ACCOUNTING RESERVES IN OPTIMIZATION OF RISKS OF INNOVATIIVE ACTIVITY

Authors

  • S. Lehenchuk State University «Zhytomyr Polytechnic», Ukraine
  • N. Valinkevych State University «Zhytomyr Polytechnic», Ukraine
  • I. Vyhivska State University «Zhytomyr Polytechnic», Ukraine

DOI:

https://doi.org/10.18371/fcaptp.v2i33.206594

Keywords:

accounting, risks, management, reserves, funds, provisions, expenses

Abstract

The article found that the activities of startup companies are constantly influenced by a significant amount of high-level economic risks. In order to improve the efficiency of innovation risk management, it is proposed to form and use a number of accounting reserves, funds, and provisions (required reserve capital; reserve capital to cover losses and damages from innovation risks; innovation guarantee fund; fund for social development of innovative activities; fund for material incentives in innovation; fund for other needs of innovative activity; provision for vacation for employees engaged in the manufacture and promotion of innovative products (works, services); reserve of doubtful debts incurred in the course of innovative activity). Proposed accounting reserves (funds, provisions) of a startup company are means of influencing the degree of risks of its activity and means of minimizing (neutralizing) the negative consequences of the incurred risks. A procedure for accounting reflection of operations from the formation and use of the accounting reserves of innovative companies in risk conditions has been developed. The accounting model of reserves for optimizing the risks of innovative activity has been suggested. Risks of innovative activity of PJSC «Farmak», their probable consequences, and the procedure of accounting reserves formation have been disclosed. The ways of risk optimization due to accounting reserves and their impact on the company’s financial result (on the example of financial information for 2018 of PJSC «Farmak») have been grounded. The necessity of further development of organizational and methodological provisions of drawing up internal accounting of start-up companies in the part of the proposed accounting reserves as a component of information support of the risk management system of innovative activity has been established.

Author Biographies

S. Lehenchuk, State University «Zhytomyr Polytechnic»

Doctor of Economics, Professor

N. Valinkevych, State University «Zhytomyr Polytechnic»

Doctor of Economics, Professor

I. Vyhivska, State University «Zhytomyr Polytechnic»

Ph. D. in Economics, Associate Professor

References

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Published

2020-06-30

How to Cite

Lehenchuk, S., Valinkevych, N., & Vyhivska, I. (2020). ACCOUNTING RESERVES IN OPTIMIZATION OF RISKS OF INNOVATIIVE ACTIVITY. Financial and Credit Activity: Problems of Theory and Practice, 2(33), 174–184. https://doi.org/10.18371/fcaptp.v2i33.206594

Issue

Section

The topical questions about the development of finance, account and audit