FORMING THE ACCOUNTING POLICY OF HEALTH CARE INSTITUTIONS IN THE NEW CONDITIONS OF THEIR REFORMS

Inconsistencies of the accounting policy in business enterprise health care institutions with the legal and regulatory requirements, and the imperatives for forming the accounting policy of medical institutions in the new conditions of their reforms are determined by exploring their accounting procedures. The specifics of payment of value added tax by medical institutions are analyzed. Scientific-medical recommendations on accounting policy improvements with respect to the accounting of liabilities, including value added tax, are substantiated. The essential characteristic of the definition «related party» is given in keeping with the standards of accounting and tax law, accounting of transactions with related parties, with providing recommendations on the accounting of related parties. Methodical provisions on the accounting policy of incomes, stocks and expenses, pertaining to the classification and evaluation of incomes from medical services are specified. The structure of management report compiled by business entities, including medical institutions, is specified, with demonstrating that the process involved in the compilation of report is conditional on the accounting data and judgement of the management personnel, realized through the accounting policy. Based on an analytical review of methods for the compilation of report on monetary flows generated by operational activities (direct and indirect method), it is proposed that medical institutions should use indirect method as more informative one for users of financial reporting. The necessity to form information about incomes, expenses, financial results, assets and liabilities of reporting segments and its disclosure in the financial reporting is demonstrated. Recommendations on organization of an effective system for internal control of health care institutions are developed, with outlining the main areas of its organizational support in view of preventing risky events. The procedure for forming information required for the compilation of reports on management, monetary flows, and reports by segments, which is supposed by comply with all the essential aspects of a selected conceptual framework of financial reporting is shown. Keywords: accounting policy, heath care institution, financial reporting, control. JEL Classіfіcatіon M41, M48, I18 Formulas: 0; fig.: 0; tabl.: 4; bibl.: 18.

INFORMATION COVERAGE IN FINANCIAL STATEMENTS: PRACTICAL EXPERIENCE IN THE APPLICATION OF IAS AND IFRS

The information demands of a globalized society are forcing businesses to produce financial statements that meet the requirements of all stakeholders. The purpose of the article was to assess what information entities disclose in the financial statements prepared in accordance with IAS and IFRS, and what conflicts arise. Theoretical and methodological aspects of the results of scientists prove the importance of information disclosure in the financial statements prepared in accordance with IFRS. At the same time, the issue of disclosure of information in the financial statements remains open, taking into account the needs of current activities of enterprises. In view of this, there is a need to: study the provision of users of financial statements with information, the disclosure of which provides for international standards; testing hypotheses about the need to study the differences between the types of financial statements provided for in IFRS and IAS and reviewing the long-term liability in the event of early repayment. Based on the analysis, it is established that the information required for disclosure in the financial statements determines the type of financial statements. The conducted research testifies to the presence of gaps in IFRS in the order of compilation and information content of the combined reporting. It is proposed that the combined financial statements be prepared by entities that for one reason or another do not meet the requirements of IFRS 10. It is established that an important condition for reliable reflection in the Statement of financial position information on long-term credit is the need to analyze during the year. It is proposed to consider part of the long-term loan in the form of payments, which must be repaid within twelve months from the date of reporting, as a current liability. This approach requires reclassifying existing credit from long-term to current liabilities, which will lead to further changes in cash flow estimates, adjusting the carrying amount of liabilities. The results of the study can be used by practitioners in various sectors of the economy in the formation of financial statements in accordance with IFRS. Keywords: financial statements, IFRS reporting, financial results, enterprise, standards, accounting, IFRS, IAS. JEL Classification M40, M 41, M 48 Formulas: 0; fig.: 1; tabl.: 1; bibl.: 19.

