Consolidation of group financial statements: practical aspects in the context of sustainable development of agricultural enterprises

Анотація

Introduction. The establishment of joint agricultural entities holds strategic importance under martial law conditions in Ukraine and necessitates an objective consolidation of accounting information on their economic performance within the system of consolidated financial reporting. This approach enhances the investment appeal of agribusinesses on the international stage. Increasing revenue in Ukraine’s agricultural sector through the expansion of high value-added agro-product exports lays a solid foundation for ensuring the country’s food security. However, small and medium-sized agribusinesses in rural areas, which constitute the majority of Ukraine’s agricultural enterprises, face numerous challenges and threats. These include the need for inclusive restoration of agricultural lands due to contamination and landmines, as well as consistent support at both national and international levels to ensure their sustainable and innovative development. Aim. The purpose of this article is to thoroughly and comprehensively examine the practical aspects of the financial statement consolidation procedure, using a group of Ukrainian agricultural enterprises as a case study, with a focus on sustainable development and post-war economic recovery in Ukraine. The study includes an assessment of the state of the Ukrainian M&A market, including its agricultural segment. It highlights the importance of establishing joint agricultural ventures as a tool for strengthening international cooperation and improving access for small and medium agribusinesses to global agricultural markets by increasing the share of high value-added agricultural products. Special attention is given to objectively evaluating sustainable rural development in the context of Ukraine’s European integration efforts. Methodology. The research methodology incorporates a range of general scientific theoretical methods of cognition: graphical analysis – for evaluating the Ukrainian M&A market using official data from Forbes Ukraine; analogy, abstraction, and formalization – for outlining pathways to sustainable growth for Ukrainian agriculture aimed at post-war economic renewal; tabular representation – for illustrating the consolidation procedure using examples of the Consolidated Balance Sheet (Statement of Financial Position), Form No. 1-k, and Consolidated Income Statement (Statement of Comprehensive Income), Form No. 2-k, for a group of Ukrainian agricultural enterprises; and logical generalization – for formulating conclusions based on the research findings. Results. The results of the study on the practical aspects of consolidated financial reporting for agricultural enterprise groups are significant for enhancing the investment attractiveness of Ukraine’s agricultural sector, supporting sustainable and inclusive rural development, and contributing to the rebuilding of the nation’s post-war economy. Key outcomes include: improved operational efficiency of small and medium agribusinesses through cooperative entrepreneurship; expansion of the range of high value-added agricultural products; increased accuracy in aggregating accounting data in consolidated financial reports; and the promotion of sustainable development of agricultural enterprises in the context of Ukraine’s EU integration.

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