The
potential possibility of the working population of Ukraine to purchase housing
by making two hypotheses is calculated. At the junction of these hypotheses,
appropriate conclusions are formed regarding the improvement of sources of
financing for housing construction. Due to the study of problematic aspects of
housing construction, a model of material, technical and financial resources in
the context of digitalization has been formed. It is proposed to improve
financial and management accounting for the formation of new synthetic and
analytical accounts, internal and intermediate management documents and the
methodology of financial accounting. In the course of
the current research, the method of putting forward and proving (rejecting)
hypotheses is used to calculate indicators of the potential of the working-age
population to purchase housing for the corresponding period of time. On this
basis, a comparison of a number of indicators for the regions of Ukraine was
made and the lowest and highest potential opportunity for the purchase of
housing was calculated. This will contribute to the renewal of natural
resources, the search for alternative resources, saving time, optimizing
material costs, attracting new types of monetary units (virtual funds) to the
construction industry, the speed of settlements with partners, etc.
Keywords: material resources; technical
resources; financial resources; financial accounting; management accounting
1.
INTRODUCTION
In today's economy, information
resources are more important than other types of resources. After all, the
efficiency of their use of material, technical and financial resources also depend
on their rational management. Information about these resources must be
reliable, up-to-date, truthful and convenient for recording and processing data
in financial and management accounting and for the formation of financial
statements. In addition, such information should not contain a corruption
component, but meet the requirements of the law.
In our study, we propose to consider
information and other types of resources in terms of such a separate subtype of
economic activity as housing, because this industry requires a significant
amount of resources. On the other hand, the construction process is long, so
the final cost of housing can be influenced by external and internal factors.
This is also reflected in the fact that the construction site is not always put
into operation on time, according to the established project, construction
schedules and phased payment schedules.
Resources involved in housing
construction can be affected by natural conditions, the purchasing power of the
population, the level of wages, the level of inflation, the index of rising
house prices, the location of the construction site and other factors. All
these features of the enterprise affect not only the creation, storage, accumulation
and use of enterprise resources, but also their reflection in financial and
management accounting, as well as in the formation of financial and social
reporting of construction companies.
Therefore, in the process of
planning a new construction project, construction materials and equipment are
selected, their cost is estimated, the method of payment through the
Construction Financing Fund, the Real Estate Fund, Mutual Investment
Institutions or other types of calculations that do not contradict the Law of
Ukraine “On Investment activity”.
In addition, the set of materials
and equipment at each stage of construction is different, and therefore
accompanied by different primary documents, and financial calculations are
conducted with different contractors. Hence, a large number of participants are
involved in the construction of a residential building, and therefore it is
necessary to constantly exercise internal control over the optimal use of
material resources and the veracity of financial calculations through the
formation of internal reports.
2.
LITERATURE REVIEW
In the process of selecting the
literature, we got acquainted in detail with the works of authors who studied
the importance of information and the effectiveness of its reflection in
accounting.
In modern conditions, it is fair to
say that the positions of information attribute change. It acquires the
characteristics of an independent object, which can exist outside of man and
material carrier. Accordingly, there is a need to change approaches to its
formation (Semenyshena, Khorunzhak & Sadovska, 2020a).
Accounting is extremely important
for the economy, and therefore its improvement is an important area of
research. There are a number of factors associated with the need
to continue research and find ways to achieve quality accounting improvements.
The most significant of these are the change in management demands arising from
the genesis of economic systems, globalization, which requires standardization
and unification of accounting, as well as the development of national and
international accounting institutions that form its current conceptual
framework (Semenyshena, Khorunzhak & Zadorozhnyi, 2020b).
Peculiarities of information and
accounting development in different countries of the world acquire their
specific features. They are influenced by the economic situation in the
country, and, at the same time, they have a certain impact on the national
economy.
Over the last 4 years, Ukraine's
national economy has finally shown long-awaited growth. But these growth rates
are too modest, about 3%. Such fluctuations are almost invisible to the
majority of the population due to the low base rate (Palekhova, 2021). But if
you compare these indicators in the long run, they will become more noticeable.
On the other hand, public policy should be aimed at developing and controlling
methods that will affect economic growth.
Economists have successfully stated
that the dynamic development of economic entities in terms of accounting
implies that the accounting data should include additional analysis of
financial accounts together with internal forms of accounting. The study,
evaluation and comparison of indicators of programs for economic development,
social security and implementation of environmental security require the need
to create a single index, i.e. an integrated index of sustainable activity
(Osadcha et al., 2020).
