Studies of the Logistics Services Market: Information and Analytical Support and a System of Statistical Indicators

Information and analytical database for the market support is required to prevent communications of contradictory information to higher levels of management, with adverse effects for the process of taking rational management decisions. The article’s objective is to substantiate the information and analytical support for studies of the logistics services market, with constructing a system of statistical indicators for this market assessment, to be laid as the solid basis for elaborating medium-term and long-term strategies and policies of the logistics services market in Ukraine. A definition of information and analytical support for studies of the logistics services market is given; a review of secondary sources of data for this market studies is made. A conceptual model for information and analytical studies of the logistics services market is proposed. The key statistical indicators for studies of this market are identified, with substantiating the feasibility of their use in computing multivariate indicators for the assessment of performance and capacities of the logistics services market in Ukraine. The core criteria to be met by the abovementioned system of statistical indicators are highlighted. A system of statistical indicators for the assessment of the logistics services market is proposed, containing four modules. It allows for diagnosis of this market performance and tendencies, with accounting for the impact of other related markets and activities, and for forecasting. This system, constructed with consideration to the global practice, is designed for comprehensive studies of the logistics services market.

Organization and Methodological Support of Financial Monitoring in an Auditing Firm: New Requirements

The requirements to implementation of financial monitoring by auditing entities, as specified by the Law of Ukraine “On prevention and counteraction to legalization (laundering) of proceeds from crime, financing of terrorism and financing of proliferation of weapons of mass destruction” from 06.12.2019 No 361-ІХ, enforced on 28.04.2020, are analyzed. The existence of unclear interpretations of some notions in the this Law of Ukraine or heavy financial sanctions that may be imposed on auditing entities call for elaboration and introduction of internal firm documents concerned with financial monitoring. While in the previous edition of the above Law of Ukraine the features of financial monitoring organization were specified for auditing entities in case of rendering certain categories of services to a client (realty transactions; asset management; raising funds to establish legal entities, support to their operation and management, buying and selling of corporate rights), they are not found in the updated edition of this Law of Ukraine. Therefore, auditing entities need to rely upon general norms of the Law of Ukraine in organizing financial monitoring. A series of administrative documents were elaborated for this purpose: the order on assignment of a person responsible for carrying out financial monitoring; the conclusion of business character test for the candidate on the position of the responsible person, the Rules for financial monitoring of an auditing entity, and the monthly fact sheet of the responsible person about the results of carried out measures on financial monitoring. The developed Rules of financial monitoring cover all the regulatory requirements for the implementation of financial monitoring, with the possibility of making change in case of need. The Rules must be informed to the staff of an auditing entity, engaged in rendering auditing and non-auditing services, through the involvement in internal training on financial monitoring issues. Apart from the Rules, it is proposed to supplement the working documents supporting the financial monitoring procedures by the following sections: (i) “Documentary support to financial monitoring of auditing entities”; (ii) “Personnel and personnel training on financial monitoring issues”; (iii) “Documentary support to interactions with the State Service of Financial Monitoring of Ukraine, ministries and administrative departments”, which are supposed to help auditing entities to fully observe the regulatory requirements and avoid heavy financial sanctions on the part of controlling and regulatory bodies.

Income Tax: Genesis of Definition and Object of Accounting

Income tax in many countries is one of the main sources of filling the public budget and levers of influence on the development of economic processes at the macro level. The income tax ensures the balance of economic interests of the state, legal entities and individuals and the avoidance of excessive tax pressure. The impact of European integration processes on the Ukrainian accounting system increases the relevance of the development of the organization and methods of accounting for income tax. The purpose of the article is to establish the main phases of the evolution of the concept of “income tax”, clarify its economic content and identify the characteristics as an object of accounting. The article examines the historical phases of the income tax evolution, taking into account amendments in the tax law in Ukraine. A review of interpretations of the concept of “income tax” by foreign and domestic scholars was made, to establish the three main approaches to its interpretation: as a direct tax paid by a business entity from the received profit; as an item of the company financial statement, informing concerned parties on the amount of the assessed and paid tax; as a company’s payment to the state for utilization of economic infrastructure and resources. The author’s definition of the concept of “income tax” is proposed, which contributes to the clarification of the accounting terminology. It is argued that income tax should be considered through the prism of the tax law and accounting standards. A comparison of treatment to income tax as an accounting object in the National Accounting Standard 17 “Tax Income” and International Accounting Standards 12 “Income Taxes” is made. Based on a study of the legal framework for the accounting of income tax, its main components are identified as an object of accounting.

