CC BY
25Картографiчне зображення розподшу репошв Укра!ни наочно демонструе, що iз областей Карпат-ського регiону тшьки Львiвська область потрапляе до групи лiдерiв за рiвнем валово! додано! вартосп створено! у секторi тимчасового розмiщування й органiзацi! харчування групування областей, що дае можливiсть охарактеризувати даний репон, як найбiльш туристично-рекреацшно привабливий за даним параметром.
Висновки i рекомендации Описанi можливо-сп моделювання та прогнозування можуть бути за-стосованi до рiзних параметрiв регiонального роз-витку туристично-рекреацiйного бiзнесу, що може слугувати основою не пльки для оцiнки сучасного стану дослщжувано! сфери, а i для вщображення причинно-наслiдкових взаемозалежностей, що фо-рмують тенденцi!' та закономiрностi варiацi!' змiни бiзнес процесiв, що дае шдстави для створення на-уково обгрунтованих прогнозiв, для класифiкацi! або типолопзацп регiонiв за рiзними ознаками, а та-кож для дiагностики та прийняття економiчних рь шень в сферi туризму i рекреацп.
Лiтература
1. EKOHOMi4He прогнозування. Вiкiпедiя. URL: https://uk.wikipedia. 0rg/wikiEK0H0Mi4He_np0-гнозування
2. Грабовецький Б.£. Основи екоH0Mi4H0r0 прогнозування: [навчальний посiбник]. / Б.£. Грабовецький. - Вiнниця: ВФ ТАНГ, 2000. - 209 с.
3. Концепщя розвитку прських територш ук-ра!нських Карпат. Схвалено розпорядженням Кабь нету Мiнiстрiв Укра!ни вщ 3 квiтня 2019 р. № 232-р. URL: https://zakon.rada.gov.ua/laws/show/232-2019-%D1%80#Text
4. Любiцева О.О. Ринок туристичних послуг (геопросторовi аспекти). К.: Альтерпрес, 2002. -436с.
5. Класифжащя видiв економiчно! дiяльностi. Режим доступу: http://kved.ukrstat.gov.ua/KVED2010/kv10_i.html
6. Стегней М.1. Мiкроекономiчнi чинники розвитку шдприемств сфери гостинностi в репош / М. I. Стегней, К. М. Хаустова // Бiзнес 1нформ: науко-вий журнал. - Харшв, 2020. - №11. - С. 165-170.
THEORETICAL ASPECTS OF THE FINANCIAL ACCOUNTING OF INVESTMENT PROPERTY
Fatenok-Tkachuk A.
Lesya Ukrainka Volyn National University, Lutsk, Ph.D., Associate Professor, Associate Professor of Accounting and Taxation,
Asyutin A.
Lesya Ukrainka Volyn National University, Lutsk,
higher education
ABSTRACT
The essence of the concept of investment property is defined. Specific features of investment real estate objects in the structure of fixed assets according to international and national accounting standards are highlighted. Attention is focused on the main criteria of identification of investment real estate objects. The procedure for determining the initial value of investment property has been established. The main methods of the balanced valuation of investment real estate have been identified. Comparison of different aspects of valuation of investment property at fair and residual value was made.
Keywords: investment processes, non-current assets, measurements in condition and results.
Problem statement. After Ukraine gained independence and lost its geographical and economic ties, the use of all production areas by domestic enterprises became unprofitable. The investment property in the fixed assets structure was identified because of the considerable amount of depreciation on objects not used for the purpose. Regulatory legal source of regulation of real estate accounting, which is not used for industrial or commercial purposes, was P(C)AS "Investment Real Estate". Since this standard was adopted by one of the latter, there are a number of unresolved and controversial issues.
Analysis of recent research and publications. Accounting interpretation of the essence of investment real estate and controversial issues of accounting are concentrated in works of domestic and foreign scientists: M. P. Voinarenka, N. IN. Generalova, C. F. Head, R. Grachova, J. R. Ditroich, M. Jegheri, I. Zhentovska, About. Znachkova, R. Grachova, V. M. Kostyuchenko, V. M. Kuzhnoi, I. Lisna, L. D. Lovinska, About.
