Yukhymenko-Nazaruk I. Financial Accounting and Analysis of Venture Activity

The thesis is aimed at solving methodological problems and giving organizational and practical recommendations for the creation of the accounting and analytical system providing management and analysis of venture activities carried out by venture capital companies and recipients of venture capital in order to meet the information requirements of management in relation to the implementation of the technical and social and economic effect of operations connected to venture capital. The thesis studies the mechanism of interaction among companies participating in venture operations: venture capital companies, venture funds and companies managing venture capital as well as outlines specific objects for venture capital accounting and analysis that ensure reliable information of venture companies for taking managerial decisions. The accounting aspect of forms of venture financing is considered and factors influencing the organization of the accounting system at the level of the venture company are formulated and cost groups inherent in the life cycle stages of venture capital companies are defined. The system of managerial reports of venture capital operations is developed. Its main feature is in the fact that reports are prepared by departments that are centers of responsibility instead of financial accounting departments. The organizational structure of centers of responsibility at venture capital companies that defines the rights and responsibilities of the structural units and indicates the place of origin and flows of information in the managerial reporting system is offered. The essence of venture investment as an object of financial accounting for venture capital operations is found. Improvements of the methodology of accounting for venture investing are revealed. The conceptual and logical model of venture investing with specific features is developed. The model shows the economic nature of venture investments, which helps the accounting system in the identification of venture investments and their clear classification in order to choose the method of evaluation and determination of accounts for their accounting. To determine the methodology of accounting for venture capital investments, based on the application of the system approach, the stages of capital investing are identified. The costs inherent in these stages and the revenues resulting from such activities are explored. Their general characteristics are given and the accounts for their registration, as well as supporting documents, are shown. Work plan of accounts in order to account for income and expenses from the venture capital investments made by investment funds is developed. A consolidated report of income, expenses and financial results from venture capital investments is prepared. The system of accounting for venture capital investments in order to record various types of venture investments within one account is offered. The system provides a simpler and more complete display of information of venture capital investments made by venture funds. A register of analytical accounting for venture capital investments made by venture funds is added, which allows reading and analyzing economic data for different types of investments. The form of financial report is improved, which helps venture capital funds report expanded information of venture capital investments in a balance sheet