Abstracts

 

O. S. Korepanov,

PhD in Economics, Associate Professor,

Associate Professor of the Department of Statistics, Accounting and Audit,

V. N. Karazin Kharkiv National University

Methodology of Index Analysis of the Information Society Development Level

The purpose of the article is to analyze changes in methodological approaches to calculating the indexes of information and communication technologies development (ICT) proposed by the International Telecommunication Union (ITU). The article analyzes the process of development of ICT and the transformation of territories towards the formation of an information society, examines three main stages in evolution of the information society, which are in line with the structure of the ICT Development Index (IDI).

An international methodology for calculating the ICT development index is based on three sub-indexes: access to ICT, use of ICT and practical ICT skills developed by the ITU in 2010. The basic indices of aggregate sub-indexes, their nominal values and the methodology for calculating the ICT Development Index are presented in the annual reports of the ITU “Measuring the Information Society” 2009–2017. The article also analyzes the significance of the ICT development indexes and the corresponding sub-indexes for the countries of the world, which ranked among the top ten leaders by the corresponding rating.

   A comparative analysis of the IDI values of Ukraine and Iceland, one of the leading countries by IDI-2016 level, is made; the corresponding diagram is constructed on the basis of the statistical indicators used for the calculation and the corresponding sub-indexes. The dynamics of changes of IDI basic statistical characteristics by region of the world in 2012-2017 is analyzed.

  The changes to the IDI calculation methodology of 2018, proposed by the specialized international expert groups, are analyzed. The proposed changes relate to a set of metrics that should be additionally included in the IDI instead of a few excluded. The analysis of changes in methodological approaches to the calculation of IDI shows significant differences in the ICT development by geographical region of the world. There are also significant fluctuations in the experience of individual countries within each region.

Key words: statistical evaluation, information society, information and communication technologies (ICT), ICT development index (IDI), IDI index calculation methodology, statistical estimation, territorial development of ICT.

 

 

F. V. Motsnyi,

DDSc in Physics & Mathematics, Professor,

Professor of Department for Economic Cybernetics and

Mathematical Methods,

National Academy of Statistics, Accounting and Audit

Chi-square, Student and Fisher-Snedecor Statistical Distributions and Their Application

The Chi-square distribution is the distribution of the sum of squared standard normal deviates. The degree of freedom of the distribution is equal to the number of standard normal deviates being summed. For the first time this distribution was studied by astronomer F. Helmert in connection with Gaussian low of errors in 1876. Later K. Pearson named this function by Chi-square. Therefore Chi –square distribution bears a name of Pearson’s distribution.

The Student's t-distribution is any member of a family of continuous probability distributions that arises when estimating the mean of a normally distributed population in situations where the sample size is small and population standard deviation is unknown. It was developed by W. Gosset in 1908.

The Fisher–Snedecor distribution or F-distribution is the ratio of two-chi-squared variates. The F-distribution provides a basis for comparing the ratios of subsetsof these variances associated with different factors. The Fisher-distribution in the analysis of variance is connected with the name of R.Fisher (1924), although Fisher himself used quantity for the dispersion proportion.

The Chi-square, Student and Fisher – Snedecor statistical distributions are connected enough tight with normal one. Therefore these distributions are used very extensively in mathematical statistics for interpretation ISSN 2519-1853 СТАТИСТИКА УКРАЇНИ, 2018, № 1 ТЕОРІЯ ТА МЕТОДОЛОГІЯ СТАТИСТИКИ 23 of empirical data. The paper continues ideas of the author’s works [15, 16] devoted to advanced based tools of mathematical statistics. The aim of the work is to generalize the well known theoretical and experimental results of statistical distributions of random values. The Chi-square, Student and Fisher – Snedecor distributions are analyzed from the only point of view. The application peculiarities are determined at the examination of the agree criteria of the empirical sample one with theoretical predictions of general population. The numerical characteristics of these distributions are considered. The theoretical and experimental results are generalized. It is emphasized for the corrected amplification of the Chi-square, Student and Fisher – Snedecor distributions it is necessary to have the reliable empirical and testing data with the normal distribution.