The economic stability of the state
ensures the efficiency of national enterprises. One of the sectors of the
economy that needs state support is housing, which today needs to improve
social programs.
The situation on the housing market
differs in regions or individual cities due to significant differentiation in
their development, which affects the possibility of obtaining affordable
housing. The implementation of regional development programs should determine
the investment priorities of social protection, in particular the possibility
of redemption through the mechanism of renting social housing by internally
displaced persons (Alekseyenko, 2021).
We agree with the scientist and
believe that a socially responsible construction company can operate only if
the national economy is stable and government support for business. However,
the construction process itself is not always stable due to the fact that some
unplanned operations and delays in the housing construction process may occur.
The construction process is usually
the result of the joint efforts of a number of trade contractors on
construction of the building. The process is often almost chaotic, even if the
work is planned according to industry best practices, and unforeseen events are
the rule rather than the exception (Bertelsen & Nielsen, 1997).
Today, the topic of ecological
construction is very relevant in the European Union. Thus, a special structure
“Horizon 2020” was created, which is the most important tool for research and
innovation in the world. It has a great influence on the construction industry.
One of the articles deals with the
use of materials for energy efficiency and materials that can reuse high waste
content. Building materials related to the energy efficiency of nanotechnology
can become a hot area of research that is being promoted and
funded as Key Assistive Technology-KET. The author notes that 70% of harmless
construction waste is recyclable (Pacheco-Torgals, 2008).
Undoubtedly, housing construction is
in constant development throughout Europe, and therefore the topic related to
the development of new materials, equipment and financing of housing
construction is practical.
The review of European housing
markets in 2020 is based on research from 16 countries: Austria, Belgium,
Croatia, the Czech Republic, Denmark, France, Germany, Hungary, Italy, Latvia,
the Netherlands, Norway, Poland, Portugal, Spain and the United Kingdom. The
most expensive country is Norway, averaging 4.043 €/m2, which is
ahead of the United Kingdom (3,753 €/m2) today, which had the
highest average cost per square meter in many years. In the centre of Oslo, the
price per square meter can exceed 8.000 €/m2. The three countries
with the lowest price per square meter are Portugal, Hungary and Poland (1.088
€/m2, 1,323 €/m2 and 1,370 €/m2, respectively)
(Panorama of the residential markets in Europe).
Ukraine
is not included in this analysis, but it should be noted that the cost per
square meter is 398.95 euros (UAH 13,231, if the euro exchange rate is 33.1643
as of October 1, 2020), which is lower than in the European Union (LLC
“Information and Analytical Centre League”).
3.
DATA AND METHODOLOGY
The
information model of material and technical and financial resources provides
for the study of each individual resource: material, technical, financial,
logistical, material and financial and financial and technical. Each of them is
analysed comprehensively and individually. Hence the methods of analysis and
synthesis are applied.
The
scientific method was used for a literature review of the works of economists
in order to establish the achievements of previous research and on their basis
proposed their own developments on the importance of information resources and
economic vectors of housing development.
The
graphical method is effective in estimating the level of the average wage in
European countries (calculated in euros), as it allows you to visualize the
figures. According to this assessment, Ukraine has the lowest rates, and
Iceland – the highest.
Hypotheses
for calculating indicators of the potential ability of the working population
to purchase housing for the relevant period of time are proposed. On the basis
of which the regions of Ukraine are compared and the lowest and highest
potential opportunities for housing purchase are calculated.
Derivative
conditions of the information model are revealed and their improvement at the
level of accounting and management through improvement of the documentation
process is offered. In this regard, the information model of material,
technical and financial resources is complete, reflects the real situation in
the enterprise and creates a basis for innovation.
4.
RESULTS
We propose to form an information
model of resources in terms of digitalization. We believe that information
resources are now the main resources, because true, unbiased, holistic
information allows you to manage other types of resources with high benefits
for the company. If material, technical and financial resources can be
calculated as a percentage (this information, for example, can be taken from
the balance sheet), the information resource is difficult to calculate, because
it is often informal and there are no precise limits and indicators for its
evaluation. Because of this, each company evaluates it in its own way.
The information resource, first of
all, is operated by the administration of the enterprise: directors, deputies,
accountants, analysts, economists and controllers. It is they who make
decisions on the management of information resources in the enterprise.