INNOVATIVE TRANSFORMATIONS OF THE AGRICULTURAL COMPLEX IN THE CONTEXT OF GLOBAL CHALLENGES OF SUSTAINABLE DEVELOPMENT

It is determined that ensuring food security and healthy nutrition for the growing population of the planet will remain a challenge for the world community. The global dominants and tendencies of development of agro-production activity within the global market of agro-food products are analyzed. The grouping of leading countries with a highly innovative agro-industrial sector, which is formed taking into account the goals of sustainable development based on the construction of a clustering model using the K-Means algorithm is done. Their experience of formation of the state policy directed for support of innovative transformations of agrarian and industrial complex is generalized and recommendations on implementation of their best achievements in the domestic agricultural sector are offered. The aim of the work is a comprehensive assessment of innovative transformations taking place in the agricultural sector in the context of the challenges of global sustainable development. The task of the research is to determine the most successful group of countries in terms of implementation of intensification of production activities, the effectiveness of innovation policy and the ability to meet the demand for food, taking into account the requirements of sustainable development; providing recommendations for the modernization of agricultural production of domestic producers. The following methods of scientific research were used to achieve the goal and solve the problems of the article: system analysis, forecasting, generalization, modeling, namely clustering by the K-Means algorithm, etc. The scientific novelty of the obtained results is to provide comprehensive recommendations for the formation of domestic public policy aimed at supporting innovative transformations in the agroindustrial sector, based on key factors and determinants of its development and taking into account the best practices of leading countries in this field.Keywords: agricultural production, innovations, sustainable development, state support.JEL Classification O13, O39, Q01, Q17, F63Formulas: 0; fig.: 2; tabl.: 2; bibl.: 20.

MODERNIZATION OF PRODUCTION AND ECONOMIC ACTIVITY OF ENTERPRISES AND FARMS OF THE AGRICULTURAL SECTOR IN CONDITIONS OF INSTITUTIONAL TRANSFERS

The article highlights the relevance of the modernization of production and economic activity of enterprises and farms of the agricultural sector in the context of institutional transformations. The analysis of modernization studies by fundamental and applied economic science is carried out, the problem statement is made.The results of researches of agrarian economic science on the main directions of modernization of production and economic activity of agricultural enterprises and farms are given. The generalization about belonging of modernization to economic categories has been made, which reflects the general properties of real reality and serves as a natural mechanism of its upward development due to the improvement of the man of production and economic activity, provides economic progress and improvement of the level and quality of life of the population. Institutional changes have been identified, as evidenced by an overall increase in the number of agricultural enterprises, a decrease in farms and annual fluctuations in the number of agricultural entities. It is established that in agriculture, agricultural enterprises and farms are focused on the production of grain and legumes, sunflower and sugar beet, while households are mainly engaged in growing potatoes, vegetables, fruits and berries. In animal husbandry, agricultural enterprises have a certain advantage in the production of meat (in slaughter weight) and eggs, and households dominate dairy cattle, sheep and beekeeping.The importance of each category of farms in the agrarian sector of the economy in the production of basic agricultural products is determined. The arguments about the need for modernization of production and economic activity of agricultural enterprises and farms are presented.The complex of measures of modernization of production and economic activity of the studied subjects is substantiated, economic individualization of which is combined with processes of cooperation and agro-industrial integration in clusters of integrated territorial communities of rural areas. Keywords: modernization, production and economic activity, enterprise, farm, institutional transformations. JEL Classification Q12, Q14,Q18 Formulas: 0; fig.: 0; tabl.:2; bibl.: 12.