Key words: sample, general population, random value, the Chi-square distribution, Student distribution, Fisher – Snedecor distribution, numerical characteristics

 

 

N. V. Nechyporuk,

Post-Graduate Student,

National Academy of Statistics, Accounting and Audit

Information Support for the Land Registration: Directions for Upgrading of Statistical Reporting

Decentralization of power and rapid expansion of local self-governance in Ukraine, gradual extension of property forms and rights for land use determine the need for gradual reformation of the processes involved in land records and respective presentation of data in financial and statistical reports of business entities. The article is devoted to elaboration is issues relating to statistical recording of transactions with land resources. Results of the study show the decreasing number of forms of statistical reports on land resources. A comparative assessment of the forms of statistical and administrative reports for recording quantitative data on lands is ISSN 2519-1853 СТАТИСТИКА УКРАЇНИ, 2018, № 1 ТЕОРІЯ ТА МЕТОДОЛОГІЯ СТАТИСТИКИ 29 made. Use of statistical reports on land resources and administrative reports on quantitative data on lands lays the grounds for monitoring of land use relations in Ukraine. Common and distinctive features of the statistical and administrative reports are found out by the results of the comparative analysis. The pressing issues in collecting statistical data on land market and land relations are outlined: the need in filing the data on the land value depending on land size, land owners and users, purpose of land; the need for filing the data on contracts for land purchase and sale and sale price (except for agricultural lands, due to the existing moratorium on their sales); the filing of data on the rental value of 1 acre of land by location, quality and purpose of land. The need for filing the statistical data on quality status and use of land recourses in business entities’ operation is demonstrated. Recommendations on improving statistical reports on land resources through introducing the annual statistical form “The Report on Land Status and Effectiveness of Land Use” are given. If applied, the proposed report will enable for build the integrated databases on quantity and quality of land resources.

Key words: accounting, land resources, land use, administrative reports, statistical reports, statistics.

 

 

T. H. Bondaruk,

DSc in Economics, Professor,

Head of the Department of Finance, Banking and Insurance;

O. S. Bondaruk,

PhD in Economics, Research Fellow,

Research Center;

N. Yu. Melnychuk,

PhD in Economics, Associate Professor,

Associate Professor of the Department of Finance, Banking and Insurance;

National Academy of Statistics, Accounting and Audit

The Public Debt of Ukraine and the Budget Expenditure for Its Service

The public debt is deepened, the visions of the public debt as a phenomenon burdening the national economy, found in various schools of economics, are reviewed. It is demonstrated that the high internal and external dept in parallel with the respectively growing expenditure for its service is a pressing problem for ISSN 2519-1853 СТАТИСТИКА УКРАЇНИ, 2018, № 1 СТАТИСТИКА ТА СУМІЖНІ ГАЛУЗІ ДОСЛІДЖЕНЬ 39 Ukraine, calling for an urgent solution. This raises the need for seeking ways to improve the public debt management mechanisms.

The article’s objective is to deepen the theoretical and methodological framework for assessment of the public debt in Ukraine and the budget expenditures for its service. It is demonstrated that the public debt in Ukraine results from the public budget deficit, high sovereign borrowing from internal and external sources. The econometric assessment of the time series on budget expenditures for debt service and repayment in Ukraine is given. The analysis of the public debt dynamics in Ukraine shows that not only the increasing volume of public debt and State-guarantee debt, but also the increasing budget expenditures on its service and repayment are dangerous. The high deficit of public budget is persisting, which growth is caused, inter alia, by the payment commitments. The expenditures on service and repayment of public debt constitute a large share in the public budget expenditures. Forecasting calculations made in the article demonstrate the upward tendency in the public budget expenditures on repayment and service of the public debt of Ukraine, thus signaling the growing threats to the budget security of Ukraine. The main factors for the rapidly increased debt burden in Ukraine over the latest years are identified: the considerable devaluation of domestic currency (Hryvnya), sharp drop in GDP, the shrinking internal consumer demand, etc.

It is demonstrated that the risk of the increasing payments for service of public debt is an essential and chronic factor generating problems in public finances and affecting the budget security of Ukraine.

Key words: public debt, repayment of public debt, service of public debt, public budget, budget expenditures

 

 

I. V. Zaichko,

Lecturer of the Economics Department,

Kyiv National University of Culture and Arts

A Review of Foreign Experiences in Implementing Budget Policy in Inter-Budgetary Relations

The article investigates the theoretical and methodological framework of foreign experiences in implementing budget policy in inter-budgetary relations. It is demonstrated that the model of inter-budgetary relations, existing in Ukraine, does not contribute in creating necessary incentives for local governments to ensure appropriate management of budgets. The situation can be improved only by harmonizing the reform of inter-budgetary relations with the general logic of change in regional relations. It is demonstrated that the use of income differentiation method depends on the structural basis of the budget system, which is determined by the organization of the State. While in unitary countries taxes are most often split with fixed rates and allowances to national taxes, in federal countries distribution of income between budgets is used. As foreign experiences show, while in federal countries optimal mobilization and socially oriented spending of budget funds requires a long time, in unitary countries it can be possibly done in a relatively short time, but it needs clearly defined social goals and ways to achieve them.