Therefore, the remuneration of accountants and employees of economic
departments can be a good assessment of the effective management of information
resources. Although this is only a small part of the evaluation system of
information resources.
Hence, information resources affect
the material, technical, financial. Material resources are currently accompanied
by two pressing issues regarding: a) their rational use; b) natural recovery.
This raises a number of questions about the alternative search for new
materials that will perform either paragraph (a) or paragraph (b), or both.
Technical resources contribute to
the improvement of economic processes, and therefore technical resources
accelerate the speed: reflection of accounting transactions, the formation of a
tree of documentation, preparation of financial statements. Technical resources
can be called time-saving resources, because they can quickly meet the needs of
mankind for information.
Financial resources in Ukraine today
are the most problematic resources, as they affect the material support of
material and technical resources, which require significant costs. For a more
detailed assessment of the sources of financial resources, we propose to
consider financial resources on the example of construction companies. It
should be noted that several sources in Ukraine are the leading sources of financial
resources for construction.
The first is the investment of
individual investors who plan to buy a home. However, we believe that it is
necessary to hypothesize whether the average Ukrainian can actually buy a house
for the average monthly salary. The average monthly salary for 2021 in Ukraine is the lowest among European countries and amounted
to – 397 euros (Figure 1).
Figure 1: The
average monthly salary in European countries in 2021.
Source: according
to the
Average Salary in the European Union
(List of European countries by
average wage, 2019).
Hence, we want to consider
hypothesis 1: is it possible for a working person to save money for housing, if
he can live on a living wage. We analysed the potential opportunity for working
people to buy housing in 24 regions of Ukraine. To do this, the formula for
possible savings on the housing of a working person (f. 1):
•
Possible savings on housing for working persons = Average salary per
month – Subsistence level of working
person (f. 1);
• Pos
sav. = Av sal. – Sat. min. (f. 1),
where
Pos sav. – possible savings of a working
person;
Av
sal. – average salary per month;
Sub.min. – Subsistence minimum; subsistence level of a working person.
This figure for working person in 2019 was 60.57 euros.
In our research, the
number of square meters of a one-room apartment is 40, because this is the
average value. Given this number, we calculated the cost of a one-room
apartment in the regions of Ukraine. Hence, the formula for calculating the
number of years of accumulation of funds for housing (f. 2):
• Number of years of accumulation for housing = (The cost of a one-room
apartment / Possible savings on housing for a working person) / 12 (f. 2);
·
NY acc. hous. = (С 1r.d. / Pos
sav.)/12 (f. 2),
where NY acc. hous. – number of years for accumulation for housing;
number of years of accumulation for housing;
• С 1r.d. – the cost of a one-room apartment;
• Pos sav – possible savings on the housing of an able-bodied person;
• the number 12 is the number of month in a year.
We performed the
calculation according to these formulas in Table 1, from which the
corresponding conclusions are made.
Our study shows that
the easiest way to buy an apartment in Kiev, Dnepropetrovsk and Kiev regions.
This is due to the fact
that the average monthly salary in these regions is the highest.
