Non-Negotiable Assets Accounting and Analysis of their Status

In the article studied were the status of fixed assets in Ukraine. The problems of fixed assets, their modernization, repairs and depreciation. Recommendations were given with the objective of clarification of the classification of fixed assets, detailed accounting, control and analysis of non-curre...

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Опубліковано в: :Економічний вісник Донбасу
Дата:2015
Автор: Bessonova, S.I.
Формат: Стаття
Мова:English
Опубліковано: Інститут економіки промисловості НАН України 2015
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Цитувати:Non-Negotiable Assets Accounting and Analysis of their Status / S.I. Bessonova // Економічний вісник Донбасу. — 2015. — № 4 (42). — С. 90-92. — Бібліогр.: 5 назв. — англ.

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Digital Library of Periodicals of National Academy of Sciences of Ukraine
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spelling Bessonova, S.I.
2016-11-24T17:29:20Z
2016-11-24T17:29:20Z
2015
Non-Negotiable Assets Accounting and Analysis of their Status / S.I. Bessonova // Економічний вісник Донбасу. — 2015. — № 4 (42). — С. 90-92. — Бібліогр.: 5 назв. — англ.
1817-3772
https://nasplib.isofts.kiev.ua/handle/123456789/109323
658.034:330.142.211.4
In the article studied were the status of fixed assets in Ukraine. The problems of fixed assets, their modernization, repairs and depreciation. Recommendations were given with the objective of clarification of the classification of fixed assets, detailed accounting, control and analysis of non-current assets, as well as the results of the use of innovative products.
У статті проведено дослідження стану основних засобів в Україні. Розглянуто питання обліку основних засобів, їх модернізації, ремонту та амортизації. Запропоновано рекомендації щодо уточнення класифікації основних засобів, деталізації обліку, контролю і аналізу стану необоротних активів, а також результатів використання інноваційної продукції.
В статье проведены исследования состояния основных средств в Украине. Рассмотрены вопросы учета основных средств, их модернизации, ремонта и амортизации. Предложены рекомендации по уточнению классификации основных средств, детализации учета, контроля и анализа состояния необоротных активов, а также результатов использования инновационной продукции.
en
Інститут економіки промисловості НАН України
Економічний вісник Донбасу
Finance
Non-Negotiable Assets Accounting and Analysis of their Status
Облік необоротних активів і аналіз їх стану
Учет необоротных активов и анализ их состояния
Article
published earlier
institution Digital Library of Periodicals of National Academy of Sciences of Ukraine
collection DSpace DC
title Non-Negotiable Assets Accounting and Analysis of their Status
spellingShingle Non-Negotiable Assets Accounting and Analysis of their Status
Bessonova, S.I.
Finance
title_short Non-Negotiable Assets Accounting and Analysis of their Status
title_full Non-Negotiable Assets Accounting and Analysis of their Status
title_fullStr Non-Negotiable Assets Accounting and Analysis of their Status
title_full_unstemmed Non-Negotiable Assets Accounting and Analysis of their Status
title_sort non-negotiable assets accounting and analysis of their status
author Bessonova, S.I.
author_facet Bessonova, S.I.
topic Finance
topic_facet Finance
publishDate 2015
language English
container_title Економічний вісник Донбасу
publisher Інститут економіки промисловості НАН України
format Article
title_alt Облік необоротних активів і аналіз їх стану
Учет необоротных активов и анализ их состояния
description In the article studied were the status of fixed assets in Ukraine. The problems of fixed assets, their modernization, repairs and depreciation. Recommendations were given with the objective of clarification of the classification of fixed assets, detailed accounting, control and analysis of non-current assets, as well as the results of the use of innovative products. У статті проведено дослідження стану основних засобів в Україні. Розглянуто питання обліку основних засобів, їх модернізації, ремонту та амортизації. Запропоновано рекомендації щодо уточнення класифікації основних засобів, деталізації обліку, контролю і аналізу стану необоротних активів, а також результатів використання інноваційної продукції. В статье проведены исследования состояния основных средств в Украине. Рассмотрены вопросы учета основных средств, их модернизации, ремонта и амортизации. Предложены рекомендации по уточнению классификации основных средств, детализации учета, контроля и анализа состояния необоротных активов, а также результатов использования инновационной продукции.
issn 1817-3772
url https://nasplib.isofts.kiev.ua/handle/123456789/109323
citation_txt Non-Negotiable Assets Accounting and Analysis of their Status / S.I. Bessonova // Економічний вісник Донбасу. — 2015. — № 4 (42). — С. 90-92. — Бібліогр.: 5 назв. — англ.
