METHODOLOGY FOR ASSESSING THE FINANCIAL CONDITION OF A CORPORATION: EXCLUDING THE IMPACT OF INTERNAL AND INTRA-COMPANY SETTLEMENTS BASED ON THE EXAMPLE OF RAILWAY TRANSPORT AS A CORPORATION

Abstract

The essence of internal and intra-company settlements of railway transport as an example of settlements of corporation is studied. This became the basis for the authors of the study to develop a methodology for calculating financial condition indicators of a corporation, with the exclusion of the impact of internal and intra-company settlements, the practical implementation of which was proved in the studies of Master's graduation theses of students who took their pre-graduate internship in structural divisions of railway transport under the supervision of the university teachers who are the authors of this study. The proposed methodology proved its theoretical and practical feasibility on the objects of research of railway transport, taking into account the specific nature of their activity, namely: the impossibility to sell independently their labor product, but only as part of a single transportation process affected by the financial and economic relations within the corporation. The research became the basis for the introduction of the idea of universalizing the proposed methodology for calculating the financial condition indicators of a corporation in any field of activity, with the exclusion of the impact of internal and intra-company settlements. The authors of the study evaluated the prospects for further developments not only in assessing the efficiency of business and manufacturing enterprises and organizations, but also that of public sector institutions, where internal and intra-company settlements are a consequence of the distribution of budget funds with purely technical procedures for debt crediting without appropriate technological and analytical research. The use of the methodology for calculating the financial condition indicators of a corporation, with the exclusion of the influence of internal and intra-company settlements in the public institutions will allow taking into account not only the branching of the budgetary institution with its numerous structural divisions, but also the social purpose of the object of research which is a public institution, its tasks of budgeting and estimated financing, the possibility of conducting commercial activities by a non-profit institution in accordance with the current law, and other factors. The thesis of theoretical and practical mediation and universalization of the proposed methodology for a corporation on its ideological basis of any field of activity is also put forward, both at the level of calculating and evaluating of the financial condition indicators of the parent company and its subordinate structural divisions.