Problems of financial analysis of bankruptcies

In the framework of bankruptcy procedures, one of the tasks of the arbitration manager is to conduct a financial analysis of the debtor company. The analysis is designed to determine the possibility or impossibility of restoring the solvency of the enterprise. The choice of further bankruptcy procedure depends on the results of the analysis: financial recovery, external management or bankruptcy proceedings. However, there are many problems related to the quality of the analysis, which are caused by the imperfection of existing methods of analysis.