Sustainable development of economy

AUDIT OF FINANCIAL STATEMENTS IN THE LIGHT OF INTERNATIONAL STANDARDS AND PRINCIPLES OF SUSTAINABLE DEVELOPMENT

Mariya Vasylуuk, Svitlana Viter, Nataliya Zdyrko, Tetyana Haiduchok — Tue, 15 Jul 2025 00:00:00 +0000

The article examines the essence and role of financial statement audit in the context of implementing the concept of sustainable development, and substantiates the need for a transition to a new paradigm of reporting and audit practice. Based on the results of the study, it is established that the audit of financial statements in the context of the implementation of the principles of sustainable economic development is intended to become a means of information interaction between different groups of stakeholders. The study reveals the content of the main approaches to the audit of financial statements, taking into account the need for enterprises to achieve sustainable development goals, and also analyzes the potential risks that may arise when applying such approaches. A comparative analysis of the provisions of International Financial Reporting Standards (IFRS) and National Accounting Regulations (Standards) used by Ukrainian enterprises is carried out in order to determine the most relevant approach to reporting in the context of sustainable development. The author identifies a list of key criteria for assessing the quality of financial statements as an object of audit in the context of sustainable development. Particular attention is paid to the issue of assessing materiality as an integral element of the auditor's professional judgment. The author outlines the key changes planned to be introduced to the Law of Ukraine “On the Audit of Financial Statements and Auditing Activities” regarding aspects of sustainability reporting. The issues related to theoretical and practical aspects of the audit of financial statements in the new environment are detailed. Based on the results of identifying the relevant challenges, the author formulates strategic directions for the development of audit activities aimed at minimizing their number and reducing the impact on audit efficiency in the context of implementing the principles of sustainable development. A promising area of research is the development of integrated approaches that combine financial, environmental and social aspects of enterprise performance assessment. It is important to improve the standards of non-financial reporting and methods of its verification, taking into account international experience.

CURRENT TRENDS IN THE DEVELOPMENT OF THE FINANCIAL MONITORING SYSTEM OF UKRAINE

Olena Stoliarenko, Oleksandr Yatsenko — Tue, 15 Jul 2025 00:00:00 +0000

The constant growth of financial transactions and their digitalization lead to an increase in the risks of money laundering or terrorist financing. To reduce these risks, a financial monitoring system operates within the national economy. The article examines the dynamics of reports sent on financial transactions subject to financial monitoring. The activity of various groups of primary financial monitoring entities in reporting threshold and suspicious financial transactions is highlighted and an increase in the quality of reports sent is established, since the share of suspicious transactions increased from 4.7% in 2021 to 22% in the first quarter of 2025. The problem of an insufficient number of on-site and non-on-site inspections carried out by state regulators in the field of financial monitoring of all participants in the system, except for banking institutions, is identified. This problem leads to the lack of submission of suspicious and threshold reports by entire sectors of the primary level of the financial monitoring system, including pawnshops, credit unions, realtors, organizations that provided accounting services. On the other hand, the share of the banking system in these reports in 2024 was 99.16%. In addition, the lack of inspections leads to a lack of willingness on the part of reporting institutions to spend resources on training staff on requirements in the field of anti-money laundering and counter-terrorist financing and counter-weapons of mass destruction financing. Banks and non-bank financial institutions sent the number of staff that met the requirements of the legislation for training. At the same time, employees of other types of primary financial monitoring entities underwent such specialized training much less often. The article also analyzed international cooperation of the State Financial Monitoring Service of Ukraine with financial intelligence units of other countries. A comparable number of international reports were received. However, the number of reports sent by Ukrainian financial intelligence unit significantly exceeded standard limits, which was caused by increased risks in the field of national security, starting in 2022.

