Provisions for current assets as security for business

Abstract

Information about the financial condition and results of enterprises that use a wide range of users, is important for investors who are primarily interested in the presence of a sufficient level of economic enterprise, and as the size of its liabilities and equity, and current business financial results. This information can help to evaluate the effectiveness of methods of property management companies and management decisions. Accuracy of the information of financial position and results of its conception of proper and accurate picture of the company, which creates a clear and accurate representation of reality, without deviation, shadowing and suppression of certain aspects of the state or entity. It should consider the fact that every business transaction of the current leads to certain results in the future, and that is always in a market economy characterized by these operations is incomplete and inaccurate. Even companies with an ideal control system subjected to threats to the collapse of global capital markets, the impact of political, economic and social changes in the state and other factors. Thus, we can define risk as the incompleteness of information in making management decisions.