№ 10/2022

Fìnansi Ukr. 2022 (10): 103–114https://doi.org/10.33763/finukr2022.10.103

ACCOUNTING AND REPORTING

LARIKOVA Tetyana ¹

¹SHEE “Kyiv National Economic University named after Vadym Hetman”
OrcID ID : https://orcid.org/0000-0001-6064-2441

Peculiarities of preparation of financial statements by managers of budget funds under martial law

Introduction. As a result of full-scale Russian aggression, a significant number of managers of budget funds as part of the public sector suffered colossal losses. As of September 2022, according to verification by the World Bank and the Ministry of Community and Territorial Development, losses from damage and destruction of material assets since the beginning of hostilities were estimated at 105 billion dollars. USA. Financial reporting as an information base for making strategic management decisions should reflect reliable data on the amount of damages and losses caused by each manager of budget funds in order to quickly restore them.
Problem Statement. Martial law in Ukraine is recognized as an extraordinary event for economic entities - managers of budget funds. The recognition of these events has a direct and significant impact on the financial statements. It is extremely necessary to display reliable information on the amount of damages and losses that affected changes in the financial status, financial results and equity of managers of budget funds, establishing cause-and-effect relationships in the conditions of martial law.
Purpose. The goal is to substantiate the areas of improvement of the regulatory and legal framework regarding the preparation of financial statements by managers of budget funds, taking into account the influence of martial law; determination of the main problems of displaying reliable information regarding the amount of damages and losses that affected changes in the financial status, financial results, equity and ways to overcome them when preparing financial statements in the conditions of martial law; development of recommendations for normalization of financial reporting by managers of budget funds, taking into account the influence of martial law, as well as post-war recovery.
Methods. Methods of generalization, comparison, system, analysis, synthesis, induction and deduction were used.
Results. It was determined that the regulatory and legal support for the preparation of financial statements of budget managers does not fully create the possibility of a reliable display of information on the amount of losses and losses that affected changes in the financial status, financial results and equity of budget managers under martial law. Ways to overcome the indicated shortcomings are proposed by supplementing the regulatory and legal support for the preparation of financial statements and notes to them by managers of budget funds, taking into account the peculiarities of the state of war. Recommendations have been developed regarding the normalization of the compilation of individual articles of financial reporting by managers of budget funds, taking into account the influence of martial law, as well as post-war recovery.
Conclusions. In connection with the identified shortcomings of the regulatory and legal framework regarding the preparation of financial statements of managers of budget funds in conditions of martial law, it is extremely important to supplement the relevant articles of financial statements that reflect the amount of losses and losses that affected changes in the financial state, financial results and equity . The procedure for drawing up separate articles of financial reporting by managers of budget funds is standardized, taking into account the influence of martial law, as well as post-war recovery.

Keywords:martial law, extraordinary events, financial reporting, managers of budget funds, damages, losses, recovery

JEL: -

Larikova T. . Peculiarities of preparation of financial statements by managers of budget funds under martial law / T. Larikova // Фінанси України. - 2022. - № 10. - C. 103-114.

Article original in Ukrainian (pp. 103 - 114)

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