Mironova, K. A. Mulera, In. Parkhomenka, I. A. Smyr-nova, Ya. IN. Sokolova, V. IN. Solopka, M. Tuzhinsky, M. C. Herisa. Accounting aspects of the new standard implementation are considered in the works With. Head, About. Myronova, R. Taking into account the significant contribution of the above-mentioned researchers to the study of accounting reflection of investment real estate, it is worth noting that the issues of organizational and methodological support of valuation of investment real estate remain unresolved and its impact on the indicators of financial reporting of the enterprise.
The purpose of the research is to form theoretical aspects of financial accounting of investment real estate in part of the essence characteristics and its estimation.
Output of the main material. The International Standard of Financial Reporting 40 "Investment Real Estate" provides for the division of real estate occupied by the owner, which is used by the owner for business
purposes, and investment real estate, which is kept for the purpose of obtaining rent and/or capital increase. Such a division leads to discrepancies in the accounting record of transactions with real estate, occupied by the owner and investment property.
According to p. 4 P(c)AS 32 "Investment Real Estate" under investment real estate understand their own or leased on the terms of financial lease land, buildings, buildings located on land, held for the purpose of obtaining rent payments and/or increase of own capital, not for the production and supply of goods, provision of services, administrative purpose or sale in the course of normal activity.
Like other components of non-current assets, investment property is recognized as an asset if there is a possibility that the enterprise will in the future benefit from its use of economic benefits in the form of rent payments and/or increase of its own capital, and its initial value may be determined.
The definition of investment and operational real estate in the normative legal acts does not give a clear definition of these concepts. Thus, for example, the unit of accounting of investment real estate is land, building (part of the building) or their combination, as well as assets, which form with investment real estate a whole complex and in aggregate generate money flows. Objects used for different purposes (for rent, for own needs) are subject to separate accounting. When a fixed assets object includes a part that is an investment property and another part that is an operating real estate, and these parts can be sold separately, they are shown as separate inventory objects. If these parts cannot be sold separately, the fixed assets object is recognized as investment property provided that part of the object used for its own needs is not immediately and under the condition of the use of such real estate, mainly for the purpose of obtaining rent and/or increase of own capital [1]. In the presence of characteristics, under which the object can be considered both investment and operational real estate, the enterprise has to develop clear criteria for their delimitation.
In this regard, in practice, there may be difficulties in determining whether there are additional services in which the property is involved, so essential that it is recognized as being used for its own needs. PSBO 32 Investment Real Estate does not provide any instructions or proposals regarding such criteria, so it needs additional information. The use of the possibility of an independant choice as to whether an object is to be included in operational or investment real estate will only become an effective management tool when there is a clear methodological and methodological basis. In turn, unfortunately, today there is no clear method of such
division. Accordingly, the transfer of the property to the group of investment real estate is only based on subjective approach, based on professional quality of specialists. Therefore, it is advisable to use the following basic criteria to identify real estate as investment or operational. Namely, recognition of only land plots and buildings; clear definition of the lease form; the existence of relations with the neighbors; the share of investment real estate in the total area of the object.
In practice there is a need to identify investment property to apply professional judgment of accountant. First of all, it concerns real estate, a part of which is used to receive rent payments and/or to increase its own capital, and a part for the purposes of the business activity of the enterprise: Production, administrative needs, etc. In this case, the investment property is recognized as part of the fixed assets object, if it can be sold separately or under the condition of using the object mainly for the purpose of obtaining rent and/or for increasing its own capital. Accordingly, the "critical" use limit is determined by the enterprise independantly, developing criteria for the delimitation of operating and investment real estate, based on the specifics of the enterprise's activity and revealing the mentioned provisions in accounting policy. The main criteria for dividing investment and operational real estate in case the same object is used as investment and as operating real estate (if the object cannot be divided into parts), the predominant character of the use of the object is determined by its area; the object is recognized as an investment property if more than 50% of its area is transferred to the operational lease.
Investment property is credited to the balance of the enterprise at the initial cost, which is determined depending on the ways of real estate inflow (Fig. 1).
It has been established that common for national and international standards is determination of the initial value of investment property in four ways of asset inflow: Acquisition under normal conditions; purchase on condition of delay of payment; obtaining in financial lease and creation of the enterprise.
