Abstract:

Оn the one hand bankruptcy is an integral part of economy based on market competition. On the other hand, leadership of each company strives to avoid it. There are a lot of well-known bankruptcy prediction models based on financial statement analysis. However, small business in Russia has features that have an impact on accounting standard. This leads to the fact that famous models are not working sometimes. Along with that, since 1970, scientists have  paid much attention to the development of models rather than researching their applicability.