ISSN 2308-8559 e-ISSN 2415-8224

https://doi.org/10.62763/ef/4.2025.08

Volume 15, No. 4, 2025

8-23

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    • Financial assistance transactions: International standards, tax rules, and accounting and taxation arrangements

    Andrii Pylypchuk

    Received 02.06.2025, Revised 16.09.2025, Accepted 16.10.2025

    Abstract

    The study aimed to substantiate the conceptual principles of accounting and taxation of financial assistance transactions, integrating the requirements of international and national standards, tax rules, and best practices for disclosure. The methodological basis consisted of an analysis of the provisions of the Tax and Civil Codes of Ukraine, regulatory documents of national legislation, a comparative review of national accounting provisions (standards) and international standards (recognition, measurement, disclosure), content analysis of public reporting, and theoretical modelling of the stages of providing repayable and non-repayable assistance. Empirical materials included reports from the National Bank of Ukraine, the World Bank, and the Organisation for Economic Co-operation and Development. The results obtained made it possible to classify financial assistance (repayable/ non-repayable; intra-group/external; market/preferential) as an economic unit, establish the sequence of initial recognition and subsequent measurement with the reflection of the time value of money, outline the requirements for notes (contract terms, discount rates, sensitivity of estimates, related party transactions) and demonstrate how temporary and permanent tax differences arise and were reconciled. The results achieved were summarised in a comprehensive applied framework: the classification of financial assistance according to the “return – remuneration” matrix has been systematised, the accounting approaches of accounting provisions (standards) and international financial reporting standards have been harmonised with tax regulations, and an algorithm has been developed from initiation to disclosure, including a list of primary documents. Using the example of the Joint-Stock Company “Ukrnafta”, reproducible identification of transactions, reconciliation of the relationship “profit – taxes – dividends”, and typical temporary and permanent differences have been demonstrated. The practical value lies in the list of control points for internal control (contractual terms, primary documents, marketability of intra-group instruments, cash flow tracking), as well as in the applied recommendations for transparent disclosure and neutralisation of tax risks, including hybrid mismatches and transfer pricings

    Keywords:

    international norms; concessional loans; non-repayable aid; repayment and remuneration; dividends

    Suggested citation
    Pylypchuk, A. (2025). Financial assistance transactions: International standards, tax rules, and accounting and taxation arrangements. Economic Forum, 15(4), 8-23. https://doi.org/10.62763/ef/4.2025.08
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