed, regardless of whether it has been licensed. Additional resources are needed to analyze financial reporting. They are confronted with a number of problems, such as the receipt, reliability, efficiency, accuracy, reliability of the information received. These processes are of particular concern to the economic entities in the stock market, to the market of precious stocks, to assess the market and business activity.

One of the most pressing problems is the lack of a uniform approach to complying with international standards for financial reporting, and the diversity of their application in each specific business entity. At the same time, economically substantial grounds of their significance in the world market are also contributing to the rapid development of the sector.

Failure to create computer programs for analytical processing of financial reports and their database is also a bit more complicated by the industry. Despite the ongoing efforts in this area, software licenses have not yet been issued. Additional resources are needed to analyze financial reporting. They are confronted with a number of problems, such as the receipt, reliability, efficiency, accuracy, reliability of the information received. These processes are of particular concern to the economic entities in the stock market, to the market of precious stocks, to assess the market and business activity.

One of the most pressing problems in the formulation and submission of financial reports is that this is due to the excessive excess of the costs of education on them. The absence of any rules and regulations on accountancy and accounting for costs affects analytical analysts' performance.

One of the most acute problems is the lack of a uniform approach to applying international standards in financial reporting, as well as the diversity of application of each single entity. At the same time, the fact that economically feasible that their significance in the world market is substantial also contributes to the rapid development of the sector.

The procedures for compiling and submitting financial reports do not provide for the creation of a single portal for electronic reporting (financial (accounting), tax, statistics, customs, bank reporting, etc.), and the ability to receive customer satisfaction information on the relevant subset. This, in turn, creates difficulties for comparative analysis. In other words, the comparative analysis of enterprises, the methodological diversity, the diversity of calculations have a significant impact on single analytical conclusions.

It is also impossible to avoid the effects of inflation. It does not allow you to switch from qualitative analysis to qualitative changes. The high level of inflation does not allow for a precise assessment of changes in indicators. That is why it is necessary to rely on international norms of inflation, hyper inflation, when making financial reports. This aspect of the amendment has been clearly and explicitly expressed in international standards for financial reporting.