Bulletin of Lviv National Environmental University. Series "AIC Economics"

STATE AND PROSPECTS OF WIND ENERGY AS A FACTOR OF UKRAINE’S ECONOMIC DEVELOPMENT

I. Cherevko — 2024-07-07

The purpose of the research was to study and systematize the economic, ecological and technological advantages and disadvantages of wind energy and the conditions, opportunities and problems of its development in Ukraine as a factor of the country’s economic development in the conditions of war. The methodology of the conducted research is based on the application of the descriptive-analytical method in the process of studying the phenomena and processes, that are taking place in the energy base of the countries of the world and, in particular, in Ukraine, which is combined with the organic synthesis of the results obtained due to the application of the descriptive-analytical method of the results, their systematization and generalization, as well as with the comparative method, which turned out to be particularly suitable in the process of analyzing the trends in the development of wind energy in Ukraine. It is established that wind power has significant technological, economic and environmental advantages over other branches of renewable energy, but it also has certain disadvantages. The comparative analysis showed that the total assessment of the advantages of wind energy is much higher than the total assessment of its disadvantages, which, by the way, decreases over time as the relevant technologies progress. The rate of wind energy development in the pre-war period in Ukraine was also quite high, and even during the war, it continued to develop. Ukraine is intensively rebuilding destroyed wind energy facilities, actively building a network of new wind power plants on controlled territories, as there is an understanding of the need to start rebuilding the economy without waiting for victory, and that it should start with wind power, which can significantly reduce and eliminate the energy deficit in the country relatively quickly. The main factors that will influence the scenario of liquidation of the consequences of russian military aggression in the wind energy industry of Ukraine and its post-war reconstruction are the time and conditions of the end of the war, the pace of recovery, and forecasting indicators of GDP growth, the rate and completeness of market integration with the EU, the quality of the state support for wind energy in terms of creating favorable economic conditions for it, since favorable natural conditions for the development of wind power industry in Ukraine are objectively available.

STRATEGIC ASPECTS OF BREAK-EVEN DEVELOPMENT OF HUNTING FARMS IN THE POST-WAR PERIOD

T. Yavorska — 2024-07-07

The text discusses an approach to managing the incomes and expenses of hunting farms while minimizing the negative impact of human activities. It is highlighted that the strategic priorities of the break-even development of hunting farms in the post-war period are based on the principles of cost self-sufficiency parameters in the context of their economic relations with forest and agricultural entities in a certain area of their location and an integrated approach to the restoration of stable economic growth and resource opportunities. It was determined that the balancing of the economic cycle of hunting farms and their break-even development is possible by placing funds in ecological projects based on the combination of methods of self-recovery of costs with methods of subsidizing and stimulating environmental protection measures. A comprehensive methodology for assessing the level of environmental sustainability of the natural capital of hunting farms is proposed, which allows determining the economic benefit with consideration of the ecological component. A toolkit for assessing the level of environmental sustainability of the natural capital of hunting farms in Zaporizhzhia region has been developed. It has been proven that under the condition of deoccupation of the territories, the implementation of strategic programs for the loss-free development of hunting farms in Zaporizhzhia region based on environmental policy will allow to increase the costs for the restoration of natural capital. It is substantiated that the resource capabilities of hunting farms of Melitopol district of Zaporizhzhia region in 2024–2026 will allow to increase the level of their break-even development, provided that budget investments are made in the greening of natural capital and will be restored with their rational use.

CONCEPTUAL APPROACHES TO DEFINING THE TERM “DIGITAL ECONOMY”

L. Petryshyn — 2024-07-07

The chosen topic of the research article involves highlighting modern interpretations of the content and features of the digital economy. This article presents and summarizes the results of the analysis of scientific approaches to defining the essence of the digital economy. The study has determined that the content of the elements of the digital economy can be disclosed based on the results of the digital transformation of economic activities of enterprises. The analysis of the substantiation of the conceptual apparatus carried out in the article made it possible to structure the conceptual approaches to the definition of the concept of “digital economy”. It is found that the key strategic documents on the development of the digital economy in Ukraine (Digital Agenda for Ukraine 2020, the Concept for the Development of the Digital Economy and Society of Ukraine for 2018–2020, and the Concept for the Development of Digital Competencies until 2025, Ukraine 2030E – a country with a developed digital economy) pay considerable attention to the specification of applied principles related to the development of the digital economy infrastructure and the development of digital competencies of citizens. It is established that many difficulties arise when assessing the scope of the digital economy precisely because there is no generally accepted definition of the digital economy and there is a lack of reliable statistical data on its components. It has been found that several initiatives are currently being implemented to remedy this state of affairs, but they are still not enough. In addition, there is a lack of adequate macroeconomic statistics that would allow an accurate assessment of the benefits of using digital products and those created based on digital technologies. It is found that today there are several synonyms for the digital economy: the Internet economy, the new economy, the web economy. All of these terms describe new trends in the development of economic and information relations and generally explain the type of economy where digital data are the main means of production.

