Improvement of accounting and taxation of investments in capital construction and improvement of non-current assets

• Main Authors: V.O. Osmyatchenko, Ya.O. Izmaylov, K.S. Pinchuk
• Format: Article
• Language: English
• Published: Zhytomyr Polytechnic State University 2021-04-01
• Series: Проблеми теорії та методології бухгалтерського обліку, контролю і аналізу
• Subjects: accounting; taxation; investment; construction; investment real estate; improvement
• Online Access: http://pbo.ztu.edu.ua/article/view/231159

The paper substantiates that investment in capital construction and improvement of facilities is the foundation of investment and innovation development of the country. It is proved that properly regulated terminology and regulatory framework, proper organization and high-quality methodological support for accounting and taxation of investments in capital construction and improvement of facilities will ensure reliable registration of objects of non-current assets, effective management of investment funds and identify reserves for increasing the return on invested capital. A methodological approach to accounting and taxation of investments in capital construction and improvement at the stage of forming their initial cost under IFRS, depending on the construction methods, is proposed, and the specifics of operations with investment real estate are determined, which will make it possible to account for and tax such business operations more fully, with a proper degree of detail. A system of tax incentives has been developed and justified, and a list of development drivers for the state has been defined regarding the possibility of ensuring the activation of construction processes in the national economy.