The Influence of Financial Statements of Russian companies’ Indicators on the Assessment of Its Quality

This paper studies the influence of financial statements of Russian companies’ indicators on the assessment of its quality. The main purpose of the study is to design and test the model for public Russian companies which are obliged to disclose financial statements in accordance with IFRS. The model is designed on the basis of a sample of financial statements where independent variables are financial ratios of the companies. The independent and reliable source of measure of quality is Transparency International Rating of Russian companies’ statements 2013-2015. The paper contains following parts: introduction, where background, problem statement and professional significance are revealed; literature review, where previous academic studies in the field of financial statements’ quality analysis are examined; methodology of the research, which disclose methods of designing and analyzing model and interpreting results of the analysis. The research part discloses stages of designing probit- and logit-models and the process of testing of designed models. Results of the models show that the indicators ‘Logarithm of total assets’, ‘AR/Total assets’, ‘Inventories/Total assets’, ‘Inventories/Revenue’, ‘Change in Inventories/Total assets’ influence the quality of financial statements; the predictive power of the model is estimated on the level of 65%.