Subject. The article studies the distinguishing features of determining the value of net assets and other financial indicators of entities going bankrupt and well-functioning entities. Objectives. The aim is to perfect the tools of financial analysis and analytical procedures for bankrupt entities. Methods. The study employs the methods of analysis, generalization, synthesis, and comparison. Results. I consider adjustments to assets and liabilities, which are advisable when determining the actual financial condition of the organization. The paper substantiates the need for adjustments to assets and liabilities as there are many inconsistencies and discrepancies between accounting registers and the real financial situation of the organization. Conclusions. The paper shows in detail the difference between the principles of determining the value of net assets and other financial indicators and the coefficients of entities that go bankrupt and well-functioning entities. It also reviews potential adjustments to assets and liabilities, which should be done before conducting analytical procedures of financial analysis of the entity going bankrupt. The findings may be useful for managers, insolvency receivers, and judges during analytical procedures of the financial condition of the bankrupt entity, audits of economic entities, financial analysis of entities going bankrupt. They may be of help when identifying the signs of fictitious and intentional bankruptcy, and addressing the grounds for challenging transactions.
Keywords: net assets, hidden assets, fictitious assets, financial stability, crisis state
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