CREDIT POLICY OF A COMMERCIAL BANK IN CONDITIONS OF UNCERTAINTY OF THE ECONOMIC ENVIRONMENT

The article examines the concept of «credit policy» through the prism of the functions outlined in the development strategy of the banking institution, which is primarily aimed at maximizing resources for rapid response to uncertainties of the external and internal environment. The complex of identified key characteristics allowed to form a holistic view of the nature and specific features of the commercial bank’s credit policy. The article underlines that in conditions of uncertainty, the bank should take into account external and internal environmental factors that have a direct impact on the dynamics of lending to individuals and businesses, and need to be considered at the stage of strategic financial planning, monitoring the implementation of set tasks and in order to timely adjust the policy according to the banking institution’s needs for financial and economic security. The systematised factors are interrelated and interdependent and can have a multifaceted impact on the current state of the credit services of banking institutions’ market and such market’s trends. The article establishes the role of analysis and monitoring of banking institutions’ credit operations in the context of ensuring the effective results of the commercial bank’s credit policy. It is identified that credit risk is now in the spotlight of banking institutions along with the risks of capital adequacy and legal risks, due to the general decline in economic activity of consumers of financial services as a result of the epidemiological crisis and the introduction of quarantine restrictions, which reduced household incomes and negatively affected the financial situation of enterprises. The dynamics of changes in the share of NPLs by groups of banks is analysed, revealing foreign banks’ active work with NPLs. The study pays attention to the use of analytical tools of the commercial bank’s credit policy as a means of managing its financial and economic security in conditions of uncertainty, which concerns constant monitoring of loan portfolio quality and timely detection of NPLs. It also suggests the sequence of lending steps specifying practical aspects of use of analytical tools of credit policy. Keywords: credit policy, commercial bank, management, uncertainty, economic environment, analytical tools, financial market. JEL Classification E51, G21 Formulas: 0; fig.: 7; tabl.: 0; bibl.: 14.

CURRENT ISSUES OF PUBLIC FINANCE MANAGEMENT IN UKRAINE

The article describes the approaches to defining the essence of understanding «public finance» and «public finance management» in the context of administrative and financial decentralization. A study on the current state of economic development of Ukraine is carried and the public financial management system is analyzed. The dynamics of the ratio of revenues and expenditures of the State and local budgets is shown and the national and subnational levels in the financing of public expenditures are described. The sequence of achieving a new level of welfare of the population is presented and the ways of state influence on local economic development are outlined. The content of the state’s activity on financial resources management and public importance of finances is given. Particular attention is paid to the financial capacity of UTC and the existing positive developments within the decentralization reform in Ukraine. The need to improve the management of public finances was emphasized, as it was evidenced by the size of the budget deficit. The division of budget expenditures by functional classification between the national and subnational levels is presented and the decline of financial independence of subnational budgets is witnessed. An assessment of the level of confidence in financial asset management services of territorial communities based on the calculation of the relevant index is made, and the relationship between the selected indicators (the monetary expenditures of the population; deposits of individuals in investment funds; population savings; volume of capital investments; volume of investments in Ukraine; assets of investment funds) and the level of public confidence in the management of UTC financial assets is researched. Keywords: financial management, public finance, financial capacity of territorial communities, financial assets. JEL Classification H70, H89, R59, Q01 Formulas: 1; fig.: 5; tabl.: 3; bibl.: 20.

IMPLEMENTING THE SUSTAINABLE DEVELOPMENT GOALS IN UKRAINE: FINANCING FRAMEWORK

The article examines the features of sustainable development processes in Ukraine. In particular, the works of scientists on the issues of sustainable transformations of the economy, the problems of establishing a mechanism for the transition to the use of renewable energy sources and reducing carbon dioxide emissions are analyzed. The basic principles of legislative regulation of the processes of sustainable transformation in the context of Ukraine’s integration into the international model of sustainable development according to the UN Framework Convention on Climate Change are studied. The research objective is to study the mechanism of implementation of sustainable transformations in the economy of Ukraine, identification of the main problems of low-carbon strategy establishment in the context of harmonization of international and state legislation and identification of effective mechanisms for financing sustainable development processes. During the research, methods were used, such as: the dialectical method and methods of analysis and synthesis — to carry out a comparative analysis of legislation that regulates the processes of sustainable development, ways to implement a low-carbon strategy, study trends in carbon emissions in Ukraine; statistical method — to analyse the targets for changing the greenhouse gas emissions of Ukraine in 2020—2030 and the proposed target for 2050; structural and logical analysis — to study effective mechanisms of financing the processes of sustainable development in Ukraine, identify the ways of sustainable development projects funding. In general, the article reveals a number of problems that Ukraine faces as a signatory to the Kyoto Protocol. The main tools of the country’s transition to a low-carbon strategy have been identified. The economic mechanisms to ensure the fulfillment of the country’s obligations under the Kyoto Protocol have been studied. Possible ways of financing the processes of sustainable transformation are considered, among which, in particular, we can highlight the scheme of «green» investments. Keywords: sustainable economic development, Framework Convention on Climate Change, Kyoto Protocol, low carbon economy, mechanism for financing sustainable development. JEL Classification Q01, Q4, Q5 Formulas: 0; fig.: 1; tabl.: 0; bibl.: 36.

