ACCOUNTING IN UKRAINE: TODAY'S CHALLENGES

Abstract

The ongoing military conflict in Ukraine has inflicted significant damage on the nation’s infrastructure and economy, disrupting traditional business operations and necessitating a reevaluation of accounting standards and practices. This disruption highlights the critical role of accounting in assessing damage, supporting recovery efforts, and adapting to a rapidly changing economic environment. As such, understanding the modifications and challenges in accounting during this period is essential for ensuring business continuity and aiding national recovery. This article aims to analyze the organizational, legislative, and regulatory changes in accounting and financial reporting practices in Ukraine during the conflict. It seeks to evaluate how these adaptations address the specific needs of businesses operating under crisis conditions and contribute to sustaining economic activity during periods of instability. The study employs a combination of general scientific methods including analysis and synthesis, induction and deduction, and theoretical generalization. A comprehensive review of recent legislative acts and modifications to the Ukrainian accounting framework provides a detailed understanding of the current accounting landscape and its evolution in response to the conflict. The findings reveal significant legislative adaptations that have simplified tax systems, reduced tax rates, and introduced exemptions aimed at alleviating the burden on businesses. Additionally, the establishment of emergency-specific accounts for recording the financial impacts of the conflict has enhanced the clarity and accuracy of financial reporting. These changes have not only facilitated the immediate survival of businesses but also laid the groundwork for future economic stability and recovery. Looking forward, continuous adjustments and updates to accounting standards will be crucial as the situation in Ukraine evolves. Future research should focus on the long-term effectiveness of these adaptations and explore further modifications to support the resilience and recovery of the Ukrainian economy. The development of robust accounting practices remains a cornerstone of economic recovery and sustainability, serving as both a record of the impacts of the conflict and a foundation for rebuilding efforts. By documenting and analyzing these changes, this article contributes valuable insights into the role of accounting in crisis management and recovery, providing a resource for academics, practitioners, and policymakers involved in navigating and overcoming the challenges posed by the conflict in Ukraine.