ANALYSIS OF WAYS TO SOLVE THE PROBLEMS OF ACCOUNTING AND VALUATION OF FIXED ASSETS IN UKRAINE DURING THE WAR AND IN THE POST-WAR PERIOD

The war in Ukraine has created significant challenges in accounting and valuing fixed assets,

crucial for businesses and economic recovery. These problems include the destruction and damage of

assets, legal uncertainties, depreciation complexities, inflation, and shortages of skilled professionals.

Solving these issues during the war and the post-war period is essential for stabilizing the economy and

facilitating recovery. To address asset destruction due to military actions, standardized protocols for

damage assessment should be adopted. A National War Damages Register can help document and

assess the extent of losses, which will also be needed for determination of the amount of the future

reparations from the aggressor. Currently, after more than two years of full-scale war, the

International Register of Damages from russian aggression has been created in 2024, to which only

slightly more than 10,000 applications from the affected parties have been submitted so far, although

their expected number is from 6 to 10 million. The National War Damages Register has not yet been

created. Insurance policies for wartime risks and government-backed compensation mechanisms are

vital for mitigating losses. Temporary legal frameworks should be established to guide businesses on

asset write-offs, depreciation, and taxation during the war. Flexible tax policies, such as deferred payments for affected businesses, can ease the financial burden. Post-war legal reforms will also be necessary to address these challenges retrospectively. Clear guidelines must be introduced to account for

war-damaged assets, allowing businesses to apply impairment testing and accurately report the value

of damaged or destroyed assets. Businesses should also have the option to suspend depreciation for idle

assets to avoid overstating expenses. Asset relocations due to war should be documented through digital asset management systems to track and account for moved assets. Government subsidies and

financial assistance can help businesses manage relocation costs, ensuring minimal financial disruptions. Assets seized by occupying forces should be recorded as losses in financial statements.

International legal mechanisms should be pursued to seek compensation, and accounting standards

should allow for recognition of losses due to expropriation. To combat the effects of inflation, inflation-adjusted accounting should be implemented, allowing businesses to maintain accurate valuations. Regular revaluations based on current market conditions will help businesses manage inflationary impacts on their asset values. The war has led to a shortage of accountants and auditors.

Temporary support from international accounting organizations and remote auditing solutions can

help bridge this gap. Additionally, training programs should be developed to increase the supply of

qualified financial professionals for the post-war recovery period. Addressing these challenges is crucial for business continuity, transparency, and economic recovery in Ukraine. Implementing government-led initiatives, leveraging international support, and updating legal frameworks will ensure that

businesses can manage their fixed assets effectively during and after the war. These solutions are

essential for long-term recovery, helping Ukraine rebuild its economy and infrastructure.