Public procurement in Ukraine: analysis of advantages and disadvantages

Public procurement is a complex process. With the help of public procurement, governments and government agencies purchase products, services, work, creating expenditures of the state budget and taxpayers. The purpose of implementing the e-procurement system was to reduce these costs and overcome the corruption component in this area. However, there are still many issues related to the inefficiency of certain components of this system. It is determined that domestic scientists identify a narrow range of benefits of the public procurement system, which is reduced to overcoming corruption and saving budget funds. The domestic scientists identify a narrow range of benefits from the use of public procurement. This is overcoming corruption and saving budget funds. In contrast, the foreign scientists see the public procurement system as an effective tool for sustainable development, innovation. The article analyzes the shortcomings and weaknesses of public procurement at each stage of their implementation, which allows identifying the main areas of improvement of the public procurement system, and summarizes the main advantages.

Development of accounting for social media marketing services (SMM)

Accountants of agencies and studios that provide advertising services of this type ask themselves the question: «How to keep records of works on popularizing brands in social networks?». The current regulatory framework does not give clear recommendations on how to account for transactions in the provision of marketing services in social networks, and not so many foreign and Ukrainian specialists have studied the accounting nuances of SMM. Therefore, taking into account the specifics of the object under study, a number of proposals were made to the working chart of accounts in terms of synthetic accounting on accounts 23 «Main production» and 05 «Guarantees and collateral provided» for web studios and marketing agencies, which will allow differentiating the costs incurred in the process of activities and, along with this, improving the accounting process in terms of the formation of the cost of SMM services. The order of accounting reflection of the budget provided by the customer on the off-balance account is proposed, which allows you to control the movement of funds received and track the directions of their use. Inadequate documentation of SMM transactions raises many questions from the fiscal regulatory authorities. The article develops documentary support for the purposes of accounting for marketing services in social networks (SMM). The effect of the implementation of the developed form «Act of acceptance and transfer of services rendered for SMM» is the possibility of highlighting the volume of marketing work performed and confirmation of the economic effect obtained (increase in sales, customer base, interaction with the brand, etc.), which will prevent the occurrence of conflict situations between the customer of services and the SFSU authorities regarding the inclusion of VAT amounts in the tax credit and the possibility of avoiding the accrual of «compensating» tax liabilities.

Reserve capital as a tool for minimizing business risks in strategic management system: accounting aspect

The normative-legal regulation of accounting of formation and use of reserve capital is established. Legislative regulation of the minimum size of reserve capital for different types of companies has been clarified. For joint-stock companies, in contrast to other types of companies, the legislation provides for the possibility of reducing the minimum deductions (including up to 0 %) when the reserve capital reaches the minimum size. A statistical analysis of the structure of equity by type of economic activity is made. It is established that out of 15 types of economic activity, only three (agriculture, forestry and fisheries; education; provision of other services) have profitable activity. Profitable types of economic activity are characterized by the dominance of retained earnings or additional capital in the structure of equity, with reserve capital occupying a small share. The common features and differences of additional and reserve capital are established. Common one is the creation of various funds, the source of which is net income. A distinctive feature is the ability to use funds. Additional capital provides for the creation of a fund for the renewal of non-current assets, employee motivation, etc. and the use of funds for these needs. Unlike additional capital, reserve capital is formed to eliminate crisis moments in the enterprise, reaches a certain size and may not be used for years, because it has a clear purpose – to cover losses, pay dividends on preferred shares and guarantees to creditors in liquidation. The method of accounting of reserve capital, which allows distinguishing the minimum level defined by the legislation and the sum exceeding the minimum size is offered.