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first_indexed 2025-11-24T16:28:15Z
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fulltext S. I. Bessonovа 90 Економічний вісник Донбасу № 4(42), 2015 UDC 658.034:330.142.211.4 S. I. Bessonovа, PhD (Economics), Azov State Technical University. Mariupol NON-NEGOTIABLE ASSETS ACCOUNTING AND ANALYSIS OF THEIR STATUS Setting the problem. Integration into international processes, of course, has an impact and leads to changes in the economic activity of the domestic enterprises. In Ukraine, a significant transformation of the accounting occurs in connection with the transition to national ac- counting provisions, based on the provisions of interna- tional accounting standards. Therefore, at the initial stages of this transition, there are some differences be- tween the accounting practices and theoretical research. Regulation of accounting includes the basic rules on which the account of each individual enterprise is car- ried out. With the increase in theoretical studies we ob- served a gradual harmonization at all levels of account- ing transformation. However, for the improvement of accounting in Ukraine, which is based on new principles of the market economy, it is necessary to do a lot both in theoretical and in practical terms. Non-negotiable assets are a critical element of en- terprise management, in order to achieve commercial success and increasing the national state of the country they must be rational and efficient in use. The analysis of recent research works. At pre- sent, the theory and methodology of accounting of fixed assets has been the subject of many works of domestic and foreign scientists: F.F. Butynets, I.T. Balabanov, L.P. Belih, F.F. Efimov, V.V. Grigoriev, M.J. Linnik, N.V. Kuzhelnaya, S.N. Maximov, N. Ordway, M.F. Ohiychuk, V.V. Sopko, L.K. Suk, V.G. Shvets et al. However, there are vey many the theoretical issues still to be thoroughly investigated. Issues of innovation in or- der to increase the energy efficiency of industrial enter- prises, were investigated in the works of such scholars, like A.I. Amosha, O.N. Anisimova, V.P. Vishnevsky, S.N. Illyashenko, L.A. Zbarazskaya, Y.V. Kindzersky, A.A. Kataev, T.G. Logutova, R.A. Fatkhutdinov, L.I. Fedulova, Y.S. Shipulina, N.N. Yakubovsky etc. Setting the problem. Improving the chart of ac- counts and the adoption of several amendments to the Tax Code does not solve fully the differences between the accounting and tax accounting of fixed assets. So, some question still remain, like modernization of plant and equipment, repair, reconstruction, which largely af- fect the original definition, residual or revalued, the liq- uidation value of fixed assets. In full, the same incon- sistencies affect the accuracy of calculating depreciation and classifying the sum of the financial result of the costs. The objective of the article is to investigate the legal framework, identify differences between the ac- counting and tax accounting of fixed assets, work out recommendations and proposals to eliminate them. The main part. For effective implementation of the production process in the highly competitive domes- tic enterprises it is required to make quick decisions that are needed for efficient use of internal resources. Im- proving the efficiency of the industrial sector enterprises in many respects depends on adoption of sound opera- tional and management decisions regarding methods of fixed assets management, such as fixed assets and intel- lectual capital of the enterprise. Of course, these figures are inextricably linked to investments in innovative pro- cesses. There is still an acute problem of renewal of fixed assets of an enterprises. For a prolonged period the sources of financing of capital investments and innova- tive transformations, are own funds. Political instability, an effective industrial policy, or rather its absence, mil- itary actions on the part of the territory, infringement of contractual relationship, reduction of industrial produc- tion has led to a catastrophic situation that the national economy is facing now. Figure 1 shows the degree of depreciation of fixed assets in the recent 15 years. As can be seen from Fig. 1 the degree of deprecia- tion of fixed assets reached 83.5% in 2014, i.e. nearly worn out, it is evident that it is difficult to create inno- vative products such obsolete facilities. But the high level of depreciation