Improvement of the legal and regulatory framework for accounting in non-material production sector

Zenovii-Mykhailo Zadorozhnyi, Valentyna Yasyshena


Introduction. The reforming of accounting in Ukraine, that is taking place in conformity with demands of European and international institutions, requires amendments and additions to the legal and regulatory framework for accounting in public enterprises. Particular attention should be paid to the regulatory framework for accounting expenditures in such enterprises. Therefore, this issue, which is currently of great importance, has to be examined.

Purpose. The purpose of the article is to identify areas of improvements relative to planning, accounting, and cost accounting of research and development as well as engineering projects performed by entities of the public sector.

Methods. The methodological basis of the study consists of metaphysical  and  general methods of research. The historical and logical methods are used for describing development stages of non-material production sector and intangible assets. The methods of analysis, synthesis, and grouping are chosen to examine the investment climate in Ukraine compared other countries. Analysis and statistical methods are applied to highlight the current state and growth of research and technology, and to describe the outcomes  of scientific and technological activities in Ukraine. The methods of comparison, analysis, induction and deduction are used to provide a rationale for improving the draft of the Model provision for the planning, accounting and calculation of the cost of research and development and engineering work.

Results. The article claims that non-material production plays a significant role in the world economy. Its growth means that information, skills, and knowledge and skills have become a primary factor of production in the today’s society. The authors have established the fact that business entities interested in obtaining new knowledge, new technology and new information, have more competitive advantages.

In terms of the promotion of science, innovations, research and development, Ukraine is experiencing an ambivalent situation or even undergoing a crisis. It is noted that the global innovation index (hereinafter – the GII) of Ukraine went up until 2017, yet the research and development intensity of GDP was critically low compared with the EU countries. The authors emphasize that efforts aimed at promoting research and development should    be made in the following areas: development and improvement of the legal framework, effective financing, R&D personnel retention and promotion, etc. Particular attention is paid to the issue of improving the draft of the Model Provision for planning, accounting and calculation of the cost of research and development and engineering work (hereinafter

–  the Model provision) No. 830 of 20 July 1996 approved by the Cabinet of Ministers of Ukraine. In order to implement the Model Provision, the Ministry of Education and Science of Ukraine initiated the establishment of a working group for developing a new draft of the legal act.

Discussion. Further efforts should be made to improve research activities in Ukraine in various ways, particularly in financing research and development and engineering activities, and personnel retention and promotion. Today, knowledge and skills play a crucial role as a key strategic resource of any company. Businesses and countries gaining new knowledge, new technology and new information have more competitive advantages in the modern society.

The authors suggest taking steps to ensure the effective planning, accounting and cost calculation of research and development and engineering work in the public sector entities, and an in-depth study of the issue. These efforts will help to harmonize terminology and to achieve consistency with the existing legislation, and thus will lead to making sound managerial decisions. Improving the draft of the Model Provision for the planning, accounting and calculation of the cost of research and development and engineering work will make it possible to work with foreign investors and take into consideration international accounting standards. All of these steps will help to launch new high-tech and IT technology that is intangible.

Ключові слова

accounting, cost calculation, non-material production, R&D and engineering work, the Model Provision, Guidelines.

Повний текст:



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