{"id":22022,"date":"2026-06-02T09:40:00","date_gmt":"2026-06-02T06:40:00","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=22022"},"modified":"2026-06-03T14:28:12","modified_gmt":"2026-06-03T11:28:12","slug":"%d0%b0ccounting-for-bad-debt-modern","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/%d0%b0ccounting-for-bad-debt-modern\/","title":{"rendered":"Kolisnyk O., Sudak K. \u0410ccounting for Bad Debt: Modern Approaches and Regulatory Framework"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification:<\/strong> \u041c 40; \u041c41; \u041c49.<\/span><\/i><\/td>\nDOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V56(2026)-18<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]Kolisnyk Olena, <\/b>PhD in Economics, Associate Professor, Associate Professor of the Department of Accounting and Auditing, State Tax University, Irpin, Ukraine<\/span><\/p>\n

ORCID:<\/strong> 0000-0003-1755-5638<\/span><\/a>
\ne-mail: <\/strong>o.p.kolisnyk@dpu.edu.ua<\/span><\/a><\/p>\n

Sudak Kseniia, <\/b>Higher education student, State Tax University, Irpin, Ukraine<\/span><\/p>\n

ORCID:<\/strong> 0009-0005-7694-9313<\/span><\/a>
\ne-mail: <\/strong>kseniia.sudak@gmail.com<\/span><\/a><\/p>\n

\u0410ccounting for Bad Debt: Modern Approaches and Regulatory Framework<\/b><\/p>\n

Abstract. Introduction. <\/i><\/b>In the context of increasing economic instability, wartime challenges, and a growing number of unpaid bills, accurately accounting for doubtful and bad debts is critical to ensuring the financial sustainability of enterprises. Significant overdue receivables lead to liquidity deterioration, financial reporting distortions, and increased financial risks. Therefore, reliable accounting information regarding receivables is essential for effective managerial decision-making. This article examines the theoretical and methodological principles of accounting for bad debts according to national accounting standards and Ukrainian tax legislation. Particular focus is given to the allowance for doubtful debts as a means of implementing the prudence principle and averting unforeseen financial losses. It also analyzes the impact of legislative changes, particularly the renewal of the statute of limitations in 2025, on the recognition and write-off process of receivables. Inconsistencies between accounting and tax approaches to defining bad debts are also identified, complicating their practical application.<\/span><\/i><\/p>\n

Introduction.<\/i><\/b> The study’s relevance is determined by the need to adapt enterprise accounting systems to modern economic challenges, such as wartime conditions, the increased risk of counterparty insolvency, and market uncertainty. In such circumstances, receivables management is an essential part of financial management, requiring the use of regulatory and risk-oriented approaches.<\/span><\/i><\/p>\n

Purpose.<\/i><\/b> The article aims to analyze current approaches to accounting for bad debts, identify key issues in their recognition and write-off, and propose improvements to accounting practices in light of modern economic conditions and digital transformation.<\/span><\/i><\/p>\n

Results.<\/i><\/b> The study establishes that the allowance for doubtful debts is a crucial accounting policy element, ensuring the timely recognition of potential losses and compliance with the matching and prudence principles. The research proves that modern approaches to assessing doubtful receivables rely on a combination of historical data, forward-looking analysis, and risk evaluation, including macroeconomic and industry-specific factors. The research proves that effectively managing doubtful receivables significantly reduces the probability of their transformation into bad debts. Particular attention is given to the impact of the 2025 renewal of the statute of limitations, which requires enterprises to reassess receivables and adjust their accounting policies. The study also confirms that differences between accounting and tax regulations necessitate maintaining parallel records, thereby increasing the complexity of accounting procedures.<\/span><\/i><\/p>\n

Conclusions<\/i><\/b>. The improvement of accounting for bad debts requires a comprehensive approach that includes harmonizing accounting and tax regulations, refining recognition criteria, and considering modern economic risks, especially those related to wartime conditions. Implementing digital accounting tools and analytical systems and enhancing the professional competencies of accounting specialists are identified as key development directions. Therefore, accounting for bad debts should be considered a strategic component of financial management, not just a technical procedure, aimed at ensuring the reliability of financial reporting and minimizing financial losses.<\/span><\/i><\/p>\n

