FINANCIAL MANAGEMENT PECULIARITIES IN INFLATION CONDITIONS OF URBAN DEVELOPMENT ENTERPRISES

The main features of financial management of urban development enterprises in the conditions of inflation are considered, namely: 1) financial analysis of the enterprise; 2) valuation of the enterprise assets; 3) market value of the enterprise. The main causes of losses of investment projects in the field of urban development are as follows: a) an increase in the duration (time) of construction of an object leads to an increase in the amount of invested funds (mainly due to fixed costs), which burdens the project with an additional risk of changing external conditions of activity; delays the start of its effective operation; leads to the fact that the project becomes burdened with additional negative effects of inflationary factors and, as a result, reduces the efficiency of the project by all estimated indicators The authors prove that during certain periods of inflationary growth in prices for the main types of construction materials, they (prices) can significantly outpace the general inflation index. It is found that if such a period coincides with the peak of the construction cycle of a project, then its efficiency will be significantly reduced, as the required amount of investment increases; c) an increase in the cost of construction and installation works, in turn, leads to negative consequences for project efficiency. The authors show that the use of classical methods of measuring investment efficiency, financial analysis of activities, valuation of assets and market value of urban development enterprises allows to obtain a modified assessment of investment efficiency for complex investment processes. It is proved that in this case it is appropriate to apply the special economic and mathematical models developed in this paper, which take into account, in particular, the specifics of the urban development industry and inflationary factors. The main advantages of using such a model developed in this study are the simultaneous consideration in the model of a large number of requirements, conditions and assumptions, as well as the known freedom to revise these conditions in the course of working with it, compatibility (i. e., absence of contradictions) of the system of indicators obtained by the model, the possibility of obtaining options and algorithms for the behavior of the phenomenon under study for a wide range and combinations of initial conditions and assumptions (for example, options for economic development, the state of the monetary market, etc.