Issued since 1995
Welcome to the Finance of Ukraine site (demo).
Login | Register
ACADEMY
OF FINANCIAL
MANAGEMENT
.


№ 6/2020

№ 6/2020

Fìnansi Ukr. 2020 (6): 75–92
https://doi.org/10.33763/finukr2020.06.075

ACCOUNTING AND AUDIT

LOVINSKA Ljudmyla 1

1Kyiv National Economic University named after Vadym Hetman
OrcID ID : https://orcid.org/0000-0001-5427-7185


International standards in accounting system of Ukrainian state-owned enterprises


The article is devoted to the study of regulation and features of activities of large state-owned enterprises (SOEs) as entities that according to the Law of Ukraine “On Accounting and Financial Reporting in Ukraine” defined as public interest entities. This provision obligates SOEs to run accounting and prepare the financial reporting in accordance with international standards. The objective of this study is to scientifically substantiate the necessity of measures, aimed at removing the obstacles to the imple­mentation of IFRS and ensuring the development of accounting based on their provisions as a function of Ukrainian SOEs’ management. To achieve this goal, there has been presented a scientific and analytical justification for improving the methodology and organization of accounting and reporting of SOEs of Ukraine in the context of the IFRS implementation, ways of implementing IFRS to the national regulatory framework and economic support of SOEs’ activities, as a necessary prerequisite for the formation of a unified state policy in the area of methodology and organization of accounting and reporting. In the article the nature of inconsistencies between IFRS and current Ukrainian legislation, the positive and negative impact of the application of accounting methodology for the development of financial mechanisms of state regulation are disclosed. The expediency of studying the possibility and conditions of application of the physical capital maintenance concept in accounting and financial reporting of SOEs is shown.. The hypothesis is proven: for the successful implementation of IFRS by SOEs it is necessary to develop for SOEs a concept of accounting and reporting in compliance with IFRS. This will determine the format of IFRS application (full application or with certain restrictions) and would be the basis for developing the relevant amendments to the current legislation. General scientific methods (induction, deduction, analysis and synthesis), as well as methods of comparison, expert assessments, associations and analogies were used for the purpose of the study.

Keywords:state-owned enterprises, accounting, financial reporting, international financial reporting standards, capital maintenance concept

JEL: M42, M48


Lovinska L. . International standards in accounting system of Ukrainian state-owned enterprises / L. . Lovinska // Фінанси України. - 2020. - № 6. - C. 75-92.

