the National
Academy of Agrarian Sciences of Ukraine in the context of 4 elements of the
profession: functions and professional ethics of an accountant, legal
regulation of accounting activities (organization and methodology accounting
and reporting), educational training of accountants, professional accounting
associations. To summarize the results of the survey, their illustration and
analytical assessment, a graphical method was used. The use of modelling
allowed us to confirm the assumption of the conservative nature of the
accounting profession in Ukraine and the problematic nature of its
self-regulated development. The authors concluded that it is necessary to
improve the institution of the accounting profession in Ukraine, provide
arguments and directions for solving problematic issues, in particular, the
development of the professional movement and self-organization, improving the
quality of accounting specialists training in educational institutions,
developing accounting methodology for the agricultural sector, improving the
composition and accounting display of accounting objects.
Keywords: Institutional
Influence; Institutionalization; Accounting; Accounting Profession; Accounting
Organization; Institute of Accounting; Private Enterprises; State
Enterprises
1.
INTRODUCTION
International and European
integration of Ukraine, a change in the vector orientation of the economy in
the direction of ensuring the growth of its efficiency based on the use of
energy-saving technologies, put new requirements for the accounting indication
of the processes of Ukrainian business entities activities. In accordance with
this, there is a change in the requirements for specialists in the field of
accounting and their professional performance and competence are being
transformed.
In addition, the phenomenon of the
services provision in the field of accounting is actively spreading by persons
that are not accounting employees of an enterprise, but develop such a business
on their own (registered as individuals-entrepreneurs or legal entities). The
accounting reform processes and the transition to international accounting
standards also have a significant impact on the accounting profession.
However, the current state of the
accounting profession in Ukraine should be described as conservative. Taking
into account this fact, we must stress that there is an objective need to
change not only the perception of the accounting profession, but also to
improve the training of specialists, its content and scope. Forecasting the
directions of development of the accounting profession must be carried out
guided by the philosophical laws of dialectics, and relying on the progressive
achievements of economics, in particular the provisions of the institutional
theory, while taking into account external externalities and internal
management requests. The relevance of research in this area is significantly
enhanced by the phenomena associated with the internationalization of
accounting and the intensification of the international financial reporting
standards application.
2.
LITERATURE REVIEW
2.1.
Major overseas approaches to the
institutionalization of accounting and the accounting profession
Institutionalization
is the process of defining and consolidating social norms, rules, statuses and
roles, bringing them into a system capable of acting in the direction of
satisfying some social need. The process of institutionalizing the accounting
profession can be understood as the gradual unification of all its conservative
elements into an effective self-regulating institution through the unity and
struggle of such opposites as evolutionary dependence on the development path
(path dependence) and revolutionary institutional borrowing (institutional
borrowing).
A
lot of attention is paid to the issue of institutionalization of the accounting
profession in scientific publications by foreign authors. This issue is
considered in the context of its consideration through the prism of the
development of audit and reporting confirmation services.
So
Ken (2016), examining this issue, concludes that in modern conditions there is
a transformation in the accounting profession. Identity experimentation moves
the accounting profession toward the commercialization of not only auditing
practices but, more importantly, the very identity of the auditor and the
profession as a whole. Such change is an important issue as it may have
profound implications for the profession's roles in the market economy (Ken,
2016).
Institutional borrowing is widely
manifested in formal “rules of the game” and is characterized by the ability to
change quickly, come into constant conflict with dependence on the trajectory
of development, manifests itself in informal social and culture stereotypes “in
the heads” of people and is not capable of revolutionary turns. However,
despite this, progress in the development of the accounting profession is an
objective law that follows from new needs arising in the process of human life.
This is confirmed by the emergence
of innovative directions in accounting and the corresponding transformations in
the accounting profession. An example is the pioneering research of such
scientists as Gibassier, El Omari and Naccache (2020), who analysed the birth
of an environmental accounting profession. They made an attempt to analyse the
institutional work that gives rise to a new profession and found factors that
lead to diversification in accounting work and give rise to at least two
different types of it, one of which can be identified as creative. Their
research contributes to an understanding of the dynamic professionalization
process in which the different actors mobilize both creative work and sabotage
work.