STAGES OF SCIENTIFIC RESEARCH IN MANAGEMENT: FROM IDEA TO IMPLEMENTATION OF RESULTS

Oleh Dykyi, Halyna Ulianova, Olga Kibik — Tue, 22 Jul 2025 00:00:00 +0000

This article presents a comprehensive analysis of the key stages of scientific research in the field of management, from the initial idea formulation to the practical implementation of research results. It highlights the importance of a systematic approach to managing research processes in contemporary conditions characterized by rapid technological changes, globalization, and increasing complexity of socio-economic systems. The study examines real-life cases from public administration, business, and the IT sector, demonstrating methodological approaches, empirical research techniques, and challenges faced during data collection, analysis, and interpretation. The article emphasizes the critical role of identifying and defining relevant management problems based on practical situations, as well as selecting appropriate research methodologies to ensure the reliability and validity of findings. It also explores common barriers in the knowledge transfer process between academia and practice, including organizational resistance, communication gaps, and institutional constraints. Through a detailed case analysis, the study reveals key factors contributing to successful research implementation, such as effective stakeholder communication, adaptability of theoretical models to real-world conditions, and the influence of institutional, political, and economic environments. The paper proposes recommendations to optimize research methodologies and enhance cooperation between scientists, managers, and policymakers to improve decision-making processes. Ultimately, the findings underline the necessity of bridging the gap between theoretical developments and practical management applications. The article contributes to the ongoing discourse on improving the effectiveness of management research and its impact on sustainable organizational and territorial development. These insights offer a valuable foundation for further applied research, aimed at fostering innovation and advancing the integration of scientific knowledge into management practice.

FINANCIAL REPORTING AS A TOOL FOR MANAGEMENT DECISION-MAKING IN THE PRIVATE AND PUBLIC SECTORS OF THE ECONOMY

Gabriella Loskorikh, Oksana Perchi, Nataliya Stoika — Tue, 22 Jul 2025 00:00:00 +0000

In the current economic conditions, characterized by instability, digitalization, and increasing demands for transparency, financial reporting becomes particularly significant in both the private and public sectors. However, the approaches to its preparation and use in these sectors differ significantly due to the specific objectives, sources of funding, information users, and regulatory frameworks. The purpose of this article is to explore the role of financial reporting as a tool for management decision-making in both the private and public sectors of the economy, identify the similarities and differences in its use, and formulate suggestions to improve the effectiveness of the analytical use of reporting data. In the private sector, financial reporting not only serves an accounting function but also acts as a key tool for strategic and tactical management. It ensures transparency, comparability, and reliability of information, which is essential for external users such as investors, banks, partners, and regulatory authorities, as well as for internal analysis. In the public sector, financial reporting is primarily used to ensure compliance with budgetary legislation, the accuracy of accounting in accordance with the adopted accounting policy, and the alignment of reported data with the requirements of current standards. Financial reporting in the public sector, when supported by appropriate analytical tools, can serve as a powerful basis for management decision-making. It allows for the evaluation of the financial stability of a public institution, the level of resource utilization, and the alignment between planned and actual performance. This article provides a comparative analysis of national accounting standards in private and public sectors, examines key aspects, and characterizes the forms of financial reporting in both sectors. The functions of financial reporting are detailed, and suggestions for improving the methods of analytical use of reporting data to enhance decision-making effectiveness in both sectors of the economy are provided. By improving the analytical capacity of financial reports, both private enterprises and public institutions can foster better-informed, more effective management decisions, contributing to greater economic stability and development.

DIVERSIFICATION OF SOURCES OF FINANCIAL SUPPORT FOR THE MANAGEMENT SYSTEM OF HEALTH CARE INSTITUTIONS

Anna Pazieieva — Tue, 22 Jul 2025 00:00:00 +0000

The article studies the issue of diversification of sources of financial support for the management system of health care institutions. The relevance of the topic of the study is due to the fact that diversification of sources of financial support for the management system of health care institutions is a requirement of the time and can provide a significant expansion of both sources and growth of financial revenues necessary for the operation of a medical institution. The article is aimed at studying the diversification of sources of financial support for the management system of health care institutions. For the purpose of conducting the study, the methods of scientific cognition were applied: analysis and synthesis, observation, abstraction, formalization, comparison; system and structural approaches; process, integrated and functional approaches. It is noted that the effective development of health care institutions requires differentiation of sources, a balanced approach to attracting and using all available sources and opportunities for financing a medical institution. The need for diversification of sources of funding in the management of a health care institution has been identified, namely the organization and provision of financial revenues under contracts from the National Health Service, revenues from the state budget, funding revenues from local budgets; revenues from compulsory health insurance, receipt of funds from voluntary health insurance funds, obtaining permission from the provision of paid medical services; financial revenues from the business environment and the implementation of interaction within the framework of public-private partnership, in the form of facility management; receipts from international charitable organizations, grants and from other sources not prohibited by current legislation. The complex combination of financial revenues and the interaction of all these sources provides opportunities for the effective functioning of a medical institution, an increase in the quality of medical care at a modern technical and technological level and opens up new opportunities for further development.

