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Subject and purpose of work: The deliberations undertaken within the article concern identification of the phenomenon of businesses indebtedness in the Polish reality, inseparably linked with the economic security of companies in the contemporary market environment. The aim of this study is to show the interactions occurring between the phenomenon of indebtedness and data on bankruptcy of businesses in Poland, and their interpretation. Materials and methods: The work was elaborated based on the analysis and synthesis of subject literature, statistical data, analysts’ opinions, as well as on research and the author’s own considerations. Results: Discussion on the interdisciplinary approach of the concept of economic security, and the irreversible consequences of its incompetent management. Lead to reflections on the creditor–debtor relations. It shows a change in the mentality and in actions of Polish debtor over the last 20 years; its consequences for companies in the form of bankruptcy/insolvency, and proposals for improvements introduced by the State–level regulations. Conclusion: Regardless of the business in which the company operates, the imposing of uncollected debts on a creditor may threaten their and related entities’ existence. Researches indicate a need for the amendment to restructuring and insolvency law.
The main idea of the paper is to evaluate the state and development of an equity capital of selected agricultural cooperatives in accounting periods from 1997 till 2003. A significant indicator of an economic stability is the equity capital. The nominal value of the equity capital, its structure and portion of the total capital are important information for internal and external users of accounting information. The time comparison of the equity capital development in term of interim indexes refers to increasing or decreasing business property. Information about transactions, which have caused changes in some items of equity, are significant for the users of financial statement to evaluate the entire business performance. The analysis of equity development is one of the priority tasks in the financial analysis realized on the base of financial statement. Assets-financial stability constitutes an ability of an enterprise to create and balance an accurate relation between assets and their financial sources.
The use of borrowed capital in Latvian agricultural holdings of different economic size and type of farming is analyzed, as well as a comparative analysis with Polish agricultural holdings is performed, defining essential specificities of financing activities with equity or loan in each state. The liabilities burden in Latvian field crop and dairy farms is calculated and discussed in detail. For the assessment ratio of the statistical significance of differences between Latvian and Polish agricultural holdings the debt-to-equity and total liabilities per ESU, per 1 ha UAA and 1 LU, a statistical testing is carried out and main conclusions about an impact of the type of farming, the economic size and the chronological factor are formulated.
The rules of agriculture crediting have been considerably changed since 1991, in comparison with the previous years. Agricultural credits became expensive and difficult to obtain. It was connected with a difficult situation of the national budget. In 1993 the budget deficit was equal to PLZ 43-9 bln and limited inflow of funds through banka to agriculture. The debts of agriculture, on a global scale, amounted in 1993 to PLZ 19.3 bln and, in relation to 1992, increased nominally by 10.8%. Short-term operating credits predominated in the debt structure of individual farms. Preferential credits, the funds from which were usually allocated for purchases of fertilizers or plant protection chemicals and sometimes of machinery, were the most common among them. Investment credits constituted 1/4 of the total credit number. Limitation of investment expenditures by farmers was connected with a deficit in their own funds and related to that fact difficulties in obtaining of a credit.
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