SMALL BUSINESS SUPPORT POLICY IN LATVIA

Economic growth is the important factor for improving competitiveness and to ensure the availability of financial resources at all stages of business development. The authors explore European Union activities to promote the development of small and medium enterprises, the Latvian business environment, the regulatory framework, the accounting regulatory framework for small and medium enterprises. The research study included an assessment of the business environment in the international context for the years 2010 – 2016, national support programmes providing financial resources, their availability and tax policy guidelines for small and medium enterprises. The research study results are summarized in a number of conclusions, and recommendations have been developed. Research methodology is based on the analysis of laws and regulations, statistical data and economic and scientific literature studies. 

ACCOUNTING POLICY OF INTERNALLY GENERATED INTANGIBLE ASSETS: CURRENT CASE AND FUTURE DIRECTIONS

In modern business particular attention is paid to the use of intangible assets; the companies purchase them from other persons and also generate themselves: they launch and subsequently produce new or improved products and services (research and development) and ensure the protection of intellectually intensive products (patents, trademarks, computer software etc.). The aim of the research is to perform the comparative analysis of accounting policy adopted internationally and in Latvia regarding the internally generated intangible assets and to develop suggestions for its improvement. Having studied the documents regulating the accounting and specialized literature, the authors draw a conclusion that the most significant differences could be observed in the USA practice. At the end of research, the authors have developed suggestions for the improvement of internally generated intangible assets accounting policy

The methodology of the statement of comprehensive income and its impact on profitability: the case of Latvia

International audienceThe financial statements of a company are used by external users as the main source of information in order to take financially informed decisions. The author of the article has summarized the study on one of the financial statements-a statement of comprehensive income (CI statement) that enables creditors and investors to assess the process of the formation of company's profit and profitability. Purpose: on the basis of the study of the specificity of the preparation of the statement of comprehensive income to analyze and evaluate the influence of CI statement items on the profitability of Latvian companies. In order to achieve the purpose, the author has structured the research in two parts. In the first part of the article the author describes the theoretical framework of the core, type and content of CI statement and describes the components of other comprehensive income. In the second part of the article the author has analyzed the methodology for the preparation of CI statement at Latvian companies and impact of other comprehensive income on profitability. The subject of research was a sample of 26 financial statements of Latvian companies. The author applied quantitative and qualitative research methods generally accepted in economics: classification, comparative analysis and synthesis, statistical methods. The essence of research findings is that the core of items of CI statement and the division into the reclassified and not reclassified items of other comprehensive income (OCI) are important for the company`s financial result-evaluation of profit. Research showed that most of Latvian companies under research were influenced by reclassified items; besides, positively influenced-profitability ratios of ROE and ROA. The author believes that, when evaluating the profitability of assets and the equity of the company, the financial analysts shall take into account the reclassified items of OCI, and the calculations shall be performed using the modifications of ROE and ROA formulas