Table 1: Calculation of the
potential ability of a working person to buy a one-room apartment in euros
(data for 2019)
|
Regions of
Ukraine
|
Average monthly
salary in regions of Ukraine
|
The cost of one
square meter
|
Potential monthly
savings
|
The cost of a one-room apartment
|
Number of years
|
|
|
Ukraine
|
290.82
|
373.62
|
230.24
|
14 944.77
|
5.41
|
|
Vinnytsia
|
260.52
|
360.28
|
199.94
|
14 411.26
|
6.01
|
|
Volyn
|
238.35
|
359.15
|
177.78
|
14 365.85
|
6.73
|
|
Dnepropetrovsk
|
304.12
|
362.24
|
243.55
|
14 489.45
|
4.96
|
|
Donetsk
|
316.74
|
392.44
|
256.16
|
15 697.75
|
5.11
|
|
Zhytomyr
|
236.01
|
328.43
|
175.44
|
13 137.37
|
6.24
|
|
Transcarpathian
|
255.69
|
324.37
|
195.12
|
12 974.67
|
5.54
|
|
Zaporozhye
|
295.01
|
361.86
|
234.44
|
14 474.32
|
5.15
|
|
Ivano-Frankivsk
|
245.16
|
335.97
|
184.59
|
13 438.82
|
6.07
|
|
Kyiv
|
306.55
|
373.15
|
245.98
|
14 925.85
|
5.06
|
|
Kirovohrad
|
229.52
|
317.56
|
168.95
|
12 702.24
|
6.27
|
|
Luhansk
|
239.86
|
358.42
|
179.29
|
14 336.84
|
6.66
|
|
Lviv
|
259.54
|
371.60
|
198.97
|
14 864.05
|
6.23
|
|
Mykolayivska
|
270.45
|
373.08
|
209.88
|
14 923.33
|
5.93
|
|
Odessa
|
261.59
|
357.95
|
201.01
|
14 317.92
|
5.94
|
|
Poltava
|
277.95
|
332.22
|
217.38
|
13 288.73
|
5.09
|
|
Rivne
|
242.23
|
366.97
|
181.65
|
14 678.64
|
6.73
|
|
Sumy
|
236.11
|
350.51
|
175.54
|
14 020.26
|
6.66
|
|
Ternopil
|
222.87
|
350.22
|
162.29
|
14 008.91
|
7.19
|
|
Kharkiv
|
253.17
|
392.70
|
192.60
|
15 707.84
|
6.80
|
|
Kherson
|
225.10
|
339.94
|
164.53
|
13 597.74
|
6.89
|
|
Khmelnytskyi
|
234.56
|
359.59
|
173.99
|
14 383.51
|
6.89
|
|
Cherkasy
|
241.34
|
368.01
|
180.77
|
14 720.27
|
6.79
|
|
Chernivtsi
|
219.40
|
345.84
|
158.83
|
13 833.59
|
7.26
|
|
Chernihiv
|
226.52
|
374.09
|
165.95
|
14 963.69
|
7.51
|
|
Kyiv city
|
432.65
|
436.68
|
372.07
|
17 467.31
|
3.91
|
Source: authors' own development. * - the minimum number of years
required to raise funds (excluding inflation and personal living expenses,
which will be carried out in further research).
The most difficult is
to buy a home in Chernihiv, Chernivtsi and Ternopil regions, because the level
of average monthly wages is the lowest here. Hence, Hypothesis 1 is relevant
for those regions of Ukraine where the level of average monthly wages is the
highest.
Consider Hypothesis 2:
how to buy a home if a working person cannot live on a living wage. In
addition, given that a working person is dependent on children under the age of
16, the subsistence level should be counted on them as well. As of January 1,
2019, the subsistence level per child in Ukraine was 63.91 (UAH 2.027 / EUR
31.71).
For example, if the
working person has two dependent children under the age of 16, the calculation
will be according to the following formula (f. 3):
· Possible savings on
the housing of an able-bodied person = Average salary per month – Subsistence level of
an able-bodied person –
(Subsistence level per child * Number of children) (f. 3);
·
Pos sav.=Av sal. – Sub.min.
- ( Sub.min.kid. – Num.
kid.) (f. 3),
·
where Pos sav. –possible savings of a working person;
·
Av
sal. – average salary per month;
·
Sub.min. – Subsistence minimum;
living wage of an able-bodied person;
·
Num. kid. – Number of kids.
Let's make a
calculation for Kyiv region, because there is the highest level of wages, and
for Chernivtsi, where the lowest level of wages.
Possible savings on the
housing of a working person per month:
· in Kyiv: 432.65 – 60.57
– (63.91 * 2) = 372.08 – 127.82 = 244.26 euros;
· in Chernivtsi: 219.40–
60.57 – (63.91 * 2) = 158.83 – 127.82 = 31.01 euros.
We apply formula 2 to
calculate the number of years of accumulation of funds for housing:
· in Kyiv: (17.467.31 /
244.26) / 12 = 5.96 years;
· in Chernivtsi:
(13.833.59 / 31.01) / 12 = 37.18 years.
Hence, the working
person in Kyiv who has two children will buy a house 2 years later than under
Hypothesis 1. The working person in Chernivtsi who has two children will buy a
house in 37 years, which is 30 years longer than in previous calculations (for
hypothesis 1). This situation is absurd (Table 2).
