ACCOUNTING OF RESULTS OF RENT RELATIONS

Sergey Bardash, Tetiana Osadcha

Abstract


In the conditions of the implementation of the concept of sustainable development, the study of accounting reflection of the results of rent relations becomes relevant in view of solving a number of strategic tasks that today face economic entities. The solution to this problem is proposed on the basis of the definition in the system of accounting concepts of economic nature of results of rent relations arising owing to the involvement of renting factors in the economic process. The purpose of the research is to determine the formulation of proposals for the accounting reflection of the results of rental relations. The methodological basis of the study is the historical and logical method used to study the evolution of rent and approaches to the disclosure of its economic meaning. The dialectical method and comparative analysis are used to identify significant differences in the definition of rent, formed at different stages and forms of economic relations. Methods of analysis, synthesis, induction, deduction, abstraction, idealization, and generalization are used to identify the results of rent relations in the system of accounting concepts and the formulation of proposals for accounting rent and rent payments. Scientific results. Based on the critical assessment of the plurality of researchers’ opinions regarding the disclosure of the economic content of the rent, it has been established that: the rent is an integral part of the value added, but the added value in the accounting system is not accounted; the rent is a component of the income from operating activities carried out with the use or exploitation of limited natural resources; the complication of the previous value appraisal of rent makes it impossible to reflect it as a part of income; the amount of rent depends on the demand for the goods. If the product is sold at cost or below the cost, there will be no rent. The higher the sales price, the greater the share of rent in sales income. Taking into account the above, the rent as an income from the extraction/use of natural resources, as well as the use of other renting factors, is proposed to be reflected on the off-balance sheet account “Rent” with the allocation of sub-accounts by type of economic rent received. Rent payments are proposed to be attributed to operating expenses since their inclusion in production costs contradicts the economic nature of such costs, unjustifiably increases the prime cost, and contradicts the principle of equitable distribution of rent. The practical importance of the study is to increase the level of disclosure of information for making managerial decisions, in particular: determining the maximum allowable reduction in the price of sales of finished products, while maintaining an acceptable level of profitability for increasing demand, expanding the market and, consequently, increasing profits; directing the entire amount of rent or its part to the implementation of environmental measures, modernization of the material and technical base, activation of innovation activities, etc. Value/originality. The main advantages of the research conducted are the determination of the subject and object composition of rental relations, justification of the expediency of identifying the economic rent as an additional income, presenting proposals for the accounting of rent and rent payments, which will help to solve problems of the organization and methodology of the results of rent relations, as well as improving the reporting of economic entities.

Keywords


theory of rent, rent relations, rent, rent payment, accounting of results of rent relations

Full Text:

PDF

References


Buchanan, J. M. (1980). Rent seeking and profit seeking. Eds. By J. M. Buchanan, R. D. Tollison, G. Tullock. College Station: Texas A&M University Press, series 4, pp. 3-15.

Bodnar, O. V. (2017). Renta v systemi vartisnykh koncepcij [Rent in the system of value concepts]. Scientific Herald of Kherson State University. Series: Economics Sciences, issue 23, pp. 65-69.

Bazylevych, V. D. (2008). Makroekonomika [Macroeconomics: Textbook]. 4th Edition, Revised and Expanded. K.: Znannia, 743 p.

Hurovska, T. V. (2011). Teorija renty: istorija ta suchasnistj [Theory of rent: history and the present]. Herald of Khmelnytskyi National University. Economic Sciences, vol. 1, no. 6, pp. 7-11.

Hrazhevska, A. (2014). Udoskonalennja rentnykh vidnosyn jak faktor pidvyshhennja energhoefektyvnosti ekonomiky Ukrajiny [Improvement of rent relations as a factor of increasing energy efficiency in Ukraine's economy]. Bulletin of Taras Shevchenko National University of Kyiv. Economics, 7 (160), pp. 13-16.

Halushhak, M. M. (2008). Osoblyvosti mekhanizmu utvorennja zemeljnoji renty I ta II [Features of the mechanism of formation of land rent I and II]. Scientific herald of the National Forestry University of Ukraine, vol. 18, pp. 162-170.

Krueger, A. O. (1974). The Political Economy of the rent-Seeking Society. American Economic Review, vol. 64(3), pp. 291-303.

Kuzyk, B. N. (2004). Prirodnaya renta v ekonomike Rossii [Natural rents in the economy of Russia]. Economics, 189 p.

Kudriashova, R. P. (2003). Renta v sovremennoi ekonomyke Rossyy: teoryia i praktyka: monohrafyia [Rent in the modern Russian economy: theory and practice: monograph]. Samara State Economic Academy – Samara: Publishing of Samara State Economic Academy, 149 p.