Projections of Environmental Pollution in Ukraine

The balanced environmentally sustainable economic development of Ukraine can be achieved by increasing the efficiency of the nature protection efforts, which requires the improved methods for assessment, modeling and forecasting of environmental performance and environmental pollution indicators. The article’s objective is to make a statistical forecasting of environmental pollution indicators in Ukraine, to outline the areas of nature protection work in this country. Air pollution, water pollution and hazardous wastes in Ukraine are forecasted considering the main factors of influence, selected with reference to the Strategy of the State Environmental Policy of Ukraine: GDP, the number of implemented resource-saving technologies, energy intensity of GDP, current spending on environmental protection. The project estimates for air pollution, water pollution and hazardous wastes were derived by use of regression models and factors projection. Results of the forecasting show that the emission of pollutants and carbon dioxide in the air, water pollution and pollution with hazardous wastes will be significantly reduced by 2022 if the current trends and patterns of development remain unchanged. Results of the forecasting confirm the need to introduce a series of measures concerned with waste treatment, air pollution and water pollution, to improve the regulatory system in nature protection activities in Ukraine.

Unemployment in Ukraine: an Analysis of the Dynamics, Gender, Age Structure and Causes of Unemployment

The article examines the dynamics of the number of registered unemployed and unemployed in the definition of the International Labor Organization (ILO), as well as the levels of these indicators. It is determined that compared to 2010, the largest increase in the number of registered unemployed could be observed in 2011. The most significant decrease in the studied indicator during the entire research period, both compared to 2010 and the previous year, was in 2017. In 2018–2019, the number of registered unemployed continued to decline. The increase in the registered unemployment rate compared to 2010 was in 2011, 2013–2016, and a significant increase in the level of the studied indicator was recorded in 2015. The decrease in the studied indicator was recorded in 2012 compared to 2011, as well as in the last four years of the research period. The unemployment rates by the ILO methodology are most informative figures on the unemployment in Ukraine. The number of unemployed in 2010–2019 did not have a clear trend and depended on the socio-economic situation in Ukraine: compared to previous periods, the indicator decreased in 2011–2013, and in 2014 increased rapidly, due to the difficult socio-political situation in the country, which had adverse effects for the economic situation; in 2015, the average number of unemployed decreased both compared to the previous year and to 2010. However, in 2016–2017, the studied indicator began to grow gradually, but did not reach the level of 2010, and decreased in 2018 and 2019 both compared to the previous period and to 2010. Analysis of the intensity of the dynamics of the unemployment rate of the population aged 15–70 years by the ILO methodology showed that throughout the ten-year research period this indicator in Ukraine decreased in 2011–2013 and increased in 2014–2018 compared to 2010, and in 2019 it decreased to the level of 2010. The sex-age structure of the unemployed is analyzed, its features are revealed and the generalized age characteristics of the unemployed are determined. In contrast to the registered unemployment, which indicates the predominance of women among the unemployed, a sample survey allows to suggest that Ukraine is characterized by “male” unemployment. Among the unemployed, the largest share was accounted by young people aged 15–34. The highest unemployment rate among young people aged 15 to 24 was due to the fact that without proper education and professional experience, young people were not able to compete on equal terms on the labor market. The average age of the unemployed in Ukraine in 2019 compared to 2010 increased by four years, including almost four years for men and five years for women. Because this indicator cannot be used as a generalization due to the heterogeneity of the population, as evidenced by the indicators of variation, mode and median, which are the structural averages, are the most suitable for the generalization of the characteristics of the unemployed by age. The structure of the unemployed by cause of unemployment was studied, with assessing the structural change. It is established that during the studied period in Ukraine this structure was changed significantly, as evidenced by the root mean square coefficient of structural change.

Organization of Big Data in The Structure of The Digitalization Ecosystem of a Globalized Society

У статті зосереджено увагу на поняттях «цифровізація» та «глобалізація». Визначено основні тенденції глобалізаційних процесів, їх позитивні та негативні наслідки для суспільства. Охарактеризовано блоки цифровізаційної екосистеми. Визначено, що ті масиви даних, які наразі існують є двигуном інновацій та виступають новими, альтернативними джерелами статистичних даних для офіційної статистики. З метою усвідомлення ієрархії даних, розроблено організацію великих даних. З’ясовано, що незважаючи на усі ризики, глобалізація відкриває нові можливості для розвитку освіти, науки, медицини. розвиваючись в глобалізаційних умовах, країнам необхідно діяти консолідовано, з метою подолання глобальних проблем. Таким чином, наукова розвідка сучасного стану цифровізаційних процесів в умовах глобалізації 4.0, стали основною метою написання цієї роботи.

Peculiarities and Prospects of Bank Lending to the Agriculture at the Current Phase of Economic Development in Ukraine

It is demonstrated that the domestic agricultural sector continues to be underfunded in spite of special lending programs for agricultural producers implemented by banks and stimuli provided by international financial organizations to agricultural producers to make them introduce energy saving measures. The research objective is to review the current situation with bank lending of the agricultural sector in Ukraine and determine its main problems and prospects. The following research methods were used: induction, deduction, system approach, statistical analysis, logical generalization, graphical method. It is shown that the bank lending in Ukraine is operating now under the pressures of the financial globalization processes and in the post-crisis condition of the bank sector, high risks and information asymmetry characterized by lack of complete and reliable information about the factors underlying business operation in various economic sectors, required for the assessment of the borrowers’ creditworthiness, and by inefficient financial and credit instruments. A review of global practices shows that in most part of foreign countries governments support lending to agricultural producers through budget preferences or limitations imposed on the banks that can lend agricultural producers, with laying down a requirement that the loans provided to the agricultural sector must be the cheapest ones. Lending of agricultural producers in European countries is most often carried out by cooperative banks, with mortgage of lands being the main form of long-term lending. Considering the European practice, creating a specialized agrarian bank or applying economic stimuli to banks engaged in lending of the agricultural sector may be a solution of lending problems in Ukraine. The study of specific features of bank lending to the agricultural sector at the current phase of economic development in Ukraine confirms the need for further with scientific justifications of the government support to lending processes in the agricultural sector.