THE POTENTIAL OF AN AGRICULTURAL ENTERPRISE: ESSENTIAL CHARACTERISTICS

V. Zhevatchenko — 2024-07-07

The article studies the theoretical essence of the potential as an economic category and its features in the agrarian sphere. It is noted that the importance of the agrarian sphere of the economy is determined not only by a significant share of gross production, but also by ensuring the country's food security, since it is the main food source for the population. It was found that an important role is assigned to the set of existing and potential resources of the enterprise, including production, financial, innovation, intellectual, and marketing potential. It has been studied that the components of the production potential include the system of interconnected different types of resources that are at the disposal of the enterprise or can be involved in its economic activity. At the same time, it is determined not only by their quantity and quality but also by their optimal ratio, compliance of their size and composition with the needs of the tasks to be solved. It is noted that the financial potential determines the ability to adapt to changing market conditions, generate income, attract investments and remain resilient in the face of challenges. It was established that this is a combination of all available financial resources of the enterprise and methods of their use to ensure the maximum possible financial result. It was determined that unsatisfactory state financing of innovative activities of enterprises resulted in a low level of innovative activity of agricultural enterprises of Ukraine, and the sources of financing innovative activities of agricultural enterprises are mainly their funds. It was emphasized that the lack of intellectual potential in agricultural enterprises is an obstacle to the development of innovative activities. The research emphasizes a close connection of marketing potential and the financial and production ones.

SYSTEMIC CHALLENGES IN AGRICULTURAL BUSINESS: CLASSIFICATION AND WAYS TO OVERCOME THEM

O. Navrotskyi — 2024-07-07

The agricultural business of Ukraine faces numerous systemic challenges that require complex and multifaceted solutions. It was determined that systemic challenges negatively affect the stability and development of the agricultural sector of Ukraine, leading to a decrease in the profitability of the agricultural business, loss of competitiveness in world markets, and deterioration of the country's food security. The article proposes a classification of the systemic challenges of the agricultural business of Ukraine according to the following categories: economic (volatility of prices for agricultural products; rising prices for resources; lack of skilled labor; access to credit and financing), environmental (climate change; land degradation; environmental pollution; decrease in biodiversity), social (increasing inequality; migration from rural areas; lack of access to education and health care; changing food habits), political (instability of the political situation; imperfect legislation; corruption; trade barriers) and technological (introduction of new technologies; lack of digital literacy; cyber security). It was also determined that global, national, and local systemic challenges pose a significant threat to the stability and development of agricultural businesses in Ukraine. Classification of systemic challenges in agricultural business requires a complex and systematic approach to their solution. Meeting these challenges requires a coordinated effort by government, the private sector, and academia. Establishing a constructive and productive dialogue between government and business structures in the field of agribusiness development will ensure a joint solution to business development issues. Ways to overcome systemic challenges are proposed, in particular: implement land reform, modernize agricultural infrastructure, improve the investment climate, strengthen state support for the agricultural sector, introduce the latest technologies and equipment, use resources more economically, diversify sales markets, adapt production to climate change and consumer preferences.

ENSURING THE ECONOMIC SECURITY OF AGRICULTURAL ENTERPRISES AS AN INSTRUMENT OF STATE REGULATION OF THE ECONOMY

Yu. Mykhnovetskyi — 2024-07-07

The article deals with the issue of ensuring the economic security of agricultural enterprises as an important tool of state regulation of the economy. The article analyses the main threats to economic security and identifies the methods and measures that can be used to increase the level of economic security in the agricultural sector. The role of state policy in creating favorable conditions for the stable development of agricultural enterprises is considered. It is determined that the economic security of agricultural enterprises is a key element of the overall economic security of the state. In the context of globalization and increasing competition in international markets, ensuring the stable development of the agricultural sector is becoming one of the priorities of state policy. It is substantiated that effective state regulation can help strengthen the economic security of agricultural enterprises, which, in turn, will ensure the country's food security and the stable development of rural areas. It is determined that in the current economic environment, all business entities should adjust the mechanism for ensuring adequate security in connection with the war in our country. The military actions in our country have necessitated the development of the agricultural sector of the economy to fulfil the country's obligations to export agricultural products. Thus, the security issues of each particular agricultural enterprise are resolved by the head of this enterprise and his/her team, as state support cannot solve all the problems of forming an appropriate level of financial condition indicators. On this basis, it is necessary to identify the key areas of organization of the system of economic security of agricultural enterprises and to outline ways to improve them. The carried-out analysis of risks in the system of economic security of agrarian enterprise will allow to ensure the sustainability and stability of business in the face of uncertainty and change. The author of the study considers it necessary to identify the key areas of organizing the system of economic security of agricultural enterprises and outline ways to improve them.

