Three Seas Economic Journal

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Vol. 2 No. 3, 2021

Corresponding author:
1 Vinnytsia National Agrarian University, Ukraine
E-mail: natkov@i.ua
ORCID: https://orcid.org/0000-0002-2877-4302
ResearcherID: L-5920-2018

DOI: https://doi.org/10.30525/2661-5150/2021-3-5

PECULIARITIES OF FORMATION  
AND REPORT SUBMISSION BY FARMS

Natalia Koval1

Abstract. The article reveals the role, significance, features of the formation and submission of reports by farms. 
Attention is drawn to the fact that at the present stage the problems of transformation of the domestic agricultural 
sector are intensifying. Farming is considered one of the most common forms of entrepreneurial activity in the 
agricultural sector. In an uncertain, ever-changing environment, the effective functioning of an enterprise often 
depends on the ability to develop and implement creative management decisions based on analytical information. 
In order for all farm reporting to be as useful as possible, it should be simpler in structure and order of filling and at 
the same time – concise. The composition and reporting structure of farms depends on the one hand on the types 
of accounting, and on the other – on the information needs of users. In addition, the organizational and legal form 
of the entity and the form of accounting should be considered. If the farm is established in the form of a legal entity, 
it is subject to the requirements of mandatory accounting. The peculiarities of the organization of farm accounting 
and reporting are determined. It is noted that in addition to the volume of activity, other factors also influence, 
among which it is worth noting the specialization, the number of business transactions, the system of taxation of the 
farm. The specifics of financial and statistical reporting of farms as legal entities and natural persons-entrepreneurs 
are revealed. A farm as a legal entity compiles the same reports as a regular agricultural enterprise. A farm (natural 
person-entrepreneur) prepares reports as an ordinary natural person-entrepreneur. Peculiarities of formation and 
submission of tax reporting are investigated. If the farm is on the general system of taxation, it is obliged to file a 
declaration of income tax (the form approved by the order of the Ministry of Finance dated 20.10.2015 № 897 as 
amended). Taxpayers who are registered during the reporting (tax) year (newly created) pay income tax on the basis 
of an annual tax return for the period of activity in the reporting (tax) year. If the farm is on a simplified taxation 
system, it will submit, depending on the selected group, either a declaration of a single taxpayer of the third group 
(legal entity), or a declaration of a single taxpayer of the fourth group (form of declaration approved by order of the 
Ministry of Finance from 19.06.2015 № 578 with changes). It is established that farms that own or rent wells and 
are required to report in accordance with IFRS. Such reporting is subject to publication together with the auditor's 
report on its website (in full). The impact of qualitative characteristics of reporting and the principles of its formation 
on the completeness of economic processes and features of economic activity in the reporting system.

Key words: farming, organization of accounting, taxation, reporting, factors of influence.

JEL Classification: M21, M41, H25

1. Introduction
The development of the agricultural sector has 

led to the emergence of various organizational and 
legal forms of entrepreneurship in agriculture – from 
individual entrepreneurs and ending with farms,  
private enterprises, societies, associations and more. 
Farming is considered one of the most common  
forms of entrepreneurial activity in the agricultural 
sector.

For most agricultural regions of the country, farms  
are one of the main activities and an important  

element of the agricultural production system.  
In general, farming can be in the form of a legal entity 
or in the form of individual entrepreneurs. Each form  
of farming has its advantages and disadvantages. 
Reporting of business entities is the final step of the 
accounting system, which summarizes and systematizes 
information about the activities of the economy, 
necessary for all stakeholders to make effective 
economic decisions. The composition and structure 
of reporting depends on the one hand on the types 
of accounting, and on the other – on the information 

This is an Open Access article, distributed under the terms 
of the Creative Commons Attribution CC BY 4.0



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Vol. 2 No. 3, 2021
needs of users. In addition, it is necessary to take into 
account the organizational and legal form, size and 
scope of the farm.