In addition, IFRS 40 "Investment Real Estate" provides another direction for obtaining investment real estate - in exchange for tangible and intangible assets or in exchange for a combination of monetary and non-monetary assets. The initial assessment for such receipt is carried out at fair value of the received asset, except for cases when:
a) exchange transaction is not a commercial transaction or
b) the fair value of either the asset received or transferred in exchange cannot be determined.
Fig. 1. Procedure of determination of the initial value of investment property in accordance with P(C)BO 32 and
IAS 40
If the received asset is not valued at fair value, it is estimated at the balance value of the transferred asset.
Not disclosed in P(C)BECAUSE 32 "Investment Real Estate" is the question of determining the initial value of investment property when it is introduced to the authorized capital of the enterprise, with free receipt, in exchange for such non-similar object and received in a partial exchange, this leads to the absence of a single approach for their reflection in accounting by the accounting officers of domestic enterprises.
It is considered expedient to amend the section "Recognition and valuation of investment property" P(C)AS 32 "Investment property" by including the following provisions on the procedure of determining the initial value:
- the primary value of investment property, which is made to the authorized capital of the enterprise, is recognized as the founders (participants) of the enterprise their fair value taking into account the costs directly related to the transfer of investment property to the state in which they are suitable for use, provided by the point. 10 P(s)BO 32.
- the initial value of the free received investment
property equals its fair value on the date of receipt, taking into account the costs directly related to the delivery of investment property to the state in which they are suitable for use, provided for in the paragraph. 10 P(s)BO 32;
- the initial value of objects transferred to investment real estate from working assets, reserves, goods, etc. equals its cost, which is determined according to the provisions (standards) of accounting 9 "reserves" and 16 "expenses";
- the initial value of investment property, obtained in exchange for such asset, equals the residual value of the transferred object of fixed assets. If the remaining value of the transferred object exceeds its fair value, the primary value of the investment property, obtained in exchange for such asset, is the fair value of the transferred object with the inclusion of the difference to the expenses of the reporting period;
- the primary value of investment property, obtained in exchange for a non-similar asset, equals the fair value of the transferred non-monetary asset;
- the initial value of investment property purchased in a partial exchange for a non-similar asset
equals the fair value of the transferred non-monetary asset, increased (decreased) by the amount of money or their equivalents transferred (received) during the exchange.
The enterprise should develop accounting policy on valuation of investment property after its initial
recognition. P(S)BO 32 provides an opportunity to display investment property in financial statements for:
- a fair value if it can be determined;
- the primary cost, reduced by the amount of accumulated depreciation, taking into account the loss from the reduction of utility and the benefits from its recovery (fig. 2).
Fig. 2 methods of balance-sheet valuation of investment property in accordance with P(C)AS 32 "Investment
Real Estate"
The chosen approach is applied to the estimation of all similar objects of investment real estate.
Valuation of investment property at fair value means its permanent actualization on each balance date. Disclosure of information about the fair value of investment property in notes to annual financial statements is necessary and for the use of valuation at fair value (methods and substantial assumptions used in determining fair value, assessment determination was made by independant appraiser or own forces, etc.) and for the application of valuation at cost (fair value of investment real estate or explanation of the reason why it is impossible to determine the fair value).
The best evidence of fair value is current market prices, which exist on the active market for such property in the same area and in similar condition under similar terms of lease agreements or other contracts on the balance date.
That is, to determine the current market price the necessary condition is the development of the real estate market. The main features of the active market are: Tender for one-off assets; the presence of those willing to conclude an agreement at any time; openness and accessibility of information and absence of monopoly.
In Ukraine, a large number of real estate objects is impossible to determine the current market prices, since the absence of an active market or its functioning is limited. In the absence of an active market, the determination of the fair value of investment property is carried out for:
- the last market price of transactions with such assets (provided there are no significant changes in the technological, market, economic or legal environment in which the enterprise operates);
- current market prices for real estate, which can be in different condition, terrain, rent and other contrac-
tual terms, adjusted taking into account individual characteristics of investment property, for which the fair value is determined;
- additional indicators that characterize the level of prices for investment property.