CULTURAL PECULIARITIES OF DOING BUSINESS IN EUROPEAN COUNTRIES

N. Zelisko — 2024-07-07

The article studies the cultural peculiarities of doing business in European countries. The main aspects of business culture are identified. It has been determined that effective business in different countries requires a deep understanding of cultural characteristics and differences in today's globalized world. It has been found that today, despite numerous studies in the field of international business, the issue of cultural peculiarities of doing business in European countries remains relevant and insufficiently studied. Knowledge and understanding of these cultural differences are critical for entrepreneurs and managers seeking to succeed in the European market. Lack of such knowledge can lead to misunderstandings, conflicts and business failures. It is established how the cultural characteristics of different European countries affect business and what strategies can be successfully applied to adapt to these cultural differences. At the same time, the study found that business culture is constantly changing, adapting to the environment, market demands and social needs. The process of ethical decision-making depends on many factors, such as general human culture, social traditions, norms and rules of conduct, personal experience, etc. Globalisation trends, which bring a significant number of business participants to the world stage where different cultures and civilisations meet, further complicate this process. It is believed that business culture is a kind of external shell of the enterprise's operating environment, which is influenced by the national characteristics of the country and the specifics of doing business in a particular region and is complemented by the internal component - corporate and organisational culture. It is established that another important feature of European business is its progressiveness. It seems that the European market is so saturated that it is difficult for new entrepreneurs to find their place. The constant desire to expand and strengthen international cooperation makes the European market extremely dynamic.

THE ROLE AND PLACE OF A TERRITORIAL COMMUNITY IN THE SYSTEM OF LOCAL SELF-GOVERNMENT OF UKRAINE

R. Dumin — 2024-07-07

The article examines the phenomenon of a territorial community in the context of the public authority system of Ukraine. The author reveals the essence of the concept of a territorial community and investigates the key aspects of its formation and functioning in the current conditions of state-building in Ukraine. The basic concepts of defining the essence of a territorial community are considered, and it is established that it is a fundamental subject of local self-government which has the authority and responsibility for resolving issues of local importance. The author identifies the constituent elements of local self-government bodies in Ukraine.

Attention is focused on the role of territorial communities in Ukrainian local self-government. It is emphasized that the territorial community is the primary subject of local self-government, which has its authority and carries out its functions based on the principles of democracy and self-government.

The author provides definitions that state that a territorial community is a self-governing social unit that is formed and functions based on the common interests and needs of its residents. The proper functioning of territorial communities is the basis for building civil society and the rule of law in Ukraine.

The purpose is to study the territorial community as a fundamental element of the local self-government system in Ukraine. To identify and analyze the peculiarities of the functioning of territorial communities in the system of public authorities at the present stage of state-building. The study focuses on defining territorial communities' role, status in the local government system, and impact on public administration processes.

The study focuses on the analysis of the constituent parts of territorial communities, such as authorities, public organizations, and other elements involved in the process of public administration, as well as how these elements interact and influence each other, how they form the system of public administration at the local level. The study of the socio-territorial nature and public legal status of a territorial community allows for defining it as a unique primary collective subject of local self-government. It has the right guaranteed by the state to independently resolve issues of local importance in various forms, following the Constitution and laws of Ukraine, based on its own material and financial basis.

The study emphasizes that the reform of local self-government is the main effective force for the successful implementation of decentralization in the state, and therefore a deep understanding of the principles of functioning of territorial communities is equally important for the successful implementation of changes.

THEORETICAL AND METHODOLOGICAL FUNDAMENTALS OF CLUSTERING AS A TOOL FOR MANAGING THE INNOVATION AND INVESTMENT DEVELOPMENT OF INDUSTRIAL ENTERPRISES

L. Voinycha — 2024-07-07

The research discusses the theoretical aspects and methodological approaches to clustering in the context of managing the development of industrial enterprises. The authors analyze the impact of global economic and scientific-technological changes on economic development, emphasizing the importance of innovation and collaboration among enterprises in the current turbulent market environment. The article examines the historical development of cluster theory, from Alfred Marshall's concept of industrial districts to contemporary studies by Michael Porter and other researchers. It also highlights the role of clusters in stimulating innovation activity, enhancing competitiveness, and improving business process efficiency. Additionally, the authors emphasize the significance of clustering for business internationalization and strengthening regional economies. The advantages of the cluster approach, such as increasing competitiveness, improving the quality of human resources, promoting internationalization, and fostering innovation development, are analyzed. However, the authors also note certain drawbacks and challenges of the cluster approach, including the imperfection and incompleteness of the legislative framework as an effective basis for regulating cluster activities; the need for developing methods of competent cluster management; dependence on regional conditions; the risk of internal competition; and significant coordination costs within clusters. The importance of effective management and state support for ensuring the sustainable development of clusters is emphasized. The authors conclude that clustering is a vital tool for managing industrial enterprises' innovation and investment development, especially in the context of post-war economic recovery in Ukraine with increasing competitiveness, boosting innovation activity, and promoting internationalization.