Disclosure of information about the activities of the 
farm is through the publication of financial statements. 
According to the Law of Ukraine "On Accounting 
and Financial Reporting in Ukraine", the financial 
statements of enterprises are not a trade secret of the 
enterprise.

In an uncertain, ever-changing environment, 
the effective functioning of an enterprise often 
depends on the ability to develop and implement 
creative management decisions based on analytical  
information. The problem of the ratio of the amount 
of reported data and the quality of information,  
its usefulness and demand comes to the fore. In order  
for all farm reporting to be as useful as possible, it 
should be simpler in structure and order of filling and  
at the same time – concise (Gudzenko, 2018).

The study of the specifics of the organization of 
accounting, information support of the process of 
financial support, taxation and the formation of 
various types of reporting of agricultural enterprises, 
including farms, is given considerable attention in the 
works of domestic and foreign scientists: M.I. Bondar, 
N.M. Gudzenko (2018), V.M. Zhuk, G.M. Kaletnik 
(2020), N.I. Koval, О.А. Podolyanchuk (2019), 
N.L. Pravdyuk (2010), M.M. Shigun and others. 
However, most of the above scientists study the vast 
majority of the nature, classification, structure and 
opportunities for improvement of individual reporting 
forms, focusing more on the financial statements of 
agricultural enterprises, including farms.

However, it is important to further study the 
existing approaches and features of the formation and 
submission of all types of reporting by farms.

2. Organizational and legal form  
of the business entity

The composition and reporting structure of farms 
depends on the one hand on the types of accounting, 
and on the other – on the information needs of users.  
In addition, the organizational and legal form of the 
entity and the form of accounting should be considered.

If the farm is established in the form of a legal 
entity, it is subject to the requirements of mandatory 
accounting. Requirements on the obligation to keep 
records and reporting by enterprises are provided 
by: the Commercial Code of Ukraine (Articles 19, 
71, 90, 145) (Commercial Code of Ukraine, 2003); 
Laws of Ukraine "On Accounting and Financial 
Reporting in Ukraine" of 16.07.99 № 996-Х (1999), 
"On Business Associations" of 25.06.1991 № 1251-ХІІ 
with changes and additions (1991), "About the state 
statistics" from 19.09.1992 № 2614-ХІІ with changes 
and additions (1992), "About the state support of 

small business" from 19.10.2000 (2063-ІІІ (item 11) 
with changes and additions ), "On the farm" from 
20.12.1991 № 2009 (Article 24) with changes and 
additions (1991); "On Amendments to the Tax Code 
of Ukraine and Certain Other Legislative Acts of 
Ukraine Concerning the Simplified System of Taxation, 
Accounting and Reporting" № 4618-VI of March 
22, 2012, as amended (2012); National Accounting 
Standards.

Farms without the status of a legal entity established 
on the basis of the activities of natural persons-
entrepreneurs are not required to keep accounts.

According to part one of Art. 2 of the Law "On 
Accounting", this Law applies to all legal entities 
established in accordance with the laws of Ukraine, 
regardless of their organizational and legal forms and 
forms of ownership, as well as representative offices 
of foreign economic entities that are required to keep 
accounts and submit financial statements in accordance 
with the law (Podolyanchuk, Koval, Gudzenko, 2019; 
Law on Accounting, 1999].

Thus, if a farm is a legal entity, it must keep accounts 
in the general order established for legal entities.  
The same is established by Art. 28 of the Law  
"On Farming": such a farm keeps accounts of the  
results of its activities and submits to the relevant 
authorities financial statements, statistical information 
and other data provided by law (Podolyanchuk, Koval, 
Gudzenko, 2019; Law on Farming, 2003).

However, today the farm can be created in the form 
of both legal entities and individuals. According to 
the amendments to the Law "On Amendments to the  
Law of Ukraine" On Farming "to stimulate the 
establishment and operation of family farms"  
№ 1067-VIII of 31.03.2016, a farm without the status  
of a legal entity is organized on the basis of the  
activities of an individual – entrepreneur and has the 
status of a family farm, subject to the use of labor of 
members of such a farm, which are exclusively a natural 
person-entrepreneur and members of his family in 
accordance with Article 3 of the Family Code of  
Ukraine (Podolyanchuk, Koval, Gudzenko, 2019).