STARTUP AS A STRATEGIC COMPONENT OF THE DEVELOPMENT OF THE CREATIVE ECONOMY OF UKRAINE

The radical changes that took place at the end of the last century contributed to the emergence of a creative economy. Unlike previous economies, in which the main factors of production were production capacity, land and labor, the basis for the development of the creative economy was the creative potential of man. The current economic situation in Ukraine faces many challenges that need to be confronted with viable solutions. The occupation of Crimea cost Ukraine 3.6% of GDP, and the occupied territories of Donbass cost another 15% of GDP and 25% of all Ukrainian industry. In addition, many industries and factories in Ukraine are physically and morally obsolete and require large capital investments. These problems, which, as the experience of Ukraine shows, are not solved by traditional tools, force us to look for non-standard ways to solve them. Such approaches are offered by the creative economy.To assess the opportunities provided to Ukraine by the development of the national creative economy, the article considers the positive effects of the creative economy as evidenced by the successful experience of other countries. Such effects are the formation of creative human capital, increasing incomes, increasing tolerance, the revival of depressed regions. However, the realization of these positive effects is possible provided that there are components of the creative economy in Ukraine. Research by Ukrainian scientists proves that in Ukraine there are the main features of the creative economy, namely: creative industries; creative class as a basis of the creative lever of development of creative economy; young, creative, ambitious entrepreneurs — startups. A key factor in the development of the creative economy is creative human capital, an essential component of which are entrepreneurs — innovators who establish startups to implement their ideas. Analyzing the various definitions of the category «startup», the authors concluded that the most acceptable is one that reflects the fundamental difference between startups and other businesses, namely: a startup is a business structure based on revolutionary innovations, the purpose of which is to solve a specific problem presentation of a new product or service in conditions of extreme uncertainty. Taking into account the innovative nature of startups, their impact on the creation and development of creative industries and the creative economy in general allowed the authors to conclude that startups are a strategically important component of the development of the creative economy. Research has shown that the Ukrainian startup ecosystem has good potential for development. However, the Government of Ukraine is not yet paying due attention to the development of the ecosystem for the successful creation and operation of domestic startups. Only in the last few years has Ukraine begun to support innovative products at the state level. Examples of such support are the creation of the Invention Support Fund of the Ministry of Economic Development and the Ukrainian Startup Fund. In addition, according to the strategy for the development of innovation for the period up to 2030, startups are a structural part of the national innovation ecosystem. However, intensive long-term work is needed to create an effective startup support ecosystem. Even with large investments and the desire to replicate the successful ecosystems of Silicon Valley or New York, it is very difficult, because their infrastructure was formed over 30 years. Keywords: creative economy, positive effects, creative human capital, startup, ecosystem of startups. JEL Classification М11 Formulas: 0; fig.: 1; tabl.: 1; bibl.: 14.