BUSINESS PROCESS MANAGEMENT TOOLS IN LARGE-SCALE AGRICULTURAL ENTERPRISES

V. Varfaliuk — 2024-07-07

The article explores the unique aspects of business process management in large-scale agricultural enterprises. It focuses not only on producing large quantities of agricultural products, but also on addressing issues of product quality and ecological impact related to the use of chemicals in farming. The process approach to managing business processes in large-scale agricultural enterprises is explained, starting with identifying the processes and then using tools to manage them. Key processes that affect product quality and interact with other processes are identified, along with allocating resources, designating responsible individuals,and developing methods to measure effectiveness. The article also proposes a classification of business processes for achieving commercial or social results, and it characterizes business processes related to added value and location. Business processes are defined as the interactions between production personnel, management teams, various resources, systems, and technologies, each yielding specific results for the enterprise. The article emphasizes that changing or supplementing any business process in a large-scale agricultural enterprise requires managerial influence and the use of specific tools including analysis and planning, execution, control, and improvement. These tools enable enterprises to make informed decisions to increase competitiveness and efficiency, understand customer behavior and market trends, adapt to a changing environment, and stimulate development. Finally, the article examines the concept of interactive planning as a modern tool for business process management, creating favorable conditions for the best development scenario for large-scale agricultural enterprises.

ORGANIZATION OF THE MANAGEMENT OF ENTERPRISE SALES ACTIVITIES

I. Ivanitskyi — 2024-07-07

One of the conditions for the effective functioning of an enterprise is the organization of sales activities for the produced goods, aimed at satisfying consumer needs. The challenges of managing enterprises' sales activities in the current economic conditions and the search for optimal ways and strategies to enter sales markets lead to the formation of an organizational structure – a sales management system.

The problem of organizing sales activities in the current conditions remains relevant and requires further research in developing ways to increase the efficiency of sales of domestic enterprises. Effective organization of sales management and timely implementation of progressive sales strategies can ensure stable market positions for an enterprise. The organizational structure of sales management in an enterprise is a combination of management and production units that organize and carry out a complex of sales operations to deliver finished products to consumers according to their requirements.

The sales system of an enterprise can be considered one of the main subsystems of its functioning, directly impacting performance results.

The main goal of the sales sphere is to satisfy consumer needs for goods and services, characterized by their volume and structure of realization.

The sales system is one of the factors of product competitiveness. Accordingly, the enterprise needs to formulate a proper sales strategy. Therefore, an important direction in the research of sales activities is both the development and implementation of the strategy through the organization of sales activities.

Sales should be regarded as a crucial factor in increasing the efficiency of an enterprise's activities. The orientation of sales activities towards meeting consumer demand requires improving processes of interaction with clients, considering the market situation, and enhancing the organizational support of the enterprise's sales processes.

MARKETING COMMUNICATION STRATEGIES IN THE PROMOTION OF TERRITORIAL COMMUNITIES

A. Lyndiuk — 2024-07-07

The article describes the essence, meaning and impact of marketing communications on the promotion of territorial communities. It was determined that the marketing communications of communities are aimed at forming and conveying their clear and attractive image to the target audience to achieve certain strategic goals. Distinctive features of marketing communications of territorial communities relative to commercial structures are formulated, which include a wider range of target audiences, complexity of tasks, as well as the need for cooperation with various interested parties.

The main factors that influence the marketing communications of local self-government bodies and determine the specifics of the approaches and tools used in communication strategies are considered.

Recommendations for the formation and implementation of effective marketing communication strategies for territorial communities have been developed, the main elements of which are the analysis of the target audience, the development of clear goals, the analysis of the competitive environment, the use of modern digital technologies, the creation of a unique brand, the integration of various communication channels, the involvement of the community, regular measurement of effectiveness, adaptation to changes and ensuring sustainable development.

Marketing communications are important for increasing the recognition of territories, attracting investments, stimulating tourism and strengthening their positive reputation. They can help communities achieve competitive advantages at the national and international levels, thanks to the improvement or generation of new methods, approaches and principles of operational activities based on the use of modern knowledge.