In general, foreign scholars focus
on the influence of various institutions on professional accounting. In
particular, Greenwood, Suddaby and Hinings (2002) examines the role of
professional associations in a changing, highly institutionalized
organizational field and suggests that they play a significant role in
legitimating change and a model of institutional change is outlined, of which a
key stage is "theorization," the process whereby organizational
failings are conceptualized and linked to potential solutions. At the same
time, scientists rightly argue that Regulatory agencies, such as professional
associations, play an important role in theorizing change, endorsing local
innovations and shaping their diffusion.
2.2.
Institutionalization of Accounting
and the Accounting Profession in the Scientific Thought of Ukrainian Authors: a
Brief Overview
Recognition of the materiality of
the influence of regulation on the development of accounting and related
professions, as well as its content and production features, determine the key
characteristics and requirements for people who exercise their authority to
keep records, generate reports, confirm them or other functions. In Ukrainian
scientific thought, more and more attention has been paid to this issue in
recent years. However, in most cases it is a study of the institutional
foundations of accounting, not the accounting profession.
Despite this, most researchers
recognize commercialization in the accounting field as a phenomenon associated
with the development of innovative approaches to accounting. This, in turn,
changes the requirements for the skills and knowledge of accounting specialists
and, of course, affects the institutions for their training.
Karpenko and Denga (2019),
summarizing professional skills, consider it expedient for a person
(specialist) to realize his human potential for professional activity to be
considered competence, that is, it is the desire and ability to realize his
potential (knowledge, skills, experience, personal qualities) for successful
creative (productive) activity. The authors state that in the 21st
century such key competencies are most needed for an accountant: creativity,
critical thinking, and cooperation and communication skills.
As you can see, the named components
characterize accounting work to a greater extent now as a set of creatively
scientific and communicative operations; in the aggregate can be identified in
the form of innovative potential.
Stolyarchuk (2015) examining the
problems of the influence of social and economic institutions on the
development of accounting, rightly summarizes that the use of innovative
potential in a post-industrial society is the result and consequence of the
functioning of the institution of the innovation market. The scientist also
notes that during the commercial use of innovative products, an important role
is assigned to the market of scientific products, which is a synergy of
scientific and technical information, intellectual property and demand. The
same applies to credentials, which in recent years have increasingly played the
role of an innovative product that is capable of ensuring an increase in the performance
of business entities through the use of effective development strategies as a
basis for developing effective development strategies.
On the other hand, the formation of
such an innovative product is the result of using the abilities and work of a
specific person, who, while fulfilling his professional duties within the
framework of the current legislation, can skilfully apply his own generalizing
abilities to prepare interpretable credentials and their representation to
managers of different management levels for making effective decisions.
One of the important factors in
obtaining the appropriate level of knowledge and skills is not only educational
institutions, but also to participate in various professional organizations,
which can be summarized as an institution of accountants.
Zhuk (2014) in his research proposes
to consider the institution of accountants as an informal component, which is
always present in the institution of Accounting. The qualitative and
quantitative growth of this institution, in the author's opinion, forms the
institution of professional accountants as an informal, social and
organizational component of the accounting institution, which is characterized
by qualitative (informal institution is what is in the minds of accountants)
and quantitative (the presence and maturity of professional organizations of
accountants) indicators of accountants.
As you can see, these, as well as a
number of other studies in the field of institutionalization of the accounting
profession, directly or indirectly indicate the need to develop this direction
in scientific research, since it will solve the problem of a shortage of
quality accounting personnel, which is very important for modern Ukraine.
3.
METHODOLOGY
The study of the directions and ways
of institutionalizing the accounting profession requires the identification and
consideration of many factors, but the most significant of them are the
requirements that are posed in modern conditions for accounting workers. In
addition, it is important to assess the initial conditions that have developed
in Ukraine in matters of accounting, its development, the impact on it of
existing institutions, including international ones. For this purpose, an
empirical analysis and assessment of the process of institutionalization of the
accounting profession and its description in scientific professional literature
have been carried out. The elements of the technical analysis method are
applied for the purpose of forecasting the development trend of the branch
institute of the accounting profession on the basis of ideological principles.
A survey was conducted of 180
accountants of private agricultural enterprises and 70 accountants of state
enterprises - experimental farms of the system of the National Academy of
Agrarian Sciences of Ukraine with the aim to collect sociological information
on the nature and characteristics of the accounting profession.
The study covered 4 elements of the
profession: the functions and professional ethics of an accountant, legal
regulation of accounting (organization and methodology of accounting and
reporting), educational training of accountants, professional accounting
associations. Their illustration and analytical evaluation, a graphical method
was used to summarize the results of the survey. The use of modelling allowed
confirmation of the assumption of the conservative nature of the accounting
profession in Ukraine and the problematic nature of its self-regulated
development.
