Visnyk LNAU: Economics of AIC 2020 №27: 71-79
Theoretical and methodological aspects of equity capital accounting
Petryshyn L., Doctor of Economics
Ivan Franko National University of Lviv
Zhydovska N., Ph.D.
Lviv National Agrarian University
Rostoka M., Ph.D.
V. Sukhomlynskyi State Scientific Pedagogical Library of Ukraine
https://doi.org/10.31734/economics2020.27.071
Annotation
The article considers the economic essence of enterprise’s capital, mentions characteristics and reveals its three aspects, particularly economic, juridical and accounting one. The research studies the stages of development of the notion of “capital” in the history of economic thought. The authors consolidate historic concepts of interpretation of the notion of capital and equity capital, presents review of the works of domestic and foreign scientists on different aspects of the essence of capital (economic, legal, analytical), supplies the author’s definition of the mentioned notion. The work specifies five stages of capital establishment as an economic category and characterizes each of them.
The research argues that capital was first considered by Aristotle through the prism of wealth and the category was divided into two kinds. The first one included wealth, provided by the nature, the second – the process of money accumulation. The second stage of capital development as an economic category was represented by the mercantilist scientists, who first related capital to the process of production and paid great attention to its development as one of the main stimuli to wealth. At the third stage, the scientists considered capital as a definite reserve of accumulated products, gained from past work, and divided it into the fixed and current one. Moreover, that stage was marked by creation of the theory of capital turnover, being a fundamental for the following researches.
The fourth stage was characterized by appearance of the theory of capital development not only as a natural resource and wealth of people, but also as human potential and resource. The theory suggests that borrowed resources can help the enterprise to develop with the same efficiency and personal one. At the fifth stage, the scientists point that capital is the main indicator of the market price of an enterprise and the main source for formation of its owners’ prosperity.
Key words
capital, agrarian enterprise, efficiency, accounting, adequate manifestation
Full text
Link
- Eugen von Böhm-Bawerk. Selected works on value, interest and capital / preface Y. Shumpeter; transl. from German by L.I. Forbert, A. Sanina; transl. from English by N. V. Avtonomova; transl. from Latin by A. A. Rossius. Kiev: Eksmo, 2009. 912 p.
- Bobiak A.P. Accounting of equity capital of enterprises of different organizational and legal forms: extended abstract of Candidate of Economics dissertation. Kyiv, 2011. 36 p.
- Bohacheva H. N., Denysov B. A. On various interpretation of the category of “capital”. Management in Russia and abroad. 2000. № 1. P. 13–24.
- Vivchar O. Y., Savaryn V. M. Equity capital as a financial source of enterprise operation. Scientific journal of NLTU. 2009. Iss. 19.5. P. 146–150.
- Grayson J. K., O’Dell K. American management at the beginning of 21 century. Moscow: Economics, 1991. 319 p.
- Dorosh N. I., Snizhko V. V. Equity capital accounting in terms of national and international standards. Young scientist. №2(2). P. 606–610. URL: http://nbuv.gov.ua/UJRN/molv_2019_2(2)__66 (access date: 00.00.0000).
- Kvasnytska R. S. Management of enterprise’s capital through the prism of evolution of its definition and essence as an economic category. Scientific works of Donetsk National Technical University. Series: economic. Donetsk: DonNTU, 2003. Iss. 56. P. 223-229.
- Quesnay F., Turgot A.R., du Pont de Nemours. Physiocrats. Selected economic works. Moscow: Eksmo, 2008. 1200 p.
- Koval L.V., Arseniuk A.V. Impact of accounting information concerning equity capital on managerial decision-making. Effective economy. 2017. № URL: http://nbuv.gov.ua/UJRN/efek_2017_6_14 (access date: 00.00.0000).
- Marx K. Capital. Criticism of the political economy. Moscow: Politizdat. 1088. 1, Book 1: Process of capital production. 905 p.
- Marshall A. Principles of economic science. Moscow: Progress, 1993. V. 1. 415 p.
- Melnyk T. H., Dymnich V. V. Peculiarities of equity capital accounting at joint stock companies. Young scientist. №3(2). P. 665–669. URL: http://nbuv.gov.ua/UJRN/molv_2018_3(2)__62 (access date: 00.00.0000).
- Nazarenko O. V., Chyzhova T. S. Organizational aspects of formation, accounting and audit of equity capital of an enterprise. Economy and the state. 2019. № 9. P. 30–34. https://doi.org/10.32702/2306-6806.2019.9.30
- Nazarova I. Essence and structuring of equity capital for the needs of accounting. Bulletin of Ternopil National Economic University. Iss. 3. P. 117–126. URL: http://nbuv.gov.ua/UJRN/Vtneu_2017_3_12 (access date: 00.00.0000). https://doi.org/10.35774/visnyk2017.03.117
- Pylypenko O. I. Accounting and analysis of equity capital: theory and practice: extended abstract of Candidate of Economics dissertation. Kyiv, 2005. 20 p.
- Smith A. An Inquiry Into The Nature And Causes Of The Wealth Of Nations / Transl. from English; preface by V. S. Afanasiev. Moscow: Eksmo, 2007. 960 p.
- Tuhan-Baranovskyi M. I. Political economy: popular course. Kyiv: Naukova dumka, 1994. 264 p.
- Khmelevska A. V., Nezboretska H. M. Equity capital by the attributes of the object of accounting. Sustainable development of economy. Khmelnytskyi: University of Economics and Business, 2011. № 4. P. 192–194.
- Yakymov Yu.O. Scientific approach to organization of equity capital accounting at the enterprises with foreign investments in Ukraine. European prospects. Iss. 2. P. 191. URL: http://nbuv.gov.ua/UJRN/evpe_2016_2_30 (access date: 00.00.0000).
- Yakovets T. Accounting and manifestation of equity capital in reporting: combination of domestic and international experience. Economic discussion. Iss.1. P. 112–120. URL: http://nbuv.gov.ua/UJRN/ed_2016_1_14 (access date: 00.00.0000).