In the absence of information about market prices for investment property its fair value is determined by the present value of future net cash proceeds from the asset. This type of valuation is based on the amount of current market rent payments for such property, which is in the same area and in the same condition, with the application of discount rates, which reflect current market estimates of uncertainty regarding the size and time of cash flows.
It should be noted that according to the requirements of international standards (p. 32 IFRS 40) is not required, but is encouraged to engage an independant appraiser to determine the fair value of investment property. This is based on the availability of an appraiser with the appropriate qualification and experience of valuation of investment property, located in such a locality and belongs to such category.
When the business entity determines the market value of investment property, the sources of information may be: Specialized and general reference books, prices, advertising brochures, price-releases, information bulletins, Information from the websites of real estate agencies, consulting companies, real estate portals and other resources of the Internet network, periodical printed publications, information of state monitoring, information in the mass media.
The most accessible and economically justified list includes specialized real estate and Internet sources.
According to p. 23 P(c)BECAUSE 32 during the determination of the fair value of investment property of the enterprise it includes all objects of fixed assets, which form with investment property of the whole
complex and generate money flows in aggregate. Such investment property in the account is reflected as a separate object generating cash flows. In addition, fixed fixed fixed fixed fixed assets (liffts, conditioners, etc.), the value of which is taken into account in the fair value of investment real estate, are accounted on off-balance accounts at the initial cost.
All other assets that are used together with investment property (furniture, business inventory, office equipment, etc.) are estimated at the initial (re-estimated) value and are recorded in accordance with P(c)BO 7 "Fixed assets".
Valuation of investment property at fair value should be applied to the date of sale, transfer of investment property to operating real estate and such held for
sale, or if it becomes impossible to establish its fair value, on the date of balance.
If the company chooses the method of valuation of investment property at the initial cost, its residual value will be changed monthly by calculating depreciation taking into account the loss of the benefit and the benefits of its recovery. The value of investment property is not subject to revaluation.
We consider the main differences in valuation of investment property at fair value and initial value, reduced by the amount of accumulated depreciation taking into account the loss from the reduction of utility and the benefits from its recovery (Table 1).
Table 1
Comparison of different aspects of valuation of investment property at fair and residual value*
Feature application Rating by justice cost Rating by remaining cost Note
1 2 3 4
Cases application Provided that it is possible to be determined In case impossible definition fair value investment real estate Selected approach applies to assessments of all similar objects investment real estate
Holding re-evaluation Not conducted Not conducted -
Carry-over Not conducted. A change in the market price may give an indirect assessment of the object's carrying out Carried out in accordance with the requirements of P(C)BO 7 "Fixed assets" Liquidation cost investment real estate equals to zero
Holding testing on depreciation (decrease useful) Not carried out, because there is no economic sense. The result of such testing will not be significant - the difference will be costs only, directly related to the possibility implementation Certainly, not less than once a year. If signs of impairment exist and they affect residual value fixed assets, residual value to be reduced recognition other expenses of z. at the same time increased wear In the analysis of signs depreciation investment real estate should to be guided requirements Position (standard) accounting accounting 28 "Reduction asset value"
How to switch on to cost investment real estate equipment that is an integral part of it part of the league, air conditioners) Takes into account. In this in the case of the objects in the structure of investment real estate is formed with it a whole complex and in aggregate generate money flows. Such objects are counted on off-balance accounts at the initial cost Does not take into account. Objects are displayed in accounting as separate inventory objects
How to switch on to cost investment real estate others the assets that are used together with investment real estate (furniture, economic furniture, office equipment, etc.) Does not take into account. Objects are displayed in accounting as separate inventory objects and are evaluated for first time (overestimated value) Does not take into account. Objects are displayed in accounting as separate the inventory objects and are evaluated for first time (overvalued) cost
Possibility of change method of evaluation (from fair on remaining, and on the contrary) Evaluation is a priority for justice value, however transition is foreseen to estimate at the initial cost Transition is foreseen according to the assessment justice cost P(s)BO 32 limited the requirement to specify in notes cause transition from an assessment for justice value for evaluation on the left cost
Note: Source [2, C. 65-66; 3; 4]
In conditions of insufficient development of the real estate market in Ukraine, limited access to information about market transactions with such objects, there is a need to outline the limits of expediency and substantiality of valuation of investment real estate at fair value.