Internal audit in the period of economic changes and its role in evaluation of the entity’s internal control. Theoretical characteristics and practical approaches

Internal control delivers guarantee and trust for investors, clients, suppliers, but also for the entity’s employees and other interested parties. As a result, an effective internal control system has a significant impact on the credibility of a modern entity and its activities, which is ensured by the entity’s management, through an appropriate process of evaluating the effectiveness of internal control. On the basis of those exposed, we sustain the opinion shared by many experts in the field, that the primary role in evaluating the internal control system is attributed to internal audit, because in line with current development trends, it supports the entity in maintaining effective controls by evaluating efficiency and effectiveness. As well as by promoting biased business actions. In this connection, the authors approach the study of the basic aspects of the internal control evaluation process in the light of the identification of the method, establishing and interpreting the indicators used in the evaluation, as well as determining the criteria and practical tools for evaluation. As a method of evaluation of internal control the systematic method of authors is proposed, which involves the evaluation of each component of it. This approach permits internal auditors to make an integrated consideration of the effectiveness of internal control in the entity of the internal control system in the good functioning of the entity, which contributes to the fulfillment of its strategic objectives. In addition, the research carried out highlights the performance of the assessment tool – the corresponding questionnaire, which was developed to evaluate the control environment of the entity and applied in the activity of public interest entities in the Republic of Moldova. This study offers the possibility to recognize the deficiencies within the control environment established at the entity and offers the possibility to the management of the entity to improve its functioning mechanism.

Evaluation of activity of internal audit: theoretical features and practical priorities

Internal audit is a crucial constituent in supporting the management of the prosperous entity in the circumstances of the competitive economy. The significant structural variations that have taken place in recent years both in the Republic of Moldova and in the world, the determination of new priorities in economic development, the formation of a new management system within the economic entity have contributed to the development of internal audit in several countries. A keen interest in the implementation of internal audit also belongs to the owners, who are interested in monitoring the effectiveness of material, financial and human resources within the entity. The internal audit is actively implemented in the entity’s activity, such as in the preparation of economic and financial information, its analysis and evaluation, control over the quality and efficiency of the entity’s subdivisions, also on the safety of assets and efficiency of their use, etc. On these grounds, the role of quality assurance of the internal audit activity is currently on the rise, which is in line with its performance. In this context, the author approaches the study of the basic aspects of the internal audit evaluation process in terms of identifying the evaluation method, establishing and interpreting the indicators used in the evaluation, as well as determining the evaluation principles. As a method of evaluation of the quality of the internal audit activity, the author uses the dashboard, determines the basic steps in its use and suggests a list of indicators, which can be applied in the evaluation process. At the same time, the basic functions of using the dashboard in the process of evaluating the work of internal audit are identified.

IT service: concepts and types for accounting purposes

Ensuring effective management of IT services requires well-defined terminology. There is no unity among scientists on this issue. The purpose of the article is to reveal the concept, main characteristics and types of IT services that have an impact on their accounting. To achieve this goal, the following methods were used: analysis and synthesis, logical generalization, contrastive comparison, graphical method. Based on the analysis of scientific works, which raised the issue of interpretation of IT services, the main characteristics of this concept are identified. Disclosure of the essence of IT services is impossible without a description of their classification. The article summarizes the types of IT services provided in the works of scientists. It is proposed to classify them according to the following characteristics: method of provision (IT consulting, IT outsourcing, software development, system integration); object of provision (services related to software; technical support services; services related to the processing and storage of electronic information). It is established that the IT service for accounting purposes meets the characteristics inherent in all services, and has its own specific characteristics. The list of such features has been expanded and presented as follows: immateriality; inseparability from the source; indistinctness; receiving income from the performer or incurring costs; ensuring a useful result for the consumer of IT services; availability of special software and hardware for the service recipient; insensitivity of the IT service until the recipient receives the final version of the IT product; uncertainty of the quality of IT services before its implementation; difficulty in calculating the final price.

Changing approaches to the quality of accounting information: a historical aspect

The one of the main factors in ensuring the effectiveness of the management system of economic activity of the enterprise is information support. For the management staff, the priority is to improve the quality of the accounting system, which directly affects the formation of information support of the management system. Until recently, it was believed that all changes in accounting were due to globalization processes, increasing attention to environmental security, social responsibility, corporate governance. Historically, legal systems, political and economic differences have created a huge variety of accounting systems, which makes it difficult to make meaningful comparisons of financial statements in different countries. But, despite this, historically, approaches to disclosing the quality of accounting information have developed in a single vector that depended on the purpose of accounting, because it is obvious and logical that the development of accounting contributed to progress, stability, the need to meet social needs. In this regard, the periodization of accounting development is important. It allows us to trace historical logic, to approach the realization of the progress of changing epochs. The article proposes a new vector of approaches to the historical vision of periodization of accounting development in terms of determining its quality or qualitative characteristics.