of fixed assets, which reached a critical level and that has a negative impact on the tech- nical and economic status of the country, allows to ar- rive at an assumption that enterprises use the funds not for renewal of fixed capital funds, but for consumption of financial resources in the form of endless repairs. Af- ter all, according to the norms of the Tax Code of Ukraine p.146.12 "the sum of the costs associated with repair and improvement of fixed assets, including leased, not exceeding 10 per cent of the aggregate book value of all groups of fixed assets at the beginning of the year, relates to the cost of the tax reporting period in which such repairs and improvements were made" [2]. Expenses in excess of the carrying value of all groups of fixed assets at the beginning of the year, the carrying value of fixed assets of the groups and are subject to de- preciation. As a result, it is very difficult to check whether the renovation, retrofitting or repair was made simply of fixed assets, thus increasing the costs of the period of report. Of course, the professional, scientific and technical activities have a significant impact on the innovation po- tential of the industrial sector. The problem of renova- tion and modernization of facilities and equipment is S. I. Bessonovа 91 Економічний вісник Донбасу № 4(42), 2015 one of the most painful for the contemporary modern economy of Ukraine. Today the problem is that compa- nies are not willing to seek technological modernization of production reserves, and in most cases, increase the profitability of production by raising the prices of their products. The solution is possible only by developing of a complex of complex measures, aimed at improving of the state’s financial policy, one of the main areas of this improvement being depreciation policy. Enterprises resort to current and capital, it having no substantial in- fluence upon these factors, the term of application of the main funds being extended, that is why application of straightforward method of depreciation, instead of ac- celerated ones would seem quite rational. Fig. 1. The degree of depreciation for the period of 2000-2014 period (Compiled by the author based on the data [1]) With regard to natural resources, (Article 114), ac- cording to some experts, this type of assets is subject to amortization, as natural resources are subject to deple- tion, but in this case it is necessary to consider the term right to use this property and use the income method of determining the value of the asset, as situation intangible assets and use the straight-line method of depreciation. Studies assets classification reflects the need to combine the accounts 106 "Tools, appliances and equip- ment" and 112 "Low-value tangible assets" in one ac- count as a low-value non-current assets and apply to those assets a methodology to allocate their cost - 50% during commissioning and 50% the final cancellation. This somewhat simplifies not only the classification of fixed assets, and depreciation charge of tools and equip- ment. Analysis of statistical data on capital investments for the period 2010 – 2014 yy. reflecting a decline in funding. Research of structural changes shows that most of the capital investment was invested in tangible assets, most of them (31.4%) in machinery and equipment and only 3.4% in intangible assets. Fig.2. Capital investment by type of asset for the 2010-2014 period. (Compiled by the author based on the data [1]) Let us analyze the sources of funding for capital investment. For a long period, the company has been carrying out modernization of their own funds. The analysis of the figures for the period under re- view reflects the decline in funding from all sources. And it was the modernization of plant and equipment that required a significant investment. Indicators of in- novative activity of industrial enterprises largely depend on the availability of financial resources and investment, and low technical and technological level of production and the use of outdated technologies, led to a decrease in the competitiveness of products, loss of markets, greater ecological pressures on the environment. There- fore accounting of creation, realization and owning of the objects of intellectual property and innovative pro- duction should be properly organized. A.P.Grinko pro- poses to account revenue, gained from realization of in- novative production at