THE IMPACT OF M&A TRANSACTIONS ON THE GROWTH OF THE BANKS’ MARKET VALUE

The globalization of markets, the need to comply with modern economic trends and introduce new technological solutions to increase the profitability of the banking business have significantly intensified the processes of mergers and acquisitions in the banking sector. M&A processes are long and complex, their results are difficult to forecast in lack of actual detailed research. The diversity of the results of the available research requires updating the data based on larger volumes of transactions and larger time intervals. The purpose of the article is to substantiate two hypotheses: first, the impact of M&A agreements especially on the increase in the value of banks; and impact of factors that show economic development level on the value of banks. The object of the study is the relationship between the value of commercial banks in domestic and foreign financial markets, M&A agreements, as well as economic indicators published by the World Bank and measuring the level of economic development of countries. The article uses statistical modeling method. The constructed model of linear regression allows to state that the fact of influence of M&A on growth of cost of consolidated banks is fair for 54.8% of cases. The study shows that the M&A processes have the greatest impact on the value of banks in the interval of 3—5 years after the conclusion of the agreement. Analysis of the relationship between economic indicators and the growth of bank value shows that the greatest impact on the value of banks has percent of the growth of GDP and GDP per capita, but the low value of the determinant at 22.9% indicates a low dependence of bank value on the level of economic indicators in general. It was found that external factors do not directly affect the growth in the value of banks in the process of M&A transactions. The question of expanding the system of factors that will influence the M&A processes and, as a consequence, the value of the banks, will be the subject of further research. Keywords: globalization of markets, mergers and acquisitions of banks, consolidation, M&A dynamic, market capitalization, bank value. JEL Classification Е44, Е47, G14 Formulas: 2; fig.: 4; tabl.: 4; bibl.: 14.

COMPETITIVE DEVELOPMENT OF AGRICULTURAL ENTERPRISES IN THE CARPATHIAN REGION OF UKRAINE IN THE CONTEXT OF THE CORRECTION OF THEIR SECTORAL STRUCTURE

The purpose of the study is to substantiate the competitive development of regional agricultural producers in terms of correction of their sectoral structure in the context of European integration processes. Methodology / methodology / approach. The theoretical and methodological basis of the study is the dialectical method of cognition, a systematic approach to the study of economic phenomena and processes, scientific works of domestic and foreign scientists on the theory and practice of competitive development of agricultural production considering exogenous and endogenous factors. Of the special research methods used economic and statistical — in analyzing the current state and forecasting the prospects for competitive development of regional agricultural producers in terms of European integration processes, graphical — to determine the projected volumes of livestock products on farms in the Carpathian region of Ukraine, abstract and logical substantiation of the institutional and economic mechanism of competitive development of agricultural producers of the Carpathian region of Ukraine in the context of correction of their branch structure. Results. The study revealed that given the possibility of establishing cross-border partnerships, deepening economic European integration with EU countries, an important economic priority of regional agricultural producers in the Carpathian region of Ukraine is the ability to form a market for various types of agri-food products with a geographical indication. The Carpathian region of Ukraine has a strong enough land and resource potential for the production of quality and safe dairy products with high added value. According to the calculations, provided the use of competitive advantages, which are enshrined in law in the EU, in the study region, the potential production of the most important livestock products — milk on farms can increase from 14 thousand tons to 252 thousand tons, or 18 times. In the region, the revival of traditional areas of specialization in agricultural production will contribute to the correction of its sectoral structure, improving organizational and economic conditions for self-sufficiency in livestock products, minimizing economic risk due to expanding areas of specialization, reducing transaction costs for transportation and sales enterprises of various organizational and legal forms of management that will produce products with high added value. Originality / scientific novelty. For the first time, the organizational and economic principles of optimizing the sectoral structure of regional agricultural producers, considering the competitive advantages that are enshrined in law in the EU. Practical value / significance. According to the calculations in the Carpathian region, taking into account the principle of bonus of 10.0% for agri-food organic, including niche or craft livestock products with a geographical indication will adjust the industry structure of agricultural enterprises in accordance with scientifically sound requirements and increase the traditional level of production at the same time, the vital type of food products — milk by 13.0—22.0 percentage points. Keywords: competitive development, industry structure, agricultural products, competitive advantages, environmental marketing, region. JEL Classification G21, M21 Formulas: 0; fig.: 4; tabl.: 2; bibl.: 20.