Methods of ensuring flexibility of the budget process at holding enterprises of energy industry

  • 523 Views
  • 90 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

Achieving business success for a company is directly related to financial planning, budgeting and analysis of results. Any system is viable if it includes feedback elements that provide an analysis of what the system has done and current adjustments to the system’s behavior as signals about its state. The article deals with the features of the budget process at energy enterprises as part of vertically oriented holding structures. The system formed by such enterprises is very complex, so it is necessary to take additional measures to maintain the efficiency of the budget process in such conditions. Therefore, an important issue is the organization of effective control in the budget execution system to make operational management decisions, which turns it into an effective tool for managing the enterprise. The essence and importance of budget control of energy companies are revealed. The paper deals with the organization of budget planning at an enterprise of the energy industry. Models for budget development and budget execution processes were built and budget limits were adjusted for enterprises using the IDEF0 methodology. The methods of control over the budget execution of energy industry enterprises are considered. The essence and types of the process of adjusting the budget of enterprises are revealed.

view full abstract hide full abstract
    • Figure 1. Схема процесу контролю за виконанням бюджету
    • Figure 2. Інформаційна модель процесу розробки та виконання бюджету
    • Figure 3. Інформаційна модель процесу корегування лімітів бюджету підприємств енергетичної галузі
    • Figure 4. Зміни щодо розподілу повноважень з процесу корегування лімітів бюджету підприємств енергетичної галузі
    • Anankina, E., Danilochkin, S., & Danilochkina, N. (1998). Kontrolling kak instrument upravleniya predpriyatiyem [Controlling as an enterprise management tool] (65 p.). Moskva: Audit YuNITI. (In Russian).
    • Bilyk, M. (2003). Biudzhetuvannia u systemi finansovoho planuvannia [Budgeting in the financial planning system]. Finance of Ukraine, 3, 97-109. (In Ukraine).
    • Birt, J., Chalmers, K., Maloney, S., Brooks, A., & Oliver, J. (2017). Accounting: Business reporting for decision making (592 p.). John Wiley & Sons.
    • Cheremnyh, S., Semenov, I., & Ruchkin, V. (2003). Strukturnyy analiz sistem: IDEF-tekhnologii [Structural Analysis of Systems: IDEF Technologies] (207 p.). Moscow: Finansy i statistika. (In Russian).
    • Fedchishina, N. (2016). Oblik i biudzhetuvannia v upravlinni diialnistiu pidpryiemstva [Accounting and budgeting in the management of the enterprise] (Candidate’s thesis) (237 p.). Kyiv: NASOU. (In Ukraine).
    • Gerasimova, L. (2011). Upravlencheskij uchet: teoriya i praktika [Management Accounting: Theory and Practice] (508 p.). Rostov-na-Donu: Feniks. (In Russian).
    • Kovalev, S., & Kovalev, V. (2012). Sovremennyye metodologii opisaniya biznes-protsessov – prosto o slozhnom [Modern methodologies for describing business processes – simply about difficult]. (In Russian).
    • Labyntsev, N. (2015). Organizatsiya byudzhetnoy modeli v tekhnologii upravlencheskogo ucheta [Organization of a budget model in management accounting technology]. Problemy ucheta, analiza, audita i statistiki v usloviyah rynka – Problems of accounting, analysis, audit and statistics in market conditions, 18, 43-49. (In Russian).
    • Labyntsev, N., & Chukhrova, O. (2013). Upravlencheskiy uchet i byudzhetirovaniye kak obyazatelnoye usloviye povysheniya effektivnosti deyatelnosti kommercheskiy organizatsiy [Management accounting and budgeting as a prerequisite for increasing the efficiency of commercial organizations]. Uchet i Statistika – Accounting and Statistics, 3, 112-121. (In Russian).
    • Pankov, V., Yeleckih, S., & Mihajlichenko, N. (2007). Kontroling i byudzhetuvannya finansovo-gospodarskoyi diyalnosti pidpriyemstva [Controlling and budgeting of financial and economic activity of the enterprise] (112 p.). Kyiv: Tsentr Uchbovoi Literatury. (In Ukraine).
    • Poddierohin, A., & Naumova, L. (2011). Finansova stiikist pidpryiemstv u ekonomitsi Ukrainy [Financial stability of enterprises in the economy of Ukraine] (184 p.). Kyiv: KNEU. (In Ukraine).
    • Repin, V. (2007). Biznes-processy kompanii: postroenie, analiz, reglamentaciya [Business processes of the company: construction, analysis, regulation] (240 p.). Moscow: RIA «Standarty i kachestvo». (In Russian).
    • Samochkin, V. (2003). Gibkoe razvitie predpriyatiya. Analiz i planirovanie [Flexible development of the enterprise. Analysis and Planning] (336 p.). Moscow: Delo. (In Russian).
    • Shim, D., & Sigel, D. (2009). Osnovy kommercheskogo byudzhetirovaniya [Fundamentals of Commercial Budgeting] (474 p). SPb: Biznes-Mikro. (In Russian).
    • Sysoev, N., & Molozhavenko, I. (2015). Organizaciya provedeniya proverochnyh procedur kak instrument sistemy vnutrennego kontrolya [Organization of verification procedures as an instrument of the internal control system]. Upravlencheskyi uchet – Management Accounting, 4(284). 37-42. (In Russian).
    • Tereshenko, O. (2004). Teoretichni zasadi byudzhetuvannya na pidpriyemstvi [Theoretical principles of budgeting at the enterprise]. Finance of Ukraine, 11, 17-23. (In Ukraine).
Related Articles

