ИСТИНА

The paper considers the development of methodological approaches to financial analysis of distressed companies considering certain specifics of emerging economies within framework of sustainable development of global economy. The research explains reasonability of shift from “accounting” approach to “flexible market analysis model” of distressed companies’ at emerging markets and provides concrete methodological approach based on cash flow analysis, comparative interfirm analysis, comprehensive transactions investigation, concerning presence (absence) of distressed company’s intention to continue activity. This approach to financial diagnostics contributes to proactive crisis management and to the transformation of insolvency model from liquidation towards restructuring of distressed business.