Table 2: Hypotheses
about the financial feasibility of buying a home
|
a)
№ з/п
|
b)
Hypotheses
|
c)
In regions with high wages for 3-5 years
|
d)
In regions with low wages for 6-8 years
|
|
e)
1.
|
f)
Opportunity for a working person to save
money for housing, if he lives on a living wage
|
g)
Yes
|
h)
Yes
|
|
i)
2.
|
j)
How to buy a home if a working person
cannot live on a living wage
|
k)
No
|
l)
No (this figure increases to 36-38
years)
|
Source: authors' own development
From the above information we can
conclude that it is necessary to improve the conditions of youth lending for
families with children. Otherwise, the working person needs to look for another
job to receive double the salary.
Often the working population of
Ukraine, which has low wages, is forced to go abroad to work to buy housing in
a shorter period of time. In addition, it should be noted that the cost of
housing will be affected by inflation (Table 3).
Table 3: Analysis of the
relationship between consumer prices and average wages with prices for
residential buildings in Ukraine for 2009-2020
|
Indicators
Years
|
Indices
|
Deviation of price indices for residential buildings
from +, -
|
|
consumer prices
|
prices for residential buildings
|
average wages for December of the current year
|
consumer prices
|
average wages
|
|
2009
|
112.3
|
107.8
|
111.6
|
-4.5
|
-3.8
|
|
2010
|
109.1
|
116.1
|
117.7
|
+7.0
|
-1.6
|
|
2011
|
104.6
|
118.2
|
116.2
|
+13.6
|
+2.0
|
|
2012
|
99.8
|
109.5
|
110.6
|
+9.7
|
-1.1
|
|
2013
|
100.5
|
104.8
|
107.2
|
+4.3
|
-2.4
|
|
2014
|
124.9
|
111.1
|
110.9
|
-13.8
|
-0.2
|
|
2015
|
143.3
|
124.6
|
130.4
|
-18.7
|
-5.8
|
|
2016
|
112.4
|
108.3
|
123.8
|
-4.1
|
-15.5
|
|
2017
|
113.7
|
115.0
|
135.6
|
+1.3
|
-20.6
|
|
2018
|
109.8
|
119.6
|
120.5
|
+9.8
|
-0.9
|
|
2019
|
104.1
|
103.9
|
116.0
|
-0.2
|
-12.1
|
|
2020
|
105.0
|
107.4
|
115.6
|
+2.4
|
-8.2
|
Source: authors' own development
based on State Statistics
Service of Ukraine, 2009-2020
Consider the indices of consumer
prices, prices for residential buildings and average wages for December each
year during 2009-2020 (Fig. 2).
Figure 2: Dynamics of
consumer price indices, residential buildings and average wages for 2009-2020
Source:
authors' own development based on State Statistics
Service of Ukraine, 2009-2020
From Table 3 and Figure
2 it can be concluded that the price indices for residential buildings for the
analysed period (2009-2020) were mostly higher than consumer price indices
(except for 2009, 2014-2016 and 2019).
At the same time, house
price indices were generally lower than the average wage indices of Ukrainians
(except in 2011, when the house price index was 2.0 points higher than the
average wage index).
Figure 2 shows that the
lines of all three graphs are very close to each other (except for 2011,
2014-2017, where the deviations are higher or lower than 13.6-20.6 points).
These years are characterized by serious political changes. Therefore, new
reforms are needed to improve the solvency of the population to purchase
housing.
There is currently
youth lending in Ukraine, but, unfortunately, it is accompanied by a
significant number of restrictions, in particular:
· there is a great demand
for housing, which forms a large queue, and therefore a larger percentage of
those unable to obtain housing;
· some youth programs
require buyers to pay almost 50% of the money immediately;
· if the state after the
relevant period of time is not able to repay part of the creditor's interest,
the creditor must pay the funds themselves.
Due to this, social or
youth lending in Ukraine is accompanied by a number of problems, which in
practice are solved, mostly by local authorities, i.e. decentralized.
Another problem is the problem of valuation of material and financial
resources and its impact on the formation of the final cost of housing. Whether
the calculation of housing takes into account the fair value of housing or how
the future value of housing affects the lending system.
Hence, material,
technical and financial resources are closely interconnected. Previous studies
have defined the concepts of material, technical (Humenna-Deriy, 2020a) and
financial resources (Humena-Deriy, 2020b). Based on our research, we propose to
consider the information model of resources in terms of digitalization. Because
of, modelling makes it possible to assess the current economic situation and
forecast of the future.