  • An assessment of informal SMEs’ potential in an African economy – theoretical and conceptual framework

    Herrison Matsongoni , Emmanuel Mutambara doi: http://dx.doi.org/10.21511/pmf.07(2).2018.01
    Public and Municipal Finance Volume 7, 2018         Issue #2         pp. 1-13 Views: 3399 Downloads: 463 TO CITE АНОТАЦІЯ

    Informal Small and Medium Enterprises (SMEs) play a key role in their respective economies over the world particularly in the African continent. This paper reviews various theories on SMEs towards understanding the potential of the informal sector in the context of African countries. The paper uses a theoretical approach for the purpose of assessing the challenges that have affected the development of the informal SMEs sector over the years in both the developing and developed world. Economically developing countries in Africa pose unique challenges to informal SMEs development compared to the developed countries. The paper reviews the theories that define the rise to informality in Africa by identifying the key determinants for the emergence of informal SMEs. A conceptual framework for assessing informal SME’s potential for Africa is developed. The conceptual framework is based on the Fishbone diagram developed by Kaoru Ishikawa (1986). This paper discusses the intricacies of the applicability of the proposed conceptual framework to assess the potential of the informal SMEs in Africa and the way forward for the formalization debate.

  • An application of Altman Z-score model to analyze the bankruptcy risk: cases of multidisciplinary enterprises in Vietnam

    Diep Thanh Tung , Vo Thi Hoang Phung doi: http://dx.doi.org/10.21511/imfi.16(4).2019.16
    Investment Management and Financial Innovations Volume 16, 2019         Issue #4         pp. 181-191 Views: 2287 Downloads: 2516 TO CITE АНОТАЦІЯ

    This study applied Altman Z-score model to assess the bankruptcy risk of a set of multidisciplinary enterprises of various types, mainly small and medium enterprises, with data taken from official financial reports of 180 enterprises in Soc Trang province. The binary logistic regression was employed to assess the impact of non-financial and financial factors on the bankruptcy risk of enterprises. The research findings showed that both the non-financial factors such as business area, types and size of the business, the educational level of managers and executors and other characteristics, and the financial factors (indicators) such as earnings before tax, net profit/equity ratio, earnings before interest and tax/total assets ratio, equity/total debt ratio, affect the bankruptcy risk of enterprises. Predicting the bankruptcy risk and measuring its determinants play an important role not only as an effective managing tool of the business, but also as evidence for policymakers to support the sustainable development of business.

  • Multi-agent modeling and simulation of a stock market

    Mohamed Amine SouissiORCID , Khalid BensaidORCID , Rachid Ellaia doi: http://dx.doi.org/10.21511/imfi.15(4).2018.10
    Investment Management and Financial Innovations Volume 15, 2018         Issue #4         pp. 123-134 Views: 2237 Downloads: 1102 TO CITE АНОТАЦІЯ

    The stock market represents complex systems where multiple agents interact. The complexity of the environment in the financial markets in general has encouraged the use of modeling by multi-agent platforms and particularly in the case of the stock market.
    In this paper, an agent-based simulation model is proposed to study the behavior of the volume of market transactions. The model is based on the case of a single asset and three types of investor agents. Each investor can be a zero intelligent trader, fundamentalist trader or traders using historical information in the decision making process. The goal of the study is to simulate the behavior of a stock market according to the different considered endogenous and exogenous variables.

Download Preview
Close
Economics of Development
Economics of Development