International Accounting

Analyzing the concept of financial capital in business accounting models and integrated reporting

Vol. 21, Iss. 6, JUNE 2018

Received: 5 October 2017

Received in revised form: 1 November 2017

Accepted: 15 November 2017

Available online: 15 June 2018


JEL Classification: G12

Pages: 639–656

Plotnikov V.S. Plekhanov Russian University of Economics, Sevastopol Branch, Sevastopol, Russian Federation

ORCID id: not available

Azrakuliev Z.M. Dagestan State Agrarian University named after M.M. Djambulatov, Makhachkala, Republic of Dagestan, Russian Federation

ORCID id: not available

Importance The article analyzes the financial capital concept, which is considered as an asset of the organization (financial asset) rather than liabilities, like capital and reserves.
Objectives The aim is to recognize and classify assets of financial capital and its sources.
Methods The methodology of the study on financial capital value creation draws on the hypothesis that the international integrated reporting standard changes its philosophy and methodology of accounting as an economic science, to substantiate which the normative and positive economics and the economic art of integrated thinking were used.
Results We provide a rationale for classification of financial capital (assets) and sources of its creation, suggest and prove the hypothesis of business accounting and integrated reporting aimed at changing the philosophy of accounting and using for this purpose the integrated thinking to develop new approaches in business accounting methodology within the framework of the financial capital concept.
Conclusions Understanding the content and analyzing the concept of financial capital enabled to introduce goodwill to its structure as a market capitalization of a part of financial investment cost, identify processes of transaction costs capitalization when estimating the value of individual types of capitals of the organization.

Keywords: integrated reporting, business accounting, financial capital concept, capitalization, transaction costs


  1. Kogdenko V.G., Mel'nik M.V. [Integrated reporting: Formation and analysis issues]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2014, no. 10, pp. 2–15. URL: (In Russ.)
  2. Sen A. Capability and Well-Being. In: The Quality of Life. Oxford University Press, 1993. URL:
  3. Menger C. Grundsätze der Volkswirthschaftslehre. Erster, Allgemeiner Teil, Vienna, Braumüller, 1871.
  4. Filosofiya ekonomiki. Antologiya [The philosophy of economics. Anthology]. Moscow, Gaidar Institute Publ., 2012, 520 p.
  5. Hendricksen E.S., Van Breda M.F. Teoriya bukhgalterskogo ucheta [Accounting Theory]. Moscow, Finansy i statistika Publ., 1997, 576 p.
  6. Frank R.H. Why Is Cost-Benefit Analysis So Controversial? The Journal of Legal Studies, 2000, vol. 29, iss. S2, pp. 913–930. URL:
  7. Schumpeter J.A. Science and Ideology. The American Economic Review, 1979, vol. 39, iss. 2, pp. 345–359.
  8. Plotnikov V.S., Plotnikova O.V. [Analyzing the theoretical basis of the consolidated financial statements concept]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2016, no. 11, pp. 90–103. URL: (In Russ.)
  9. Palii V.F. [Defining the subject of accounting]. Bukhgalterskii uchet = Accounting, 2012, no. 5, pp. 95–98. (In Russ.)
  10. Coase R.H. The Problem of Social Cost. Journal of Law and Economic, 1960, vol. 3, pp. 1–44.
  11. Hall J.C. Optsiony, f'yuchersy i drugie proizvodnye finansovye instrumenty [Options, Futures and Other Derivatives]. Moscow, Vil'yams Publ., 2008, 1024 p.
  12. Plotnikov V.S., Plotnikova O.V. Uchet finansovykh instrumentov kak faktor obespecheniya dostovernosti informatsii o funktsionirovanii kompanii na rynke: monografiya [Accounting for financial instruments as a factor in ensuring the reliability of information on company functioning on the market: a monograph]. Moscow, FINANSY i KREDIT Publ., 2013, 252 p.
  13. Plotnikov V.S., Plotnikova O.V., Shevchuk A.I. [Assessing the capitalized value of business processes in the analysis of a business combination]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2016, no. 12, pp. 139–152. URL: (In Russ.)
  14. Van Horne J., Wachowicz J.M. Osnovy upravleniya finansami [Fundamentals of Financial Management]. Moscow, Finansy i statistika Publ., 2013, 800 p.
  15. Plotnikov V.S., Plotnikova O.V. [Goodwill as a capitalization of transaction costs of a business combination]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2017, vol. 16, iss. 1, pp. 145–159.(In Russ.) URL:
  16. Sharpe W.F., Alexander G.J., Bailey J.V. Investitsii [Investments]. Moscow, INFRA-M Publ., 2001, 1028 p.
  17. Semernina Yu.V. Obligatsionnoe finansirovanie rossiiskikh khozyaistvuyushchikh sub"ektov: teoriya i metodologiya [Bonded loans to finance Russian economic entities: Theory and methodology: a monograph]. Saratov, Saratov Socio-Economic Institute of Plekhanov Russian University of Economics Publ., 2012, 238 p.

View all articles of issue


ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

Journal current issue

Vol. 21, Iss. 7
July 2018