The Influence of the Evolution of Joint-stock Companies on the Economic Indices Updating

Svetlana N. Karelskaya, Ekaterina I. Zuga
(Saint-Petersburg State University, Saint-Petersburg, Russia)

Abstract: Economists often refer to such notions as assets, income, expenditure, profit, etc. All of these are accounting categories. They appeared in accounting practice long before modern economic theories and even the accounting methodology applied today. Its basis is the accounting principles that determine the rules of the formation of accounting and reporting figures. Their implementation into practice was preconditioned by the increase in the amount of the newly set up joint-stock companies with a big number of shareholders who required data that would allow to forecast the stability and earnings on the company’s shares in the future rather than the financial results gained in the past. The important feature of modern accounting methodology is the approach to revenue recognition. At present day revenues are considered to be received at the point when the customers recognize the receivables for goods delivered. This approach allows drawing up reports that disclosure the data for valuation of company’s ability to generate cash flow. Today this rule lays the foundation of the methodology of drawing up the company’s financial reporting that is the main informational source for economic statistics. Financial statements data provides aggregate indicators that characterize the operation of the national economy.

Key words: joint-stock company; economic statistics; accounting principle; SNA; IFRS

JEL code: M41