PAYMENT SYSTEMS: ESSENCE, EVOLUTION AND OPERATIONAL RISKS

Oleksandr Fradynskyi — Fri, 25 Jul 2025 00:00:00 +0000

The purpose of the article is to study the essential characteristics, functions, evolution and role of payment systems in the sphere of modern economic relations, as well as risk management in the process of practical implementation of transfers and payments of funds. The theoretical and methodological basis of the work was formed at the expense of the domestic regulatory framework, scientific works of domestic scientists, information messages. The results of the study were obtained during the use of the dialectical method of cognition of phenomena of a legal and economic nature and related to approaches to the application of payment systems. The main functions of payment systems are summarized (settlement of mutual financial obligations, ensuring guaranteed and uninterrupted money circulation, maintaining liquidity and solvency) and 5 of their main components are identified (payment instruments for making money transfers; payment infrastructure; financial institutions; system of agreements, mandatory regulations and contracts; laws, rules, standards, procedures). The author proposes a division of the stages of development of payment systems, distinguishing 3 main periods - pre-technological, technological, electronic. The classification of risks in the field of application of payment systems is analyzed in the context of world experience (Bank for International Settlements) and domestic practice (National Bank of Ukraine). The main methods of risk management are presented, distinguishing 4 methods - avoidance, localization, dissipation and compensation. The conclusion is made about the need to isolate another type of risk - cyber risks - into a separate independent group, given that information technologies are not only the basis for the functioning of payment systems, but also constantly generate threats and risks in this area. In scientific terms, the classification of risks in money transfer and payment systems has received further development. In the context of a practical approach, the results obtained can be used in the process of developing proposals for improving counteraction to risks in the field of payment systems in Ukraine.

FEATURES OF MOTIVATIONAL ASPECTS OF DIFFERENT GENERATIONS

Tetiana Lunkina — Wed, 30 Jul 2025 00:00:00 +0000

The article examines the specifics of the motivational aspects of different generations: Baby Boomers, Generations X, Y, Z and Alpha. It is substantiated that the issue of effective motivation of personnel in the modern world is becoming increasingly relevant in the conditions of rapid transformation of the economic, social and digital space. The modern labor market is formed by representatives of several generations, in particular, generations X, Y, Z and the new generation Alpha, which is gradually entering the phase of socialization. Each of them has specific features that were formed in the context of historical, social and technological changes. Representatives of generation Z grew up in the conditions of the information environment, digital technologies, globalization and a high level of awareness of issues of well-being, ecology and psycho-emotional state. That is why their motivation is inextricably linked with the need for more flexible, personalized working conditions. The main characteristics of value orientations and motivators of personnel depending on the generation are analyzed. Generational analysis shows that the motivational factors and values of employees vary significantly depending on the socio-economic context of their formation. It was found that the task of the manager is to find an effective balance between different generations in order to motivate them, creating conditions in which each employee can maximize their potential and work for the benefit of the company. The relevance of the problem is due to the fact that representatives of different generations coexist in the modern work environment, each of which has its own motivational characteristics. Therefore, for the effective functioning of companies and enterprises, leaders must take into account the motivational aspects of each generation. It has been proven that there is a clear differentiation of motivational priorities between generations. If generation Z seeks meaning in work, self-realization, flexibility and support for well-being, then generation X prefers material incentives, a structured environment and stability. These conclusions are the basis for the formation of differentiated motivation systems in enterprises where representatives of several age groups work simultaneously.

REGULATORY AND LEGAL FOUNDATIONS OF TAX INTEGRITY IN UKRAINE: THE MECHANISM OF SELECTIVE ADMINISTRATION AND ITS PRACTICAL IMPLEMENTATION

