EXPERIENCE IN ACCOUNTING FOR FOREIGN ECONOMIC ACTIVITY IN UKRAINE'S PARTNER COUNTRIES

Abstract

The purpose of the article is to study and generalise developments in accounting and control of foreign economic activity in countries with which Ukraine has the closest economic ties. Methodology. The statistical method and the ranking method were utilised to ascertain the largest partner countries of Ukraine.To display the ranking results, a graphical method was employed. In order to describe the accounting and control systems of different countries, a monographic method, methods of analysis and synthesis were used. In order to provide a synopsis of the experience of accounting and control of foreign economic activity in different countries, a comparison and generalisation method was employed. Results. The results of the analysis of world experience have demonstrated that the general features of accounting and control of foreign economic activity in Ukraine's partner countries in foreign trade can be categorised into five aspects. Firstly, harmonisation with International Financial Reporting Standards is imperative for attracting countries to the global economy, international trade markets, resources, labour and capital markets. Secondly, the utilisation of accounting mechanisms to address exchange rate fluctuations is imperative, particularly in contexts involving diverse currency types prevalent in foreign trade transactions. Thirdly, it is evident that third countries establish their own customs and tax regulations for imports and exports, which are based on economic and political interests. This necessitates the implementation of separate accounting procedures for the reflection of relevant operations and payments, and the allocation of these to corresponding expense accounts. Fourthly, the regulation of foreign economic activity is centred on transfer pricing, the disclosure of information regarding controlled foreign companies, and transactions in offshore zones. Fifthly, a pivotal element is digitalisation, encompassing the implementation and utilisation of the XBRL Taxonomy. Practical implications. It was determined that economic entities engaged in foreign economic activity should develop an accounting policy. This policy should address the application of IFRS, exchange rate differences, taxation, transfer pricing, and the digitalisation of accounting. State authorities are obliged to establish pragmatic conditions – ranging from legislative regulation to the operations of local authorities – that would contribute to the development of accounting and control in the five areas indicated. Value/Originality. Following a thorough evaluation of the accounting and control systems employed in Ukraine's partner countries in relation to foreign economic activity, key areas for the enhancement of the Ukrainian system have been identified. This will enhance the effectiveness of international economic co-operation.