4.
RESULTS
4.1.
Basic Components of the Institutionalization
of the Accounting Profession and their Characteristics in Ukraine
Developing the institutional approach, in the earlier works of the
authors of this study, in particular Metelitsa (2014), a
schematic diagram of the forecast of the development of Ukrainian institutions
was formed on the basis of a critical analysis of the genesis of the
accountant's functions and areas of his activity and responsibility. Such
institutions are a manifestation of external externalities of obtaining the
qualifications of an accountant by taking into account the in-depth economic
content of a somewhat narrow interpretation of the institutions of accountants
and the definition of the profession as an institution (Figure 1).
Figure 1: The process of
institutionalization of the domestic accounting profession as a manifestation
of positive external qualifications
Source: Metelytsia
(2014)
Dialectical tendencies of
development of the self-regulatory institute of accountants of agar branch (Metelytsia,
2014).
The three main components in Figure
1 scheme comprehensively solve the problem of achieving the highest quality
structural mechanism for institutional support of accounting and the formation
of its personnel base. The first, in this case, should be recognized the formation
of the institution of accountants. It aims to protect professional accounting
interests in the performance of the service management function, develops in an
evolutionary way, is resistant to changes and has a partial organizational
formalization of relations.
The Ukrainian Institute of
Accountants is developing according to the principle of a dialectical chain:
informal institutions - spontaneous associations of accountants - new informal
institutions. Today in Ukraine there are a number of accounting clubs
representing the national institute of accountants (All-Ukrainian Accounting
Club, Our Club and the Chief Accountant Club). Although these clubs cover a
significant number of accountants, they are scattered regionally or by the
choice of certain types of professional literature, computer programs.
The formation of the institution of
professional accountants is equally important. This institution aims to reduce
information uncertainty and increase economic security by effective
professional public accounting organizations and is characterized by a high
level of professional judgment, accounting imperialism (strengthening the
influence of accountants in other areas of activity - budgeting, controlling,
management) and engineering (widespread use of tools from other branches of
knowledge - computer systems, information technology).
That is why the institute of
professional accountants should be considered as a component of the institute
of accounting, whose agents (professional organizations and separate
accountants) through internal formal institutions (statutory and sub-statutory
documents) develop in the minds of accountants an informal institution of
professional responsibility for overcoming asymmetry of information by methods
of professional judgment, accounting engineering and imperialism.
In Ukraine, the institute of
professional accountants is at the stage of development through the
revolutionary borrowing of Western institutions of self-regulation and is
represented by developing professional organizations and unites less than 2% of
the total number of accountants. The domestic institute of professional
accountants is sensitive to external changes and develops according to the
principle of a dialectical chain: borrowed formal institutions are associations
of accountants - new informal institutions (awareness of responsibility for
their actions, cultural stereotypes, and unwritten rules, thinking habits,
traditions, social norms, status and image).
The manifestation of the highest
level of self-regulation is the formation of the institution of the accounting
profession. This institution aims at self-regulation of all spheres of
professional activity, without exception, and is characterized by the
limitation of the level of professional judgment, imperialism and engineering
by supervision by state-authorized bodies. Indeed, the desire of an accountant
to show investment attractiveness and super profits by methods of professional
judgment, which is recognized in institutional theory as a moral hazard, is
restrained by moral principles and ethical norms. However, irresponsible
behaviour is still possible and its consequences for society are obvious: in
institutional theory, they are called the problem of negative selection, which
provokes undermining the trust, image, and status of the accounting profession.
That is why balanced government oversight of the self-regulatory institution of
the accounting profession has no alternative.
So, based on the above
considerations, we will give our own understanding of the economic essence of
the institution of the accounting profession: this is the highest level of
self-regulatory institutionalization, in which professional public
organizations of accountants through state-controlled formalization of all elements
of the accounting profession (organizational and methodological, scientific and
educational, functional and ethical ) achieve the approval of stable external
informal institutions of guarantee, brand name and trust on the part of the
principal (society). The institute of the profession is the driving force
behind the development of the institute of accounting, strives to strengthen
its own role and importance, and to get closer to society by opening as much as
possible.
We are not aware of any analogues of
the completed institution of the accounting profession at the national level.
