Finances, accounting and audit

Economic development of fishery and accounting support of cost management for biological conversion in fish farming of Ukraine comparing to the other CEE countries

Economic Annals-XXI

Economic Annals-ХХI: Volume 181, Issue 1-2, Pages: 137-150

Citation information:
Zdyrko, N., Ishchenko, Ya., & Melnyk, O. (2020). Economic development of fishery and accounting support of cost management for biological conversion in fish farming of Ukraine comparing to the other CEE countries. Economic Annals-XXI, 181(1-2), 137-150. doi: https://doi.org/10.21003/ea.V181-12

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Nataliya Zdyrko
PhD (Economics),
Associate Professor,
Dean, Faculty of Accounting and Audit,
Vinnytsia National Agrarian University
3 Soniachna Str., Vinnytsia, 21008, Ukraine
Zdyrko_ng@i.ua, Natashka26@i.ua
ORCID ID: https://orcid.org/0000-0001-5968-3502

Yana Ishchenko
PhD (Economics),
Associate Professor,
Deputy Dean, Faculty of Accounting and Audit,
Vinnytsia National Agrarian University
3 Soniachna Str., Vinnytsia, 21008, Ukraine
jana_2006@ukr.net
ORCID ID: https://orcid.org/0000-0002-6819-5997

Olha Melnyk
PhD Student (Management and Administration),
Department of Accounting and Taxation in Economic Sector,
Vinnytsia National Agrarian University
3 Soniachna Str., Vinnytsia, 21008, Ukraine
olgamelnyk24@gmail.com
ORCID ID: https://orcid.org/0000-0002-1965-8510

Economic development of fishery and accounting support of cost management for biological conversion in fish farming of Ukraine comparing to the other CEE countries

Abstract. Over the last decade, the fishing industry in Ukraine has a negative trend, while in the other CEE countries (Belarus, Poland, and The Czech Republic) there is an increase in production. The study highlights the strengths and weaknesses of the industry in Ukraine and its international trade capacity in comparison with some other CEE countries. It is stated that the economic efficiency of growing domestic fishery products is determined by the level of its costs and market price impacted by producers to a much higher extent than in any other type of agricultural product.

We determine that the main problem with regard to accounting and analytical support of biological transformations in fisheries is the lack of theoretical substantiation and the imperfection of the methodology of accounting management of the costs of biological transformations in the field. It is emphasized that the basic condition for effective management of costs for the production of fishery products and providing accounting information about them is the existence of sound accounting methodology for managing the costs of biological transformation.

Controlled (relevant) segments in the fisheries sector are identified to solve the problem with their simultaneous division into separate production processes (repartitions). The application of the proposed classification of production redistribution will improve the system of synthetic and analytical accounting of biological assets and biological transformations and will provide information needed for managers.

The influence of organizational and technological peculiarities of the aquaculture production process on the developing of the accounting system of fishery enterprises has been investigated which gives the opportunity to develop and implement an adequate accounting system of cost management at the enterprises of the branch. It is stated that the main prerequisite for effective cost management is the objective display of cost information in space and time.

We propose to appoint the cost of production of fishery products at the end of each production redistribution. At the end of the calendar year, the costs of each redistribution the cycle of which has not been completed should be considered as an unfinished production of the fisheries industry. The expediency of accepting the total volume of production in natural meters as the basis for the distribution of indirect fisheries costs is substantiated. The examples of calculations and accounting approaches are given to support the authors’ statements and conclusions.

Keywords: Biological Assets; Agricultural Products; Production Costs; Fish Farming; Fishery Enterprise; Aquaculture; Biodiversity; Polyculture Growing; Expenditure Accounting; Accounting Of Production Process; Method Of Accounting For Biological Assets; Information Management

JEL Classification: M41; Q22

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

DOI: https://doi.org/10.21003/ea.V181-12

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Received 4.12.2019
Received in revised form 21.01.2020
Accepted 24.01.2020
Available online 10.02.2020
Updated version of the paper as of 26.04.2020

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