In the budgetary practice of Ukraine two methods of budget regulation are used: (i) deductions from national taxes and incomes collected on local budget territories; (ii) fixed financial assistance to local budgets in form of budget transfers. The advantages of the first method are balancing of local budgets by use of flexible revenue sources, local governments’ concern with full mobilization of not only local revenue sources, but also national taxes, the responsibility of local financial authorities for timely and complete receipt of national taxes. Budget regulation does not exclude the possibility of using budget transfers. The review of foreign experiences in local budgeting shows that the budget regulation instruments practiced in unitary countries would be useful for Ukraine.

It is demonstrated that technological transformations, if not supported institutionally, will widen inequality instead of resulting in effective transformations.

Key words: budget policy, inter-budget relations, budgetary powers, budget system, income differentiation.

 

 

V. M. Semianovskyi,

PhD in Physics and Mathematics, Associate Professor,

Associate Professor of the Department of Economic Cybernetics and Mathematical Methods, National Academy of Statistics, Accounting and Audit

Participative Management: A Model for Governance of Territorial Communities

Principles of participative management have been commonly used in the contemporary management. This involves decentralization and democratization of management, various forms of employees’ engagement in the organization’s management. The participative management ideas, if practiced, can offer the key to building an effective management system and motivating business entities to a complex organization, and it can be a feasible model for organization of governance within the local self-governance system.

    Participative management is based on recognition of mutual interests of all the members of an organization, thus integrating these interests and increasing the employees’ concern with labor results. It can exist in various forms, of which the main ones are income-sharing, profit-sharing, equity-sharing and participation in management. Each form of participative management can be implemented separately, but the highest effect can result from their combination (the synergy effect).

Participative management has already been widely used by many business organizations in Europe and elsewhere. Participative management, therefore, is one of the advanced management methods involves decentralization and democratization of management, participation of employees in management, effective utilization of human resources for their development and the development of the organization’s system. Participative management can change and reinforce the employee’s motivation system. Yet, the participation does not diminish the rights and responsibilities of managers.

Principles of participative management are more and more often used in public governance as a model for governance within the local self-governance system. However, practical use of participative management tools still requires detailed theoretical studies.

Because participative management principles and tools have only been at introductory phase now, they require theoretical elaborations and practical experiences especially. High effectiveness of participative management can be achieved only in established and capable territorial communities, when the collective intellect and collective interest of all the members of a territorial community is engaged in governance processes.

Key words: partisipative management, model, decentralization, territorial community, local government.

 

 

V. V. Kozlov,

PhD in Technology, Аssociate Рrofessor,

Associate Professor of the Department of Information Technologies;

T. V. Tomashevska,

PhD in Technology, Аssociate Рrofessor,

Associate Professor of the Department of Information Technologies;

National Academy of Statistics, Accounting and Audit;

M. I. Kuznіetsov,

PhD in Technology, Senior Researcher,

Associate Professor of the Department of Intellectual Managers and Computer Systems,

University of the State fiscal service of Ukraine

Use of Interdisciplinary Links in the Training of Future Specialists in Statistics

In the article the authors substantiate the importance of establishing and using interdisciplinary connections in the training of future specialists in the field of statistics. This is due to factors such as the transition of the Ukrainian economy to the innovative way of development and the necessity of building state information infrastructure. The training of interdisciplinary specialists, who use statistics, computer science, and data science in their activities, becomes a public need. The authors argue that the modern system of higher education needs to develop innovative teaching approaches in preparing future specialists in the field of statistics, primarily natural-scientific interdisciplinary links. They promote increase of the practical, scientific and theoretical training of students, with their help the foundation for a comprehensive vision, approach and solving complex problems of real reality are laid.

In the article special attention is paid to establishing links between computer science and mathematics in the training of future statisticians. The analysis of bachelor programs of various educational institutions has shown that the disciplines of the cycle of mathematical preparation are basic. Computer at various stages of these disciplines can perform functions of control, training, analysis, synthesis, etc. The future specialist should be trained in working with professional mathematical packages that may be needed for him in future professional activities.

The authors also note the risk of methodically illiterate implementation of interpersonal links with the use of information technology, when the external ease of use of software tools leaves in the shadows the applied component of the course of higher mathematics. This can lead to a disturbance of dynamic balance and a decrease in the quality of education. The analysis of the problem of interdisciplinary connections shows that it is necessary to transit to updated statistics training programs, oriented to the needs of economic and social development of society. Thus, interdisciplinary links not only allow the establishment of peculiar “bridges” between educational disciplines, but also, on the basis of the common content of these disciplines, to build a holistic system of learning, which is an important condition for an integrated approach that allows to distinguish between the main elements of the content of education and interrelationships between educational subjects.