The regulatory models of the United Kingdom and the United States did not reach
this level due to the significant delegation of the functions of regulating
stock markets to authorized state bodies, and the regulatory model of the
Russian Federation is characterized by strong state scientific and
methodological influence and a relatively insignificant share of accountants'
participation in professional associations.
At the international level, the
organizational and institutional components of the International Federation of
Accountants and the Foundation for International Financial Reporting Standards
also do not claim to be recognized as a global institution of the accounting
profession due to the lack of an oversight mechanism on the part of an
intergovernmental regulatory body. Therefore, it is quite obvious that the
institution of the accounting profession in Ukraine is only a predictive
guideline, which must be adhered to in solving our task of developing an
effective institution of professional accountants in the agricultural industry.
For this we will focus on the features of the institutions we have specified
and defined. These features are indicated by the institutional theory of
accounting and make it possible to substantiate the gradual development of the
institutions of accountants, professional accountants and the profession in
general.
These features make it possible to
predict the development trend of the sectoral institution of the accounting
profession due to the link to ideology (Figure 2).
Figure 2: Predictable direction of development
of the Accounting Profession in the Agricultural Sector
Source:
developed by the authors
The study of the accounting profession
in the agricultural sector indicates that the sectoral institute of
professional accountants is at the initial stage of its development on the
basis of an industrial professional association – the Federation of
Auditors, Accountants and Financiers of the Agro-Industrial Complex of Ukraine
(FAAF). Of the total number of 500 thousand accountants, 63 thousand of whom
work in the agricultural sector and only 1.6 thousand of specialists are
members of the FAAF.
Confirmation of the initial stage is
also the presence of many problematic issues and roughness’s that exist in
accounting and leave their mark on the accounting profession and the behaviour
of an accountant as a responsible specialist.
For example, you can cite many
examples from the history of the accounting profession in Ukraine, which
clearly demonstrate the destructive and later educational power of the
philosophical law of dialectics. For example, the introduction from January 1,
2007 of borrowed norms for the valuation of biological assets and agricultural
products at fair value was not accepted by accountants of agro-industrial
enterprises due to the lack of an active market and the complexity of new
approaches to professional activities. As a result, the government incurred
additional transaction costs for finding consensus formal institutions and
returning to the usual method of valuing assets and products at their initial
cost in the work of accountants.
Another example of rejection of
institutional borrowing can be cited in the field of public sector accounting,
where the first version of the Strategy for Modernization of the Public Sector
Accounting System for 2007-2015, approved by the Resolution of the Cabinet of
Ministers of Ukraine dated January 16, 2007 No. 34, declared the creation of
the institution of public accountants in order to increase responsibility, as
well as the status of heads of financial and accounting services. However, due
to the unpreparedness of the professional community to take full responsibility
for the development of all aspects of professional activity, changes were made
to the Strategy, which returned the reform process in the opposite direction by
approving a number of formal institutions establishing the control of full-time
accountants with the Treasury bodies.
Another example is the application
of the accrual basis in the public sector. The 2007 strategy provided for its
full implementation.
But in the Strategy for the
modernization of the accounting and financial reporting system in the public
sector for the period up to 2025, approved by the Order of the Cabinet of Ministers of Ukraine dated June 20, 2018, No. 437-r, it is stated that “accounting of the execution of state and
local budgets is kept on a cash basis using the accrual method for individual
operations (accounting for public debt, liabilities of budget funds managers).
Of course, such a step is
substantiated from the point of view of insufficient development in Ukraine of
mechanisms and instruments for repayment of obligations. However, instead of
focusing on this and its regulatory decision, the new Strategy declares the
possibility of not applying the accrual method in some operations. Such
phenomena negatively affect not only the accounting system, but also the
accounting profession and its perception by specialists. After all,
inconsistency in such important issues is, in fact, a step back.
It is quite obvious that the
awareness by accountants and society of the fact that the accounting profession
is moving away from a complex of loosely interconnected evolutionarily formed
elements (functions and ethics, legal regulation, accounting associations,
educational training, accounting science) to a self-regulatory institution,
which purposefully develops all aspects of professional activity and is
controlled by the state, is a rather lengthy process and is informal.
The duration of the informal
institutionalization of the accounting profession corresponds to the period of
time during which the scientific and professional community will move away from
the classical perception of accounting as an information system and recognize
accounting as a social and economic institution that ensures the management of
development on a global scale.