Volodymyr Tsap — Fri, 01 Aug 2025 00:00:00 +0000

The article explores the regulatory and legal foundations of implementing a tax integrity mechanism in Ukraine, institutionalized under martial law as part of the modernization of the national tax administration system and the transition to a risk-oriented compliance model. The study focuses on a thorough analysis of key normative documents particularly Law No. 3813-IX and Order No. 495 which define the legal status, selection criteria, procedural guarantees, and fiscal incentives for inclusion in the List of taxpayers with a high level of voluntary compliance with tax legislation. The paper highlights the theoretical and practical dimensions of tax integrity as a fundamental element of strategic fiscal governance, contributing to increased transparency, predictability of administrative behavior, and a more cooperative relationship between businesses and tax authorities. The authors emphasize the innovative nature of selective tax administration as a tool of institutional trust and a mechanism for promoting tax morality through positive reinforcement and regulatory simplification. Key benefits for compliant taxpayers include exemption from certain types of audits, automatic VAT reimbursement procedures, access to individual tax support, and a reduced administrative burden. Particular attention is paid to the implementation of compliance management technologies and their role in fostering long-term voluntary compliance and reducing shadow economy practices. The article substantiates that the mechanism of selective administration serves not only as a tool for targeted control but also as a driver for enhancing the quality of tax governance, strengthening public confidence in tax institutions, and stimulating formalization of economic activity. It is argued that embedding tax integrity into the regulatory framework represents a paradigmatic shift from punitive to partnership-based approaches in tax administration. The authors also provide recommendations for the institutional refinement and expansion of the mechanism, emphasizing the need for continuity, transparency of procedures, and alignment with international best practices in tax compliance.

PRIORITY AREAS FOR ACHIEVING SUSTAINABLE DEVELOPMENT GOALS IN THE CONSTRUCTION SECTOR

Iryna Stankevych, Hanna Sakun, Yevhen Dvoienkin — Mon, 04 Aug 2025 00:00:00 +0000

The construction sector is very important for achieving the Sustainable Development Goals. This is especially relevant in light of today's global challenges, such as climate change, increasing urbanization and the ever-increasing demand for resources. The article is devoted to the study and justification of priority areas that are critically important for the integration of sustainable development principles into the construction industry. The construction industry has a profound impact on our environment, society and economy, which is why its transformation is critical to its long-term health and meeting global commitments. The aim of the work is to identify and conduct a detailed analysis of the key SDGs that are most relevant to construction activities, as well as to identify strategic areas for their effective implementation. The research utilizes a systematic methodology to analyze the multifaceted interplay of environmental, social, and economic factors that contribute to sustainable development, with a specific focus on the construction industry. The main conclusions of the study are the identification of three interrelated priority areas and the corresponding SDGs: for environmental sustainability, the focus should be on energy-efficient solutions, sustainable materials, waste reduction, and resilient infrastructure that can handle climate impacts; social justice, which requires ensuring safe working conditions, decent pay, affordable housing and an inclusive urban environment; economic efficiency, which emphasizes the need for investment in innovation, building sustainable infrastructure and developing partnerships to jointly achieve goals. The practical value of this study's findings is in providing a comprehensive framework for understanding how to prioritize and integrate the Sustainable Development Goals into the strategic management of construction companies. This framework can serve as a guide for companies aiming to boost their competitiveness and investment appeal, while also making a substantial contribution to societal sustainable development and environmental protection.

ANALYSIS OF COMPANIES’ COMPETITIVENESS IN THE GLOBAL MARKET

Anna Flehantova , Kateryna Bender — Mon, 30 Jun 2025 00:00:00 +0000

The competitiveness of fifteen leading companies from five key sectors of the global market was examined for the period 2022–2024: the automotive industry, sportswear and footwear, consumer electronics, food and beverages, and luxury goods. The dynamics of operational efficiency were analyzed, revealing significant variability in performance indicators caused by both internal factors (innovation, digitalization, management efficiency) and external challenges (global economic instability, changes in consumer demand, stricter regulatory constraints). In particular, the sportswear industry showed the highest instability, while luxury goods companies demonstrated the greatest stability. Key factors influencing the maintenance of competitiveness in the current global environment were identified.

ORGANIZATION OF PRODUCTION MANAGEMENT IN MODERN MARKET CONDITIONS

Vasyl Bytov — Mon, 30 Jun 2025 00:00:00 +0000

The article is devoted to an extremely important role, namely the sphere of organization of production of goods and services and formation of income for the needs of society. Today, the organization of production management is a function of managerial work, because it takes place in the sphere of people's lives in which the se of various resources is carried out, transforming them into necessary goods, vices, eir exchange, distribution and consumption. It is worth noting that in the organization of production in the present period, the actors of economic relations are developing and changing. Based on this, attention to the issue of production is quite relevant, because unlike the historical. Therefore, studying this issue, it is seen that in the current conditions of development socio-economic relations in society is the main task of this society, namely to ganize production, exchange and distribute created goods for the most complete satisfaction of human needs. This article was chosen for the reasons that production as the main economic source of wealth in the sphere of social life involves the combination of production resources, namely land, labor, and capital, for their targeted use, resulting in the achievement of the most important goal: goods and services. In the current period, production plays a major role in the system of social life and labor, because only production creates means and other consumer goods to satisfy human needs. The problem is seen in the fact that according to certain studies and known practical activities of subjects economic activity, that the management of production processes is not always effective for certain reasons, and the current circumstances require an effective and efficient organization of production. management, which, in our opinion, requires additional research and study of this issue, because economic resources are involved here, which should benefit society. As for the organization of production and its management, the conducted studies convincingly show that the production process is based on a set of relevant technologies, methods and means, thanks to which the transformation of material resources, information and other components into the final product is carried out. Since the key indicator and factor тhe success of production activities is the amount of costs, the issue of management becomes particularly relevant. The problems of organizing production management at the current stage of development of economic relations are quite relevant, therefore they require detailed analysis. However, due to the multifaceted nature of this problem, as practice shows, it requires new research and additional study today.

