METHODOLOGICAL PRINCIPLES OF ACCOUNTING OF FORESTRY ENTERPRISES’ PRODUCTS IN UKRAINE

Abstract

Accounting is an important tool in managing the products of forestry enterprises, as it ensures accurate control over the quantity and quality of timber at all stages of its harvesting, processing and sale. Thanks to accurate accounting, an enterprise can effectively track the movement of timber, prevent losses and abuse, and respond to changes in market conditions in a timely manner. The article is concerned with substantiating the methodological foundations and identifying problematic aspects of accounting for finished products of forestry enterprises in Ukraine in accordance with the current regulatory framework. The author analyses the amount of harvested timber by type of forest product, the amount and value of forest products sold within Ukraine by type in 2021-2023. The operating cycle and features of identification and accounting of finished products of forestry enterprises are described. The classification and products of forestry enterprises are disclosed and interpreted as objects of accounting with an emphasis on their reliable assessment. The methodical principles of primary, synthetic and analytical accounting have been established, and an indicative structure of the synthetic account 26 ‘Finished products’ in forestry enterprises of Ukraine has been proposed. It is determined that legislative initiatives on electronic timber accounting strengthen the control, analytical and environmental functions of accounting and promote the sustainable use of forest resources and meet the Sustainable Development Goals. The article proves the importance of reliable accounting of forestry enterprises' products to ensure effective resource management, preparation of objective financial statements and making informed management decisions. The proposed methodological approaches to structuring the types of finished products and their accounting in relation to the branches/sub-branches of forestry enterprises will enhance the effectiveness of the tools for accounting, analysis and control of assets and improve the quality of management decisions at different levels of management of economic entities in the forestry industry.