Methodology and organization of accounting and analysis of the rental transactions of JSC “Concern Galnaftogaz”
Students Name: Mezhyrytska Yana Volodymyrivna
Qualification Level: magister
Speciality: Accounting and Taxation
Institute: Institute of Economics and Management
Mode of Study: part
Academic Year: 2021-2022 н.р.
Language of Defence: ukrainian
Abstract: Mezhyrytska Y. V., Vysochan O. S. (head). Methodology and organization of accounting and analysis of the rental transactions of JSC «Concern Galnaftogaz». Master’s thesis. - National University «Lviv Polytechnic», Lviv, 2021. EXTENDED ABSTRACT Proper and reliable accounting allows to provide true and complete information to external and internal stakeholders about the activities of the enterprise, its financial performance and efficiency of its business activities. First of all, the true reflection of transactions in accounting allows management to analyze data on business and other activities of the company and make effective management decisions to improve it. At the current stage of economic development, complicated by the crisis, many Ukrainian companies face the problem of finding and raising funds to expand production, purchase modern equipment, introduce the latest technologies. In a situation where it is difficult for companies to meet the needs of available credit resources through the banking system, rent is one of the most affordable and effective means of upgrading the means of production. Thus, the lease is understood as a contractually regulated method of realization of property relations between the landlord and tenant, which manifests itself as a function of formation of material factors of production and as a business transaction for the distribution of ownership, use and disposal of non-current assets in exchange for rent [1]. The accounting of rental transactions over the past 2 years has undergone significant changes with the introduction of IFRS 16 «Lease», so the relevance of the master’s qualification work is the analysis of lease transactions according to international standards on the example of JSC «Concern Galnaftogaz» using automated SAP system. In addition, the relevance of the work is to analyze the accounting process of lease transactions on the example of JSC «Concern Galnaftogaz», which can be used as an example for other companies. Also, the work provides ideas for improving the accounting process in the enterprise, the use of which will increase the efficiency and effectiveness of the company’s employees. The purpose of writing a master’s thesis is to systematize and summarize information and knowledge on the accounting of lease transactions and their application to the analysis of lease transactions of JSC «Concern Galnaftogaz» and improve their accounting process. The object of the master’s qualification work is the organization of accounting of lease transactions of JSC «Concern Galnaftogaz». The tasks of accounting for lease transactions are the correctness, completeness and accuracy of the reflection of transactions carried out during the performance of the lease agreement. The task of the analysis of lease transactions is to consider the impact of their accounting on the company’s financial statements and its economic performance. At present, a clear and expanded classification of leases is not regulated by legal sources, but there is a single approach to the division of leases under UAS 14 «Leases» and IFRS 16 «Leases» into operating and financial [2, 3]. Thus, in the course of writing the paper, the specifics of accounting for lease transactions at JSC «Concern Galnaftogaz» were analyzed using the automated SAP system. In addition, an extended analysis of the dynamics and structure of investment property and operating income was conducted and a model of correlation and regression analysis of the impact of independent factors on the amount of operating income. Also, a projected analysis of the impact of the company’s investment plans on obtaining additional income from leasing operations and incurring additional costs for the company to attract new leases. In the master’s qualification work the ways of improvement of the account of rent at the enterprise were offered. Thus, the company, first of all, needs to move to an improved version of the existing automated system, namely SAP S / 4HANA, which can be used to keep records in accordance with IFRS and get rid of the use of manual recalculations to reflect accounting transactions in company reporting. In addition, in order to improve the accounting of the company’s lease transactions, it is necessary to change the form of the analytical account of fixed assets created in the SAP system, in order to detail the fixed assets to be leased. Another option for identifying such assets is to make changes to an existing transaction to view information on fixed assets in the SAP system. The practical application of such recommendations will improve the company’s accounting and reduce the risk of errors in the identification of assets and lease transactions with them. Key words: lease, rental transactions, automated system, analysis, fixed assets, correlation-regression analysis. References. 1. Bratchuk LM Questions of accounting of leased objects in agricultural enterprises / L.M. Bratchuk // Economics of AIC, 2009. - №8. - P.97-100. 2. Regulation (standard) of accounting 14 «Leases»: Order of the Ministry of Finance of Ukraine dated 28.07.2000 № 181. 3. International Financial Reporting Standard 16 «Leases» [Electronic resource]. - Access mode: https://mof.gov.ua/storage/files/IFRS16-ukr_AH-compressed-1.pdf