According to Deriy et
al (2020), business process modelling is one of the methods to improve the
quality and efficiency of the organization. This method is based on the
description of the process through various elements (actions, data, events,
materials, etc.) inherent in this process. Process modelling describes the
logical relationship of all elements of the process from its beginning to
completion in the organization.
We agree with the authors and
believe that it is necessary to model the main resources and their derived
resources in order to identify their main features that affect the process of
digitalization. The newest resources are formed at the junctions of traditional
resources (Figure 3).
As noted above, these include:
material and technical, material and financial, financial and technical. The
percentage of use of these resources may be different in each enterprise.
Figure 3: Information model of
resources in the conditions of digitalization
Source:
authors' own development
Usually, it is considered that
material resources in construction occupy the largest share. However, material
resources interact with technical very often. Similarly, material resources
usually need to be valued, so financial resources are closely linked to them.
It is now interesting to consider such resources from the standpoint of Balance
Sheets of Construction Enterprises.
The balance of Ukrainian
enterprises, in general, in terms of assets and liabilities corresponds to the
Polish version by about 78-80% and the European (horizontal format) by about
70-75%. The Ukrainian balance corresponds to less than 70% of the vertical
format of the Euro-balance, which is not regulated in Ukraine (Malyshkin,
Bezverkhyi, Kovova, Semenova, etc., 2018).
If we proceed from the
Balance Sheet (Statement of Financial Position) of enterprises and take into
account the features of its individual items, they cannot always be attributed
to a specific subtype of resources. For example, machinery and equipment are
technical resources, but they have a material basis, transfer their value to
production costs in the form of appropriate amounts of depreciation, and
therefore to some extent they can be called material and technical resources.
According to research, Mackenzie (2003) uses tangible assets within the EU to
denote assets such as land, buildings, factories and machinery, vehicles, and
so on.
This definition does
not quite correspond to the Ukrainian interpretation of material resources,
under which stocks and goods are considered more. Hence, it is necessary to
distinguish: tangible non-current assets and tangible current assets. We
believe that the application of the general concept of “material and technical
resources” will be relevant here, which will combine tangible non-current
assets and tangible current assets. Material and technical resources are the
first subspecies of the latest resources.
In the second
subspecies, we have identified material and financial resources, because
material resources can be valued. The second section of the Balance Sheet
reflects current assets, which include: inventories, receivables, cash and cash
equivalents, current investments. That is, in fact, all these resources
together can be interpreted as “material and financial resources”. In addition,
the item of the Balance Sheet “Other current assets” is difficult to attribute
to material or financial resources, i.e. it is best to identify it as material
and financial resources.
The third subspecies of
the latest resources include financial and technical resources. This concept is
gaining new popularity in the world, as cash payments are now often made in
cashless form. On the other hand, the use of crypto-currency changes the
functions of cash.
Therefore, to some
extent, such changes facilitate the methods of cash settlements. On the other
hand, we do not approve of humanity's complete abandonment of cash payments and
the complete transition to non-cash payments. Because of, such situation can bring more
threats to humanity than benefits. The emergence of cyber-attacks, full
computer control of money and payments, the concentration of money centrally –
these are the problems that can expect humanity if financial resources are
excessively exposed to technical progress.
In the conditions of digitalization
all these resources acquire new directions of development. In particular, with
regard to: a) material resources, digitalization contributes to the restoration
of natural resources; b) material and financial resources, under these
conditions, contribute to the optimization of material costs; c) financial
resources are accompanied by the emergence of a new type of currency; d)
financial and technical develop the speed and quality of calculations; e) technical
resources provide a resource to save time; f) material and technical resources
involve the search for alternative resources. The competitiveness of any
construction company depends on the coordinated use of all these resources
listed above.
We consider it necessary to consider
the accounting and management aspect of the derivative conditions outlined by
us, which are interrelated with each other. These include: promoting the
restoration of natural resources; search for alternative resources; saving
time; optimization of material costs; the emergence of a new type of currency;
speed of calculations. Hence, each of these conditions is important for the
development of the global economy, however, some, we believe, are more
important. To do this, we conducted a study of the resource potential of three
construction companies in different regions of Ukraine and determined the
percentage of traditional resources of companies based on their Balance Sheet,
as well as identified the percentage of new resources (Table 4).
