Investment Accounting Research Articles

Foreign Investments as a Factor Ensuring Economic Security of Ukraine

The article explores the theoretical foundations of the concepts of «security», «national security», «economic security», «investment security», and their interrelations within the components of a state's national security. The necessity of attracting foreign investments while considering economic security is emphasized. The authors propose their interpretation of the definition of «investment security in the sphere of foreign investment». Characteristics of national interests in the field of investment security are provided, and directions for forming a system to ensure it are identified. Sources of threats to attracting foreign investments for the domestic economy are identified. The dynamics of the balance of payments according to the financial account and the volumes of foreign direct investments for the years 2014-2023 are examined, providing insight into the country's investment climate. Attention is drawn to the significance of Ukraine's investment attractiveness index, which has been the lowest in the past decade since the onset of full-scale military aggression. This indicates that the investment climate in Ukraine does not contribute to an increase in foreign investment volumes. The analysis focuses on key indicators of investment security, including the investment attractiveness index and the ratio of net FDI inflows to GDP. It is elucidated that since 2016, there has predominantly been a deficit in the balance of payments, and the share of accumulation of foreign direct investment relative to GDP has not reached the threshold level of the indicator. It is highlighted that apart from state-level security factors, there are those that depend directly on the activities of economic entities, particularly the level of timeliness of accounting and analytical support for foreign investments. The main directions of ensuring economic security in the process of attracting foreign capital are determined.

Improving the methodology for calculating provision for impairment of financial investments

Currently, in the context of restrictive sanctions and the withdrawal of global foreign companies from the Russian market, a situation has arisen where domestic companies are acquiring entire groups of interconnected vertically integrated holdings or groups united into one single business. A peculiarity of such transactions is that the subject of the acquisition agreement is usually the shares of the parent company, which is the actual owner of the business. Thus, the valuation of the shares of the parent company includes the value of shares and subsidiaries included in the holding. At the same time, the currently valid PBU 19/02 “Accounting for Financial Investments” (hereinafter referred to as PBU 19/02) does not offer any features in the subsequent assessment of such financial investments, as well as in the order of depreciation of such financial investments, and the determination of their estimated cost. This article is devoted to improving the methodology for calculating estimated reserves for such financial investments. When carrying out the research, the following methods were used: analysis and synthesis, comparison, systematic approach, logical research method based on a creative information approach. As a result of the research carried out, this article proposes the author’s approach to improving the methodology for calculating valuation reserves for the depreciation of financial investments, providing a more reliable calculation of such a reserve and meeting the requirements of modern times. The research results and the proposed methodology will be of interest to a wide range of readers and practitioners in the field of accounting, as well as the scientific community engaged in research in the field of problems of valuation reserves. The results obtained can also be used in the educational process of higher educational institutions and applied in the development and improvement of relevant regulatory documents on accounting and reporting, including in the formation of accounting policies of companies.

Agricultural Investment Accounting: A Case Study of an Enterprise in The Thrace Region

This article provides an in-depth examination of the investment process within the agricultural sector, focusing on A Birlik, a significant agricultural enterprise in the Thrace region. The study explores how A Birlik makes investment decisions, the types of investments it undertakes, and the impact of these investments on its operations and sustainability. A critical component of this research is the role of agricultural investment accounting in enabling A Birlik to make informed financial decisions, accurately evaluate investment feasibility, and optimize resource allocation for long-term economic and environmental sustainability. The research also considers how geographical conditions, technological developments, market dynamics, and competition influence agribusiness investment decisions. The findings from this study aim to enrich the existing literature on agricultural investments and offer valuable insights for practitioners, policymakers, and stakeholders in the agricultural sector. The article underscores the need for continuous adaptation and innovation in business practices within the agricultural sector.

