Improving Capital Structure

In the analysis of financial statements, the amount and structure of equity is an extremely important category that stakeholders use in the process of evaluating the going concern assumption sustainability. The existence of fair value in accounting regulation is conceived as a corrective to fluctuations in the value of certain assets. However, when considering its characteristics, fair value has inherent inability of establishing stable measures which would contribute to the standardization of this category. It is precisely this mentioned inability that paves the way for manipulation using asset revaluation. Therefore, when conducting a financial analysis of the business operations of a company, share of revaluation reserves and other positions in the capital structure of the company should be explored. Statistical analysis of financial data will be carried out on the sample of companies that are listed on the Zagreb Stock Exchange.