Adaptation of Balance Theories to the Assessment of Sustainable Economic Development of Business Units

A.I. Belousov, E.A. Shelukhina, N.A. Rumachik, A.N. Shchemelev
European Research Studies Journal, Volume XX, Issue 3B, 76-83, 2017
DOI: 10.35808/ersj/767

Abstract:

The article deals with the category of sustainable development and its application to business units' activities. The essential ideological basis of the article is the need to combine business interests in profit increment, aimed at increasing stability, through extensive use of balance sheet instruments as well.Financial stability still occupies a vital place, despite a growing priority of environmental and social components of sustainable business development. Its analysis requires the use of static and dynamic balance theories. Their practical application calls for an adequate perception of a current financial and economic situation in a specific place and time period. From this perspective, the authors consider it necessary to use a variety of different balance techniques, depending on specific goals, faced by users of accounting information flows.The researchers make a conclusion about the essential priority of business units functioning longer, even at the expense of short-term achievements of a high level of profitability. In this regard, frequent revaluation of assets should be considered ineffective. This makes it objectively necessary to use both static and dynamic balance theories.


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