Kolisnyk Olena, PhD in Economics, Associate Professor, Associate Professor of the Department of Accounting and Auditing, State Tax University, Irpin, Ukraine

ORCID: 0000-0003-1755-5638
e-mail: o.p.kolisnyk@dpu.edu.ua

Dmytrenko Alina, Higher education student, State Tax University, Irpin, Ukraine

ORCID: 0009-0007-4800-3189
e-mail: alinadmitrenko56@gmail.com

Pererva Polina, Higher education student, State Tax University, Irpin, Ukraine

ORCID: 0009-0006-4501-220X
e-mail: perervapolina07@gmail.com

Accounting for Writing-off Property Destroyed because of Military Actions: Organizational and Methodological Aspects

Abstract. Introduction. The full-scale armed aggression against Ukraine has caused unprecedented material losses for domestic enterprises, including the destruction of office premises, production facilities, and inventories. These events significantly affect the financial stability of business entities and require an immediate response from the accounting system. The lack of a regulatory framework adapted to mass property destruction, combined with the complexity of documenting losses and reconciling accounting and tax treatments, creates significant practical challenges for accountants and auditors.

Purpose. The research aims to substantiate the theoretical foundations and develop practical recommendations for the accounting support of writing off property destroyed because of military operations. The study focuses on clarifying the economic essence of asset losses, analyzing the current legal framework, and improving the methodology for documenting and reflecting these operations in accounting and tax records.

Results. The study defines that destroyed assets lose their ability to generate future economic benefits and, therefore, must be derecognized according to National Accounting Standards. A classification of losses into direct, indirect, and losses from emergency situations is provided. The paper details the organizational stages of the write-off process, emphasizing the mandatory nature of inventory procedures involving the State Emergency Service, law enforcement, or the Chamber of Commerce and Industry for external verification. The research highlights the necessity of recognizing such losses as extraordinary expenses within the reporting period. Furthermore, the study identifies tax reliefs, specifically the absence of VAT liabilities for destroyed goods, while pointing out risks associated with the loss of primary documentation and the ambiguity of the “destroyed” status for assets located in temporarily occupied territories.

Conclusions. Effective accounting for military-related losses requires a comprehensive approach that integrates internal inventory acts with external expert evidence (photo/video fixation, satellite imagery, and official certificates). To improve the system, it is recommended to unify documentation forms, implement cloud-based digital solutions for data preservation, and harmonize national accounting practices with international standards for military risk disclosure. Establishing a transparent evidentiary base is crucial not only for fiscal compliance but also for future claims for reparations and damages in international courts.

Keywords: accounting; property write-off; military actions; destroyed assets; inventory; documentary evidence; tax accounting; financial statements.

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