DEVELOPMENT OF HUMAN CAPITAL AS A DRIVER OF REGIONAL ECONOMIC GROWTH IN UKRAINE UNDER CONDITIONS OF DECENTRALIZATION

Nataliia Amelina, Nataliia Redko, Maryna Zhyzhoma — Tue, 05 Aug 2025 00:00:00 +0000

The article is devoted to the study of human capital as a key determinant of regional economic growth in Ukraine under conditions of decentralization. The author summarizes theoretical approaches to the interpretation and assessment of human capital and substantiates the methodology of its comprehensive measurement. A comparative analysis was conducted using normalized socio-economic indicators for five Ukrainian regions, which allowed for the construction of a regional human capital index. Significant interregional disparities were identified, and clustering and ranking of regions by the level of human capital development were performed. The article also explores the impact of decentralization reform on the capacity of local governments to foster human potential, emphasizing both the positive outcomes and existing challenges, including unequal resource provision, lack of institutional capacity, and regional imbalances in access to education, healthcare, and employment. Special attention is paid to the institutional capabilities of territorial communities in forming and implementing development strategies in the fields of education, health protection, and labor market regulation. Based on the research results, strategic directions are proposed to intensify the development of human capital in the regions, including investments in educational infrastructure, support for medical services in rural areas, promotion of lifelong learning, and strengthening cooperation between local authorities and businesses. The article also highlights the importance of monitoring, inter-municipal partnerships, and the adaptation of successful international experience, particularly the Polish model of decentralization, to Ukrainian practice as tools for sustainable and inclusive regional development. Particular emphasis is placed on the need for policy continuity, effective multilevel coordination, and integration of human capital priorities into regional development strategies and funding programs. Strengthening human capital is increasingly recognized as a cornerstone of long-term competitiveness, social cohesion, and national progress.

TRENDS IN THE DEVELOPMENT OF SUPPLY CHAIN MANAGEMENT SOFTWARE FOR ENTERPRISES

Vitalii Dzhenkov — Tue, 05 Aug 2025 00:00:00 +0000

The purpose of this article is to analyze the current trends in the development of software solutions for enterprise supply chain management (SCM) in the context of digital transformation. Effective supply chain management is increasingly becoming a strategic priority for enterprises operating under conditions of high uncertainty, global competition, and technological change. The study highlights the growing demand for digital tools that ensure transparency, agility, and efficiency across supply chain processes. The author examines the dynamics of the global and regional SCM software market, characterizes the main classes of software solutions (ERP, APS, TMS, WMS), and identifies key technology providers and platforms. The author’s contribution lies in a systematic analysis of how digital tools influence business performance. Based on recent reports, academic research, and practical cases, the study highlights common challenges: high costs, poor system compatibility, skill shortages, and limited customization. A framework is proposed to evaluate SCM software effectiveness based on enterprise needs and digital maturity. Scientific novelty stems from uncovering new interdependencies between intelligent technologies and SCM transformation. A fresh classification of trends is offered, emphasizing cloud solutions, modular systems, predictive analytics, and full supply chain visibility. The practical significance of the findings lies in the development of actionable recommendations for enterprise managers and IT decision-makers regarding the selection, implementation, and scaling of SCM software. These recommendations are aimed at enhancing the operational and strategic effectiveness of supply chains in both manufacturing and service sectors. The article concludes that adopting digital SCM tools is no longer optional but essential for maintaining competitiveness, especially in volatile economic conditions. However, successful implementation depends on aligning technological solutions with enterprise goals, available resources, and organizational readiness. Further research is recommended to develop ROI assessment models and explore region-specific implementation practices, particularly in emerging markets.