The hypothesis put forward will
require proof, which we will carry out on the example of the agricultural
industry and begin by studying the current state and trends in the development
of self-regulation, the “core” of which is not even the subject of the
profession - an accountant, but an informal institution of trust in accountants
“in the heads” of society.
4.2.
Components that form the
qualification of an accountant in Ukraine
Let's briefly examine the driving
force behind the institutionalization of the accounting profession - the
business and ethical qualifications of an accountant. To do this, we will
consider the components that form the qualifications of an accountant, and are
determined by national classifiers and International Education Standards for
Professional Accountants, which do not have overwhelming force over national
regulations.
The competence of an accountant and
its recognition - a qualification, which is a necessary condition for the
institutionalization of the profession, is formed during a long process of
educational training; obtaining knowledge, skills, abilities, practical
experience; working out professional behaviour. The positive consequences of obtaining qualifications (external
externalities) are informal perception of aspects of professional activity and
maturity to enter the self-regulated professional movement.
Our survey of private agricultural
accountants and public accountants confirms the assumption that the accounting
profession is conservative and not ready for a self-regulatory movement.
For questioning and establishing the
actual state of the accounting profession, such elements of the profession as:
functions and professional ethics of an accountant, legal regulation of
accounting activities (organization and methodology of accounting and
reporting), educational training of accountants, professional accounting
associations were taken as a basis. Further we will dwell on the results of the
survey in more detail.
A study of the functions of an
accountant shows that the accounting service occupies an essential place in the
business management system: 46.9% of the surveyed accountants of private
enterprises and 51.4% of accountants of state enterprises noted that the chief
accountant takes part in the current meetings of the directorate, and 53, 6% of
accountants in private enterprises and 60% of accountants in public enterprises
indicated that the chief accountant is responsible for organizing management
accounting. Timely tax reporting (74.9%) and the reliability of financial and
statistical reporting (60.3%) are considered their most important functions as
an accountant for private enterprises. These indicators in state-owned
enterprises are also very high - 58.6% and 74.3%, respectively (Figure 3). Thus,
accountants deliberately give priority to tax accounting in order to prevent
the application of penalties by regulatory authorities.
Research on the organization of
accounting indicates a high level of use of computer programs by accounting
services, requires the accountant to constantly improve knowledge of
information technology. Enterprises are gradually moving from the use of
journal-order (31.3% - in private enterprises, 42.9% - in state-owned) and
memorial-order (12.8% - in private enterprises, 8.6% - in state) forms of
accounting in a computer. Computerized forms of accounting, using accounting
software, are the following: 57.0% - in private enterprises, 58.6% - in state
enterprises. Considering ways to increase the reliability of financial and
statistical information at the state level, accountants did not support the
idea of reconciling the reporting information by regional
departments of agro-industrial development or state statistics bodies (40.2% -
in private enterprises and 64.3% - in state ones).
Figure 3: Functions of an accountant in the
agricultural sector, %
Source:
developed by the author based on the conducted survey
Only 20.1% of the private sector
accountants and, accordingly, 18.6% of the public sector accountants see the
need to submit reports to the regional APR departments and check the information
by them. Accountants explain their point of view by the fact that audits are
already periodically carried out by tax and control and auditing bodies (Figure
4).
Figure 4: Organization of Accounting and Control over the accuracy of Reporting,
%
Source:
developed by the authors on the basis of the conducted survey
Of course, in such a situation, the
reporting information can be drawn up in accordance with the comments received
only in subsequent periods. In turn, the information of the period of inspections
remains with errors and is reduced to statistical data, which become the basis
for making decisions at the level of state sectoral management. There is an
obvious need to restore the functions of the APR departments in the field in
terms of receiving and verifying reporting information with its subsequent
construction by state statistics bodies.
Analysis of compliance with the
accounting methodology defined by national standards shows that the largest
share in the structure of assets of private agricultural enterprises is
occupied by state support funds and tax benefits (70.9% of respondents reflect
them in accounting and reporting). At the same time, an insignificant share is
occupied by land plots as part of fixed assets (10.1% of respondents show them
in accounting and reporting), land use rights as part of intangible assets
(8.4% of respondents show them in accounting and reporting), objects
intellectual property rights (computer programs, trademarks, plant varieties,
animal breeds - 8.9% of respondents show them in the accounting and reporting).
