FEATURES OF LOAN SECURITY FOR THE REPRODUCTION OF FIXED ASSETS FOR AGRICULTURAL PURPOSES

The purpose of the article is to justify features of credit support for reproduction of basic agricultural products. It is shown that the modern financial system of Ukraine is in a state of prolonged decline, the output of which depends on the innovation activity of all subjects of the financial system, on the effective reproduction of fixed assets and the adequate financial and credit mechanism of its provision for agricultural enterprises. Methodology. There are several stages of reproduction of fixed assets of agricultural enterprises. At the first stage, there is a productive use of fixed assets. At this stage, they wear out and, accordingly, the amount of wear is calculated. It is the basis for the cancellation of the amount of depreciation deductions for costs after the completion of the production process. At the first stage of the turnover of fixed assets, the lost value of means of labour is lost. It is carried over to the cost of finished products. At the second stage, the transformation of the worn out of fixed assets, which were in a productive form, into cash, is taking place. On the third stage, in the process of production, there is an update of the consumption value of the fixed assets. This update is carried out by replacing the worn core production assets with new ones due to the accumulated depreciation of fixed assets. Results. Thus, it is established that the process of reproduction of fixed assets of agricultural enterprises is characterized by a number of features. The main ones are: a gradual write-off of cost to production costs; partial reproduction of the value in the finished product and its accumulation in cash; a long-time interval required for the renewal of fixed assets in a naturally real form; the need to attract significant one-time cash expenditures. Practical implications. Thus, the peculiarities of credit support for the reproduction of fixed assets of agricultural enterprises are: the objective necessity of its implementation due to the unprofitableness of the industry and the impossibility for a large part of agricultural enterprises, from their own sources, to provide a simple and extended reproduction of fixed assets; seasonal production; necessity of state support of the crediting process of reproduction of fixed assets. Value/originality. Thus, credit support for the reproduction of fixed assets of agricultural enterprises is the obligation of an agrarian enterprise to a credit institution, which must be paid out over a period of more than one year from the date of drawing up the balance sheet, as well as the prolongation of short-term loans used by the enterprise solely for the purpose of reproduction of fixed assets

SOCIO-ECONOMIC COMPONENT OF PREFERENTIAL TAXATION OF INDIVIDUAL INCOME

The purpose of the article is to study the socio-economic component of the preferential taxation of individuals. It is shown that the Tax Social Benefit is the ability of the taxpayer to reduce the calculated total monthly taxable income in the form of wages. Methodology. The object of taxation is determined according to the status of the payer. So, for a resident – is: the total monthly (annual) taxable income; income from the source of their origin, which are finally taxed when they are charged (payment, provision), and foreign incomes – income (profit) received from sources outside. The object of taxation of a non-resident is: the total monthly (annual) taxable income from the source of its origin and income from the source of their origin in Ukraine, which are finally taxed during their calculation (payment, provision). Results. The basis of taxation is the total taxable income – any taxable income accrued (paid, provided) in favour of the taxpayer during the reporting tax period. Imagine the structure of the aggregate resources of households, which in the overwhelming majority are subject to tax. Individual Income Tax is fiscally significant for budgets of all levels, since after the distribution through the budget system the lion’s share remains at the disposal of local budgets Practical implications. Although Ukraine is a market economy country, in our opinion, observance of these recommendations will have only a positive effect both on activating the regulatory function of the Individual Income Tax and on the level of income differentiation of the population as a result. Value/ originality. In view of a large number of studies of domestic scientists on this issue, it is necessary to systematize tax deductions from Individual Income Tax in accordance with the concept of tax expenditures, taking into account the specifics of tax legislation. The established indicators for the tax social benefit are calculated according to the following algorithm: the maximum amount for the application of the tax social benefit: the subsistence minimum for an able-bodied person on January 1 of the reporting tax year, multiplied by 1.4 and rounded to the nearest 10 hryvnias. The size of the tax social benefit is equal to 50% of the subsistence minimum for an able-bodied person (per month), established by law on January 1 of the reporting tax year

Financial performance determinants of Ukrainian agricultural companies in the pre-war period

Purpose. The purpose of the article is to identify the determinants of the financial performance of agricultural companies in Ukraine in the pre-war period. Methodology / approach. Panel data regression analysis, carried out using the GRETL software, was used as a research method. The financial statements of thirty Ukrainian agricultural companies over the defined period 2015–2021 were selected to be data for analysis. Three models were constructed in the article based on the use of three different dependent variables (Return on Assets, Return on Equity, Return on Sales) and seven independent variables (Current Ratio, Capital Intensity, Export Intensity, Leverage, Size, Dummy variable for agricultural sub-sectors, Dummy variable for location). The selection of the mentioned independent variables was logically substantiated by the structure of the financial reports of the Ukrainian agricultural companies and analytical system “You Control”. Results. The study of the determinants of financial performance of the agricultural companies is a widespread area of research among academicians, however, is characterized by quite controversial results. Some of these conclusions were refuted, but certain results were confirmed on the example of Ukrainian enterprises. The results of the panel regression analysis with respect to Models 1-3, partially are in contradiction with the conclusions of other studies regarding the impact of the determinants on the financial performance of agricultural companies. None of the chosen independent variables has a significant effect on all the dependent variables as investigated in the article, namely ROA, ROE, and ROS. This confirms the formulated in the study hypothesis regarding the availability of a unique set of financial performance determinants for agricultural enterprises for each individual country. The independent variables used in the study have the most significant impact on ROA. Primarily, ROA is significantly affected by CAPI (5 % level), EXPI (10 % level), and DVL (5 % level). The results obtained confirm a need for improving regional support and ensuring an access to capital for agricultural enterprises in Ukraine. Originality / scientific novelty. The originality of the conducted research lies in the study of a set of factors that influenced the financial condition of Ukrainian agrarian companies in the pre-war period, considering the peculiarities of the Ukrainian agrarian sector of the economy. Practical value / implications. Investors and financial institutions can benefit from the research results. By recognizing which factors have the most significant impact on financial performance, they can make more informed decisions when considering investments in Ukrainian agricultural companies. Understanding which factors influence financial performance can help in risk management for both agricultural companies and financial institutions