Types and forms of the enterprise’s self-sufficiency demonstration

The article investigates the essence of the concepts of types and forms of self-sufficient development of enterprises, proposes their main characteristics and conditions of economic activity. It is established that today, most forest enterprises show a very low efficiency level in terms of profits, investment, labour costs and rising business values. It is expedient to carry out species differentiation of self-sufficiency of the enterprise according to time signs of estimation. In the managerial sense, it allows us to distinguish retrospective, budgetary, current and strategic self-sufficiency, which characterize the economic development in the past, what it should be, what it is now and will be in the future. Depending on the manifestation of types of self-sufficiency, it is divided into the following forms: implemented; normally stable; exemplary; dynamic; prognostic. The form of representation of the level of self-sufficiency should be understood as a manifestation of its specific content, which is an object characterized by a system of indicators that serve as an analytical basis for making appropriate management decisions. Resources that meet the consumer needs of the technological process of economic activity are essential for ensuring self-sufficiency. To do this, it is necessary to determine the status of resources from the standpoint of their participation in the process of obtaining values and added value, expanded innovation and growth of the market value of the enterprise. The efficiency of resource participation in ensuring self-sufficiency of enterprises involves achieving their full employment and full management on the basis of the most necessary activities in assessing the formation of the maximum ratio between net income and the cost of obtaining it.

Self-sufficiency as an object of management in the system of economic support of forestry enterprises

The article investigates the essence of the concept of «self-sufficiency» of the state of the enterprise development. The main characteristics and conditions of economic activity functioning are offered. On the basis of the conducted analysis the external and internal factors that negatively affect the level of self-sufficiency of forestry enterprises are determined. It is established that today, most forest enterprises have a very low level of the management efficiency in terms of profits, investment formation due to depreciation policy and labor cost indicators. At the same time, in relative terms, this sector of the economy is characterized by the highest tax burden due to the payment of rent for special use of forest resources and payments from profits on two calculations of the general system of taxation and deductions from net income for state-owned enterprises. Summarizing the results of scientific research and applying content analysis, it is proposed to define the essence of the concept of «self-sufficiency» of forest enterprises as their ability to maintain and strengthen stable positions in certain market segments, optimize performance indicators that form added value and its structural elements on the level of systematic independent investment opportunity, and ensure the development of the relations of expanded reproduction of economic activity on the basis of rational use of its potential, as well as the creation of conditions for its increase. It is proposed to use the model of factor analysis of the ratio of value added, labor cost and net income to assess the level of self-sufficiency of forestry enterprises.

Problems of documenting the accounting of intangible assets

The situation related to the primary documents and the structure of their forms for accounting for intangible assets needs to be resolved. The existence of a number of options for the use of forms of primary documents for accounting for intangible assets, which complicates the documentation process, as the primary forms are partially collected and regulated by several laws and regulations. The need to streamline and summarize the primary documents for accounting for intangible assets and goodwill is emphasized, the order of which should be regulated by a single document. It is recommended to implement the Guidelines for the use of forms of primary accounting of intangible assets and goodwill, with a set of relevant details, which should include documents that will reflect all groups of intangible assets, not just those related to intellectual property. Emphasis was placed on the need to develop primary documentation that will reflect the operations with the formation of intangible assets that will create internal goodwill. It is noted that the use of uniform, agreed forms of primary accounting of intangible assets is also necessary to improve the quality of inspections by regulatory authorities. Primary accounting forms for inventory of intangible assets № IA-4 «Inventory description of intellectual property rights (PR)» and № IA-5 «Inventory description of objects of the right to use natural resources, property and other intangible assets» are developed and recommended to use. It is substantiated to make clarifications and introduce additional details to the inventory descriptions, which is necessary to improve the quality of information formation during the inventory. Emphasis is placed on the need to disclose in the process of inventory objective information about intellectual property objects by checking them for functional compliance, to record the working condition of such objects.