REGULATORY AND LEGAL FRAMEWORK OF INVENTORY PROCEDURES IN UKRAINE: ACCOUNTING AND TAX DIMENSIONS

Main Article Content

Svetlana MYKHAILOVYNA

Abstract

Introduction. Inventory is an essential component of the accounting system that ensures the reliability of financial and tax reporting and serves as an effective instrument of internal control. Under martial law, enterprises encounter significant difficulties related to restricted access to assets, accounting records and primary documents, which complicates inventory procedures, increases uncertainty in accounting estimates and creates additional tax risks. These challenges are particularly relevant for agricultural enterprises due to the presence of biological assets, seasonal production cycles and increased exposure to external factors.


Purpose. The purpose of the study is to examine the regulatory framework governing inventory procedures in Ukraine in the context of the interaction between accounting and tax legislation and to develop proposals for improving accounting policy provisions under martial law.


Methods. The research is based on general scientific and special methods, including analysis and synthesis, comparison, systematization, generalization, regulatory analysis and logical modelling. These methods were used to assess legislative requirements, identify inconsistencies between accounting and tax regulations and develop practical recommendations for enterprises.


Results. The study identifies key inconsistencies between accounting standards and tax legislation regarding the recognition and reporting of inventory results. It is established that the greatest difficulties arise in accounting for inventory differences, documenting losses caused by military actions and confirming the existence of assets when physical access is restricted. A comparative analysis of accounting and tax approaches to inventory results is conducted. Particular attention is paid to inventory procedures in agricultural enterprises. An adaptive algorithm for organizing inventory procedures under martial law is developed, taking into account the availability of safe access to assets, accounting records and supporting documentation. Furthermore, proposals aimed at improving organizational and technical provisions of accounting policy are formulated.


Originality. The scientific novelty lies in the development of an adaptive decision-making algorithm for inventory procedures under martial law and in substantiating the use of alternative evidence to confirm the existence and condition of assets for accounting and taxation purposes.


Conclusion. The findings confirm the necessity of harmonizing accounting and tax requirements related to inventory procedures. The proposed amendments to accounting policy contribute to improving the reliability of accounting information, strengthening documentary support for inventory results, reducing tax risks and enhancing the protection of enterprises during tax audits and dispute resolution procedures.

Article Details

Section
Статті

References

Leha, O. V., Kantsedal, N. A., & Peshkov, A. M. (2025). Inventory as a tool for ensuring the financial stability of an enterprise. Pidpryiemnytstvo ta innovatsii (Entrepreneurship and Innovation), 34, 37–44. DOI: https://doi.org/10.32782/2415-3583/34.5 (in Ukr.).

Vysochan, O. S., Vysochan, O. O., & Korkishko, V. I. (2024). Inventory of inventories under wartime conditions. Tavriiskyi naukovyi visnyk. Seriia: Ekonomika (Taurian Scientific Bulletin. Series: Economics), 20, 182–189. DOI: https://doi.org/10.32782/2708-0366/2024.20.21 (in Ukr.).

Dubinina, M. V., & Bahrina, M. O. (2015). Conceptual foundations of inventory of tangible assets at agricultural enterprises. Visnyk Dnipropetrovskoho derzhavnoho ahrarno-ekonomichnoho universytetu (Bulletin of Dnipropetrovsk State Agrarian and Economic University), 1, 117–121 (in Ukr.).

Shevtsiv, L. Yu., & Darchuk, P. O. (2022). Features of inventory procedures at Ukrainian enterprises: current state and prospects. Scientific Collection “InterConf”, 132, 78–85. Retrieved from: https://surl.li/zxchwe (Accessed: 20.02.2026).

Frundina, L., & Artiukh, O. (2020). Improvement of the inventory process through the application of computer technologies. LOGOS.ONLINE. Retrieved from: https://salo.li/28891C8 (Accessed: 13.02.2026) (in Ukr.).

Lytvynenko, V., Hurenko, T., Derevianko, S., & Burdym, Yu. (2020). Restoration of accounting at agricultural enterprises in de-occupied territories: modern approaches and inventory solutions. Ekonomichnyi visnyk (Economic Bulletin), 15(1). Retrieved from: https://salo.li/a420d38 (Accessed: 13.02.2026) (in Ukr.).