Therefore, accounting is not required for individual 
farmers.

Based on the conditions of management, farms  
differ in the area of land under cultivation: from a few 
hectares of arable land (small in size) to hundreds and 
thousands of hectares (medium and large).

As of July 1, 2021, 48.4 thousand farms were  
registered in Ukraine. In 2013, a record number of 
farmers was registered – 49.1 thousand. However, by 
2015 their number decreased by 11%, ie by 5467. From 
2015 to 2021 there is only a positive growth trend, 
almost 11% or 4714 farms (Agropolit, 2021).

Farms can cultivate both their own land and leased 
land. Therefore, it is obvious and appropriate to 
divide farms into the following types: private, private-



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Vol. 2 No. 3, 2021
leased and leased, which will affect the organization 
of accounting and further reflection of transactions in  
the reporting.

Farms have different areas of specialization, but most 
of them are engaged in growing cereals and oilseeds.

The total area of agricultural land of farms is 
4.439 million hectares, then under cereals were 
2.2 million hectares, oil – 1.5 million hectares. Farmers 
are also engaged in the cultivation of sugar beets, 
potatoes, vegetables, food melons, but their share  
in the structure of crops does not exceed 1% 
(Podolyanchuk, Koval, Gudzenko, 2019).

The size of the farm, its specialization affect the 
organization of accounting, formation and content of 
reporting information. Therefore, clarification of the 
criteria for determining the scope of activities of the 
farm is necessary in order to establish approaches to  
the possibility of simplifying accounting in them.

At the same time, the criteria established by the 
Commercial Code of Ukraine for determining the 
subjects of micro-entrepreneurship (the number of 
employees does not exceed 10 people and the annual 
income is 2 million euros) do not take into account 
the national characteristics of management. After all, 
even 10 employees can cultivate a large area of land and 
perform a large amount of work, and the annual income 
of 2 million euros is typical for medium and large 
enterprises (Podolyanchuk, Koval, Gudzenko, 2019).

Based on the selected criteria at the stage of 
organization of accounting and in order to optimize 
the structure of reporting information, it is advisable 
to classify farms according to the criteria proposed 
by the Law of Ukraine "On Accounting and Financial 
Reporting". However, the value criteria set out in the 
Law № 996 regarding the book value of assets and the 
amount of income received in relation to farms should 

be reduced and appropriate changes made to the 
Guidelines for the organization and maintenance of 
farms № 189 and Guidelines for the use of accounting 
registers for small enterprises № 422 (Koval, Gudzenko, 
2019; Methodical recommendations, 2009).

3. Factors influencing  
the formation of reporting

Solving the problem of inconsistency in the 
classification of farms in economic and accounting 
legislation will provide a differentiated approach  
to the organization of the accounting process.

The organization of accounting and reporting of 
the farm, in addition to the volume of activity, is  
influenced by other factors, including specialization, the 
number of business transactions, the taxation system 
and so on. The list of factors that must be taken into 
account in the process of organizing accounting and 
reporting of the farm is presented in Figure 1.

Among the features that affect the accounting and 
reflection of transactions in the reporting, there are  
the following:

1. In farms, operations that are not typical for other 
forms of entrepreneurial activity are quite common.  
This applies to the formation of farm capital, the 
distribution of its income, labor relations of farm 
members (the classifier of professions provides specific 
names of professions for farm members) and the 
payment of remuneration for work (farm members 
are not paid. They receive part of income), which is 
determined as a result of the activity of the farm, and 
the requirements for the minimum amount are set only  
for wages received under the employment contract 
(Article 95 of the Labor Code), formation of reporting 
(Code of Labor Laws of Ukraine, 1971).

