Portrayal of the Concession Agreement Transactions Through the Financial Statement Improvement

Valeriy Nonik, Volodymyr Koval’chuk, Tetiana Trosteniuk, Valeriy Parshakov, Oleksandr Shevchuk

DOI: http://dx.doi.org/10.12775/JCRL.2019.011


Purpose: The article is focused on improving the financial statements and developing the new ones in the context of revealing transactions under concession agreements.
Design/methodology/approach: In the course of scientific research, general philosophical and scientific methods of phenomena and processes cognition in accounting were used. In particular, the analogy methods, abstraction, grouping and generalization were used to explain the financial reporting of new forms and trends development revealing the transactions under concession agreements. Findings: The article examines the financial statements types in order to improve their forms and develop the new ones in the context of revealing the studied objects. The forms of footnotes to the annual financial statements were developed and the directions of their expansion for the management purposes and reporting on the contract fulfillment of the terms were determined. Research and practical implications: The practical importance of the study lies in improving the financial statements of a concession enterprise through the financial reporting expansion, development of internal (management) reporting forms and explanation of the composition and the content of specific reporting related to purely contractual concession transactions. It can be used by a concessioner while reporting to the state partner. Originality/value: The financial statement footnote forms design is characterized by the following objects: non-current assets received by the concession in the context of: fixed assets, other non-cu rrent tangible assets, intangible assets, long-term biological assets, capital involved in non-current assets modernization in terms of their types, non-current assets depreciation received by the concessioner and the capital expenditures for the non-current assets modernization received by the concessioner, public services costs carried out as a result of the concession agreement. The peculiarity of accounting reporting improving areas under the concession agreements is to take into account the specific features of both national concession legislation and  international financial statement standards. Paper type: original research. 


accounting; concession agreement; public-private partnership; financial statement; financial assurance

Full Text:



Bakar, B. A., Rasid, S. Z. A., Rizal, A. M. & Baskaran, S. (2019). Risk management practices to strengthen public sector accountability. Asian Journal of Business and

Accounting, 12(1), 1–40.

Benington, J. (2009) “Creating the public in order to create public value?. International Journal of Public Administration, 32 (3–4), 232–249.

Bogutska, H. G., Stuhliak, N. M. & Gavrylyk, O. V. (2017). Economic substance and the enterprise financial statement structure. Retrieved from: http://elartu.tntu.edu.ua/bitstream/lib/20949/2/DSESES_2017_Bohutska_Kh_H-Ekonomichnyi_zmist_

ta_54–56.pdf [in Ukrainian].

Bracci, E., Papi, L., Bigoni, M., Deidda Gagliardo, E. & Bruns, H.-J. (2019). Public value and public sector accounting research: A structured literature review. Journal of Public Budging, Accounting and Financial Management, 31(1), 103–136.

Koriagin, M. V. & Kutsyk, P. O. (2015). Problems and perspectives of the accounting reporting development. Kyiv: Interservice [in Ukrainian].

Korytnyk, L. & Klymenko, O. (2015). Budget institutions and their accounting reporting in the conditions of budgetary accounting reforming. Accounting and

Auditing, 4, 18–25 [in Ukrainian].

Nederhand, J. & Klijn, E. H. (2019). Stakeholder involvement in public – private partnerships: Its influence on the innovative character of projects and on project performance. Administration and Society, 51(8), 1200–1226.

Palaco, I., Park, M. J., Kim, S. K. & Rho, J. J. (2019). Public – private partnerships for e-government in developing countries: An early stage assessment framework. Evaluation and Program Planning, 72, 205–218.

Sheveria, Ya.V. (2012). Financial statement in the accounting financial system. Scientific Bulletin of Uzhhorod University, 3(37), 141–145.

Skrypnyk, M. I. & Grygorevska, O. O. (2016). Accounting management reporting: Critical analysis of the making procedure and the specific features of the practical application. Intelekt XXI, 5, 11–115. Retrieved from: https://er.knutd.edu.ua/bitstream/ 123456789/5644/1/23.pdf. [in Ukrainian].

Slobodniak, I. A. (2012). Development of the accounting management reporting of the commercial enterprise: Theory, methodology, practice. Extended abstract of candidate’s thesis. Irkutsk [in Russian].

Tsaruk, Yu.V. (2017). Financial statement of the enterprises in the modern economic management conditions: problems and development perspectives. Podilskyi Visnyk: Silske Gospodarstvo, Tekhnika, Economika, 26, 236–243 [in Ukrainian].


  • There are currently no refbacks.

p-ISSN 2392-2680
e-ISSN 2392-2699

Partnerzy platformy czasopism