An effective communication strategy results in the achievement of community goals, including economic, social and environmental directions. Successful application of the proposed recommendations will contribute to increasing the competitiveness of territorial communities, ensuring their sustainable development and improving the quality of the residents’ lives.

ACCOUNTING OF BIOLOGICAL TRANSFORMATIONS IN HORTICULTURE

L. Hnatyshyn — 2024-07-07

The text discusses the relationship between accounting methods and organizational practices in horticulture, focusing on the technological aspects of biological transformation. It defines "biological assets of horticulture" and "biological transformations in horticulture" in consideration of the economic characteristics of these assets and the processes involved in producing horticultural products. It emphasizes that biological transformation processes in horticulture can be seen as investment opportunities for agricultural enterprises, as they represent potential sources of income. Long-term biological assets in crop production are regarded as the economic natural resources of an agricultural enterprise and are utilized to generate profits or other economic benefits. Once separated from long-term biological assets and initially recognized, horticultural products are no longer considered part of biological assets and are recognized as separate assets. The text also points out that the market for horticultural products in Ukraine is not well-regulated at the legislative level, making it challenging for horticulture businesses to determine the fair value of their products. It mentions that horticultural agricultural enterprises typically evaluate their main products based on production costs, which aligns with the principle of historical (actual) cost accounting. However, given the long production cycle and modern conditions in the horticultural industry, there is a need to enhance the accounting system, particularly in primary accounting. Furthermore, the text suggests the need for proper documentation of the biological transformation process in horticulture and fruit storage to include quantitative, cost, and quality indicators. It also proposes a method for accounting for the initial cost of long-term biological assets and defines the criteria for transferring immature biological assets to the category of long-term biological assets in horticulture. Additionally, it introduces a method for accounting for biological transformation in horticulture, starting with the implementation of costs for biological transformation and concluding with the calculation of the cost price of the fruits sold.

CURRENT ASPECTS OF THE AUDIT OF PUBLIC PROCUREMENT EFFICIENCY

H. Syrotiuk — 2024-07-07

This study examines important aspects of the performance audit within the context of the public procurement system. Forms of government audit are analyzed according to the INTOSAI classification, substantiating that performance audit is the most valuable in improving the public sector's management process. This is because it helps understand how planning, execution, and cost control contribute to the achievement of strategic goals in the public procurement process. The essence of performance audit in public procurement is revealed, focusing on ensuring transparency, efficiency, and stability in financial resource management. This facilitates the optimal use of budgetary funds and the implementation of modern approaches to cash flow management for the benefit of the public. The principles of performance audit are presented to fully disclose its essence: economy, effectiveness, efficiency, environment, fairness, ethics, economic welfare, expediency, evolution, and a proposed addition of adaptability. It is noted that these principles in the context of public procurement allow for the identification and evaluation of resource utilization effectiveness and compliance with sustainability criteria in the supplier’s choice. The main stages of conducting the performance audit in public procurement are outlined, including audit planning, data collection, and analysis, compliance with rules and legislation, cost efficiency evaluation, assessment of the quality of goods and services, risk identification, report preparation, monitoring, and control. The peculiarities of conducting the performance audit considering the wartime situation in the country, are highlighted. Special attention is paid to the criteria for evaluating the sustainability of goods and services during public procurement. The essence of environmental, economic, and social criteria is analyzed.

EFFICIENCY OF ACCOUNTING CONSULTING IN IT COMPANIES AND THE CURRENT DEVELOPMENT OF INFORMATION TECHNOLOGY

Z. Myronchuk — 2024-07-07

The primary focus of this scientific article is to comprehensively examine the nature and potential growth of accounting consulting within the realm of IT enterprise management. Specifically, the research aims to uncover the theoretical principles and real-world implications of accounting consulting and to evaluate its influence on the financial stability and efficacy of an enterprise.

The current trends, advantages and disadvantages of using information technologies in the modern world, their development and application in agriculture are substantiated. Having analyzed the data on the structure of the consulting market in Ukraine by segments, it is found that accounting consulting occupies a prominent place in the market of consulting services in Ukraine and is one of the important elements of doing business in the modern world.

The article examines how actively companies use IT technologies and innovative solutions, as well as the provision of accounting advice by various consulting companies, both foreign and domestic. It is noted that the activities of IT companies are considered to be very specific compared to other types of services. This fact is confirmed by legislative acts not only in Ukraine but also in other countries of the world and Europe.

The article considers the peculiarities of the taxation system, rules of profit taxation and certain types of benefits for IT companies, problems of licensing of accounting consulting companies, as well as services provided by consulting firms. The authors suggest ways of developing consulting companies in Ukraine.

It is predicted that in the future, accounting consulting in the IT sector will continue to integrate modern technologies and will focus on analytics and strategic management.

