Problem issues of fixed assets accounting under the conditions of the state of martial

Cherkashyna Tetiana
Candidate of Economic Sciences, Associate Professor of the Department of Accounting, Analysis and Audit. Odessa National Economic University, Odesa, Ukraine, E-mail:cherkashina_tv_oneu@ukr.net, ORCID ID: https://orcid.org/0000-0002-0078-8526

Cite this article:

Cherkashyna T. (2024) Problem issues of fixed assets accounting under the conditions of the state of martial. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Problemni pytannja obliku osnovnyh zasobiv v umovah vojennogo stanu; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 9 (322), pp. 29-36.

Abstract

Fixed assets are an important economic resource that affects the efficiency and effectiveness of the enterprise. The need to renew facilities arises due to the need to restore destroyed facilities of fixed assets as a result of hostilities in Ukraine and the need to restore industrial production. Enterprises that have not suffered losses due to hostilities in Ukraine, but need modernization, have a need for investment resources to renew fixed assets due to their moral and physical aging, in order to increase the efficiency of the enterprise. Accounting plays an important role in managing the company's fixed assets, providing the necessary information for making effective management decisions. The study of the problems of accounting of fixed assets is an important direction for improving the management of the enterprise, determining strategies for its development, and most importantly, attracting investment in the war and post-war periods. The purpose of the article is to study the problematic aspects of accounting for fixed assets that arose under the conditions of martial law in Ukraine. In particular, problems of accounting and assessment of fixed assets damaged as a result of military operations; problems of conducting an inventory of fixed assets under martial law; and providing recommendations for improving these processes in order to ensure effective management of the company's activities. To solve the tasks, the methods of systematic analysis of the main changes in the legislation of Ukraine related to accounting at enterprises were applied. A list of fixed asset accounting problems faced by enterprises under martial law is highlighted: difficulties in conducting an inventory of fixed assets; impossibility of actual access to objects; the problem of the forced termination of the use of the company's fixed assets. The problems of accounting and calculating depreciation on objects that are not operated due to the circumstances of military operations have been identified. The problems and contradictions of displaying assets in financial statements to which the enterprise does not have actual access have been identified. The problems of revaluing and reflecting the depreciation of objects in connection with damage, destruction and other actions caused by external aggression have been identified.

Keywords

fixed assets, accounting, valuation of fixed assets, depreciation, write-off of fixed assets, inventory, martial law, improvement of accounting of fixed assets.

JEL classification:M410; DOI: https://doi.org/10.32680/2409-9260-2024-9-322-22-28

UD classification:657.6

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