F
ac

to
rs

 in
 th

e 
or

ga
ni

za
ti

on
 o

f a
cc

ou
nt

in
g 

an
d 

re
po

rt
in

g 
sy

st
em

Production structure and production technology 

Taxation system (general, simplified)

Volumes of activity and number of business transactions
in the reporting period

Specialization of economy (crop production, animal husbandry) 

The level of accounting staff qualification

Information support of the organization and accounting 

Ability to automate the accounting process 

Figure 1. Factors in the organization of accounting and reporting system of the farm

Source: (Podolyanchuk, Koval, Gudzenko, 2019)



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Vol. 2 No. 3, 2021

2. Farms are engaged in the cultivation of agricultural 
products and specialize mainly in crop production, 
which requires proper assessment, accounting and 
reporting of land and operations related to their use 

and lease. A significant number of farms specialize in 
horticulture and berry growing, which requires the 
reflection of operations with long-term biological 
assets.

Farms (family, micro, small, medium and large)

Form of 
accounting

Taxation system

Financial 
Statements 

Statistical 
reporting

Tax reporting

- general system of
taxation;
- simplified taxation
system (single tax payer
of the fourth group;
- the possibility of
choosing to pay VAT for 
certain categories of FG

- general using the
recommended Chart
of Accounts;
- simplified form;
- a simple form using
a simplified Chart of
Accounts

Forms of statistical reporting for all 
farms:
The main indicators of economic 
activity of a farm, a small enterprise 
in agriculture. (f. 2-ferm);
- The main economic indicators of 
agricultural enterprises (f. 50 this 
year)
- Sown areas of agriculture crops
for harvest (f. 4-sg);
- Balance of agricultural products for 
20_year (f. № 16-sg)
- The state of animal husbandry
(f. 24-sg);
- Results of the agricultural harvest 
crops, fruits, berries and grapes
(f. 29-sg);
- Harvesting of agricultural crops on 
December 1, 20_year from watered 
irrigated lands, from drained lands
(f. № 29-sg (reclamation)
- Sales of agricultural products
(f. 21-general);
- Application of mineral, organic 
fertilizers, plastering and liming of 
soils for harvest (f. 9-b-sg);
- The presence of agricultural 
machinery in agricultural enterprises 
(f. 10-mech);
- Report on the balances and use of 
energy materials and refined products 
(f. 4-mtp);
- Report on the results of fuel and 
heat use; and electricity (f. 11-mtp);
- Sowing and harvesting of 
agricultural cultures, conducting 
others. field work (f. 37-sg).

General taxation system:

- Income tax return;

- VAT tax return;

- Report 1-DF;

- Excise tax return;

- Calculation of the amount of the
fee for the first registration of
vehicles;

- Declaration of environmental tax;

- Tax return on land fees;

- Calculation of the amount of the
fee for the development of
viticulture, horticulture and hop
growing

Simplified tax system:

- Tax return of the single tax payer
of the legal entity;

Financial statements in full
form: 
- Balance sheet (Statement of 
financial position) (f. № 1);
- Statement of financial results 
(Statement of comprehensive 
income) (f. № 2);
- Statement of cash flows (by 
the direct method) (f. № 3);
- Statement of cash flows (by 
indirect method) (f. № 3);
- Statement of equity (f. № 4);
- Notes to the annual financial 
statements (f. № 5). 
Financial report of a small 
business entity:
- Balance (f. № 1- m);
- Report on financial results
(f. № 2nd)
Simplified financial report of

a small business entity:
- Balance (f. № 1-ms);
- Report on financial results 
(f. № 2-ms).

-

-

-

-
-
-

Tax return on land fees;

Report 1-DF
Fixed agricultural

Tax return of a fixed 
agricultural tax;

VAT tax return;
Report 1-DF;
Tax return of environmental tax;

Figure 2. The impact of the size and activity of farms on accounting and reporting

Source: (Podolyanchuk, Koval, Gudzenko, 2019)



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Vol. 2 No. 3, 2021
3. Quite often in small farms there is a problem of 

qualification of accountants, because accounting and 
reporting is carried out directly by the head of the  
farm or members of his or her family. This feature  
affects the quality of accounting and reporting 
information. Therefore, it is proposed to simplify the 
accounting process as much as possible or to involve 
consulting firms specializing in the provision of 
accounting services in the formation of reporting.

