APPLICATION OF THE PRINCIPLES OF FINANCIAL MANAGEMENT IN DIAGNOSTICS OF UNFAIR ACTIONS AT BANKRUPTCY

Abstract

Diagnostics of unfair actions at bankruptcy is based on understanding and application of the basic principles of financial management. In most cases insolvency of economic entities is caused by unsatisfactory financial management and the general management of the organization. One of the main objectives of the arbitration managing director is formation of opinion on existence or lack of signs of unfair actions at bankruptcy of the organization. The expert, forming his opinion, relies on knowledge of the principles of financial management and analyzes activity of the organization from the point of view of validity and rationality of the made decisions which had impact on its financial and economic state.