Key words: interdisciplinary integration, interdisciplinary connections, competence, competence approach, intersubject connections, intersubject integration.

 

 

О. М. Motuzka,

PhD in Economics,

Associate Professor of Department for Management of Foreign Economic Activities,

E-mail: [email protected];

V. V. Parkhomenko,

PhD in Economics), Associate Professor,

Associate Professor of Department for Economics and Business,

E-mail: [email protected];

National Academy of Statistics, Accounting and Audit

The Socio-Economic Development of Cross-Border Territories: Statistical Monitoring

Because the methodology for studying the socio-economic development of cross-border territories is still poorly developed in the Ukrainian science, this study aims to highlight its theoretical essence and justify the need for statistical monitoring and identification of practical problems related with its applications at personal, institutional and regional level.

Given the global market competition, the socio-economic development of cross-border territories is impossible without creating favorable financial, institutional and infrastructure environment. The socioeconomic development of cross-border territories is determined by a set of indicators reflecting the capabilities of territories located on both sides of the border to produce a certain output of goods and services using the available human and material resources.

The importance of cross-border statistics grows with the expansion of cross-border cooperation. Cross-border statistics refers to the generalized information on the socio-economic development of cross-border territories; it has to support the CBC-related operation of central and local administration bodies and private entities in border regions, aimed at expanding business partnerships and meeting public needs on border territories.

The source of data for cross-border statistics is the statistics of border regions. The analysis shows that trial decisions used now in the Ukrainian statistics system for testing border region statistics, such as statistics of tourism, including travels abroad, are not capable to meet information needs of the regional development policy, foreign trade statistics and statistics of internal and external migration.

The statistics of cross-border regions has to face the following challenges: improve the comparability of statistical indicators by harmonizing statistical surveys’ methodology, terminology, definitions and classifications; expand and improve printing and publishing activities; develop analytical work; introduce and develop cross-border surveys; construct on-line cross-border database.

Key words: socio-economic development, mobility, monitoring, cross-border cooperation, cross-border territories, neighboring countries.

 

 

V. P. Bondar,

 DSc in Economics, Professor,

Managing Partner of the International Audit Company HLB UKRAINE

Working Documents of an Auditor and the Quality Control of Financial Reporting Made up on Foreign Investor’s Demand

Specifics of using the working documents of an auditor when auditing the financial reporting made up on external user (foreign investor) demand are highlighted. It is demonstrated by statistical data that the foreign investment in Ukraine has been growing. It follows that investors need to have confidence that the financial information used by them for making decisions on the allocation of capital is authentic and reliable, which means that a foreign investor needs high quality audit. The abovementioned increases the responsibility of an auditor for the quality of audit conclusions made by the audit results. The commonly accepted quality criterion of audit is the requirements of the International Standards on Auditing (ISA) 2015, adopted in Ukraine as national ones. As ISA do not offer specific examples regarding the format of the auditor’s working documents, a practical example is taken to demonstrate the method for quality assurance of an auditor task using check lists (working documents) in the auditing practice. An example of check list and list to the company’s administrative personnel (the customer’s administration) on the audit results is shown. The list to the customer’s administration consists of the two parts: the address to administration and the section “Report on essential comments and defects identified in the process of audit”. This section reveals the auditor’s observations on the internal control and accounting system. An example of working document “cross control”, which is used in forming the auditor’s opinion and ensures the comparability of data obtained by an auditor, is given. Being the basis for forming the auditor’s opinion, the working documents of an auditor, once unified, will reduce the labor intensity of audit procedures. It is demonstrated that the standardized working documents allow for higher quality of audit and foreign investor’s confidence.

Key words: audit, financial reporting, foreign investor, quality of audit, standardization of audit, working documents of an auditor.

 

 

N. M. Proskurina,

DSc in Economics, Professor,

Professor of Accounting and Audit Department,

Zaporizhzhya National University

The Audit of Transactions with Customer-Owned Raw Materials in Foreign Economic Activities

