Application of Actuarial Calculations When Building a Report on Company's Financial Position

(ProQuest: . denotes formulae omitted.)INTRODUCTIONThe exact origin of the term "actuary" is not currently defined. It is believed that it came from the Latin "actuaries", and meant verbatim clerk, registrar, otherwise the post of person recording the meetings of the Senate in ancient Rome (J.Richard, 2000). In the middle ages, the clerks, who led the proceedings of the courts and recorded decisions made by the Court, were called actuaries. Over time, the term has lost the Secretary meaning and since the end of the XVIII-th century the post of actuary was inextricably linked with insurance. The historical roots of modern interpretation of this notion can be traced back to 1762, when the society of fair life insurance and survival was established in the United Kingdom. Further development of profession of actuary was connected with development of insurance as both science and profession. In the early XIX-th century in the United Kingdom at the legislative level, there was defined the duty of insurance societies to testify authenticity of calculations in the tables of payments and rules, on the basis of which these calculations were made, by the opinion of at least two professional actuaries or other professionals. As noted by James Hickman (2), in the XIX-th century, accountants, as well as actuaries, ensured the interests of creditors in assessing the changes in ability to pay and emerging threats of bankruptcies of commercial organizations. In the base of actuarial calculations there are mathematical models, which can make financial forecasts for short and long term, taking into account the possible risks.THEORYIn the base of actuarial evaluation there is formation of actuarial assumptions and determination of the basis used for the purposes of such assessment. Typical components of actuarial basis are:-actuarial rates (discounting, anticipated growth of pensions and wages, etc.);-models of dismissals (decrements), for example, models of death, retirement, dismissal of workers.The actuarial rates are typically based on peer reviews. So, the Western actuarial companies recommend in determining discount rates to be oriented on the yield of long-term bonds (public or corporate with the highest reliability rating) (Aletkin P.A., 2014; Richard N. Cooper, 2010). In addition, the macroeconomic forecasts are taken into account, for example, inflation rate and average duration of discounted obligations.The construction of such a balance will determine the real cost of any enterprise as a property complex.We believe that in order to get the most accurate picture of property situation and financial results of activities of the enterprise and its economic value it is necessary to carry out the appropriate data corrections of accounting (financial) reporting and seek the solution of evaluation problem of the enterprise as a property complex in making the actuarial balance. As it is shown by analysis of existing methods for assessing the economic value of the company (Kulikova L.I., Goshunova A.V., 2014), such corrections are diverse in nature and can be applied both for assessing the value of the property and for the purpose of integrated assessment of efficiency and profitability of the company's activities.Thus, the objective of actuarial accounting is to determine the market value of the company. In actuarial accounting, the interests of potential and current investors are expressed. The concept of actuarial accounting was singled out as a separate balance theory from the static concept, the founder of which is Henry Nicklish. However, actuarial accounting does not imply a return to the static and is not only the assessment of the company's assets to cover the debts. In terms of actuarial accounting instead of cost accounting comes the accounting at fair value. In this case the actuarial accounting system is expected to determine the value of the company under condition of its sale or purchase as a property complex to attract new investors. …