Subject. The article considers information and analytical support to the system of assessment and management of company value and performance under various options of administrative expense recognition. Objectives. The aim is to identify and assess the influence of administrative expense recognition option on formation and presentation of reliable and relevant information on financial and economic position of the enterprise to manage its value and performance. Methods. The paper analyzes the impact of merits and demerits of major administrative expense distribution options on investment attractiveness of the enterprise. Results. I underpin the concept of expediency to identify administrative expenses. The economically viable portion of administrative expenses, which is proportional to the cost of goods sold, should be booked in the current period. As for the remaining portion, it is necessary to create provisions for reduced inventory value and for risk coverage of administrative expense reasonableness. The balances should be either written off in subsequent periods as sale of residue stock of manufactured goods or, if there are no chances to sell the residue stock, be written off against the earlier created provisions. In the event of successful sale of the residue stock in the next period, the identical portion of the remainder of administrative expenses should be expensed in the period, and related provisions be reversed in financial results. Conclusions. The developed concept enables to generate and present more reliable and relevant information about financial and economic condition of the enterprise.
Keywords: administrative expenses, distribution, enterprise, company value, performance
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