№ 2/2022

Fìnansi Ukr. 2022 (2): 117–132https://doi.org/10.33763/finukr2022.02.117

ACCOUNTING AND AUDIT

NEBYLTSOVA Oksana ¹, KORSHYKOVA Renata ²

¹SHEE “Kyiv National Economic University named after Vadym Hetman”
OrcID ID : https://orcid.org/0000-0002-8931-2021
²SHEE “Kyiv National Economic University named after Vadym Hetman”
OrcID ID : https://orcid.org/0000-0002-1367-2450

IFRS applied by public sector entities: legislative regulation of property, plant and equipment transactions

The article is dedicated to the issues of IFRS applied by public sector entities related to property, plant and equipment use as regard to their recognition, depreciation and derecognition. Specifying the general issue, our attention was focused on a certain range of aspects which are acquiring more and more importance in the activity of such kind of economic entities at both conceptual and action-oriented levels. A special consideration is given to some most challenging issues. Primarily, professional judgments implementation was required with the aim to select and apply accounting policy for assets obtained by state enterprises under the rights of economic management and permanent use which are specific legal regimes in post-Soviet countries. In its turn, it’s necessary to walk a line between IFRS and legislative acts of Ukraine’s requirements for addressing another issue concerning physically damaged, obsolescent, inoperable as a result of force-major without economic sense of recovery non-current assets derecognition. By means of applying a comparative analysis methodology, key differences regarding requirements towards depreciation policy of IAS 16 rules and National Accounting Standards 7 are discovered as well as its application by some public sector entities. It is discursive key components of property, plant and equipment depreciation policy with variable part which is being chosen voluntary by enterprise, namely, a depreciation method, useful life as well as salvage value. Having discovered the essence as well as advantages and disadvantages of key depreciation methods introduced by the above mentioned IAS, the dominant trends are revealed not just in Ukraine but in other countries including economically developed ones regarding, in particular, accelerated depreciation. Such kind of methods can be applied as an instrument of the state policy in the field of property, plant and equipment administration with the aim to accelerate their renovation and improve efficiency of performance . For further development above mentioned aspects, the consolidated approach in respect to property, plant and equipment decommission due to maintenance, modernization, modification, reconstruction or conservation through the prism of IFRS provisions and imperative rules of tax legislation of Ukraine is presented.

Keywords:IFRS, property, plant and equipment, public sector entities, depreciation policy

JEL: M41, M48

NEBYLTSOVA O. . IFRS applied by public sector entities: legislative regulation of property, plant and equipment transactions / O. . NEBYLTSOVA, R. Korshykova // Фінанси України. - 2022. - № 2. - C. 117-132.

Article original in Ukrainian (pp. 117 - 132)

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