Економічні науки/7. Облік і аудит

PhD, Associate Professor, Manachynska Yu.

Chernivtsi Trade and Economic Institute Kiev National Trade and Economic University, Ukraine

Actuarial accounting: managerial aspect

J. Rishar notes that each of the types of accounting provides useful and varied information. Actuarial accounting provides information about the market value of invested capital, as well as information about the internal rate of overall return (IRR). But actuarial accounting does not provide reliable data on the rate of return on a particular period [1, p.121]. The internal rate of profitability (TIR – taux interne de rentabilite) is calculated by the following formula:

(1.1)

cash flows from the project at the time t, n – number of time periods, internal rate of return. We can see that IRR or internal rate of return is the interest rate at which the present value of all cash flows of the investment project (NPV) is zero. This means that at such a rate of interest, the investor will be able to repay his initial investment [2]. The easiest internal rate of return can be calculated by using MS Excel, fig.1

Fig.1 Method of calculating the internal rate of return (IRR) using MS Excel

We will compare the internal rate of return for two projects of PC «Interagrocom» and CTC «Vltava-Chernivtsi», Fig. 2 and Fig. 3.

Fig. 2 Internal rate of return (IRR) of PC «Interagrocom»

On the Figure 2, we can see that the internal rate of profitability (IRR) for PC «Interagrocom» is 14,49%.

Fig. 3 Internal rate of return (IRR) of Collective-trading firm

«Vltava-Chernivtsi»

On the Figure 3, we can see that the internal rate of profitability (IRR) for Collective-trading firm «VLTAVA-Chernivtsi» is about 8,89%.

The managerial aspect of actuarial accounting is that it allows you to choose an effective way of investing. An information base for evaluating investment projects is actuarial financial statements.

Literature:

1. Рішар Ж. Бухгалтерский учет: теория и практика / Ж. Рішар. – пер. с фр. / под. ред. Я.В. Соколова. – М. : Финансы и статистика. – 2000. – 160 с.

2. Внутренняя норма доходности. Формула расчета IRR инвестиционного проекта // [Электронный ресурс]. – Режим доступа: http://msfo-dipifr.ru/vnutrennyaya-norma-doxodnosti-formula-rascheta-irr-investicionnogo-proekta/