Organizational Aspects in Building up Accounting of Corporation’s Value

Abstract

The objective of the study is to analyze organizational aspects of the corporate accountingand outline the principles of its rational build up with use of corporate information systemsand the role of the accounting method elements in the accounting of the corporation’s value.Multivariate interests of owners and management of a corporation and its complexstructure entail specific requirements fo r corporate management system, including accountingas its information base. Hence, an important issue in the studies of corporate sector isorganization of corporate accounting of the corporation value. The system of corporate accounting is the main source of information on the corporation value, which rationalorganization in corporations is the key to formation and growth of the corporation value.The efficiency of the accounting system in a corporation can be improved through actionstaken in keeping with the overall corporation strategy and, accordingly, with the goal set bythe shareholders.Corporation managers responsible fo r organization of the accounting system need tobuild it up by standards and principles applying fo r all the enterprises incorporated. The accounting system in a corporation can be optimized through actions aimed at effective operation of the accounting functions and the system build up in a way to enable for the corporate control over the corporation’s liabilities and assets; use of material andfinancialresources; negative factors affecting the financial and economic performance; finding andmobilization of internal company reserves; compilation of complete and reliable informationabout economic processes and outputs of a corporation. Rational build up of the corporateaccounting is conditional on use of corporate information systems. They support specificbusiness processes in a corporation though performing critical functions: compilation andanalysis of balance sheet and analytical reports; resource management, cost management, operation management etc. Their characteristic feature the capability to operate in technically distributed structures.When the corporate accounting system is organized with focus on the corporation’s value, the main objective of the accounting is in generating information about the components of corporate value and their capability to create future economic benefits. Each element of the accounting method, with its own purpose in recording the process of generating the corporation’s value, is capable to meet appropriate requests of stakeholders.