International Accounting

Abstracting and Indexing

Referativny Zhurnal VINITI RAS
Google Scholar

Online available



Cyberleninka (12 month OA embargo)

Economic substance of working capital as an object of accounting and analysis

Vol. 22, Iss. 7, JULY 2019

Received: 5 February 2018

Received in revised form: 12 February 2018

Accepted: 20 February 2018

Available online: 15 July 2019

Subject Heading: SCIENCE REVIEW

JEL Classification: O12, Q01

Pages: 828–842

Savitskaya G.V. Belarus State Economic University (BSEU), Minsk, Republic of Belarus

ORCID id: not available

Gudkova E.A. Belarusian State Agricultural Academy (BSAA), Horki, Mogilev Region, Republic of Belarus

ORCID id: not available

Subject Recently, the concepts of working capital and current assets have been interpreted differently in economic literature. The lack of uniformity in terminology causes a gap in information flows that are generated in the accounting system and required for analysis and efficient financial management. This fact necessitates a deeper examination of their economic nature, substance and content.
Objectives We focus on a comprehensive study of problematic issues related to defining the economic substance of working capital based on its key parameters.
Methods Works of domestic and foreign economists on finance and capital management serve as a theoretical and methodological framework for the study. We employ historical approach, general and special methods of analysis, synthesis and analogies.
Results In the paper, we present our own position on defining the economic substance of current assets and working capital categories, their content and identification.
Conclusions The offered approach may contribute to further development of methods of financial analysis and serve as a methodological guidance for business entities to exercise control and make business decisions in their management of working capital.

Keywords: current assets, working capital, investment value, turnover, capital cycle


  1. Blank I.A. Upravlenie aktivami [Asset management]. Kiev, Nika-Tsentr Publ., El'ga Publ., 2002, 720 p.
  2. Marx K., Engels F. Polnoe sobranie sochinenii: v 39 t. T. 24 [Complete works: in 39 volumes, vol. 24]. Moscow, Izdatel'stvo politicheskoi literatury Publ., 1955–1974.
  3. Heyne P. Ekonomicheskii obraz myshleniya [The Economic Way of Thinking]. Moscow, Catallaxy Publ., 1993, 704 p.
  4. Anthony R.N. Osnovy bukhgalterskogo ucheta [Fundamentals of Management Accounting]. Moscow, Triada NTT Publ., 1992, 320 p.
  5. Savitskaya G.V. Analiz effektivnosti i riskov predprinimatel'skoi deyatel'nosti: metodologicheskie aspekty [Analysis of efficiency and risks of business activity: methodological aspects]. Moscow, INFRA-M Publ., 2008, 272 p.
  6. Marx K. Kapital: kritika politicheskoi ekonomii [Das Kapital. Kritik der politischen Ökonomie]. Moscow, Gospolitizdat Publ., 1953, vol. 2, 530 p.
  7. Veretennikova O.B., Laenko O.A. [Companies' working capital and its classification]. Vestnik Omskogo universiteta. Ser.: Ekonomika = Herald of Omsk University. Series Economics, 2012, no. 2, pp. 178–183. (In Russ.)
  8. Popov E.M. [Financial and credit mechanism of current assets formation and use (problems of theory and practice)]. Bukhgalterskii uchet i analiz = Accounting and Analysis, 2001, no. 5, pp. 42–44. (In Russ.)
  9. Dombrovskaya E.N. [Classification of enterprise's capital]. Веснік Віцебскага дзяржаўнага ўніверсітэта, 2000, no. 4, pp. 10–15. (In Russ.)
  10. Walsh C. Klyuchevye pokazateli menedzhmenta. Kak analizirovat', sravnivat' i kontrolirovat' dannye, opredelyayushchie stoimost' kompanii [Key Management Ratios: How to Analyze, Compare and Control the Figures That Drive Company Value]. Moscow, Delo Publ., 2000, 360 p.
  11. Myddelton D. Bukhgalterskii uchet i prinyatie finansovykh reshenii [Accounting and Financial Decisions]. Moscow, Audit, YUNITI Publ., 1997, 408 p.
  12. Marshall A. Printsipy politicheskoi ekonomii: v 3 t [Principles of Economics: in 3 volumes]. Moscow, Progress Publ., 1983, vol. 1, 416 p.
  13. Hicks J.R. Stoimost' i kapital [Value and Capital]. Moscow, Progress Publ., 1988, 488 p.
  14. Clark J.B. Raspredelenie bogatstva [The Distribution of Wealth: A Theory of Wages, Interest and Profits]. Leningrad, Ogiz, 1934, 299 p.
  15. Blank I.A. Upravlenie ispol'zovaniem kapitala [Management of capital utilization]. Kiev, Nika-Tsentr, El'ga Publ., 2000, 651 p.
  16. Gudkova E.A., Gudkov S.V. Sovershenstvovanie uchetno-analiticheskogo instrumentariya v sisteme upravleniya oborotnymi aktivami sel'skokhozyaistvennykh organizatsii [Improving the accounting and analytical tools in the system of current assets management of agricultural organizations]. Minsk, Institute of System Researches in Agroindustrial Complex of NAS of Belarus Publ., 2009, 164 p.
  17. Malyavkina L.I., Karpycheva E.Yu. [Circulating assets: Research theoretical bases]. Vestnik OrelGIET = OrelGIET Bulletin, 2013, no. 3, pp. 110–117. (In Russ.)
  18. Danilina E.I. [Development of methodological framework for assessing the working capital reproduction]. Mikroekonomika = Microeconomics, 2009, no. 2, pp. 93–96. (In Russ.)

View all articles of issue


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

Journal current issue

Vol. 22, Iss. 12
December 2019