CONCEPTUAL BASES OF FINANCIAL RESULTS ACCOUNTUNG OF CONSTRUCTION ENTERPRISES

Abstract

The article examines the levels of management of financial results in construction. They are considered from the position of micro and macroeconomics. The analysis of the number of enterprises engaged in construction with distribution to large, medium, small and microenterprises is conducted.There are six levels of legal regulation that identify the basic principles of construction and accounting of its financial results in Ukraine, in particular, the level VI is assigned to National standard of accounting 18 «Construction Contracts», which defines the conceptual framework for the accounting of income and expenses of construction enterprises, and, accordingly, their financial results, taking into account the existing industry features of construction.If construction companies compile reports according to International accounting standards, they use IFRS 15 «Revenue from Contracts with Customers» in their activities. IAS 11 “Construction Contracts” and IAS 18 “Revenue” which have been used for many years have expired.Regulatory and Legal Support, which defines the conceptual framework for the construction and accounting of its financial results, includes a large number of documents, the provisions of which often contradict each other, which complicates the process of accounting as a whole. The article summarizes the main legal documents regulating the theoretical and methodological principles of construction and accounting of enterprises that function in this type of economic activity, and at the same time six levels of management are singledout.With the accepting of the changes of 05.10.2017 to the Law of Ukraine No. 996-XIV the concept of enterprises of public interest appeared. In this study it was found that some construction companies are enterprises of public interest; therefore, the legally stipulated requirements for accounting and reporting of such construction enterprises are identified.