E-COMMERCE OF BUSINESS ENTITIES: ACCOUNTING AND ANALYTICAL ASPECT

H. Matskiv — 2024-07-07

The article explores the development of electronic commerce and its accounting and analytical support. It discusses the essence and unique features of e-commerce as a new business format in today's digital society. The article establishes the position of e-commerce in the digital economy as an effective business model that provides enterprises with competitive advantages. This includes reducing interaction costs, expanding markets and areas of activity, entering and identifying new sales channels in existing markets, attracting new customers, improving service for existing ones, and achieving greater mobility and efficiency in management decisions within a unified communication system. The article also identifies the main marketplaces for the expansion of e-commerce at national and international levels.

The article primarily focuses on examining the unique aspects of internet trading in the e-business sector as a subject of accounting. It outlines the process of calculating the expenses involved in establishing a virtual business through setting up and running a company website. The article also explains the methods of accounting for income, expenses, and financial outcomes of businesses engaged in traditional and electronic trading. It proposes an accounting system for monitoring income, expenses, and financial outcomes tailored to the specific industry of the enterprise. Additionally, the article presents an algorithm for handling online trading, managing payments with customers, calculating income, and determining financial outcomes. It also discusses various methods of payment for goods, services, and corresponding accounts, as well as potential approaches to recording the delivery of goods in e-commerce and displaying economic transactions in accounting.

The research indicates that the Internet trading market in Ukraine is predominantly dominated by companies utilizing business models such as online stores, bulletin boards, marketplaces, and price aggregators. An analysis was carried out on the potential for automating accounting procedures with specialized software that integrates with online sales platforms and payment systems. This integration allows for a substantial streamlining and optimization of enterprise operations.

INTERNATIONAL STANDARDS OF ACCOUNTING AND REPORTING AS A NECESSITY FOR ACCOUNTING SUPPORT OF AGRICULTURAL ENTERPRISES IN CURRENT CONDITIONS

N. Tsitska — 2024-07-07

The research is aimed at solving the problem of justifying the feasibility of introducing IFRS (International Financial Reporting Standards) into the production practice of agricultural enterprises. The content, purpose, and composition of international financial reporting and accounting standards are highlighted. The existing theoretical, methodological, organizational and practical provisions and recommendations for the organization of accounting through the application of IFRS in agricultural enterprises are considered.

The main aspects of the development of international accounting standards in the world and their phased implementation in Ukraine are highlighted. The compliance with IFRS in the global space in the current conditions, as well as the dynamics of their implementation at the national level are analyzed. The stages of transition to IFRS by enterprises that are obliged to comply with them following the current legislation are investigated.

The authors substantiate and prove the expediency of organizing accounting support for the economic activities of Ukrainian agricultural producers under international financial reporting standards to achieve effective management of their activities, attract foreign investment and strengthen their competitiveness in international markets in the context of European integration processes in the war and post-war periods. As one of the arguments for the demand for international reporting standards in the organization of accounting at agricultural enterprises, the author provides the number of direct losses incurred during the full-scale invasion by individual industries and agro-industrial complex.

A step-by-step procedure has been developed, i.e. an algorithm that should be followed when transforming accounting support to IFRS.

GOVERNMENT BONDS AS AN INSTRUMENT OF ALTERNATIVE INVESTMENT

O. Ahres — 2024-07-07

The article discusses the increasing interest of Ukrainians in alternative investment methods, particularly government bonds (domestic government loan bonds). It compares domestic government bonds with traditional income methods like bank deposits and real estate purchases, concluding that alternative investment strategies if approached properly, can yield higher returns and offer greater flexibility. The article describes government bonds as a tool for public debt and outlines their characteristics, including reliability, liquidity, stable income, portfolio diversification, and affordability. The article analyzes the domestic government bonds market dynamics in 2023, noting significant growth compared to 2022 in the Ukrainian capital market. It also examines the structure of trading in financial instruments in the organized capital markets of Ukraine, finding that domestic government bonds accounted for the largest share (52 %) of the trading volume. The article indicates factors that led to a 33 % decrease in the placement of domestic government bonds in the primary market in 2023, attributing it to significant international assistance, an increase in the NBU's discount rate, and a desire to shift the debt structure in favor of long-term borrowing. The authors highlight the increasing popularity of foreign currency-denominated domestic government bonds as a hedge against inflation. Additionally, the article analyzes the distribution of outstanding domestic government bonds by categories of holders and by currency denomination, concluding that the NBU is the largest holder, legal entities hold a significant share, banks are active participants, and individuals' share is growing. It also notes that the volume of domestic government bonds denominated in foreign currency is 9 %. The article concludes by analyzing the rates on domestic government bonds under martial law, emphasizing the importance of carefully assessing investment goals, risks, and specific instruments before investing in domestic government bonds.