Table 4: Resources of construction
companies based on the data of their balance sheets (as a percentage)
|
Resource
|
Enterprise 1
|
Enterprise 2
|
Enterprise 3
|
Average value
|
|
Traditional resources
|
|
Technical
|
60.80
|
78.05
|
56.92
|
65.26
|
|
Material
|
10.90
|
6.50
|
0.35
|
5.92
|
|
Financial
|
28.30
|
15.45
|
42.74
|
28.83
|
|
Together
|
100.00
|
100.00
|
100.00
|
100.00
|
|
The latest resources
|
|
Material
and technical
|
35.85
|
42.28
|
28.63
|
35.59
|
|
Material and financial
|
19.60
|
10.97
|
21.54
|
17.37
|
|
Financial
and technical
|
44.55
|
46.75
|
49.83
|
47.04
|
|
Together
|
100.00
|
100.00
|
100.00
|
100.00
|
Source:
development of the authors using the balance sheets of individual construction
companies in Ukraine
We identified the technical
resources of the enterprise on the basis of the result of section 1 of the Balance
Sheet. This includes non-current assets. Material resources include stocks,
goods. The financial includes cash and cash equivalents, receivables, deferred
expenses. However, some items of the Balance Sheet are consolidated and cannot
be attributed to one or another resource, as they can belong to two groups of
resources at the same time. In particular, this applies to the item “Other
current assets” (line 1190 of the Balance Sheet (Statement of financial
position).
The data in Table 3 show that the
structure of traditional resources of construction companies is dominated by
technical resources. In our case, they occupy from 56.92% to 78.05% (average
value 65.26%), i.e. from more than half and up to three quarters of all
traditional resources. Material resources occupy in the Balance Sheets of
construction enterprises from 0.35% to 10.90% (average value of 5.92%), i.e.
from less than a hundredth to a tenth. This difference in the share of material
resources can be explained by the fact that a number of construction companies
can work with the use of toll construction materials or with the purchase of
these materials under shadow schemes (without reflecting such operations in the
accounting system). Financial resources in the Balance Sheets of construction
enterprises range from 15.45% to 42.74% (average value 28.04%); i.e. from
one-sixth of traditional resources to almost half.
If we approach the assessment of the
resources of construction companies from the standpoint of the latest
resources, the same companies have completely different indicators. Thus,
material and technical resources here range from 28.63% to 42.28% (average
value 35.59%), i.e. from more than a quarter to almost half. Material and
financial resources by share are slightly less than material and technical
resources. They range from 10.98% to 21.54% (average 17.37%), i.e. from a
little over a tenth to almost a quarter. From the standpoint of new resources,
the most important group is financial and technical resources. They account for
44.55% and up to 49.83% (average value 47.04%), i.e. financial and technical
resources are in the balance sheet of construction companies from more than
four tenths to almost half.
From the analysis conducted in Table
4, we can conclude that the assessment of the resources of construction
companies from the standpoint of the latest resources is more accurate.
Each of the resources has a specific
impact on each of the conditions of digitalization in more detail. Promoting
the restoration of natural resources is rather a derivative of accounting.
Because the resources used can be interpreted as a past event, and investment
in the restoration of natural resources – as a prospect. At present, a socially
responsible enterprise must invest a certain share of profits in the
restoration of resources. It is desirable that public authorities in different
countries support such enterprise initiatives by reducing taxes or other
incentives. Regarding financial and social accounting, if the company invests
in the restoration of resources, then these financial investments are reflected
in the accounts of financial accounting, as well as in financial and social
reporting (if the company is such).
The search for alternative material
and technical resources is gaining popularity in housing construction.
Accordingly, the accountant must separate certain accounts in synthetic and
analytical accounting, determine at what cost and by what methods will be
assessed material and technical resources, respectively, and prescribe this in
the accounting policy of the enterprise. On the other hand, alternative
resources are new, and therefore errors may occur in the method of determining
technical resources or in the use of material resources. Such costs are
reflected in financial and management accounting.
For example, the installation of solar panels on
residential buildings is now gaining popularity. But this area of economic
activity is innovative, so the experience of installing solar panels on
high-rise buildings in Ukraine is insignificant. This may incur additional
costs. On the one hand, solar panels are expensive, and on the other - their
inefficient installation can lead to additional costs that must be reflected in
the account. Accordingly, there is a need for additional internal reports on
additional costs.
