Financial assets and improvements of their analysis

Business entities have different assets in their business activities. As assets are expected toget benefit they should be used as efficiently as possible. This action will lead to further increase in the amount, value and types of assets in economic entities. It is worth noting that the variety and availability of assets means that economic entities have embraced different economic relationships in their business or that they are used in all directions for more efficient use of financial resources.

From our observations it is clear that there are cases when the national accounting system, including economic analysis of business entities, uses the concepts related to assets in place, and sometimes confusing existing terms. Such shortcomings have a negative impact on the accuracy and clarity of the opinions expressed by experts on a particular economic relationship. An example of this is the notion of economic property, assets, financial resources, financial assets and financial instruments.

In our view, there are two reasons for this disadvantage. The first is that some of the concepts in the Uzbek language literature, scholarly articles and theses are fully covered and insufficient views and attitudes are formed. The second is that such concepts are not widely and deeply studied in the field of scientific researches by specialists in this field. We believe that the concept of financial assets is an example.

In our view, there are two reasons for this disadvantage. The first is that some of the concepts in the Uzbek language literature, scholarly articles and theses are fully covered and insufficient views and attitudes are formed. The second is that such concepts are not widely and deeply studied in the field of scientific researches by specialists in this field. We believe that the concept of financial assets is an example.

Financial literature, published in Uzbek language, in research papers, scientific articles and speeches by industry scholars, are noted as financial assets in the form of money and securities. The sources show why these types of funds are called financial assets, their substantive criteria, and lack of attention to their purpose. It is true that the types of funds that are part of financial assets have been studied in the economic literature and are constantly improving. However, the central issue here is that each type of financial asset in this area is studied separately and as a type of total asset. That is, the financial assets constituting the financial asset are not considered based on a justified notion (or set) or ignored in this respect.

The reader may ask a question if the financial assets constituting a financial asset are considered based on a single concept (or set), what will be the result?

Attention is made to classify current assets, such as long-term and current, tangible and intangible, inventory, cash, receivables, working capital, long-term and short-term, and analytically classify them as separate items. one set of collections and each type of information; This information will help users make different business decisions regarding assets and financial position. So, the more space and content of the information, the better and clearer the event will be. Experts make effective decisions based on reliable facts. In our view, a deep study of financial assets serves the same purpose. That is, it enlarges the information space in the balance sheet and enriches its content. As a result, asset status is broadly shaped. Grounds for decision-making will increase.

In this case, financial assets are also a type of accounting assets. The criteria for the asset are clearly stated in National Accounting Standards (National Accounting Standards No. 1 and International Financial Reporting Standarts. The IFRS clarifies some types of financial assets (IFRS 9; 39). National accounting standards do not provide sufficient explanations for the types of financial assets. Only National Accounting Standards No. 12 provides information on "Financial Investment Accounting".

The same situation calls for a complete creation of this type of assets in the national accounting system. Because the economy of our country is open; economic transformation, formation of favorable investment climate, convergence of accounting to international standards and other reasons call for the separate study of financial assets in business entities, development of criteria and their effective use. This issue proves its relevance with the above. It should be noted that financial assets differ from other assets in the enterprise.

Financial assets are property of an undertaking and are financial resources in the form of cash, securities and income-generating financial liabilities. These include: cash; accounts receivable; long-term and short-term investments.

If the substance of the matter is taken into consideration, it is possible to know that a financial asset is a right to income from the use of tangible or intangible assets.

Intangible assets are the source of income. A financial asset is a direct right to receive income. In other words, the materials are one of the different bases for the product being manufactured. Accounts receivable arising from the sale of the product represent the right to a direct return on the proceeds from the sale of the product. It should be noted here that intangible assets, although formally similar to financial assets, differ in substance. Intangible assets, like tangible assets, are a source of income.

A financial asset is a contractual obligation or document, the cost of which is not material or intangible assets. These documents have no value until they are converted into monetary value. They only reflect the value (right) of the required income for the period in question, in paper or electronic form. Stocks, bank deposits or bonds are examples of our opinion.

Studying financial assets as a whole is a new approach that differs from the traditional approach to accounting and analysis of assets, that is, to calculate and analyze the value of direct rights to income. This is not simply the criteria for efficiency, turnover, or variation of traditional assets, but rather the correct formulation of information and information on how much income a firm has in its assets and how much they can generate.

True, other types of assets are the source of financial assets. Financial assets also play an important role in the recovery and growth of other assets. Therefore, the study of accounting and analysis of financial assets in isolation from other assets is not a solution. A comprehensive and systematic study of accounting and analysis of all assets is the best way.

However, there is no significant view or methodology in the national accounting and analysis of the criteria for which there is a direct right to financial assets. This is an unspoken topic of comprehensive and systematic analysis of all assets. If this unexplained issue was solved, the quality of asset accounting and analysis would be improved by another aspect.

As an example, we will mention the following. Not enough attention is paid to the organization, maintenance, reporting and analysis of cash accounting and analysis of economic entities on the direct rights of funds. In the same way, monetary information shows that it is in conflict with international practice. The inability of the National Bank to allocate funds for free and restricted types of financial information in the financial statements is one of the manifestations that does not meet the requirements of international financial reporting.

As a result of mixing information about free or limited types of funds in the accounting system, the information presented has a negative impact on the accuracy of the financial analysis results. For example, it can cause serious errors in the objective determination of liquidity or liquidity ratios.

The current assets, such as cash flow, short-term investments and receivables, have a direct bearing on the right to income, and how the internal standards should be set, and the methods of analysis to be decided.

In conclusion, it is time requirement to adjust the accounting and analysis of economic assets, including financial assets, with the emerging economic relations and global market participants under the influence of globalization. Successful implementation of this action is one of the important steps to create a comfortable and understandable information environment for internal and external financial information users.