Sopko V.
Doctor
Sciences, Professor, Kyiv National University of Trade and Economics,
Kyiv, Ukraine
Romashko O.
PhD in Economics, Acossiate Professor, Kyiv National University of Trade and
Economics, Kyiv, Ukraine
ACCOUNTING ASPECTS OF FRANCHISING
Introduction. Today, Ukraine is characterized by a negative business
environment, namely the economic crisis, political instability, military conflict in the
East of Ukraine, currency devaluation, etc. In this situation, the opening and running
of business is risky, the bankruptcy of newly created enterprises and enterprises that
have been operating in the market for a long time is increasing. Therefore, the
management staff faces the problem of finding a way to successfully conduct business.
The solution to this issue can be franchising, which is an effective form of business
organization, on the one hand allowed the newly created company to successfully
operate in the market under a well-known brand, with already created business strategy,
technology and support from the franchisor. On the other hand, this system of relations
allows the company, which implements the franchise, to expand its activities.
However, for successful business managers need to obtain complete and accurate
information, the sources of which are the accounting data, which requires proper
organization of accounting of franchising operations.
Carrying out franchising activity the participants of franchising face a problem of
the correct reflection of such activity in the accounting and tax accounting, which will
not contradict the requirements of the current legislation, and here there is a
problematic issue, since today there is no specific method of accounting for
transactions under the franchise agreement.
Problems and prospects of franchising relationships were explored in works of
foreign and domestic scientists, in particular, Berdina M., Bortnik L., Vudvud V.,
Grigorenko T., Dergacheva V., Dubina M., Zenina L., Il'ichev A., Kirichuk Z., Kostyuk
A., Kravtsova Y., Makowichuk O., Momot, L., Nikiforova N., Nosova A., Ovdiy O.,
Popko O., Romanchuk K., Samoday V., Semenov V., Serpeninova Y., Torosyan O.,
Tsymbalisty A. and others. The authors reveal the essence of franchising, advantages
and disadvantages of franchising, its classification, the franchising market, its history,
the order of organization of the franchising business, the legal regulation of this form
of relations. A small number of studies in the field of accounting and analysis of
transactions under franchising contracts prove necessity of further study of this topic.
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