COMPARATIVE ANALYSIS OF DESIGN THINKING TOOLS IN FINANCE AND POSSIBILITIES OF THEIR APPLICATION

O. Sholudko — 2024-07-07

In today's dynamic financial sector, design thinking is becoming an increasingly powerful tool for developing innovative and customer-focused products and services. Design thinking in finance combines design thinking methods with the needs and challenges of the financial sector. The use of these tools can significantly increase the efficiency of financial institutions, help them better understand their customers, create innovative products and services, and improve operational activity.

This article explores and compares various design thinking tools in finance, and assesses their effectiveness and applicability. The authors review and systematize the available design thinking tools in finance, including customer journey mapping, brainstorming, sketching, prototyping, and testing. Each design thinking tool in finance has its unique advantages and limitations. Customer journey mapping helps to understand the needs and emotions of users deeply, brainstorming generates a wide range of ideas, sketching visualizes concepts, prototyping allows testing ideas, and testing with real users provides an opportunity to get feedback and improve the product. The use of these tools can help financial institutions to develop more innovative and efficient products and services, which will lead to increased customer satisfaction, loyalty and competitiveness.

It's worth noting that design thinking in finance is still in its early stages in Ukraine, necessitating further research and refinement of its tools for broader adoption and effective application.

Despite its early stage in Ukraine, design thinking in finance has the potential to revolutionize the financial landscape and drive the nation's financial sector towards a more promising future.

LOCAL BUDGETS IN THE CONDITIONS OF FINANCIAL DECENTRALIZATION

O. Rubai — 2024-07-07

The article examines the role of local budgets in the conditions of financial decentralization, as one of the key reform processes in Ukraine to ensure effective development of local communities. The purpose of the article is to study the formation of local budgets in conditions of decentralization to strengthen the financial capacity of local self-government bodies. The systematization of literary sources on the study of the role of local budgets in the conditions of financial decentralization made it possible to find out in the work that it is the main source of financing local needs in the fields of education, health care, culture, social protection, improvement and other areas since the creation of the UTC allowed to unite small communities into larger ones with more population and resources. This enables local self-government bodies to better perform their functions and effectively finance the development of their territories.

An analysis of the revenue part of the budget of the administrative-territorial unit was carried out using the example of the budget of the Drohobych city territorial community, which showed that financial decentralization led to a significant increase in local budget revenues. Studies have shown that the largest specific share in the structure of the revenue part of local budgets is provided by tax revenues, namely a personal income tax, a single tax, and a tax on property other than land. Based on this, it is expedient for the heads of united communities to focus on the development of private entrepreneurship, legalization of labor relations, wage increases in business entities, and other measures aimed at increasing income from the administration of personal income tax. Based on the conducted research, it is found that decentralization opens up new opportunities for the development of local communities, and the effective filling and use of local budgets is a key factor in successful decentralization.

TAX REFORM AS THE NEED OF THE HOUR

L. Syniavska — 2024-07-07

The purpose of the article is to study the ongoing reforming of the tax system of Ukraine. It is noted that the problems of the tax system remain the most serious among the obstacles to conducting business and filling the treasury. The reform of the tax and customs service continues, but it is still extremely difficult to predict its effectiveness. It is emphasized that taxes have become the most important method to accumulate financial resources by the state, which provides the lion’s share of budget revenues. It was noted that the decrease in their share during 2022–2023 is the result of established tax breaks and reliefs to support businesses and citizens during martial law. Among many reforms of the State Tax Service, the main focus is on the package of changes to the tax system of Ukraine, which was named «Tax Reform 10-10-10» and the adopted National Revenue Strategy for 2024–2030. The goal of this reform is emphasized, which is to reduce the tax burden for businesses and citizens, which, in turn, should positively affect economic growth. It is noted that the strategy is one of the conditions of the International Monetary Fund in the framework of cooperation with Ukraine during the four-year program, will be valid until the end of March 2027, provides for the allocation of 15.6 billion dollars to Ukraine, and contains both useful and controversial proposals for the economy. Special attention is paid to the proposed reform of the simplified taxation system (STS), which provides for the revision of the list of branches of activity admitted to the first group to exclude high-turnover businesses with a set rate from the actual income received; combining the second and third groups of the simplified taxation system into one group with a differentiated scale; introduction of a single tax rate for legal entities of the third group with a gradual increase to the level of the ordinary income tax rate (18 %). It was concluded that an increase in the tax burden and the introduction of additional duties for payers of the simplified system may lead to the termination or liquidation of part of the business since it will be suboptimal for them to work under the new rules, which will have negative consequences for the budget, employment, labor migration, and other aspects of the economy.

