Accounting and analytical problems at coal-mining enterprises of Ukraine in terms of European integration
Accounting and analytical problems at coal-mining enterprises of Ukraine in terms of European integration

Summary/Abstract: Introduction. Free trade zone with EU brings Ukraine benefits, and at the same time it requires changes in Ukrainian legislation concerning trade and other related issues. Changes are expected not only for Ukraine but also for European countries. The challenges of today for them are: socio-economic development of their countries and preservation of ecological balance between humans and environment [1]. To conduct the study, we took two domestic coal-mining companies located in the cities of Snizhne and Torez, Donetsk region. They are: the Udarnik coal-mine, seam open vertical shaft 612 meters deep, and the Progress coal-mine, seam open vertical shaft 1,294 m in depth [6]. Domestic accounting has to reflect the information from coal-mining enterprises clearly and concretely; a new segment has to be introduced into social accounting aimed at a better transformation, keeping in mind European countries. The purpose of the research, the results of which are presented in the paper, is to reveal the problems of accounting and analytical tools and cost management auditing at coal-mining enterprises in the context of Ukraine’s European integration. Results. The first problem that concerns accounting and analytical tools and cost management auditing is the lack of compliance between the National Accounting Standards (NAS) and International Financial Reporting Standards (IFRS), and in particular, in the absence of the equivalent of national standard N16 «Costs» in IFRS. Another problem of accounting and analytical tools and cost management auditing is the need for establishing an accounting policy taking into consideration mining and geological conditions of a coal mining enterprise. The third problem of accounting and analytical tools and cost management auditing of coal-mining enterprises lies in the need for conducting socially responsible activities and in the absence of the cost accounting system for this activity. Conclusions. It is feasible to introduce a research work of costs, and in particular their acknowledgement and estimation, as they are an integral part of the entrepreneurial activities. The problem of taking into account mining and geological conditions in the accounting policy can be solved if each coal mining enterprise that makes an accounting policy would reflect its income and expenditure more accurately and in more details, while the national legislation should settle the issue of accounting with regard to coal mining in general. It is necessary to introduce and develop the accounting system and information presentation of costs spent on socially responsible activities of coal-mining enterprises in their financial records, including environmental restoration.

• Details
• Contents