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Russian industrial companies and creditors: in the prison of sly figures (on the example of Rosneft)

Russian industrial companies and creditors: in the prison of sly figures (on the example of Rosneft)

Journal of Economic Regulation, , Vol. 9 (no. 2),

The article considers the influence of miscalculation of fixed assets on the Altman model for the Russian economy. It is based on the example of Rosneft in 2016. Rosneft's financial ratios are compared with the financial ratios of British Petroleum in the same period. The magnitude of the Altman model is below the threatened level of bankruptcy, even according to official accounts. The company is unprofitable when revaluing fixed assets. The ratio of its current assets and all assets is unacceptable for the normal operation of the company. It is hypothesized that the company hides part of the proceeds and transfers it to offshore accounts, which are used as collateral for creditors. The Altman coefficient is 0,8 at the level of bankruptcy, when the value of this coefficient for BP is 2,33. The Altman model for developing countries shows better results, the model seems preferable, because Russia is a developing country in most socio-economic indicators. The article analyzes the reasons for the distortion of reporting by Russian companies and how to prevent this. Erroneous economic information affects the Russian economy and individual companies.

Keywords: Altman model, Altman model in Russia, replacement cost, accounting value, oil industry, Rosneft, British Petroleum

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Publisher: Ltd. "Humanitarian perspectives"
Founder: Ltd. "Humanitarian perspectives"
Online ISSN: 2412-6047
ISSN: 2078-5429