Accounting, analysis and control of lease transactions at «Best logistics group» LLC
Students Name: Kvyk Taras Ivanovych
Qualification Level: magister
Speciality: Accounting and Taxation
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2023-2024 н.р.
Language of Defence: ukrainian
Abstract: Kvyk T.I., Voskalo V.I. (head). Accounting, analysis and control of rental operations at "Best Logistics Group" LLC. - Lviv Polytechnic National University, Lviv, 2023. Tenancy relations are important for the activities of many enterprises in Ukraine. For some, they are the main source of income obtained within the scope of operational activities, for others, they are an additional source of income arising from the leasing of surplus, often unused non-current assets by the enterprise itself. On the other hand, many enterprises, not possessing sufficient own resources, and in particular non-current assets, actively use the services of lessors [1]. 7 The subject of the study is a set of theoretical and practical approaches to accounting, analysis and control of rental operations in "Best Logistics Group" LLC. The object of the study was the economic activity of Best Logistics Group LLC, which operates on the territory of Ukraine. The purpose of the master’s qualification work is to study the theoretical and practical aspects of organization and methods of accounting, analysis and control of rental operations on the example of Best Logistics Group LLC. The general concept of "rent" is formulated in Art. 2 of the Law of Ukraine "On Lease of State and Communal Property", according to which a lease should be recognized as "the paid use of property based on an agreement for a specified period, which is necessary for the lessee to carry out his business and other activities" [2]. Lease can be both financial and operational. In the case of a financial lease, fixed assets are recorded on the lessee’s balance sheet, and in the case of an operating one - on the lessor’s balance sheet [3]. The enterprise was created with the purpose of obtaining profits, promoting the economic development of the region, selling goods and services. The main type of activity is the provision of premises for rent, as well as trade. In addition to these types of activities, there are 50 others. These include: construction and preparatory construction works; rent and lease of household products, and construction and office machines, equipment; cleaning and maintenance of facilities; various types of repair works; activities related to transport, law, accounting and information technologies, etc. During the analyzed period, non-current assets exceed current assets by 22% in 2020 and by 40% in 2022. Accounts receivable and other receivables account for a significant share. Analyzing the liabilities, the unprofitability of the enterprise was established. The growth of the currency of the balance sheet is connected with the growth of indebtedness. Every year, the largest share of current assets is accounts receivable in 2020. 4% and 9.8% (the first is from customers, the second is other receivables). In 2021, the indicated ratio was 3.3% and 19.3%, and in 2022 - 1.4% and 21.3%. 8 The year 2022 in Ukraine, taking into account military actions and massive damage to energy facilities, was characterized by massive power outages. "BEST LOGISTICS GROUP" LLC purchased a Himoinsa HSW-255 T5 diesel generator for UAH 108,070 to support its activities. In addition to this object, the company completed the construction of premises and checkpoints in order to increase income from the main activity by: - UAH 265,901.71 checkpoint #1; - UAH 43,896.46 checkpoint #2; - UAH 26038687 logistics center A-2. In 2021, the rental income of BEST LOGISTICS GROUP LLC decreased by UAH 5,514,108, and in 2022 it increased by UAH 1,892,686. The financial result from rental operations is positive (the net rental income minus the depreciation of fixed assets in each year is a positive value) [4] Similarly, in 2021, before the decline in income, the financial result decreased by 4685041.9, and in 2022 it increased by UAH 15608886.9. "BEST LOGISTIK GROUP" LLC incorrectly keeps records of expenses from the main activity. Depreciation of fixed assets that are leased should be charged to account 23 and debited to account 903, that is, to the cost of services rendered [5]. Keywords: accounting, control, rent, analysis of income and expenses of rental operations, documentation. List of used literary sources: 1. Lepetan I.M., Ryazantseva Yu.I. Methodological approaches to the accounting of lease operations. Agroworld 2019. No. 22. P. 92–97. 2. On the lease of state and communal property [Electronic resource]: Law of Ukraine dated April 10, 1992 No. 2269-XII (Editorial dated September 10, 2014) / Access mode: http://zakon4.rada.gov.ua/laws/show/ 2269-12 3. Nikolenko N.V. Methodological approaches to the accounting of financial lease operations, Bulletin of the Kyiv National University of Trade and Economics. 2014. No. 3. P. 108—123. 4. T.E. Kuznenko, L.O. Voloshchuk Accounting and analysis of the effectiveness of rental operations under the conditions of the main and other 9 operating activities of the enterprise. XII All-Ukrainian scientific and practical conference "Accounting and analytical support of innovative transformation of the economy of Ukraine". Odesa, May 31 - June 1, 2018, p. 143-148. 5. Instructions on the application of the Plan of accounts for the accounting of assets, capital, liabilities and economic transactions of enterprises and organizations, approved by the order of the Ministry of Finance of Ukraine dated 12.21.1999 No. 893. Access mode: https://zakon.rada.gov.ua/laws /show/z0893-99#Text