METHODOLOGY OF THE FORMATION AND ANALYSIS OF FINANCIAL STATEMENTS OF THE BRANCH “CENTRAL FOREST OFFICE” OF THE STATE SPECIALIZED FORESTRY ENTERPRISE “FORESTS OF UKRAINE”

Abstract

The article investigates the methodology for preparing and analyse financial statements of the «Central Forest Office» a branch of the State Specialized Forestry Enterprise «Forests of Ukraine» The study provides a comprehensive assessment of the enterprise’s financial condition, using key indicators, including the structure of assets and liabilities, liquidity, solvency, profitability, and the efficiency of material resource utilization. The research identifies several significant challenges in the preparation and analysis of financial reporting, such as the difficulty of valuing forest resources as assets, inconsistencies between managerial and financial accounting data, insufficient disclosure of non-financial indicators, and the limited timeliness of obtaining and verifying financial data. To address these challenges, the study proposes a set of improvement measures, including the enhancement of accounting policies in compliance with both international and national standards, the implementation of automated reporting systems and enterprise resource planning (ERP) solutions, the integration of financial and operational reports for more effective decision-making, the use of analytical dashboards for real-time monitoring of key financial indicators, the inclusion of non-financial ESG-related indicators relevant to the forestry sector, and continuous professional development and training of accounting personnel. The implementation of these measures is expected to increase the reliability, accuracy, transparency, and comparability of financial reporting, facilitate better control over resource utilization, and improve overall financial management within the forestry industry. The findings of this study contribute to the development of a more efficient and transparent financial reporting framework tailored to the specific characteristics and operational challenges of state forestry enterprises in Ukraine. In addition, this will increase the confidence of both external and internal users of financial statements, enhance the enterprise’s attractiveness to investors, and strengthen the industry’s status in the country and worldwide.