Solvency of the company in the framework of bankruptcy procedures: proof of the applicability of the accounting model of analysis based on the synthesis of theories of the new institutional economy and capital

The article explores the concept of solvency of companies, which plays one of the key roles within the institution of bankruptcy to justify economic decisions. The lack of a common understanding of the economic essence and the theory of solvency affects the inefficiency of the methodology of its assessment and leads to a confusion of its economic and legal nature, as a result of which a wrong understanding of solvency is used in bankruptcy court practice. This issue is particularly relevant in the context of reforming the institution of bankruptcy. On the basis of Marx’s theory of capital and the provisions of the new institutionalism determine the economic nature of the solvency of companies. This made it possible to prove that the analysis of the company’s solvency based on the accounting model is correct from the point of view of methodology, since it reflects the turnover of capital and its transformation from monetary to commodity form and vice versa, and allows to significantly reduce the transaction costs of interaction between the debtor and creditors. In contrast to the currently developing market approach to the analysis of solvency, the article, on the contrary, on the basis of the provisions of the new institutional economic theory, proves the importance of maintaining the accounting approach due to the conflicting nature of the relationship between the debtor and creditors.