Investment Accounting Analysis and Its Impact on Nominal Investment Assets of DKI Jakarta Provincial Governmen

Investment Accounting Analysis and Its Impact on Nominal Investment Assets of DKI Jakarta Provincial Governmen

Analysis Of Financial Statements Quality Reviewed From Human Resources Competence , The Support Of Top Management And The Use Of Information Technologies At Badan Pengelola Pajak Dan Retribusi Daerah Kota Medan

The quality of financial reports in government is strongly influenced by the competence of goverment officials, Top management support and the use of information technology. Goverment officers are required to be able to make a positive contribution to all components of government, both the community, the private sector and other components, including the government agency itself. In the Minister of Finance Regulation 169/PMK.05/2018 concerning the Government Investment Accounting and Financial Reporting System and PP No. 71 of 2010 concerning on Government Accounting Standards, it states that the preparation of government financial reports has several requirements that must be acquired so that it could produce the good quality financial statements. The purpose of this study is to discover how the quality of financial reports in terms of human resource competence, top management support and the use of information technology at Badan Pengelola Pajak dan Retribusi Daerah Kota Medan using qualitative data analysis with in-depth interviews with key informants compiled using a google form questionnaire as a guide and analytical measuring tools in this study. The results showed that the three factors, namely top management support was found optimal, however, the competence of human resources, and the use of information technology had not been optimal, particularly in the quality of financial reports at Badan Pengelola Pajak dan Retribusi Daerah Kota Medan. (BPPRD Kota Medan).

PENYUSUNAN LAPORAN KEUANGAN KONSOLIDASI BERDASARKAN PENERAPAN PSAK NO. 15, PSAK NO. 22 DAN PSAK NO. 65

Consolidated financial statements are financial information that presents the financial position and results of operations of the parent company as well as one or more subsidiaries as if they were a single company. Current standard for preparing consolidated financial statements requires that they include companies under common control, unless such control is in question. Preparation of Consolidated Financial Statements is regulated in the statement of Financial Accounting Standards (PSAK) No. 15, PSAK No. 22 and PSAK No. 65. PSAK No. 15 describes the investment rules that must be accounted for using the equity method, where this method has a close relationship with the Consolidated Statements. PSAK No. 22 describes the accounting treatment of business mergers that can be in the form of an acquisition or consolidation of ownership, whether carried out through the acquisition of shares or net assets. PSAK No. 65 describes the consolidation criteria and also describes the consolidation procedures. This article describes the application of PSAK in the preparation of the Consolidated Financial Statements. The discussion in this article contains about investment accounting with equity method based on PSAK No. 15, business merger based on PSAK No. 22, and Consolidated Statements based on PSAK No. 65.

Problematic aspects of the valuation of financial instruments

In the activities of organizations, including healthcare organizations, such objects as financial instruments have recently become increasingly important. This increases the importance of information about such objects presented in the accounting (financial) statements of organizations. Due to the fact that in the accounting (financial) statements the objects of accounting are reflected in the monetary meter, the assessment chosen for them has the most significant influence on the formation of reporting information about the objects. The initial and subsequent valuation of financial instruments (as well as other accounting items) is regulated in accounting standards. At the same time, these standards may allow for various assessment options, the choice of which is provided to the accountant. In addition, various national and international standards may regulate a different approach to the valuation of objects, including for financial instruments. This article explores approaches to the valuation of financial instruments in the systems of Russian and international standards. The research methods were comparison, analysis, synthesis, grouping method, systemic and logical approaches. In the course of the study, a comparison was made of the rules for the formation of the initial and subsequent valuation of financial instruments in PBU 19/02 “Accounting for financial investments” and in IFRS 9 “Financial Instruments”. As a result of the research, aspects of similarities and differences between the regulations of Russian and international standards in relation to the initial and subsequent valuation of financial instruments are systematized. The impact of the identified differences on the value of indicators of financial instruments in the accounting (financial) statements is disclosed.