Financial Performance Determinants of Ukrainian Agricultural Companies in the Pre-War Period

Purpose. The purpose of the article is to identify the determinants of the financial performance of agricultural companies in Ukraine in the pre-war period. Methodology / approach. Panel data regression analysis, carried out using the GRETL software, was used as a research method. The financial statements of thirty Ukrainian agricultural companies over the defined period 2015–2021 were selected to be data for analysis. Three models were constructed in the article based on the use of three different dependent variables (Return on Assets, Return on Equity, Return on Sales) and seven independent variables (Current Ratio, Capital Intensity, Export Intensity, Leverage, Size, Dummy variable for agricultural sub-sectors, Dummy variable for location). The selection of the mentioned independent variables was logically substantiated by the structure of the financial reports of the Ukrainian agricultural companies and analytical system “You Control”. Results. The study of the determinants of financial performance of the agricultural companies is a widespread area of research among academicians, however, is characterized by quite controversial results. Some of these conclusions were refuted, but certain results were confirmed on the example of Ukrainian enterprises. The results of the panel regression analysis with respect to Models 1-3, partially are in contradiction with the conclusions of other studies regarding the impact of the determinants on the financial performance of agricultural companies. None of the chosen independent variables has a significant effect on all the dependent variables as investigated in the article, namely ROA, ROE, and ROS. This confirms the formulated in the study hypothesis regarding the availability of a unique set of financial performance determinants for agricultural enterprises for each individual country. The independent variables used in the study have the most significant impact on ROA. Primarily, ROA is significantly affected by CAPI (5 % level), EXPI (10 % level), and DVL (5 % level). The results obtained confirm a need for improving regional support and ensuring an access to capital for agricultural enterprises in Ukraine. Originality / scientific novelty. The originality of the conducted research lies in the study of a set of factors that influenced the financial condition of Ukrainian agrarian companies in the pre-war period, considering the peculiarities of the Ukrainian agrarian sector of the economy. Practical value / implications. Investors and financial institutions can benefit from the research results. By recognizing which factors have the most significant impact on financial performance, they can make more informed decisions when considering investments in Ukrainian agricultural companies. Understanding which factors influence financial performance can help in risk management for both agricultural companies and financial institutions

Financial performance determinants of Ukrainian agricultural companies in the pre-war period

Purpose. The purpose of the article is to identify the determinants of the financial performance of agricultural companies in Ukraine in the pre-war period. Methodology / approach. Panel data regression analysis, carried out using the GRETL software, was used as a research method. The financial statements of thirty Ukrainian agricultural companies over the defined period 2015–2021 were selected to be data for analysis. Three models were constructed in the article based on the use of three different dependent variables (Return on Assets, Return on Equity, Return on Sales) and seven independent variables (Current Ratio, Capital Intensity, Export Intensity, Leverage, Size, Dummy variable for agricultural sub-sectors, Dummy variable for location). The selection of the mentioned independent variables was logically substantiated by the structure of the financial reports of the Ukrainian agricultural companies and analytical system “You Control”. Results. The study of the determinants of financial performance of the agricultural companies is a widespread area of research among academicians, however, is characterized by quite controversial results. Some of these conclusions were refuted, but certain results were confirmed on the example of Ukrainian enterprises. The results of the panel regression analysis with respect to Models 1-3, partially are in contradiction with the conclusions of other studies regarding the impact of the determinants on the financial performance of agricultural companies. None of the chosen independent variables has a significant effect on all the dependent variables as investigated in the article, namely ROA, ROE, and ROS. This confirms the formulated in the study hypothesis regarding the availability of a unique set of financial performance determinants for agricultural enterprises for each individual country. The independent variables used in the study have the most significant impact on ROA. Primarily, ROA is significantly affected by CAPI (5 % level), EXPI (10 % level), and DVL (5 % level). The results obtained confirm a need for improving regional support and ensuring an access to capital for agricultural enterprises in Ukraine. Originality / scientific novelty. The originality of the conducted research lies in the study of a set of factors that influenced the financial condition of Ukrainian agrarian companies in the pre-war period, considering the peculiarities of the Ukrainian agrarian sector of the economy. Practical value / implications. Investors and financial institutions can benefit from the research results. By recognizing which factors have the most significant impact on financial performance, they can make more informed decisions when considering investments in Ukrainian agricultural companies. Understanding which factors influence financial performance can help in risk management for both agricultural companies and financial institutions