Modeling Accounting for the Restoration Process of War-Damaged Fixed Assets
DOI:
https://doi.org/10.35774/Keywords:
fixed assets, investments, processes, costs, losses, sources of financing, accounting, control, controlmodelingAbstract
The article examines the principles and rules for accounting for losses from destruction or damage to property of enterprises and institutions, to analyze alternative approaches to accounting for the process of restoring damaged fixed assets, as well as the forms and accounting treatment of financial sources used to cover such costs and losses, using the modeling method. To achieve the research objectives, systemic and innovative approaches to the collection and generalization of accounting information were applied, along with methods of bibliographic and conceptual analysis, modeling of economic processes, and modeling of alternative accounting treatments. The study reveals the specifics of organizing and documenting transactions in the course of inventory control over losses incurred due to the destruction of fixed assets of enterprises. Various accounting options for the process of restoring damaged property or writing off assets that are not subject to restoration are outlined using the modeling method. The forms and accounting treatment of the financial support required for these processes—through own funds, borrowings, charitable assistance, and transactions involving the transfer of fixed assets to meet the needs of the Armed Forces of Ukraine (AFU)—are examined. Further scientific research in this area is advisable to expand the information field regarding economic processes related to the restoration of damaged property, the search for financial sources, and their informational presentation through the modeling of accounting processes.
References
On the Introduction of Martial Law in Ukraine: Decree of the President of Ukraine No. 64/2022 dated February 24, 2022. Available at: https://www.president.gov.ua/documents/642022-41397. [in Ukrainian].
Procedure for Determining Damage and Losses Caused to Ukraine as a Result of the Armed Aggression of the Russian Federation, approved by Resolution of the Cabinet of Ministers of Ukraine No. 326 dated March 20, 2022 (as amended by Resolution of the Cabinet of Ministers of Ukraine dated July 22, 2022). Available at: https://ips.ligazakon.net/document/KP220326?an=14. [in Ukrainian].
On Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine Regarding the Administration of Certain Taxes During Martial Law and State of Emergency: Law of Ukraine dated April 1, 2022 No. 2173-IX. Liga 360. Available at: http://search.ligazakon.ua/l_doc2.nsf/ link1/T222173.html. [in Ukrainian].
Patuta M., Shmatkovska T. (2022). Features of accounting in martial law conditions. Galician economic journal, vol. 77, no 4, pp. 53-63. Available at: https://doi.org/10.33108/galicianvisnyk_ tntu2022.04. [in Ukrainian].
Prokopova, O. and Kudlaieva, N. (2022). Accounting in the conditions of martimate: key characteristics and problem aspects. Investytsiyi: praktyka ta dosvid, vol. 9-10, pp. 38–43. DOI: 10.32702/2306-6814.2022.9-10.38. [in Ukrainian].
Klymenko, M. (2022). Accounting During Wartime: Reporting Implications and Tax Optimization Strategies. Legal Newspaper Online. Available at: https://yur-gazeta.com/publications/practice/ podatkova-praktika/buhgalterskiy-oblik-pid-chas-viyni-shcho-bude-zi-zvitnistyu.html. [in Ukrainian].
Morozovska, H. (2022). Depreciation of Fixed Assets under Martial Law: To Accrue or Not? Balance Group of Companies. Available at: https://balance.ua/uteka/article.
Ozerova O. (2022). Maino yurosoby zabraly na potreby oborony: shcho z oblikom ta podatkamy [The property of a legal entity was taken for defense purposes: what about accounting and taxes]. Holovbukh (electronic journal). No. 10. Available at: URL: https://egolovbuh.mcfr. ua/960396. [in Ukrainian].
Lavrova O.O., Tkachenko A.A., Matiushchenko N. R. (2023). Oblik vidnovlennia neoborotnykh aktyviv vitchyznianykh subiektiv hospodariuvannia v umovakh viiny [Accounting for restoration of non-current assets of domestic business entities under war conditions]. Ekonomichna nauka: Investytsii: praktyka ta dosvid - Economic Science: Investments: Practice and Experience, No. 22, pp. 125–127. [in Ukrainian].
Zhuk, V. (2023). The Role of Accounting Science in Addressing the Impact of War and Post-War Economic Reconstruction in Ukraine. In Accounting for Business Activities under Martial Law: Innovations: Proceedings of the 1st Workshop-Internship, NGO FABF of the Agro-Industrial Complex of Ukraine. Kyiv: NSC “IAE”. Available at: https://magazine.faaf.org.ua/images/stories/ zb_conference/ workshop-1-2023.pdf. [in Ukrainian].
Krupka, Ya. D. (2024). Objectives of Accounting during Wartime and in the Organization of the Post-War Economy. Accounting and Analytical Support of Enterprise Management Systems: Proceedings of the VI International Scientific and Practical Conference, Lviv Polytechnic National University, October 10–11, 2024. [in Ukrainian].
Ukrainian National Information Agency “Ukrinform”. Available at: https://www.ukrinform.ua/ rubric-economy/3964593-neprami-finansovi-vtrati-ukraini-vnaslidok-vtorgnenna-rf-nablizilisa-d. [in Ukrainian].
Krupka, Ya. D. (2001). Accounting for Investments. Monograph. Ternopil: Economic Thought, 302 p. [in Ukrainian].
Lobodina, Z., Demianyshyn, V., Kizyma, T., Lushnei, Yu., & Lobodin, R. (2023). Public Finance Management in the Context of Counteracting Wartime Risks. Herald of Economics, Issue 4 (110), pp. 8–28. [in Ukrainian].
Krysovatyi, A. (2023). Wartime Realities of the Fiscal Space of Ukraine’s Public Finances. World of Finance, No. 1 (74), pp. 8–30. [in Ukrainian].
Chart of Accounts for Accounting of Assets, Capital, Liabilities and Business Transactions of Enterprises and Organizations, approved by Order of the Ministry of Finance of Ukraine dated November 30, 1999 No. 291 (with amendments). Available at: https://ips.ligazakon.net/ document/REG4185?an=905. [in Ukrainian].
