Analysis of the Book Value of the Company

Balance sheet is nearly the most important part of financial information of any company that represents condition of organization’s assets, liabilities and share capital at certain time moment. There are many types of assets and commitments that can be evaluated differently considering the features of business and accounting standard company uses to compel its financial report. From that point comes the issue of objective disclosure of financial statements so that the stockholder even unfamiliar to a company’s business is able to collect the information that as close to reality as possible. The present research considers the process of transformation of the book value of the “Rossiya” airlines from Russian Standards of Accounting to International Standards of Financial Statements. Current work identifies balance lines that are the most dependent on financial statement standard and professional judgement. Financial and managerial definitions of adjusting entries are analyzed and interpretation recommendations are given.