Meshcherov, V. A. (2006). Sovremennye rentnye otnoshenyia: teoryia, metodolohyia i praktyka khoziaistvovanyia [Modern rental relations: theory, methodology, and practice of management]. Economic Sciences, 312 p.

Mishchenko, V. (2004). Ghirnycha renta i platezhi za nadra [Mining rent and payments for subsoil]. Geologist of Ukraine, vol. 4, pp. 28-34.

Matiukha, V. V. (2013). Plata za korystuvannja nadramy jak osnovnyj element ekonomichnogho mekhanizmu upravlinnja vitchyznjanym fondom nadr [Fee for the use of the underground as the main element of the economic mechanism of management of the domestic fund of the subsoil]. Mechanism of regulation of the economy, vol. 1, pp. 54-60.

Navrozova, Y. A. (2008). Ekonomicheskaya sushchnost morskoy portovoy renty [Economic essence of sea port rent]. Retrieved from: www.nbuv.gov.ua/portal/Soc_Gum/Rmugt/2008.../07_Navrozova.pdf.

Osadcha, T. S. (2015). Zemeljna renta jak objekt bukhghaltersjkogho obliku [Land rent as an object of accounting] Scientific Bulletin of Uzhgorod University. Series "Economics", vol. 1(45), pp. 103-106.

Osadcha, T. S. (2016). Metodolohiia bukhhalterskoho obliku ta analizu renty: monohrafiia [Accounting methodology and analysis of rent: monograph]. Zhytomyr: PE “Ruta”, 292 p.

Ostapchuk, T. P. (2012). Zemelna renta v systemi bukhhalterskoho obliku [Land rent in the accounting system]. Herald of Donetsk National University of Economics and Trade named after Mykhailo Tugan-Baranovsky, no. 3 (55), pp. 376-382.

Paskhaver, B. I. (1972). Rentni problemy v SRSR [Rent problems in the USSR]. K.: Naukova Dumka, 191 p.

Paraskevych, L. V. (2012). Problemy obliku finansovogho rezuljtatu promyslovogho pidpryjemstva [Problems of accounting of financial result of industrial enterprise]. Sustainable development of the economy, no. (3), pp. 123-127.

Tullock, G. (1967). The Welfare Cost of Tariffs, Monopolies, and Theft. Western Economic Journal, vol. 5, pp. 224-232.

Tullock, G. (1988). Rents and rent seeking .The political economy of rent seeking / Eds. Be C. Rowley, R. Tollison, G. Tullock. Boston, 251 p.

Ullubijeva, K. K. (2009). Dobavlena ta dodana vartistj: sutnistj ta vzajemozvjazok ponjatj v bukhghaltersjkomu obliku [Added value added: the essence and interconnection of concepts in accounting]. Bulletin of the Zhytomyr State Technological University. Economics. Zhytomyr: ZhDTU, vol. 4 (50), pp. 170-173.

Zakharchuk, O. A. (2011). Rentnyi kharakter platezhiv za resursy [The rent character of payments for resources]. Ekonomika ta Derzhava, no. 3, pp. 89-91.

Zhuk, V. M. (2012). Bukhhalterskyi oblik: shliakhy vyrishennia problem praktyky i nauky [Accounting: ways to solve problems of practice and science] [monograph] K.: NSC “Institute of Agrarian Economics”, 454 p.

Zamula, I. V. (2010). Bukhhalterskyi oblik ekolohichnoi diialnosti u zabezpechenni stiikoho rozvytku ekonomiky [Accounting of ecological activity in ensuring sustainable development of the economy [monograph]. Zhytomyr: ZhSTU, 440 p.

Zdan (Melnyk), S. I. (2011). Problemy vidobrazhennia rentnoho dokhodu promyslovykh pidpryiemstv v bukhhalterskomu obliku [Problems of reflection of rent income of industrial enterprises in accounting]. International collection of scientific works, vol. 1(19), pp. 178-183.

Zanko, B. M. (2016). Bukhghaltersjkyj oblik jak dzherelo informaciji dlja obchyslennja rentnoji platy za korystuvannja nadramy [Accounting as a source of information for calculation of rent for the use of subsoil]. Balanced Natural Resources, no. 4, pp. 18-22.

Zeldner, A. G. Gosudarstvo i ekonomika: Faktory rosta: monografiya [State and Economics: Growth Factors: Monograph. RAS, Institute of Economics. Moscow: Nauka, 214 p.

Zhikaliak, N. V. (2013). Renta v gornoy promyshlennosti: vidy i prichiny obrazovaniya [Rent in the mining industry: types and causes of education]. Economic bulletin of the Donbas, vol. 3 (33), pp. 180-185.

Worcester Dean A. (1946). Reconsideration on the theory of rent. American Economic Review, vol. 36 ( June), pp. 258-277.




DOI: http://dx.doi.org/10.30525/2256-0742/2018-4-4-24-32

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.