Hutsalenko, L., & Nykytenko, Yu. (2023). Inventory and its impact on ensuring the reliability of accounting information. Investytsii: praktyka ta dosvid (Investments: Practice and Experience), 18. Retrieved from: https://salo.li/b0DD31e (Accessed: 18.02.2026) (in Ukr.).

Verkhovna Rada of Ukraine. (1999). On Accounting and Financial Reporting in Ukraine: Law of Ukraine No. 996-XIV dated 16.07.1999. Retrieved from: https://surl.li/dhbcph (Accessed: 20.02.2026).

Ministry of Finance of Ukraine. (2014). On approval of the Regulation on inventory of assets and liabilities: Order No. 879 dated 02.09.2014. Retrieved from: https://surl.li/xysmij (Accessed: 20.02.2026).

Verkhovna Rada of Ukraine. (2010). Tax Code of Ukraine: Code of Ukraine No. 2755-VI dated 02.12.2010. Retrieved from: https://surl.li/dfjemm (Accessed: 20.02.2026).

Ministry of Finance of Ukraine. (1999). National Accounting Standard 9 “Inventories”: Order No. 246 dated 20.10.1999. Retrieved from: https://surl.li/whvebm (Accessed: 20.02.2026).

Ministry of Finance of Ukraine. (2005). National Accounting Standard 30 “Biological Assets”: Order No. 790 dated 18.11.2005. Retrieved from: https://surl.li/blrcbz (Accessed: 20.02.2026).

Ministry of Agrarian Policy of Ukraine. (2003). Methodological recommendations for inventory of fixed assets, intangible assets, inventories, cash, settlements and work in progress at agricultural enterprises: No. 37-27-12/14023 dated 04.12.2003. Retrieved from: https://surl.li/fnecvg (Accessed: 20.02.2026).

Cabinet of Ministers of Ukraine. (1996). On approval of the Procedure for determining the amount of losses from theft, shortages, destruction (damage) of material assets: Resolution No. 116 dated 22.01.1996. Retrieved from: https://surl.li/eurapf (Accessed: 20.02.2026).

Voitenko, T. (2025). Annual inventory: is it possible to conduct it at the beginning of the next year? Faktor. Retrieved from: https://surl.li/wfypxy (Accessed: 20.02.2026) (in Ukr.).

Ministry of Finance of Ukraine. (1999). National Accounting Standard 10 “Accounts Receivable”: Order No. 237 dated 08.10.1999. Retrieved from: https://surl.li/adkgfx (Accessed: 20.02.2026).

Ministry of Finance of Ukraine. (2000). National Accounting Standard 11 “Liabilities”: Order No. 20 dated 31.01.2000. Retrieved from: https://surl.lt/mwfsua (Accessed: 20.02.2026).

Kolisnyk, O. P., Ahafontseva, A. A., & Kupriianova, A. O. (2025). Features of inventory of assets under martial law. Ekonomika ta suspilstvo (Economy and Society), 73. Retrieved from: https://salo.li/60d7E1B (Accessed: 15.02.2026) (in Ukr.).

Bohušová, H. (2025). Challenges and reforms in the accounting system of Ukraine: The impact of war and transition to international standards. In I. Chuy, P. Luty, & V. Lakatos (Eds.), Modern Tools for Fraud Detection: Insights from the V4 and Ukraine (pp. 50–61). Wroclaw: Publishing House of Wroclaw University of Economics and Business. Retrieved from: https://surl.li/sewbhd (Accessed: 20.02.2026).

Verkhovna Rada of Ukraine. (2023). On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding the abolition of the moratorium on tax audits: Law of Ukraine No. 3453-IX dated 09.11.2023. Retrieved from: https://surli.cc/kdjyfq (Accessed: 20.02.2026).

Verkhovna Rada of Ukraine. (2015). On the legal regime of martial law: Law of Ukraine No. 389-VIII dated 12.05.2015. Retrieved from: https://surl.li/lspolw (Accessed: 20.02.2026).