OWN CAPITAL AND ITS INFLUENCE ON THE DEVELOPMENT OF DOMESTIC SCIENCE

Abstract

The article deals with the economic and legal essence of the notion of “equity” and its evolution in world and domestic science. The essence of the category “equity of the enterprise” has been specified as an object of accounting in terms of different economists and proposed its structure in terms of sources of formation in the process of economic activity of the enterprise. The article deals with the economic and legal essence of the notion of “equity” and its evolution in world and domestic science. Equity represents the share of the property of an enterprise, which is funded by the owners and own funds of the enterprise. For a long time in the domestic theory and practice, the issue of financing the activities of economic structures at the expense of the owners’ capital was paid extremely attention, but own capital as an economic category has become widespread in the system of financial management of the company, which is the basis of the mechanism for managing its finances. Equity is the financial basis for the creation and development of an enterprise of any form of ownership and organizational and legal form. Also, the essence of the category “equity of the enterprise” as an object of accounting in terms of different scholars-economists is specified and its structure is proposed in the context of the sources of formation in the process of economic activity of the enterprise. In our view, the problem of adequate reflection of equity is important both from a scientific and a practical point of view. For example, in agricultural enterprises, for the most part, at all, attention is not given to ensuring the accuracy of the reflection in the accounting of the real amount of its own capital, which is a stereotype inherited from the command-and-control economy. The transition to a market economy, the exit of Ukraine into international markets, crisis management is accompanied by an objective need to increase autonomy, innovations and development of enterprises of various forms of ownership, including mass creation of joint stock companies. Such a transformation of the economy radically changed the conditions of functioning of business entities, which led to the problems associated with ensuring the stability and stability of enterprises. The basis of steady growth and financial stability of each enterprise is equity, and the main source where the necessary information is stored and systematized are accounting. Issues of accounting and reporting in equity reporting at the present stage of market economy development are the most important economic problems, allowing internal and external users of accounting to determine the financial capabilities of the enterprise in the short-term and long-term perspective.