Open AccessThe role of accounting in contracting process of corporations
Author(s) -
Vasyl Tsaruk
Publication year - 2019
Publication title -
ekonomìčnij analìz
Language(s) - English
Resource type - Journals
eISSN - 2219-4649
pISSN - 1993-0259
DOI - 10.35774/econa2019.04.089
Subject(s) - accounting , business , accounting information system , remuneration , negotiation , context (archaeology) , process (computing) , corporate structure , management accounting , agency (philosophy) , corporate governance , finance , computer science , paleontology , philosophy , epistemology , political science , law , biology , operating system
The expediency of conducting researches in the direction of determining the role of accounting in the contracting process of corporate structures has been grounded. A historical analysis of the approaches of researchers to understanding the role of accounting in the contracting process of the corporate structure has been conducted. The value of accounting information in reducing contract costs has been determined. It has been substantiated that accounting allows to measure contractual requirements of agents and remuneration, to provide information on contract performance to principals and information on corporate structure activity to potential agents. It has been found that accounting is a part of a set of corporate structure contracts and is the object of negotiation among agents and other parties of contractual relationships. There are two main areas of use of accounting information in the contractual process of the corporate structure in the context of agency problems (concerning managers and borrowers) have been allocated.