ACCOUNTING AND ANALYTICAL SUPPORT OF THE FARMING DEVELOPMENT MANAGEMENT: THEORETICAL ASPECTS

O. Prokopyshyn — 2024-07-07

In the current stage, due to the influence of globalization and European integration on Ukraine's national economy, there is a clear need to develop significantly new mechanisms for accounting and analytical management of farms' development.

The article explains the theoretical principles of forming accounting and analytical support for managing farming development. Using a systematic approach and a classification method, the interpretation of the term "accounting and analytical support" proposed by various scientific schools is categorized into groups such as: system, activity, process, management function, information system, integrated information support system, interactive structure, a set of accounting and analytical processes, etc.

The authors propose a conceptual model for defining the concept of "accounting and analytical support for the management of agricultural development." This model consists of interconnected accounting and analytical procedures and is designed to provide the enterprise management team with necessary information. It relies on operational, statistical, financial, and management accounting data, as well as statistical, production, reference, and other types of information, digital technologies, and intelligent systems for economic analysis. It is a system for gathering, summarizing, and transmitting information that informs management decisions and aids in the planning and control of farm activities and development.

The text outlines the key principles for creating accounting and analytical support for managing the development of farming. These principles encompass various aspects such as purposefulness, initiative, systematicity, structuredness, maneuverability, alternative opinions, multivariateness, reliability, objectivity, timeliness, continuity, efficiency, flexibility, reasonableness, feedback, and hierarchy. They are organized into groups including normative and legal regulation, general scientific principles, accounting principles (financial statements, financial accounting, tax accounting, management accounting, accounting organization, automated accounting), and economic analysis principles (industry principles, analysis of economic activity, financial analysis, strategic analysis, mathematical and statistical analysis).

Furthermore, a structural and logical scheme for accounting and analytical management of farm development has been developed. Implementing this scheme will aid in making timely and scientifically informed management decisions, particularly in crises, regarding the strategic development of farms.

COST MANAGEMENT IN THE COMPETITIVE STRATEGIES OF AGRICULTURAL ENTERPRISES

I. Yatsiv — 2024-07-07

The article examines the trends in the formation of production costs in agricultural enterprises of Ukraine in recent years, particularly due to martial law. The proportion of labor and depreciation costs to overall production costs is seen as a good indicator of how agricultural enterprises are responding to market competition. The study has identified specific characteristics in the formation of production costs based on the size of agricultural enterprises. In recent years, small agricultural enterprises have experienced higher growth rates of production costs and payback rates compared to large and medium-sized enterprises. This sheds light on the approaches to cost management at small agricultural enterprises, including microenterprises.

The article argues for the importance of implementing a competitive cost minimization strategy for agricultural enterprises. It outlines the content of this strategy, taking into account the particularities of agricultural production. The strategy aims to optimize the volume and structure of costs to ensure high technological efficiency of production and low production costs. The application of the cost minimization strategy as a primary competitive strategy is particularly relevant for medium-sized agricultural enterprises.

Furthermore, the article delves into the role of cost management in the functional strategies that enhance the competitiveness of agricultural enterprises. The recommended approach for implementing such strategies is through the execution of an investment project by the enterprise. Cost management involves justifying the estimate, determining the expected efficiency of the project, and exercising control over costs at all stages of its life cycle. It is emphasized that successful cost management in the application of a functional competitive strategy depends on the system of internal economic relations established in an agricultural enterprise.

THE ROLE OF HUMAN CAPITAL IN IMPLEMENTING INNOVATIONS IN THE AGRICULTURAL SECTOR

H. Syrotiuk — 2024-07-07

The study focuses on the impact of human capital on the implementation of innovations in the agricultural sector. It emphasizes the importance of modern technologies and innovations in improving production efficiency, reducing environmental impact, and ensuring the competitiveness of agricultural products in the international market. The successful implementation of these innovations depends on the availability and effective use of human capital. The research identifies the main elements for the development of human capital in the agricultural sector and highlights the key properties of human capital that stimulate innovative development and enhance the sector's competitiveness. The study emphasizes the need for agricultural enterprises to quickly adapt to new technologies and address issues that arise during the implementation of innovations. It also highlights the importance of key components of human capital, including knowledge and skills, experience, education and training, creative potential, adaptability and flexibility, as well as communication skills and collaboration, especially in the context of contemporary challenges for agriculture such as climate change and environmental issues. The study underlines the significance of investing in human capital development as a strategic direction for ensuring the sustainable development of the agricultural sector and discusses the interrelationship between human capital and innovations. It also proposes directions for improving the quality of human capital in the agricultural sector, such as developing professional education and training systems, creating qualification enhancement and retraining programs, implementing motivational mechanisms for attracting and retaining talented workers, and expanding cooperation with scientific institutions to integrate the latest scientific achievements into agricultural practices.