Managing the capital force impulse of the agrarian enterprise: transfer approach


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In the current conditions of globalization and European integration trends, domestic agricultural companies use the transfer pricing mechanism when exporting agricultural products, which on one hand allows owners to increase the efficiency of internal management, and on the other to hide real profits and reflect unprofitable production in financial statements. At the same time, traditional double-entry bookkeeping and financial reporting (including those prepared in accordance with IFRS) are unable to show the real power momentum of domestic agricultural enterprises profitability (their return on capital). This narrows the circle of potential investors when making decisions on the feasibility of investing financial resources in the development of Ukrainian agricultural sector. The purpose of the study is to develop a 3D-form of the Actuarial Report on Capital Force Impulse (3D - ARCFI), which informational content will provide an objective assessment of the capital force impulse of an agricultural enterprise and help to attract investment in its development. The object of the study is the process of actuarial accounting and 3D reporting as information subsystems for controlling the capital power momentum at domestic agricultural enterprises. The research methodology is based on the application of 3D-recording method and classical mechanics methods in displaying information from the actuarial accounting system on 3D-force accounts to develop a model of power momentum management of an agricultural entity return on capital as an alternative approach to transfer pricing based on informational filling of 3D-ARCFI with the help of net profit method. The study results showed dependence of domestic agricultural enterprises investment attractiveness on the qualitative informational filling of the actuarial management reporting in 3D format. The practical value of the results received confirmed the effectiveness of the proposed 3D-model of profit power momentum management within the transfer approach based on accounting-informational basis of 3D-ARCFI, which will contribute to an objective perspective assessment of agricultural companies return on equity power momentum and increase their market investment attractiveness.

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. Rationale for the construction of 3D actuarial force accounts in the system of 3D accounting
    • Figure 2. Profit force impulse management model: transfer approach
    • Figure 3. 3D projection of the force impulse of the capital balance of PAO “Agribusiness “Provesin”
    • Table 1. Calculating the force impulse of capital through the lens of 3D force accounts
    • Table 2. “Actuarial Force Report on Capital Impulse” (3D AFRCI) of Form 5a
    • Table 3. Estimation of capital cost-of-living impulses in the context of the net margin method
    • Data curation
      Olena Fomina, Olena Moshkovska
    • Formal Analysis
      Olena Fomina, Olena Moshkovska
    • Resources
      Olena Fomina, Olena Moshkovska
    • Software
      Olena Fomina
    • Supervision
      Olena Fomina, Olena Androsenko
    • Validation
      Olena Moshkovska, Olena Androsenko
    • 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
    • Conceptualization
      Yulia Manachynska, Olena Androsenko
    • Investigation
      Yulia Manachynska, Olena Androsenko
    • Funding acquisition
      Olena Androsenko