ОРГАНІЗАЦІЯ ОБЛІКУ ФІНАНСОВИХ ІНВЕСТИЦІЙ

This article discusses the features of the organization of accounting of financial investments of enterprises in our country. Existing valuation methods and main problems regarding the organization of accounting of financial investments are analyzed. According to the results of the study, the ways of their solution are suggested.
 Investment activity is one of the most important parts of the enterprise, individual industries and the economy as a whole, so most companies have investments - temporarily unoccupied funds. These funds can be invested in various sectors of the economy in order to obtain economic effect, namely profit.
 Currently in Ukraine there is a weak system of support for investment activities of enterprises. This is causing a huge decline in investment activity in our country, which is very bad. After all, the ability to conduct proper and effective investment activities helps to improve and expand their own activities, improve various social problems in the enterprise, as well as determines the level of human and financial capital. Without a solid foundation in investment activities, our state will not be able to take its rightful place in the world economy.
 The purpose of this article is to study options for improving the accounting of financial investments in enterprises by mastering the theoretical basis and practices, identifying the main problems of their accounting and evaluation under market conditions and justify proposals for their solution.
 The article examines the order of reflection in the accounting of financial investment transactions in order to achieve the reliability of the data presented at all stages of accounting by forming an information model of financial investment accounting.

Accounting for Foreign Direct Investment: A Professional Accountant’s Judgment

The paper is devoted to the research of foreign direct investment accounting in the capital of Russian companies, identifies the similarities and differences in approaches to identifying direct investments in accordance with international and domestic legal norms, detects the problems of inward foreign direct investment accounting and in statistical reports. The subject of the study is the problems of theory and practice of foreign direct investment accounting. The research is based on general scientific principles and research methods: systematization, induction and deduction, synthesis and analysis. Correct identification of direct foreign investments in accounts and reliable disclosure of the accounting information and statistical reporting, at present, causes difficulties for economic entities. The solution to these problems is available through the implementation of the professional judgment of the accountant. The work results having theoretical and applied significance, can be used as a basis for the development of a company’s accounting policy.

Polio health economics: assessing the benefits and costs of polio, non-polio, and integrated activities of the Global Polio Eradication Initiative

Background: Investments made by countries and donors to support polio eradication and the Global Polio Eradication Initiative (GPEI) over the past 35 years provided financial support for significant health interventions beyond the prevention of polio. Prior economic analyses that sought to quantify the economic benefits of some interventions encountered insufficient data and evidence associated with non-polio-specific activities. The 2022-2026 GPEI Strategic Plan explicitly identified integration and gender equity as funded mandates that must move forward in parallel with polio eradication, but these goals remain vaguely defined from a health economic perspective. Methods: To ensure unambiguous and full accounting for all financial investments in the GPEI, polio eradication, and other desirable objectives, we identify the health economic analysis methods and inputs needed to ensure transparent financial accountability and cost-effective use of funds. Results: Sufficient inputs and methods exist to characterize the health and economic benefits of polio-specific activities, but we identified the need for additional information and method development for some non-polio-specific and cost-sharing activities. Donors who seek to support non-polio-specific objectives as part of the GPEI may want to provide dedicated support financing for which it may be difficult to apply typical health economic criteria and to expect net health and/or net economic benefits. Conclusions: Given the mixture of funding sources provided to the GPEI, which includes support by governments and private donors, we recommend that the GPEI separately account for financial needs that represent necessities for polio eradication from those used for other stated objectives. An added layer of specificity that identifies all funds according to each activity, the accountable party and/or parties, and the associated measurable health or other outcome(s), will enable improved health economic analyses and reporting to donors who seek to track returns on their investments.

Polio health economics: assessing the benefits and costs of polio, non-polio, and integrated activities of the Global Polio Eradication Initiative.

