ACCOUNTING RESERVES IN OPTIMIZATION OF RISKS OF INNOVATIIVE ACTIVITY
Keywords:accounting, risks, management, reserves, funds, provisions, expenses
AbstractThe 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.
Ministerstvo finansiv Ukrainy. (1999). Instruktsiia pro zastosuvannia Planu rakhunkiv bukhhalterskoho obliku aktyviv, kapitalu, zoboviazan i hospodarskykh operatsii pidpryiemstv i orhanizatsii: Nakaz № 291 vid 30.11.1999 r. [Instruction on the application of the Chart of Accounts for accounting of assets, capital, liabilities and business operations of enterprises and organizations: Order № 291 of 30.11.1999]. Retrieved from https://zakon.rada.gov.ua/laws/show/z0893-99 [in Ukrainian].
Zhydieieva, L. I., & Pinajeva, K. O. (2017). Oblik formuvannia finansovykh rezultativ ta vykorystannia prybutku: problemy ta shliakhy yikh vyrishennia [Accounting for the formation of financial results and the use of profits: problems and ways to solve them]. Ekonomika i suspilstvo — Economy and Society, 9, 1117—1121. Retrieved from http://www.economyandsociety.in.ua/journal/9_ukr/191.pdf [in Ukrainian].
Ministerstvo finansiv Ukrainy. (2019). Polozhennia (standart) bukhhalterskoho obliku 10 «Debitorska zaborhovanist». Zakonodavstvo Uktainy — Legislation of Ukraine. Retrieved from http://zakon.rada.gov.ua/laws/show/z0725-99 [in Ukrainian].
Ministerstvo finansiv Ukrainy. (2019). Polozhennia (standart) bukhhalterskoho obliku 11 «Zoboviazannia». Zakonodavstvo Uktainy — Legislation of Ukraine. Retrieved from http://zakon.rada.gov.ua/laws/show/z0085-00 [in Ukrainian].
Ministerstvo finansiv Ukrainy. (2013). Polozhennia (standart) bukhhalterskoho obliku 16 «Vytraty». Zakonodavstvo Uktainy — Legislation of Ukraine. Retrieved from http://zakon.rada.gov.ua/laws/show/z0027-00 [in Ukrainian].
Graham, P. (2005). How to Start a Startup. Retrieved from http://paulgraham.com/start.html.
Günther, T. (2010). Accounting for Innovation: Lessons Learnt from Mandatory and Voluntary. Innovation and International Corporate Growth. Springer.
Lehenchuk, S., Valinkevych, N., Vyhivska, I., & Khomenko, H. (2020). The Significant Principles Of Development Of Accounting Support For Innovative Enterprise Financing. International Journal of Advanced Science and Technology, 29 (8s), P. 2282—2289. Retrieved from http://sersc.org/journals/index.php/IJAST/article/view/14701.
Schmeisser, W., Mohnkopf, H., Hartmann, M., & Metze, G. (2019). Innovation performance accounting: Financing Decisions and Risk Assessment of Innovation Processes. Springer Science & Business Media.
How to Cite
Copyright (c) 2020 S. Lehenchuk, N. Valinkevych, I. Vyhivska
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors of research articles published in the Collection agree to the following terms:
- authors reserve the right to his authorship of scientific articles and broadcast journal right of first publication of scientific articles licensed under CC Attribution (Creative Commons Attribution License), which allows others to freely distribute the published scientific article referring to the original authors of the article and the first publication of the article in Research Works’ Collection on "Finance and credit activity: problems of theory and practice";
- authors have the right to enter a separate agreement concerning additional exclusive distribution of the article in the form it was published in the journal (for example, to post the research in an electronic storage of the establishment or publish as a part of a monograph), provided that the reference to the first publication of the article in the Collection.