Valuation and Recording the Value of Innovation Objects in the Accounting System

The problems of valuating and recording the value of innovation objects in the system of accounting and reporting are investigated. It is argued that one of the factors hindering the development of innovation is insufficient information support covering a set of primary and consolidated data, the organization of storage of accumulated information and methods of its presentation and transformation. The main valuation models used by business entities to include the value of innovation objects in the economic transactions are identified. It is established that the commercial use of innovation objects requires calculation of market or other value. The main methodological approaches to valuation of innovation objects and their impact on the formation of the value of innovation objects are proposed, taking into account these objects’ characteristics, specifics of the economic activities in which they are exploited, and availability of information on a group of objects, which determines the choice of appropriate valuation approach. The ways of valuating innovation objects at company level are highlighted. Methodological approaches to recording business transactions with innovation objects in the accounting and reporting system are elaborated, which will contribute in the sound assessment of innovation objects and their correct recording in the accounting system of a business entity and ensure effective management of innovation.

Classification of Franchising and Specifics of Its Types in Business Operation

The development of business can stuck in a series of problems related with market expansion, recruiting of staff in the dealer network, setting interaction channels etc. These can be dealt with by new economic mechanisms like franchising that allows for increasing the effectiveness of small business. But each of its type has advantages and shortcomings, which, if misunderstood, can cause serious risks to the operation of each partner and business on the whole. The article’s objective is to investigate criteria for classification of franchising and business specifics of its types. It is shown that franchising can take various types and forms in business operation, depending on the classification criteria. A detailed discussion of franchising types is given, classified by character of business operation, opportunities and intentions of franchisee, strategy for franchising business expansion, number of franchising enterprises owned by one franchisee, value of franchise, existence of intermediaries between franchiser and franchisee. It is argued that the above given classification allows one to position franchising types in business operation, choose the most appropriate type of franchising or a type of interactions with partners in creating a franchising enterprise, make projections for franchising-based businesses. It is emphasized that franchising is not an all-purpose tool for addressing all the problems of small business; it has a great many shortcomings that may be caused by possible dishonesty of a franchiser or rooted in the very nature of franchising. Two groups of shortcomings specific to franchising are discussed in detail. Advantages of the franchising system are demonstrated by comparing statistical data about the firms operated on franchising terms and by traditional methods; by highlighting the significant role of a ready-made standardized business plan provided by a franchiser to a franchisee, which helps insure the latter from business risks; and easy access of an entrepreneur deciding to launch own business (i. e. a franchisee) to bank loans.

The Yanus-Like Quality of the Ukrainian Audit

The external control over the quality of audit is exercised in Ukraine due to the requirement of the specialized law, in spite of the missing definition of the quality of audit and its criteria in domestic and international normative documents. The article’s objective is to draw attention to the issue of the quality of audit by elaborating on its dual nature, terms and principles for organization of control over business results of auditing entities and user expectations concerning these results. For this purpose, the quality of audit is addressed from two dimensions: external and internal. The external dimension of the quality of audit is analyzed in terms of expectations concerning the quality of audit, held by users of audit results (official regulatory bodies of bank, financial and corporate relations; official fiscal bodies and controlling bodies of public supervision over auditors; actual owners of businesses; hired management) and the coincidence between these expectations and actual results of audit. The internal dimension of the quality of audit is analyzed in terms of auditing entities and their expectations from the categories of entities such as customers, owners of customers, controlling bodies, personnel of auditing entities or invited external auditors or experts. Distinctive features of the Ukrainian market of audit services are highlighted, prevalence of supply over demand in the first place. Questions are posed which need to be responded for proper organization of control over the quality of audit: Is control over the quality of audit is necessary? If “yes”, then to whom? Do formalized expectations of users of audit results concerning the quality of its result really exist? If audit is a type of control over the quality of reporting and management on the whole, would it be expedient to set up control over the controller? What is the essential meaning of effectiveness and performance of control over the quality of audit, especially external one? Can positive results of the external inspection of auditing entities to the effect of the quality of audit be regarded as “indulgence” for a certain period, or the permanent external control is needed after all? Should control over the quality of audit be obligatory only for the auditing entities involved in inspections of entities of public interest, or should it cover all the auditing entities without exception? The analysis gave grounds to the author to ask if it would be more expedient in the Ukrainian realities that the term “quality of auditing” was abandoned and replaced by the term “compliance with the standards”.