Background: Investments made by countries and donors to support polio eradication and the Global Polio Eradication Initiative (GPEI) over the past 35 years provided financial support for significant health interventions beyond the prevention of polio. Prior economic analyses that sought to quantify the economic benefits of some interventions encountered insufficient data and evidence associated with non-polio-specific activities. The 2022-2026 GPEI Strategic Plan explicitly identified integration and gender equity as funded mandates that must move forward in parallel with polio eradication, but these goals remain vaguely defined from a health economic perspective. Methods: To ensure unambiguous and full accounting for all financial investments in the GPEI, polio eradication, and other desirable objectives, we identify the health economic analysis methods and inputs needed to ensure transparent financial accountability and cost-effective use of funds. Results: Sufficient inputs and methods exist to characterize the health and economic benefits of polio-specific activities, but we identified the need for additional information and method development for some non-polio-specific and cost-sharing activities. Donors who seek to support non-polio-specific objectives as part of the GPEI may want to provide dedicated support financing for which it may be difficult to apply typical health economic criteria and to expect net health and/or net economic benefits. Conclusions: Given the mixture of funding sources provided to the GPEI, which includes support by governments and private donors, we recommend that the GPEI separately account for financial needs that represent necessities for polio eradication from those used for other stated objectives. An added layer of specificity that identifies all funds according to each activity, the accountable party and/or parties, and the associated measurable health or other outcome(s), will enable improved health economic analyses and reporting to donors who seek to track returns on their investments.

Monitoring of Strategic Criteria in the Form of ESG Investment Accounting System

Monitoring of Strategic Criteria in the Form of ESG Investment Accounting System

IMPROVING INVESTMENT ACCOUNTING AND AUDITING IN COMMERCIAL BANKS.

IMPROVING INVESTMENT ACCOUNTING AND AUDITING IN COMMERCIAL BANKS.

ФИНАНСОВЫЕ ИНСТРУМЕНТЫ КАК ОБЪЕКТ БУХГАЛТЕРСКОГО УЧЕТА

In accordance with the requirements of financial reporting, development and adaptation of the Financial Instruments standard. These differences exist with PBU 19/2 «Accounting for financial investments».

ACCOUNTING FOR CAPITAL INVESTMENTS AND ITS IMPROVEMENT

At present, issues related to investment activities in Ukraine are very important. Of particular importance is the investment activity related to capital investment, creating a solid foundation for stable, efficient operation and rapid development of each enterprise. Insufficient capital investment can lead to limited opportunities, loss of income, increased production costs, increased production shortages, loss of competitiveness and decline of the enterprise. For effective management of capital investments of the enterprise the system of accounting and analytical support based on reliable definition of their cost, the mechanism of their reflection in the account and the reporting, effective system of the analysis and internal control is important. This study is devoted to the consideration of theoretical and methodological issues and problems of organization of accounting of capital investment accounting, identification of areas for improvement. This article analyzes domestic and international regulations on accounting to determine the nature and composition of capital investments. The issue of formation and differentiation of capital investment costs is considered. The classification of capital investments on various grounds is reflected, which is important for the formation of a proper organization of accounting and control in the enterprise. Sources of capital investment are the company's own funds, the use of budget funds or extrabudgetary funds, other sources of funding. The main sources of financing capital investments today are the own funds of enterprises. Generalized approaches to reflect capital expenditures that are associated with the creation or acquisition of non-current assets, as well as those that are included in the initial cost of such objects, in the accounts. It is proposed to streamline accounting through the introduction of additional sub-accounts that will meet the various information needs for analysis and control of capital investments in the enterprise. To separate the components of capital investments, the characteristics of the new sub-accounts to account 15 "Capital investments" are given. The main elements that need to be disclosed in the order on the company's accounting policy for capital investment are presented.

북한의 외국인투자관련 법규와 회계제도

북한의 외국인투자관련 법규와 회계제도

Investment planning of measures for rehabilitation of industrial residential buildings in Berlin based on simulation models