Valuation of investment property at fair value is necessary for legal entities that make financial reporting according to international standards. In particular, according to the current legislation, such enterprises include: Issuers of securities, which are allowed to trade in the organized markets, professional participants of the stock market, institutes of joint investment; joint stock companies.
According to the data published by the State Commission on Securities and Stock Market, as of the beginning of December 2020, in Ukraine total registered as legal entities 29 thousand 977 joint-stock companies, of which PJSC - 9 thousand 618, Prat - 20 thousand 359. Joint-stock companies that make financial statements in accordance with IFRS requirements (or plan for such a transition), it is advisable to choose an estimation of investment property under a fair value model, since this method is the dominant method in international practice. The use of an investment real estate valuation model at fair value will provide a clear understanding of financial statements and increase the confidence of creditors, investors and other participants in international market relations to its indicators. The most expedient way to determine the fair value of investment property for joint-stock companies is to attract an independant appraiser, which will increase the level of trust of external partners and potential investors to the information published in financial statements. In turn, transparency and trustworthiness of financial reporting is the guarantee of attracting domestic and foreign investments by enterprises.
For economic entities that do not report according to international standards, it is acceptable to use the model of valuation of investment property at the initial
cost, reduced to the amount of accumulated depreciation taking into account the loss of the usefulness and benefits of its restoration, which is caused by the absence of an active real estate market on a significant territory of Ukraine, especially on specific objects.
The choice of the method of valuation of investment property at the initial cost, reduced to the amount of accumulated depreciation, taking into account the loss of usefulness and benefits from its restoration, is more objective value for the fair value, as it is documented and does not provide for a significant number of assumptions and methods of calculation.
The predominant practice of domestic enterprises is the estimation of investment real estate at the initial cost of reduced to the amount of accumulated depreciation, taking into account the loss from the reduction of utility and benefits from its recovery.
Recognition of investment real estate is stopped at the sale of the object as a result of sale, transfer to financial lease, liquidation, entry into the authorized capital of another enterprise, if the criteria of recognition of the asset, from other grounds, when transferring from investment real estate to operational or stopping the use of such investment real estate with the exception of waiting for any economic benefits from its disposal.
Conclusions. A well-founded estimation of investment real estate provides accuracy of accounting information about the value of this specific object of fixed assets. This, in turn, contributes to the adoption of optimal management decisions on its use and contributes to optimization of rent payments, which are planned for receiving.
References
1. Bohuts'ka, L. T. (2015). Problemy normatyvno-pravovoho rehulyuvannya obliku investytsiynoyi ne-rukhomosti v Ukrayini. URL: http://www.nbuv.gov.ua.
2. Bohuts'ka, L.T. (2016). Deyaki aspekty obliku investytsiynoyi nerukhomosti [Some aspects of investment real estate accounting]. Zbirnyk naukovykh prats'
Temopil's'koho natsional'noho ekonomichnoho uni-versytetu. Seriya: Ekonomichnyy analiz - Collection of scientific works of Ternopil National Economic University. Series: Economic analysis № 6. 183-191.
3. Bratchuk, L. (2018). Metodolohichni aspekty obliku orendnykh operatsiy [Methodological aspects of accounting for lease transactions]. Bukhhalters'kyy ob-lik i audyt - Accounting and auditing. № 2. 12-18.
4. Bondar, M. I., Bondar, T.A. (2019). Vyznannya i otsinka investytsiynoyi nerukhomosti [Recognition and valuation of investment property]. Investytsiyi: praktyka ta dosvid - Investments: practice and experience. № 20. 12-15.
5. Mizhnarodnyy standart bukhhalters'koho obliku 40 (MSBO 40) Investytsiyna nerukhomist' [International Accounting Standard 40 (IAS 40) Investment Property], as amended from 01.01.2012. URL: https://zakon.rada.gov.ua/laws/show/929_026#Text.
6. Natsional'nyy polozhennya (standartu) bukhhalters'koho obliku 32 "Investytsiyna nerukhomist'" [National regulations (standard) accounting 32 "Investment Real Estate"], approved. nak. Ministry of Finance dated 02.07.2007 № 779. URL: https://za-kon.rada.gov.ua/laws/show/z0823-07#Text.
