Accounting analysis and audit

Accounting control of capital investment management: realities of Ukraine and Poland

Economic Annals-XXI

Economic Annals-ХХI: Volume 170, Issue 3-4, Pages: 79-84

Citation information:
Gutsalenko, L., Wasilewski, M., Mulyk, T., Marchuk, U., & Mulyk, Ya. (2018). Accounting control of capital investment management: realities of Ukraine and Poland. Economic Annals-XXI, 170(3-4), 79-84. doi: https://doi.org/10.21003/ea.V170-14

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Liubov Gutsalenko
D.Sc. (Economics),
Professor,
Head of the Department of Audit and State Control,
Vinnytsia National Agrarian University
3 Soniachna Str., Vinnytsia, 21008, Ukraine
lyboffv@gmail.com
ORCID ID: https://orcid.org/0000-0001-5181-8652

Miroslaw Wasilewski
PhD (Economics),
Associate Professor,
Head of the Department of Finance,
Warsaw University of Life Sciences – SGGW (WULS-SGGW)
166 Nowoursynowska Str., Warsaw, 02-787, Poland
miroslaw_wasilewski@sggw.pl
ORCID: https://orcid.org/0000-0001-6791-5713

Tetiana Mulyk
PhD (Economics),
Associate Professor,
Head of the Department of Analysis and Statistics,
Vinnytsia National Agrarian University
3 Soniachna Str., Vinnytsia, 21008, Ukraine
mulyk_t_o@ukr.net
ORCID ID: https://orcid.org/0000-0003-1109-2265

Uliana Marchuk
PhD (Economics),
Associate Professor,
Department of Accounting and Taxation,
Kyiv National Economic University named after Vadym Hetman
54/1Peremohy Ave., Kyiv, 21008, Ukraine
mar4ukuliana@gmail.com
ORCID ID: https://orcid.org/0000-0003-0971-1303

Yaroslavna Mulyk
PhD (Economics),
Senior Lecturer,
Department of Audit and State Control,
Vinnytsia National Agrarian University
3 Soniachna Str., Vinnytsia, 21008, Ukraine
mulyk.yaroslavna@ukr.net
ORCID ID: https://orcid.org/0000-0002-8166-2481

Accounting control of capital investment management: realities of Ukraine and Poland

Abstract. The authors overview macroeconomic indicators of Ukraine and Poland. Being the basis of capital investment, they facilitate further increase in agricultural output in the system of strategic agricultural management. The article compares the indicators of Ukraine and Poland and researches the countries’ agricultural prospective. It has been found that capital investment is required by business entities in order to realise their potential. The authors have identified regulatory tools ensuring control and accounting of capital investment in the international media and the accounting systems of Ukraine and Poland and carried out a comparison of the regulatory tools for accounting of capital investment in the international accounting system (International Accounting Standard 16 «Fixed Assets»), Ukrainian accounting system (Accounting Standard 7 «Fixed Assets») and Polish accounting system (National Accounting Standard 11 «Fixed Assets»). The article describes both common and distinctive features of certain parts of the abovementioned regulations and proves that the regulatory tools are to provide local and international investors with a legal framework with regard to changes in fixed assets in order to avoid and reduce investment risks. For instance, the comparison of the notion «fixed assets» in the International Accounting Standards and the National Accounting Standards of Ukraine and Poland proves their similarity. However, differences should be considered as well. The difference between the Polish Standard and IFRS in the valuation of a fixed asset on a balance day lies in the fact that according to IFRS fixed assets are evaluated at fair market prices, whereas the Polish Standard allows asset revaluation by a historic price (expenditure on construction or purchase). The Polish Standard only allows the revaluation of the fixed asset based on a particular regulation.

The article investigates the dynamics of capital investment financing in both Ukraine and Poland, and identifies the total share of the countries’ capital investment, including government funding in agriculture, forestry and fishery. In particular, the authors of the article have researched international accounting and control standards ensuring the functions of control over controlling bodies and capital investment.

The authors have developed a model of informational tools and impact factor management in the process of investing in agricultural business. Consequently, relationships between different parts of the model, namely informational tools (accounting, control and analysis), investments (internal and external), parties involved (investors, manufacturers, etc.) and risks at micro- and macro levels have been identified. It has been proved that taking these parts into consideration will contribute to the investment attractiveness of businesses in Ukraine and Poland.

Keywords: Accounting; Control; International Standards; Investment; Capital Investment; Management; Financing; Agriculture; Risks; Tools; Information

JEL Сlassіfіcatіon: E22; F21; M40; Q10

DOI: https://doi.org/10.21003/ea.V170-14

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Received 11.05.2018

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