Methodological principles for the evaluation and accounting of assets damaged or destroyed as a result of military actions

Abstract

The purpose of the article is to develop a comprehensive methodological approach to the valuation and accounting of assets damaged or destroyed as a result of military operations. This is achieved through the synthesis and critical reassessment of existing scholarly approaches, the identification of gaps in the regulatory and methodological framework, the determination of challenges related to documenting and assessing losses under conditions of limited access to assets, and the formulation of conceptual principles for integrating the national accounting system with the requirements of international standards (IAS 16, IAS 36, IFRS 13, IAS 37). The research methods include an analysis of the current regulatory framework, a critical review of national accounting standards, a comparative analysis of Ukrainian National Accounting Standards (NP(S)BO) and International Financial Reporting Standards (IFRS), methods of systematization and generalization, and elements of expert-based approaches to loss assessment. A structural and logical method is also applied to develop a conceptual framework for improving the methodology of accounting for wartime losses. The research results reveal the specific features of the transformation of national accounting standards under wartime conditions and their harmonization with international requirements (IAS 16, IAS 36, IFRS 13, IAS 37). The study demonstrates that international standards play a crucial role in ensuring the reliability of loss assessment, transparency in asset write-off procedures, and the substantiation of compensation recognition. The key methodological challenges of current practice are identified, including limited access to assets, the need to engage independent valuers, the absence of standardized documentation to confirm losses, inconsistencies between tax and accounting regulations, and the multi-stage nature of compensation procedures. Based on these findings, a conceptual framework for improving the methodology of accounting for wartime losses is developed, encompassing the unification of regulatory requirements, the implementation of digital tools for documenting destruction, the standardization of documentation procedures, and the enhancement of valuation and disclosure practices in financial reporting. The conclusions confirm that modern conditions require systemic modernization of the methodological foundations for accounting wartime losses, aimed at ensuring complete, reliable, and verifiable information on economic damages. Implementation of the proposed framework will enhance the quality of financial reporting, strengthen its analytical value, ensure transparency in interactions with governmental bodies and international institutions, and establish a foundation for effective post-war economic recovery and development in Ukraine.