4. There is a need to reflect in the accounting and 
reporting of state support to farms, provided on 
a revolving basis.

5. It is possible to choose a simplified system of  
taxation for certain groups of farms, which affects 
the choice of form of accounting and reporting 
(Podolyanchuk, Koval, Gudzenko, 2019).

Disclosure of information about the activities of the 
farm is through the publication of financial statements. 
According to the Law of Ukraine "On Accounting 
and Financial Reporting in Ukraine", the financial 
statements of enterprises are not a trade secret of the 
enterprise (Figure 2).

4. The main types of reporting of the farm
Farms prepare financial, statistical and tax reports.
1. Financial statements are financial statements that 

contain information about the financial condition, 
results of activities for the reporting period.

The possibility of using a simple form of accounting 
and reporting by small businesses is provided by 
the Law "On state support of small business" from 
19.10.2000 № 2063. Article 11 of this Law states that  
the simplified form of accounting, as well as the 
simplified taxation system , can be used along with the 
generally accepted form of accounting at the choice of 
the small business entity, ie it is allowed, not mandatory 
(Law on State Support of Small Business, 2000).

Enterprises, which according to the results of activity 
for the last year are determined in accordance with the 
current legislation by small business entities, apply 
the National Regulation (Standard) of Accounting 
25 "Simplified Financial Statements" in the current 
(reporting) year. If such enterprises, as well as newly 
created as a result of activities for the 1st quarter or 1 half 
of the current (reporting) year can not be recognized 
as small businesses in accordance with applicable law,  
the financial statements of these enterprises are 
prepared for this and subsequent periods of the current 
(reporting) year. in accordance with the provisions 
(standards) of accounting, approved by the order 
of the Ministry of Finance of Ukraine on March 31, 
1999 № 87, which was registered in the Ministry of 
Justice of Ukraine on June 21, 1999 for № 391/3684. 
Enterprises that according to the results of activity for 
9 months of the current (reporting) year cannot be 
recognized as subjects of small business according to 

the current legislation, can make the financial report 
for 9 months and the reporting year with application 
of the Provision (standard) 25 (Podolyanchuk, Koval, 
Gudzenko, 2019; NP (S) BU Simplified Financial 
Reporting, 2000).

The vast majority of farms are small businesses and 
in accordance with applicable law form Simplified 
Financial Statements.

According to the Resolution of the Cabinet of Ministers 
of Ukraine of July 11, 2018 № 547 for enterprises,  
which in accordance with the Law of Ukraine "On 
Accounting and Financial Reporting in Ukraine" 
establishes abbreviated financial statements in the 
Balance Sheet (Statement of Financial Position) 
and Statement of financial results (Statement of 
comprehensive income) (other than those required 
to prepare financial statements in accordance with 
International Financial Reporting Standards), and 
companies that keep simplified accounting of income 
and expenses in accordance with tax legislation, 
submit to the appropriate authorities annual financial 
statements for small businesses. The selected category 
includes farms that are considered small and micro 
enterprises.

Large and medium-sized farms have the right to 
choose the IFRS reporting format. For micro- and 
small FG IFRS-reporting format is not appropriate, 
because it requires additional costs for its formation 
and accounting support of the process of generalization 
of reporting data. However, in accordance with the 
changes introduced by the Law of Ukraine dated 
05.10.2017 № 2164-VIII, which came into force on 
01.01.2018 for those farms that have a well on their 
own balance (or the farmer rents it and produces water 
and is considered the primary water user), there is 
a need to prepare financial statements in accordance 
with international standards (IFRS). Volumes of 
extracted water and directions of its use do not matter 
(Podolyanchuk, Koval, Gudzenko, 2019).