Article original in Ukrainian (pp. 75 - 92) DownloadDownloads :245
1. Verkhovna Rada of Ukraine. (1999). On accounting and financial reporting in Ukraine. (Law No. 996-XIV, July 16). Retrieved from zakon.rada.gov.ua/laws/show/996-14 [in Ukrainian].
2. IASB. (2010). Conceptual basis of financial reporting. Retrieved from zakon.rada.gov.ua/laws/show/929_009 [in Ukrainian].
3. Ministry of Economic Development, Trade and Agriculture of Ukraine. (n. d.). Basic principles of implementation of property policy in relation to economic entities of the
public sector of the economy. Retrieved from www.me.gov.ua/Documents/MoreDetails?
lang=uk-UA&id=f9b47f2c-50ae-41b3-abea-117ff9c4fab8&title=PrezentatsiiniMateriali [in Ukrainian].
4. International Federation of Accountants. (2019). Handbook of International Public Sector Accounting Pronouncements, 1. Retrieved from www.ifac.org/system/files/publications/files/IPSASB-HandBook-2019_Volume-1_Locked_0.pdf.
5. Cabinet of Ministers of Ukraine. (2019). Program of activities of the Cabinet of Ministers of Ukraine (Decree No. 849, September 29). Retrieved from www.kmu.gov.ua/ua/npas/pro-zatverdzhennya-programi-diyalnosti-kabinetu-ministriv-ukrayini-849290919 [in Ukrainian].
6. World Bank Group. (2018, December 20). Approach Paper. World Bank Group Support for the Reform of State-Owned Enterprises, 2007–2018: An IEG Evaluation. Retrieved from documents.worldbank.org/curated/en/107181548340490150/pdf/133958-WP-PUBLIC.pdf.
7. Bance, P., & Gabriel, O. (2015). Serving the general interest with public enterprises - new formsof governance and trends in ownership. Annals of Public and Cooperative Economics. Wiley.doi.org/10.1111/apce.12101
8. Büge, M., Egeland, M., Kowalski, P., & Sztajerowska M. (2013, May 2). State-owned enterprises in the global economy: Reason for concern? VOX CEPR Policy Portal. Retrieved from voxeu.org/article/state-owned-enterprises-global-economy-reason-concern.
9. Moreno, E., & de Acevedo, S. (2016). State-owned Enterprise Management. Advantages of Centralized Models. Retrieved from publications.iadb.org/.../document/State-owned-Enter.
10. IMF. (2014). Financial and fiscal discipline to state-owned enterprises Corporate Governance of State-Owned Enterprises. Retrieved from www.hvtc.edu.vn/Portals/0/files/636074805029040178Financialand FiscalDiscipline.pdf.
11. Grossi, G., Papenfuß, U., & Tremblay, V.-S. (2015, November). Corporate governance and accountability of state-owned enterprises: Relevance for science and society and interdisciplinary research perspectives. International Journal of Public Sector Management, 274–285. doi.org/10.1108/IJPSM-09-2015-0166
12. Gasanov, S, Ivanytska, O, & Koschuk, T. (2015). Directions of financial stability improvement of state-owned enterprises in Ukraine. Finance of Ukraine, 12, 48–62 [in Ukrainian].
13. Tereshhenko, O., & Pavlovskyi, S. (2016). Improving financial mechanism of crisis management. Finance of Ukraine, 6, 108–123 [in Ukrainian].
14. Ivanytska, O, & Koschuk, T. (2017). Fiscal risks management related to activities of state enterprises in Ukraine. Finance of Ukraine, 2, 64–80. doi.org/10.33763/finukr2017.02.012
15. Ivanytska, O, & Koschuk, T. (2017). Preconditions and ways of increasing transparency of public finance enterprises of Ukraine. Finance of Ukraine, 5, 24–38. doi.org/10.33763/finukr2017.05.024
16. Holov, S. F., & Kostiuchenko, V. M., & Kuzina, R. V. (2018). Integrated reporting: concept, methodology and organization. Kherson: Helvetyka [in Ukrainian].
17. Ievdokymov, V. V., & Legenchyk, S. F. (2017). Multivariate accounting in international financial reporting standards. Problems of theory and methodology of accounting, control and analysis, 1 (36), 25–35. doi.org/10.26642/pbo-2017-1(36)-25-35
18. Kuzina, R. V. (2015). Regulatory basis of the implementation of IFRS in Ukraine. Socio-Economic Research Bulletin, 1 (56), 221–228 [in Ukrainian].
19. Ozeran, A. V. (2015). Theory and methodology of formation of financial statements of enterprises. Kyiv: KNEU [in Ukrainian].
20. Kutsyk, P. O. (2017). The concept of a unified system of accounting and reporting in corporate governance. Lviv: LTEU [in Ukrainian].
21. Koriahin, M. V., & Kutsyk, P. O. (2016). Problems and prospects for the development of accounting. Kyiv: Interservis. [in Ukrainian].
22. Pylypenko, L. M. (2016). Development of concepts for building a public reporting system in a post-industrial economy. Lviv: Lviv Polytechnic Publishing House [in Ukrainian].
23. Kuzina, R. V. (2015). Corporate accounting and reporting in Ukraine: current status and prospects. Kherson: Hrin D. S. [in Ukrainian].
24. Tsaruk, V. Iu. (2019). Transparency of financial statements prepared under IFRS as an instrument of anti-corruption activity in Ukraine. Problems of Theory and Methodology of Accounting, Control and Analysis, 1 (42), 104–109 [in Ukrainian].
25. Zasadnyi, B. A. (2018). Development of accounting and internal control of enterprises in terms of application of IFRS. Kyiv: Kondor [in Ukrainian].
26. Zolotnytska, Yu. V. (2017). Accounting Policy of Entities of Public Interest in the Terms of Reforming the Accounting System. Accounting and Finance, 4 (78), 28–32 [in Ukrainian].
27. Levytska, S. O. (2019). Accounting as a creative and creative information basis of modern management. Accounting and analytical support of business entities in the context of European integration, 83–92. Rivne: NUVHP [in Ukrainian].
28. Iefymenko, T., & Lovinska, L. (2019). Entity Reporting on the Contribution Towards the Attainment of Sustainable Development Goals: Counteractions to Information Asymmetry. The International journal on Governmental Financial Management, XIX (1), 49–58. Retrieved from www.icgfm.org/wp-content/uploads/2019/05/XIX-1.pdf.
29. Lovinska, L. (2019). Information asymmetry in a globalized economy and ways to overcome it. Finance of Ukraine, 2, 20–42. doi.org/10.33763/finukr2019.02.020
30. Hnylytska, L. V. (2016). Modern approaches to quintessence of public accounting of enterprise in context of economical safety providing. Problems of Theory and Methodology of Accounting, Control and Analysis, 1 (34), 48–65 [in Ukrainian].
31. Hnylytska, L. (2016). Improving the method of calculating the cost of air services in order to increase the efficiency of Ukrainian airlines. Independent Auditor, 16, 5–11 [in Ukrainian].
32. Ministry of Finance of Ukraine. (2006). Regulations on the order of accounting of separate assets and operations of the enterprises of the state, municipal sectors of economy and the economic organizations which own and/or use objects of the state, municipal property (Order No. 1213, December 19). Retrieved from search.ligazakon.ua/l_doc2.nsf/link1/RE13237.html [in Ukrainian].
33. Bilousova, O. S. (2017). State regulation of monopoly enterprises’ tariff policy. Scientific Notes of Ostroh Academy National University, "Economics" series, 5 (33), 79–83. doi.org/10.25264/2311-5149-2017-5(33)-79-83
34. Cabinet of Ministers of Ukraine. (1999). About conditions and sizes of payment of work of heads of the enterprises based on the state, municipal property, and associations of the state enterprises (Decree No. 859, May 19). Retrieved from zakon.rada.gov.ua/laws/show/859-99-%D0%BF/print [in Ukrainian].
35. OECD. (2015). OECD Guidelines on Corporate Governance of State-Owned Enterprises. Paris: OECD Publishing. doi.org/10.1787/9789264239944-en
36. Lovinska, L. (2006). Valuation in accounting. Kyiv: KNEU [in Ukrainian].
37. Yaremko, I. Yi. Economic categories in accounting methodology. Lviv: Kameniar [in Ukrainian].
38. Verkhovna Rada of Ukraine. (2017). On Amendments to the Law of Ukraine “On Accounting and Financial Reporting in Ukraine” to Improve Certain Provisions (Law No. 2164-VIII, October 5). Retrieved from zakon.rada.gov.ua/laws/show/2164-19/sp:wide#n51 [in Ukrainian].