INVESTMENT COMPONENT OF FINANCIAL CONTROL IN THE AGRICULTURAL SECTOR: PROBLEMS OF ASSESSING IT IN TIME

Abstract

The article considers the theoretical aspects of the problem of assessing the investment component of financial controlling of an agricultural enterprise over time. The purpose of the study is to analyse the theory of the structure of interest rates, as well as methods of taking into account inflation and interest risks, which, along with other factors, affect the structure of interest rates and the yield curve, and therefore the cost of investments of agricultural enterprises. To achieve this goal, the issue of assessing the time value of investments, types of interest rate structures depending on the term of investments and their impact on investment profitability are analysed. Interest rates are the basis of the mechanism for distributing capital in agricultural business, while the prices of each type of capital (interest rates for debt and dividends and capital gains for equity) change with economic cycles. It is established that investment management requires regular financial and economic calculations related to cash flows in different periods. The key role in these calculations belongs to the concept of the time value of money. According to this theory, the value of cash flows changes over time depending on the required rate of return on the financial market. In addition to inflationary expectations and preferences for liquidity, as well as psychological factors, the general level of interest rates and the shape of the yield curve are influenced by macroeconomic factors determined by monetary, budgetary, structural and international policies. The listed factors are the object of analysis of the investment component of financial controlling of an agricultural enterprise. The need to include mechanisms for minimizing industry and inflation risks in the investment component of financial controlling of an agricultural enterprise has been established. Analysis of the problem of assessing the investment component of financial controlling of an agricultural enterprise over time allows the development of adaptive financial planning models that take into account the unevenness of cash flows in agribusiness during the investment period due to inflation, industry and other risks.