Introduction. The article examines the German experience of the investment policy of rehabilitation of industrial panel residential buildings. Based on scientific research, the Senate of Berlin decided on the need for rehabilitation of panel housing of the city. German scientists developed an investment policy for supporting the programme of panel housing rehabilitation. Special attention was paid to investment planning and analysis of investments in the programme. Materials and methods. Investment planning of measures for rehabilitation of industrial residential buildings in Berlin carried out from 1990 to 2000 was analysed in the course of the study. The classification of investment payback procedure was investigated. The profitability of investment projects is determined by well-known methods of investment accounting: static and dynamic ones. The German concept of integrated investment analysis system through SIB simulation model programmes is studied. Results. The SIB simulation model is a part of the general investment analysis system. The selection criteria identified in the model should promote investment analysis and facilitate the search for solutions. The OSIM programme performs the actual simulation of solvency and investment accounts. The SOSIM programme specifies the data to control the OSIM simulation programme. Control data are entered and stored in the SAUS programme. The programmes aim at their systematic application to make the considered investments transparent and explainable. Conclusions. The profitability of the rehabilitation programme was determined using well-known methods of investment simulation. When rehabilitating the panel houses, the following parameters were obtained: restoration of physical and moral deterioration of the housing stock, reduction of operating costs, providing people living quality, criteria of demand for housing services and acceptable rent cost, satisfaction of tenants in terms of price-to-quality relation, location and social facilities, employment opportunities, identifying demand for affordable housing. The positive results of the applying investment modeling methods can be used to calculate the profitability of budget investments in the state programme of renovation in Moscow.

Harmonization of the accounting of capital investments of an enterprise

Methods. In the process of considering the accounting system of capital investments of domestic enterprises there were used methods of analysis and synthesis, the method of observation, methods of induction and deduction, methods of comparison and analogy, graphical, logical, and tabular methods. The methodological and logical basis of the study were the methods of analysis, synthesis, and observation, which provided an opportunity to update the main problems of accounting the capital investments today. Deduction and induction techniques were used to determine the place of capital investment in the accounting system. A graphical method was used to build a document flow chart and take into account the factors that affect the capital investment process. The method of comparison has been applied to determine the specifics of accounting the capital investments in accordance with IFRS. The generalization method was used in systematizing the results of comparing national standards and IFRS. The method of analogy was used in the study of accounting free capital investment. Results. Differences in the regulation of capital investment accounting between national and international accounting standards have been identified. A detailed schedule of document circulation in the implementation of capital investments by enterprises of Ukraine has been formed. The scheme of the investment process in terms of operations of acquisition of assets, their creation by own forces, and carrying out construction work by economic and contractual ways is presented. The solution to the problem of consistency of the data of the statistical reporting form with the financial reporting prepared according to IFRS is offered. The procedure for accounting the free receipt of capital investments in accounting according to national standards is proposed, and alternative approaches to the accounting of such transactions under IFRS are considered. Novelty. During the monitoring of the capital investment accounting process, in practice, problematic issues that arose due to the lack of comprehensive methodological support from both the national standards and IFRS were identified, and ways to address them were proposed. Practical value. The considered and systematized ways to eliminate the existing shortcomings of the accounting process of capital investments can serve as a basis for the development of methodological recommendations for the accounting of capital investments.

Облік фінансування інноваційної діяльності підприємства

To increase the competitiveness an economic entities are forced to respond to new market needs, which is impossible to do without innovation. The main source of financing the innovative projects remains the profit of the enterprise. In the case of external financing, investors will want to receive information on the effectiveness of the use of the funds invested by them, which requires proper accounting of the financing received by the enterprise and the corresponding reporting. The purpose of the article is to substantiate the methodical support of accounting for possible ways of financing innovation activities and the implementation of innovative projects. The sources of financing the innovative projects of enterprises were systematized and classified: according to the direction of origin of investments, the number of participants, the type of property of invested funds and the type of effect obtained from investing in innovations. The combined form of financial support for innovative development was distinguished. The necessity of accounting for financing the innovative projects in the enterprise's activities was substantiated. It was revealed that the current Chart of accounts does not provide for a separate account to accounting for innovation. Therefore, it was proposed to reflect the costs for the innovative projects implementation in separate analytical accounts in the context of operating and investment accounting. Correspondence of accounts was formed taking into account the financing of innovative projects: targeted, bank lending, investment with a share in the capital of the issuing company, venture financing and crowdfunding. Separate subaccounts were proposed for accounting for targeted financing of projects from the state budget and from other sources: 485 Target financing of innovative projects from the budget (federal, regional, local); 486 Targeted financing of innovative projects at the expense of legal entities and individuals.

Організаційно-методичні аспекти обліку капітальних інвестицій

Організаційно-методичні аспекти обліку капітальних інвестицій