ECONOMIC ANALYSIS OF CHANGES OF INDICATORS OF ACTIVITY OF AGRICULTURAL ENTERPRISES AS A RESULT OF THE REASSESSMENT OF THE MAIN MEANS

Abstract

The article investigates the relationship between the amount of residual value of fixed assets and the cost price of agricultural products sold.

Evaluation as an element of the accounting methodology plays a major role in ensuring the reliability of accounting metrics, which is the basis for decision making by different users - owners, managers, management personnel of the company, and investors. banks, etc. For accounting purposes, assets need to be reflected in accounting and reporting in monetary terms.. In order to make a real assessment of the value of assets, it is expedient for the enterprise to make a revaluation of them at fair value which may differ significantly from the balance sheet. Providing high-quality and efficient company management is impossible without timely, reliable and complete information on available resources, cash flows, events and their results. The value of assets depends on many indicators of financial activity, in particular, the cost of sales. Using an appraisal at fair value, the entity has the ability to reflect the market value of elements of the financial statements. In a chaotic economic environment, the use of fair value as a valuation will enable the main function of accounting - the computerization of users - to be carried out, since historically the cost is not always optimal in terms of the reliability of information.

The object of research is the process of revaluation of assets, in particular fixed assets, at agricultural enterprises. The analysis was based on the reporting indicators of the Agricultural Production Cooperative «Urozhay» of the Lutsk district of the Volyn region. Using the methods of econometric analysis, the relationship between the residual value of fixed assets and the cost of sales of the enterprise is determined. On the basis of the obtained results, probable deviations between actual reporting indicators without revaluation and estimated after revaluation are calculated. It is determined that there is a direct link between the residual value of fixed assets and the cost price of sold products. That is, with the increase in residual value, the cost of sold products increases. The calculated percentage of the growth of the cost price of sold products with an increase in residual value by 1% is 1.107%. According to the State Statistics Service, the asset revaluation index is 1,047. Given this, we can conclude that the real cost of production is approximately 5.2% higher than the cost price, reflected in accounting and reporting.

Based on the calculations we can conclude that the revaluation of fixed assets plays a very important role in the enterprise. Its non-implementation leads to a lowering of the book value of assets, in accordance with a lesser amount of depreciation, which constitutes a significant share in the production cost of production and is an integral part of almost all items of expenses. Consequently, the production costs reflect the understated amounts of depreciation. This leads to artificial overestimation of financial results - profit and profitability of agricultural activity.