PROBLEMS OF INCOME RECOGNITION BY CONSTRUCTION ENTERPRISES OF UKRAINE DURING THE TRANSITION TO INTERNATIONAL STANDARDS

Abstract

The article analyzes the discrepancies between the national standard of Ukraine (Ukrainian Accounting standards 18 "Сonstruction contracts") and the international standard IFRS 15 " Revenue from Contracts with Customers") in the issue of recognizing the income of enterprises in the construction industry, operating in the national and international standards, the peculiarities of the formation and recognition of income of enterprises of the construction complex in connection with the duration of the production process are investigated. New approaches to the assessment of construction in progress in accordance with the requirements of IFRS are highlighted and the conditions under which the transition can be made in accordance with the requirements of international accounting are outlined. As you know, the main goal of any business entity is to maximize profits. And the first step in achieving this goal is the process of recognizing and measuring income, because the process of calculating the financial result begins directly with the assessment of income. Since 2000, a gradual transition to international financial reporting standards has begun in Ukraine for the integration of national enterprises into the economies of developed countries and their entry into foreign capital markets. However, this process is developing slowly due to: the presence of differences in the norms of national and international law; lack of professional translation of standards into Ukrainian; the dynamics of changes in international standards, including the development of new and abolition of old standards (in the field of construction, the standard IFRS 15 «Revenue from Contracts with Customers» and IAS 18 «Revenue» replaced IAS 11 " Construction Contracts". Due to the problems listed above, the problem of adapting the issues of recognition and assessment of accounting objects to international standards arises. To unify the process of accounting and reporting by domestic construction companies in order to integrate them into the world economy, it is necessary to begin the process of transition from national accounting standards to international financial reporting standards.