The role and importance of financial analysis tools in the procedure for recognizing a legal entity as insolvent (bankrupt): financial and legal aspects

The article discusses the application of financial analysis in the procedures for recognizing legal entities as insolvent (bankrupt). Financial analysis is an important tool for assessing the condition of an enterprise and determining its ability to repay existing obligations. Its tools, used in procedures for declaring legal entities bankrupt, provide everyone with the opportunity to identify problem areas and develop an action plan to restore solvency. However, the current methods of detecting intentional and fictitious bankruptcy, based on the results of the financial analysis, do not meet modern requirements, therefore, need to be changed. This means that there is a need to adjust the regulatory documents governing their use.