Managing the agricultural enterprises’ valuation: actuarial approach

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This article aims at finding ways to improve the efficiency of Ukrainian agricultural enterprises’ valuation management based on a multidimensional actuarial model. The article confirmed the hypothesis of the relationship between accounting information, published in the financial statements of agricultural enterprises, compiled according to international financial reporting standards (IFRS), and actuarial management reporting. It is the latter, in the context of financial reporting conceptual basis, which promotes foreign investor’s managerial decisions on the expediency of investing temporarily free financial resources in the development of the agro-sector. The methodology of the research is based on optimization of the algorithm for estimating the agricultural enterprise market value within the framework of a cost-effective approach based on information filling of the actuarial management reporting using the method of adjusted net assets. The results of the study showed the dependence of investment attractiveness of Ukrainian agricultural enterprises on qualitative content of the reporting information provided within the framework of international accounting. The practical value of the results confirmed the optimal algorithm for estimating the value of agribusiness based on the accounting and information of actuarial management reporting according to its spatial interpretation from 3D to 5D format. The proposed 5D model for managing the value of agribusiness will facilitate an objective assessment of the agricultural enterprise value in just one step.

Acknowledgment
The article has been prepared within the research project “Business Value Management” (state registration No. 0118U000131) implemented in the Kyiv National University of Trade and Economics.

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    • Figure 1. Innovative 5D model of agribusiness valuation
    • Figure 2. Dynamics of profitability of the main crops in Ukraine, %
    • Figure 3. Dynamics of profitability of the main animal products in Ukraine, %
    • Figure 4. Dynamics of agricultural production in Ukraine, at constant prices in 2010, UAH million
    • Table 1. Economic potential of agricultural enterprises through the lens of actuarial reports in 2018
    • Table 2. Calculation of the agricultural enterprises’ value using the method of adjusted net assets (within the cost-effective approach)
    • Data curation
      Olena Fomina, Olena Moshkovska
    • Formal Analysis
      Olena Fomina, Olena Moshkovska
    • Resources
      Olena Fomina, Olena Moshkovska
    • Software
      Olena Fomina
    • Supervision
      Olena Fomina, Mikhaylo Kuzub
    • Validation
      Olena Moshkovska, Mikhaylo Kuzub
    • Visualization
      Olena Moshkovska, Svitlana Luchyk, Yulia Manachynska
    • Methodology
      Svitlana Luchyk, Yulia Manachynska
    • Project administration
      Svitlana Luchyk
    • Writing – original draft
      Svitlana Luchyk, Yulia Manachynska
    • Writing – review & editing
      Svitlana Luchyk
    • Investigation
      Yulia Manachynska, Mikhaylo Kuzub
    • Conceptualization
      Yulia Manachynska, Mikhaylo Kuzub
    • Funding acquisition
      Mikhaylo Kuzub