ANALYSIS OF ENTERPRISE’S INCOME IN THE CONTEXT OF THE POST COVID-19 RECOVERY OF ECONOMIC AND SOCIAL SYSTEMS (METHODS AND METHODOLOGY FOR ANALYSIS)

Abstract

Enterprises’ income is a key object of both accounting and financial and business analysis, and in particular, of the analysis of the financial statements. The issue of income is relevant at all stages and phases of the enterprises’ development and business. The importance and relevance of this issue is determined by the significance of the income and of changes that occur in its amount, with regard to the formation and dynamics of both the absolute indicators (financial performance) and the relative indicators (income effectiveness and return) that define the effectiveness of the enterprises’ business and their positioning on the competitive and dynamic market characterised by certain level of entropy.
The object reviewed in this publication refers to the going concern in Bulgaria operating in the field of public services – organization and provision of cultural, scientific, educational, congress, conference, information, political and other various types of public services. The owner of the enterprise’s capital is the state represented by the Minister of culture of Bulgaria.
The subject of this study covers the enterprise’s income and the methods for its analysis. Enterprise’s income for the period 2019 – 2021 is analysed. The interest to the question of enterprise’s income is due to the fact that at the beginning of 2020 a number of measures have been implemented in the country and state of emergency, and later on – epidemiologic emergency, were in place for some time, due to the spread of the coronavirus and the announced global Covid-19 pandemic. In 2020, the enterprise has almost fully discontinued its business with view of the restrictive measures undertaken by the Bulgarian government due to the spread of Covid-19. As a result, the main functional and administrative indicators that characterise the enterprise’s specific business – namely, the provision of services in public benefit, have been deteriorated. Covid-19 affected the enterprise’s income gained form the provision of cultural, conference, congress, and other entertainment public services most.
The author’s objective here is to analyse the impact of the health, economic and social crises caused by the Covid-19 on the amount, structure, and dynamics of income for the analysed period. The author has the task to improve the methods for analysis of enterprise’s income. The resultative analytical information is useful for the enterprise’s management allowing it to make informed, timely, and appropriate operational and strategic decisions for overcoming the consequences of the Covid-19 crises and continuing the enterprise’s business.