the 706 analytical account, enti- 0 10 20 30 40 50 60 70 80 90 2000 2002 2004 2006 2008 2010 2012 2014 43,7 45 47,2 48 49,3 49 51,5 52,6 61,2 60 74,9 75,9 76,7 77,3 83,5 % years 0 100000 200000 300000 2010 2011 2012 2013 2014 m ln ua h investment in equipment investment in intangible assets total investment S. I. Bessonovа 92 Економічний вісник Донбасу № 4(42), 2015 Fig. 3. Sources of capital investment funding for the period of 2010-2014 (Compiled by the author based on the data [1]) tled “Income, gained by realization of innovative pro- duction». It is advised to perform analytical accounting at this sub-account with regard to the types of sold inno- vative products and a separate analytical account for 793 sub-account “Financial results of other parts of activi- ties” is to be used to reflect financial results of innova- tive, while for the results of investment activities sub- account 794 “Results of investment activities” could be appropriate [3]. Also, it seems reasonable to establish additional sub-accounts, reflecting formation of ex- penses on innovative developments, either at account 236 «Manufacturing of innovative products “, or at ac- count 393 “Expenses of future periods on innovative de- velopments”, while for accounting of investments on modernization and reconstruction of the main funds sub- accounts 156 “Capital modernization investments” can be presumed. Addition of these sub-accounts will make it possible to systemize the data of book-keeping, re- garding the flow and reproduction of non-negotiable as- sets at an enterprise. Conclusions. Implementation of the proposed rec- ommendations is to allow to perform more thorough control, analysis and accounting of the state of non-ne- gotiable assets as well as the results ,gained, by applica- tion, implementation and realization of innovative pro- duction at domestic industrial enterprises References 1. Офіційний сайт Державної служби статис- тики України [Електронний ресурс]. – Режим дос- тупу: http://www.ukrstat.gov.ua/. 2. Податковий Ко- декс України [Електронний ресурс]. – Режим дос- тупу: http://online.dtkt.ua/book/968e4930-c4af-4156- 91eb-4c02e8d86606. 3. Гринько А. П. Теоретиче- ские основы бухгалтерского учета воспроизводства основного капитала в условиях новой управленче- ской парадигмы: монография / А. П. Гринько. – Харьков: ХДУХТ, 2015. – 328 с. 4. Наукова та нау- ково-технічна діяльність в Україні у 2014 році [Еле- ктронний ресурс]. – Режим доступу: http://specnauk proect.com.ua/uk/publications/view/206/. 5. Журнал «Бухгалтер 911» [Электронный ресурс]. – Режим до- ступа: http://buhgalter911.com/ShowArticle.aspx?a= 20514. Бессонова С. І. Облік необоротних активів і аналіз їх стану У статті проведено дослідження стану основ- них засобів в Україні. Розглянуто питання обліку ос- новних засобів, їх модернізації, ремонту та аморти- зації. Запропоновано рекомендації щодо уточнення класифікації основних засобів, деталізації обліку, контролю і аналізу стану необоротних активів, а та- кож результатів використання інноваційної продук- ції. Ключові слова: необоротні активи, основні за- соби, амортизація, амортизаційна політика, іннова- ції, облік. Бессонова С. И. Учет необоротных активов и анализ их состояния В статье проведены исследования состояния основных средств в Украине. Рассмотрены вопросы учета основных средств, их модернизации, ремонта и амортизации. Предложены рекомендации по уточ- нению классификации основных средств, детализа- ции учета, контроля и анализа состояния необорот- ных активов, а также результатов использования ин- новационной продукции. Ключевые слова: необоротные активы, основ- ные средства, амортизация, амортизационная поли- тика, инновации, учет. Bessonovа S. I. Non-Negotiable Assets Account- ing and Analysis of their Status In the article studied were the status of fixed assets in Ukraine. The problems of fixed assets, their modern- ization, repairs and depreciation. Recommendations were given with the objective of clarification of the clas- sification of fixed assets, detailed accounting, control and analysis of non-current assets, as well as the results of the use of innovative products. Keywords: non-negotiable assets, fixed assets, depreciation, amortization policy, innovation, account- ing. Received by the editors: 27.11.2015 and final form 28.12.2015 0 50000 100000 150000 200000 2010 2011 2012 2013 2014 m ln ua h own funds budgetary funds loans foreign investment other