The specifics of audit of the transactions with customer-owned raw materials in foreign economic activities (FEA) are shown. It is determined that FEA, being risky ones, need special attention from an external auditor. When scrutinizing such transactions, the latter need to be aware that when a FEA transaction is signed, including one for processing of customer-owned raw materials, the requirements of legal and regulatory acts being in force in Ukraine need to be duly considered. It is demonstrated the Custom Code of Ukraine regulates the work arrangements with customer-owned raw materials in FEA and specifies custom regimes for FEA transactions, with implications for their taxation. The taxation, in turn, is regulated by the Tax Code of Ukraine and has specifics in assessment and payment of value added tax and profit tax. The eligibility for tax credit on the commodities purchased and thereafter exported as raw materials in the custom regime of processing occur on general grounds specified in Section 5 “Value Added Tax” of the Tax Code of Ukraine, and the tax liabilities occur on the date when a customs cargo declaration is submitted for execution. According to Article 39 of the Tax Code of Ukraine, taxation of profits from transactions with related nonresident entities has some specifics. An example of the authors’ review of transactions with customer-owned raw materials in FEA, recording of the results of auditor procedures and the obtained evidences in working documents is given. The format of a working document is subject to professional opinion of an auditor. The test of recording transactions on processing of customer-owned raw materials beyond the boundaries of custom territory of Ukraine is proposed as a working document. The working document, intended to confirm the fact of collecting auditor evidences in order to form the auditor opinion on financial reporting, covers the content of transactions on processing of customer-owned raw materials, information sources for an auditor (primary documents, accounts records), audit procedures and their results, with the auditor’s opinion about the authenticity of recorded information (its confirmation). The working documents enable for regulation and quality assurance of audit procedures, and for unification of the auditor’s actions.

Key words: audit, transactions with customer-owned raw materials, foreign economic activities, working documents, transaction testing, quality of audit.

 

 

K. І. Redchenko,

DSc in Economics, Professor,

Head of Department of Auditing, Analysis and Taxation,

Lviv University of Trade and Economics

Audit Services on the ICO Market: Opportunities and Prospects

Initial Coin Offering (ICO) has been one of the most popular ways of raising funds for investment projects and start-ups in the latest years. This generates demand for audit services intended to provide independent assessment of  blockchain projects and consult emitting companies on ICO marketing issues. However, auditors demonstrate professional caution, expecting for reactions of regulators and for the establishment of clear rules on circulation of crypto currencies.

The objective of the study is to review the existing practice of audit services at the ICO market and substantiate the risk-oriented approach to assessment of ICO projects.

It is found out that applications of the blockchain technology open up two main prospective areas for auditors. The first one involves applications of blockchain in recording systems, thus offering new opportunities for getting confidence or executing coordinated procedures concerning financial reports of clients. The second one involves creating new services addressed to companies either applying blockchain technologies or operating in markets of crypto currencies and related financial instruments.

The ICO market has featured the rapidly growing numbers of failures of emitting companies to fulfill their obligations and frauds, which makes the need for independent audit services even more pronounced. The entrance of audit firms in a risky, but attractive segment of “token” economy is, therefore, just a matter of time. The most promising activities related with blockchain technologies and ICO are audit of smart contracts, consulting in issues of token emission and investment, operation with crypto currencies and other financial instruments inherent in the virtual economy.

Key words: audit, audit services, crypto currency, сoin оffering, financial instruments, blockchain technologies, investing, bonds.

 

 

O. Yu. Redko,

DSc in Economics, Professor,

First Vice-Rector on Scientific and Methodological Work,

National Academy of Statistics, Accounting and Audit;

Member of the Chamber of Auditors of Ukraine (1998–2011, 2017–2018),

Main Illusions about the Audit Market in Ukraine

The term “market of audit services” or “audit market” is often used in course of legislative work, scientific discussions or professional communications. But the semantic meaning of this term is interpreted differently, giving rise to misunderstanding among the discussion participants as well as the broader public. Given the permanent market reforms implemented in Ukraine, the treatment of audit as a market of professional services needs to be in a way clarified.

This article is devoted to the criteria by which the audit is recognized in Ukraine as a market of professional services. It covers essential issues such as pricing of audit works and services, market entry for new auditors, self-regulation of the profession, quality of audit services.

Problems of the Ukrainian audit are critically addressed by the author in the context of the requirements of the International Standards of Auditing and the foundations of the Law of Ukraine “On Audit of Financial Reporting and Audit Activities”. It is stated that the contemporary Ukrainian audit is differentiated into the two unequal groups: the so called large business entities in audit and the other business entities in audit. This differentiation is accompanied by attempts of the former group to monopolize the market of professional services and price dumping by the latter group. One of the key author’s arguments is the illusiveness of the quality of audit in Ukraine, first and foremost the existing system of audit control. According to the author, this can bring to naught all the novelties of legal regulation of audit in Ukraine.

Apart from the statements of facts, the article contains concrete, although polemic, propositions of the author concerning implementation of the new Law of Ukraine “On Audit of Financial Reporting and Audit Activities”.

Key words: audit, market, competition, quality of audit, price of audit services, business entities in audit.

 

 

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