Capital Investment Risks: Assessment Methods and Minimization Directions

Relevance. In today’s world of digital economy, capital investments are the element of paramount importance for successful functioning of enterprises. Regular capital investments inspire the interest of investors and partners in the activities of the companies, and this in turn can contribute to the growing financial independence of the company and increase the company’s competitive advantage in the market. Due to the fact, that capital investments are closely related to long-term investments in the company’s activities and its stable development, their accurate and reliable accounting is an important component in ensuring its economic security. By making capital investments in the modernisation of its own assets, in modern innovations, the entity increases its defiance to various external threats. Besides, the use of digital tools in their accounting allows reducing risks and strengthening the efficiency of their management. The objective of the given research is to analyse the existing methodology of capital investment accounting, identify typical risks arising at various stages of the investment cycle and recommend effective IT-tools for identification, assessment and minimisation of these risks. The methodological framework covers accounting theory as well as risk assessment and mitigation strategies in the digitalization era. The results of the study highlight the peculiarities of capital investment accounting and represent a holistic system of risk assessment arising in the context of investment activity and introduction of information technologies. This creates an opportunity for the implementation of an integrated approach to managing the economic security of the organisation in the process of capital investment accounting and contributes to the creation of conditions for its sustainable development.

1. Kuznetsova E.I., Filatova I.V. The role of investments in management of economic safety of an economic entity. Vestnik of Moscow University of the Ministry of Internal Affairs of Russia. 2019;(2):227–229. (In Russ.). DOI: 10.24411/2073-0454-2019-10108

2. Vasilyeva L.P., Safonova, N.R. Investment projects of organizations and their economic security. Business. Education. Law. 2019;1(46):127–131. (In Russ.). DOI: 10.25683/VOLBI.2019.46.154

3. Bunina A.Yu., Pavlyuchenko T.N. Capital investment accounting reform. Nauchno-metodicheskii ehlektronnyi zhurnal “Kontsept” = Scientific and methodological electronic journal “Concept”. 2021;3:108–118. (In Russ.). DOI: 10.24412/2304–120X‑2021–13004

4. Medvedeva N.V. On the concept of capital investments in Russian financial law. Academic Law Journal. 2023;24(3):421–427. (In Russ.). DOI: 10.17150/1819–0928.2023.24(3).421–427

5. Druzhilovskaya T. Yu., Druzhilovskaya E.S. FAS 6/2020: Resolved issues of accounting for property, plant and equipment and ongoing controversial aspects. Uchet. Analiz. Audit = Accounting. Analysis. Audit. 2021;8(1):48–61. (In Russ.). DOI:10.26794/2408-9303-2021-8-1-48-61

6. Demyanenko E. Yu. Estimated liabilities in the Russian and international standards. Collection of scientific articles based on the materials of the scientific and practical conference of faculty, graduate students and young scientists: Theory and practice of applying international financial Reporting Standards. Rostov-on-Don: Rostov State University of Economics; 2016:14–17. (In Russ.).

7. Popov A. Yu., Shutova T.V. Innovations in accounting for capital investments. Theoretical and Applied Economics. 2022;1:40–49. (In Russ.). DOI: 10.25136/2409–8647.2022.1.35271

8. Penner J.W., Kreuze J.G., Langsam S.A. Instructors’ notes: Impairment analysis: Comparison of impairment of longlived assets between US GAAP and IFRS. Journal of the International Academy for Case Studies. 2016;22(2):90–100.

9. Demyanenko E. Yu., Smertina E.N., Popova M.M. Uncertainty and risk in asset valuation in accounting statements in accordance with IFRS. Collection of the international scientific and practical conference: Current trends in the development of accounting, analysis, auditing and statistics in domestic and foreign practice. Under the general editorship of E.N. Makarenko. Rostov-on-Don: Rostov State University of Economics; 2021:29–33 (In Russ.).

10. Sharovatova E.A., Omelchenko I.A., Scherbakova E.P., Martirosyan T.R., Demyanenko E. Yu. The Role of accounting for the innovation-oriented organizations in digital economy. International Journal of Economics and Business Administration. 2019;7(s1):379–392.

11. Vakhrusheva O.B., Khakhonova N.N. Financial control of the economic entities investing activities. Vestnik professional’nyh buhgalterov = Bulletin for Professional Accountants. 2023;2:42–48. (In Russ.). DOI: 10.51760/2308-9407_2023_2_42

12. Krygina, I.E. Ensuring the economic security of business projects at risk. Vektor ehkonomiki = Vector Economy. 2018;11:1–8. (In Russ.).

13. Tkachenko A.L., Sheveleva O.G. Risk assessment in investment project. Omsk Scientific Bulletin. Series Society. History. Modernity. 2019;4(2):140–145. (In Russ.). DOI: 10.25206/2542-0488-2019-4-2-140-145.

14. Minasyan V.B. Risk assessment models of the companies implementing R&D projects. Finance: theory and practice. 2019;23(1):133–146. (In Russ.). DOI: 10.26794/2587-5671-2019-23-1-133-146

15. Arrow K. Essays in the theory of risk bearing. Chicago; 1971. 75 p.

16. Vitova V.P., Bakalskaya E.V. Financial risks in ensuring the economic security of the enterprise. Alley of Science. 2021;3(54):251–254. (In Russ.).

17. Fedorets A.G. Qualitative and quantitative methods for assessing the magnitude of risk. Bezopasnost’ i okhrana truda = Occupational safety and health. 2021;4(89):24–32. (In Russ.). DOI: 10.54904/52952_2021_4_24

18. Vlasov D.A., Gabrielov A.O. A system of key indicators enabling the forecasting of changes in the capital costs of a construction project. Vestnik MGSU. 2021;16(2):220–241. (In Russ.). DOI: 10.22227/1997–0935.2021.2.220–241

19. Garifova L.F. Infonomics and the value of information in the digital economy. Procedia Economicsand Finance. 2015;23:738–743. URL: https://www.sciencedirect.com/science/article/pii/S2212567115004232

20. Malofeev S.N., Kulemina T.N. The potential for the use of artificial intelligence in the investment activities of industrial enterprises. Journal of Altai Academy of Economics and Law. 2024;4(3):460–465. (In Russ.). DOI: 10.17513/vaael.3447

21. Luger G.F. Artificial Intelligence: Structures and Strategies for Complex Problem Solving. Pearson: Addison Wesley; 2011. 784 p.

22. Flach P. Machine learning. The science and art of building algorithms that extract knowledge from data. Cambridge University Press; 2012. 416 p.