That is, if the farm by volume of activity refers to  
small businesses and even has the right to choose 
a simple or simplified form of accounting in the  
presence of a well or on condition of its lease (especially 
relevant for farms engaged in horticulture), must form 
IFRS reporting. Changes updated Part 2 of Art. 12-1  
of the Law on Accounting, which states the need 
to prepare financial statements in accordance with 
international standards, including enterprises 
engaged in mining activities of national importance: 
"Enterprises that in accordance with the law prepare 
financial statements and consolidated financial 
statements in international standards that are required 
to ensure accounting in accordance with accounting 
policies in accordance with international standards 
after the submission of the first financial statements or 
consolidated financial statements in accordance with 
international standards, which is recognized as such 



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Vol. 2 No. 3, 2021
in the manner prescribed by international standards.  
Thus, starting from 2019, accounting should be 
conducted in accordance with accounting policies 
according to international standards, regardless of 
the direction and volume (Podolyanchuk, Koval, 
Gudzenko, 2019).

2. Statistical reporting is a report compiled by 
all economic entities (including farms) and which 
provides information to the state statistics bodies on 
the assessment of the state and development of the 
state economy and the planning of macroeconomic 
indicators.

Each farm submits to the state statistics bodies of 
Ukraine several types of different forms of reporting 
that characterize its activities, as a comprehensive  
reflection of the results of farm activities is summarized 
through statistical observations. However, the Law 
of Ukraine "On State Statistics" states: "Primary data 
obtained by state statistics bodies from respondents 
during statistical observations are confidential 
information protected by law and used exclusively for 
statistical purposes in a consolidated impersonal form." 
That is, primary statistics are used for consolidated 
statistical work, compilation of collections, surveys of 
the socio-economic situation and research (Law on 
State Statistics, 1992).

In addition to the above forms of statistical reporting, 
farms may compile other reports that reflect other 
aspects of their economic activities.

Tax reporting is a document (declaration, calculation), 
which according to the TCU is submitted by taxpayers 
to the State Tax Service and on the basis of which the tax 
is charged and/or paid, collected (mandatory payment) 
(Podolyanchuk, Koval, Gudzenko, 2019).

Taxpayers are recognized, including legal entities 
and their separate subdivisions, which have, receive 
(transfer) objects of taxation or carry out activities 
(operations) that are subject to taxation in accordance 
with the TCU or tax laws, and which are obliged to 
language for the payment of taxes and fees. In Ukraine, 
national and local taxes and fees are set. National taxes 
and fees established by Art. 9 of the TCU, and the list 
of local taxes is provided in Art. 10 TCU (Tax Code of 
Ukraine, 2010).

Depending on the chosen system of taxation – general 
or simplified, you need to submit the appropriate 
declarations.

1. If a legal entity is in the general system of taxation, 
it is obliged to file a declaration of income tax (the 
form approved by the order of the Ministry of Finance 
dated 20.10.2015 № 897 as amended). Taxpayers who 
are registered during the reporting (tax) year (newly 
created) pay income tax on the basis of an annual tax 
return for the period of activity in the reporting (tax) 
year. If a legal entity switches to a simplified taxation 
system, depending on the selected group, either the 
declaration of the single taxpayer of the third group 

(legal entity) or the declaration of the single taxpayer  
of the fourth group will be submitted. Both forms 
of such a declaration were approved by the order of 
the Ministry of Finance dated 19.06.2015 № 578 as 
amended in 2021.

If the farm is newly established, therefore, taking  
into account paragraphs. 291.4.7 TCU, the first  
reporting period it will be on the general system of 
taxation.

2. If the newly established farm considers it 
appropriate to voluntarily register as a VAT payer, 
there is an obligation to file a VAT return (form 
approved by the order of the Ministry of Finance 
from 28.01.2016 № 21 as amended by the order of the 
Ministry of Finance from 01.06.2018). The reporting 
(tax) period is equal to a calendar month.