Of course, this situation indicates
an underestimation of these assets and, accordingly, a deliberate loss of the
competitive advantages of such agricultural enterprises. In state-owned
enterprises of the NAAS, the situation is significantly different, because the
centralized instructions for the Academy oblige enterprises to put land and
intellectual capital on the balance sheet. A significant share in the structure
of assets of research farms of NAAS is occupied by intangible assets, such as
land use rights (41.4%), land plots as part of fixed assets (25.7%) and objects
of intellectual property rights (computer programs, trademarks, plant varieties and animal breeds - 18.6% (Figure 5).
Figure 5: Reflection of the most
significant objects in accounting and reporting, %
Source:
developed by the authors based on the conducted survey
Questionnaire data on accounting for
agricultural activities show that more than a third of the respondents (35.2%
in the private sector and 34.3% in the public sector) do not assess biological
assets and agricultural products at fair value due to the complexity of the
methodology and unreliability of data, and another third (30.2% in the private
sector and 22.9% in the public sector) does not do this due to the lack of an
active market for biological assets and agricultural products. That is why
64.2% of respondents in the private sector and 74.3% in the public sector
support the idea that the Ministry of Finance of Ukraine should approve
standards for accounting for agricultural activities, taking into account all
aspects of industry specifics. Only 15.6% of respondents from the private
sector and 18.6% - from the state sector consider it necessary to oblige
enterprises to keep records in accordance with international financial
reporting standards, that is, they oppose the use of international institutions
that cannot be properly implemented (from the English Implement -
“implementation, enforcement”) without
their appropriate adaptation in the domestic institutional environment (Figure
6).
Figure 6: Compliance with industry
accounting methodology, %
Source:
developed by the authors based on the survey conducted
Difficult situation is in the field
of educational training of accountants. Thus, 78.8% of respondents in the
private sector and 74.3% in the public segment did not undergo advanced
training in educational institutions or consulting structures over the past
three years. About half (49.2% of respondents) of respondents in the private
segment have not studied international financial reporting standards and are
not familiar with the IFAC Code of Ethics for Accountants. In state
enterprises, this share is 97.1%. Of course, this reduces the mobility of human
capital and does not add confidence to accountants in the labour market. At the
same time, it should be noted that 11.3% of the surveyed accountants of private
enterprises are holders of certificates under the international program GRAY-
"Certified International Professional Accountant", and 6.1% have
received the qualification of CAPA - "Certified Professional Accountant of
Agroindustrial Production" (Figure 7).
Figure 7: Education of
accountants in the agricultural sector, %
Source:
developed by the authors based on the conducted survey
The issues of professional movement
and self-organization of accountants in solving professional problems are also
subject to resolution. Thus, 58.7% of the surveyed accountants of the private
sector and 92.9% of the public sector do not see the need for membership in
professional public accounting organizations.
Moreover, 76% of the surveyed
accountants of private enterprises and 60% of accountants of state enterprises
plan to raise their status not through membership in an organization, but
through their own active professional position (participation in round tables,
conferences, ongoing self-education and training) (Figure 8).
The overwhelming majority of
accountants do not see the need to defend their professional interests by
joining efforts. And this is when, since 2003, a branch professional
association has been successfully operating in the agricultural sector - the
Federation of Auditors, Accountants and Financiers of the Agro-Industrial
Complex of Ukraine.
Figure 8: Self-organization of
accountants in the agricultural sector, %
Source:
developed by the author based on the conducted survey
With the active support of
accountants in the regions, this organization is developing proposals to
simplify the methodology of accounting and reporting in agricultural activities
and the introduction of industry standards and accounting policies, certifies
its members, raises the level of professional culture and ethics, and therefore
contributes to the emergence of the industry institution of accountants to a
new, more quality level. Obviously, the organization itself must earn the trust
of accountants, and only then move towards establishing the institution of
trust on the part of society.
5.
CONCLUSIONS
Thus, we can testify to the low
level of development of the conservative elements of the accounting profession
at private and public enterprises in the agricultural sector. One can say that
there is considerable confidence in the accountants on the part of the
management of enterprises; however, the accountants themselves do not take an
active position in working out ways to improve the quality of reporting
financial and statistical information.
This could be achieved by restoring
the influence of the line ministry on accounting and reporting methodology and
control over its accuracy. And an impetus to this process could be given by an
active public position of the professional community. However, today,
unfortunately, the reliability of the information consolidated at the state
level is questionable, and therefore the possibility of its use in the
production of effective state policy is also questionable.
The problem lies in the unformed
institution of responsibility to society for the reliability of information.
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