Consider the situational problem. One month after
installing the solar panels, one of them crashed. The cost of repairing a solar
panel is 260 euros. Profit before tax is – 65,000,000 euros. Will the pre-tax
profit decrease: 1) if the guilty person is identified; 2) if the culprit is
not identified? (Table 5).
Table 5: Changes in profit before
tax
|
No.
|
Profit before
tax:
|
Euro
|
Will change
|
|
1)
|
if the guilty
person is identified
|
65 000 000
|
yes
|
|
2)
|
if the guilty
person is not identified.
|
64 999 740
|
no
|
Source: development of the
authors
As
we can see from the problem, the profit before tax will be reduced by 260
euros, if the guilty person has not been identified.
Saving time depends on several factors: quality technical
resources in the enterprise, the legal and normative framework and the content
of contracts with investors, the psychological qualities of the accountant and
staff. These factors can either save time or, conversely, prolong it, and,
consequently, affect the size of financial results. Moreover, additional
internal management documentation can facilitate the accounting and analytical
process, or, conversely, strengthen it. Therefore, we consider it necessary in
the accounting policy to prescribe in advance a set of all internal management
reports, which will allow you to plan future events and thus save time on
recording the facts of financial life.
Optimization of material costs is to define strategies
and plan all stages of housing construction. To optimize material costs, it is
necessary to analyse previous periods for the receipt, storage and use of
material resources, as well as their evaluation. Transactions related to damage
to property, based on primary and internal documentation, should be considered in
detail. After completing the analysis process, it is necessary to make a plan
for the optimization of material resources, which indicates the list of
resources, their cost, methods of evaluation and timing. In addition, you can
create a certain reserve of funds to correct marriages during the construction
of housing.
The emergence of a new type of
currency virtual money, so far, has no significant impact on the accounting of
monetary settlements in the construction industry of Ukraine. Bit coins for home
purchase have not gained popularity and currently do not have clear
instructions on how to evaluate them in the financial and management accounting
of Ukrainian construction companies, as well as how to automate this process of
changing exchange rates.
The speed of calculations can be
increased only if the following requirements are met: the intellectual
abilities and flexibility of the accountant of the construction company, the
availability of stable sources of funding and the stability of the domestic and
foreign markets. Now Ukrainian construction companies make payments through the
Construction Financing Fund and the Joint Investment Institutions. We believe
that calculations should now be made through the Real Estate Fund.
Unfortunately, this method is used very rarely. However, we believe that it
would be effective for both construction companies and investors. This method
can speed up the completion of construction work and increase the number of
investors. The reflection of such operations involves strengthening the
accounting of investments of construction companies
Returning to the model of material,
technical and financial resources, we note that it does not identify intangible
resources, but their effect may be the same as information, although they,
unlike information, can have not only tangible but also direct impact on them.
Intangible resources are also closely linked to material, financial and
technical resources. After all, for example, the rights to use natural
resources or property indicate the likelihood of obtaining a certain financial
benefit from the use of specific assets.
5.
CONCLUSIONS
The results of research show that
the most problematic in the construction industry of Ukraine are financial
resources, because the two hypotheses that we put forward about the potential
ability of the working population to buy housing need to be addressed at the
state level. In addition, the formulas for calculating such opportunities take
into account the subsistence minimums of the working population and their
dependent children. Such calculations make it possible to assess the real
situation in the country and look for ways to solve them by increasing the
amount of wages in some regions of Ukraine and stimulating social lending.
According to the results of the
study of the model of material and technical and financial resources, as well
as the derived conditions of such resources formed accounting and management
principles for the development of additional analytical and synthetic accounts,
internal interim management reports to improve business operations in housing.
Such proposals relate to the derived conditions of resources from: promoting
the restoration of natural resources; search for alternative resources; saving
time; optimization of material costs; emergence of a new type of currency
(virtual funds); speed of calculations. Each of these conditions is important
for the development of national and global economies.
Further research should focus on the
logistics of material resources in housing and their impact on financial and
management accounting, to reveal the stages of their implementation and the
features of the reflection of business transactions in the software of
economics, accounting, control and analysis. Due attention should also be paid
to the assessment and analysis of the structure of operating costs of
construction companies by elements, especially material costs, depreciation
costs of technical resources.
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INFORMATION MODEL OF MATERIAL AND TECHNICAL AND
FINANCIAL RESOURCES IN HOUSING IN UKRAINE AND EUROPE: ACCOUNTING AND MANAGEMENT
ASPECT