3. According to paragraph 240.1 of the TCU,  
the payers of the environmental tax are economic  
entities that emit pollutants into the atmosphere by 
stationary sources of pollution or directly into water 
bodies. Stationary source of pollution in accordance  
with paragraphs. 14.1.230 A TCU is an enterprise, 
shop, unit, installation or other fixed object that retains 
its spatial coordinates for a certain period of time 
and releases pollutants into the atmosphere and/or 
discharges of pollutants into water bodies. The basic 
tax (reporting) period is equal to a calendar quarter 
(the form approved by the order of the Ministry of 
Finance dated August 17, 2015 № 715). If the farm  
has such sources of pollution that are listed in 
paragraphs. 14.1.230 TCU, it automatically passes into 
the category of environmental tax payers (Tax Code of 
Ukraine, 2010).

4. If a farm uses the work of individuals on the terms 
of an employment agreement (contract) or on other 
terms provided by law, the following may be submitted 
to the SBGS:
– Report on the amounts of accrued SSC (form  
№ D4 – monthly, approved by the order of the Ministry 
of Finance dated 11.04.2016 № 441 with changes dated 
15.05.2018 Order № 511);
– Tax calculation of the amounts of income accrued 
(paid) in favor of individuals and the amounts of 
tax withheld from them (form №1 SF – quarterly,  
approved by the order of the Ministry of Finance dated 
13.01.2015 № 4).

Thus, users of farm accounting information have  
the right to be all members of society, despite the 
fact that their economic interests differ significantly. 
Satisfaction of users' interests occurs through financial 
reporting, which goes through the stages of formation, 
submission and disclosure.

5. Conclusions
Given the information requests of users and the 

requirements for submission of financial statements  



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Vol. 2 No. 3, 2021
by farms as self-employed legal entities, it should be 
noted that the farm with the creation of a legal entity 
(Article 1 of the Law of Ukraine "On Farming") is 
subject to the Law of Ukraine "On Accounting and 
financial statements in Ukraine", Procedure № 419 and 
relevant UAS (Podolyanchuk, Koval, Gudzenko, 2019).

In accordance with the law, the farm keeps accounts 
of the results of its work and submits to the relevant 
authorities financial statements, statistical information 
and other data established by the legislation of 
Ukraine, which allows to determine the financial 
result, make calculations with the budget and prepare 
reports. Accounting can be done independently (by  
the accounting department of the farm, one per-
son – the farmer or a member of his family), or with  
the involvement of consulting or auditing companies.

There is nothing significant about farm reporting.  
As an exception, there are farms that own or rent well 
and are required to report in accordance with IFRS. 
Such statements shall be published together with 
the auditor's report on its website (in full). That is, 
the business will be required to have its own website 
where you can publish financial statements. So, if there 
is no page – you need to create. Second, the financial 
statements must be confirmed by the auditor's report. 
Third, the annual financial statements will be made 
public on the same page.

For the average small farm, which has 
a well and will not switch to IFRS, there is no 
obvious responsibility, as such farms are payers 
of the single tax of the 4th group and do not pay  
income tax.

References:
Pravdiuk, N. L. (Eds.) (2010). Aktualni pytannia orhanizatsii oblikovo-analitychnoho protsesu na pidpryi-
emstvakh ahropromyslovoho kompleksu Ukrainy [Current issues of organization of accounting and analytical 
process at the enterprises of the agro-industrial complex of Ukraine]. Vinnytsia: PP Baliuk.
Hospodarsʹkyy kodeks Ukrayiny [Economic Code of Ukraine] (2003). Ofitsiinyi sait Verkhovnoyi Rady Ukrayiny 
[Official web site of the Verkhovna Rada of Ukraine]. Available at: https://zakon.rada.gov.ua/laws/show/436-
15#Text (accessed September 15, 2021).
Gudzenko, N. M., Koval, N. I., & Plakhtiy, T. F. (2018). Vplyv informatsiynykh potreb korystuvachiv na strukturu 
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