Keywords:<\/i> accounts receivable; bad debt; allowance for doubtful debts; accounting; tax regulation; statute of limitations; financial risks<\/span><\/i><\/b><\/strong><\/p>\n

References<\/b>:<\/strong><\/p>\n

    \n
  1. Mamontova, N. A., & Korniichuk, T. S. (2021). Features of accounts receivable accounting under national and international standards. <\/span>Scientific Notes of the National University \u201cOstroh Academy\u201d. Economics Series<\/span><\/i>, 21(49), 115\u2013119. https:\/\/doi.org\/10.25264\/2311-5149-2021-21(49)-115-119.\u00a0<\/span><\/li>\n
  2. Kravchenko, O. V., & Kobets, T. O. (2021). Organization of accounts receivable accounting and ways of its improvement. <\/span>Economy and Society<\/span><\/i>, 25. <\/span>https:\/\/doi.org\/10.32782\/2524-0072\/2021-25-58<\/span><\/a>.\u00a0<\/span><\/li>\n
  3. Bielozertsev, V. S. (2025). Bad debt: problems of legal and regulatory accounting. <\/span>Investments: Practice and Experience<\/span><\/i>, 13\u201314, 21\u201325. <\/span>http:\/\/www.investplan.com.ua\/pdf\/13-14_2015\/7.pdf<\/span><\/a>.\u00a0<\/span><\/li>\n
  4. Oliadnichuk, N. V. (2017). Accounting for write-off of bad receivables. In <\/span>Proceedings of the XI International Scientific and Practical Conference \u201cAspects of sustainable economic development in market relations\u201d<\/span><\/i> (pp. 98\u201399). Uman: Sochinsky Publisher. <\/span>https:\/\/lib.udau.edu.ua\/handle\/123456789\/9185<\/span><\/a>.\u00a0<\/span><\/li>\n
  5. Hevchuk, A. V. (2018). Features of the genesis of the concept, organization of accounting and valuation of doubtful and bad debts, creation of provision. <\/span>Problems of Economy<\/span><\/i>, 1(35), 321\u2013326. <\/span>https:\/\/www.problecon.com\/export_pdf\/problems-of-economy-2018-1_0-pages-321_326.pdf<\/span><\/a>.\u00a0<\/span><\/li>\n
  6. Shepel, T. P., & Vintoniak, A. A. (2023). Organizational and methodological aspects of accounts receivable accounting: domestic and international experience. <\/span>Economy and Society<\/span><\/i>, 52. <\/span>https:\/\/doi.org\/10.32782\/2524-0072\/2023-52-56<\/span><\/a>.\u00a0<\/span><\/li>\n
  7. Ministry of Finance of Ukraine. (1999). <\/span>National Accounting Standard (Standard) 10 \u201cAccounts Receivable\u201d<\/span><\/i> (Order No. 237, October 8, 1999). <\/span>https:\/\/zakon.rada.gov.ua\/laws\/show\/z0725-99<\/span><\/a>.\u00a0<\/span><\/li>\n
  8. Verkhovna Rada of Ukraine. (2010). <\/span>Tax Code of Ukraine<\/span><\/i> (Code No. 2755-VI, December 2, 2010). <\/span>https:\/\/zakon.rada.gov.ua\/laws\/show\/2755-17<\/span><\/a>.\u00a0<\/span><\/li>\n
  9. Verkhovna Rada of Ukraine. (2003). <\/span>Civil Code of Ukraine<\/span><\/i> (Law No. 435-IV, January 16, 2003). <\/span>https:\/\/zakon.rada.gov.ua\/laws\/show\/435-15<\/span><\/a>.\u00a0<\/span><\/li>\n
  10. Verkhovna Rada of Ukraine. (2025). <\/span>Law of Ukraine \u201cOn Amendments to Section \u2018Final and Transitional Provisions\u2019 of the Civil Code of Ukraine regarding the renewal of the limitation period\u201d<\/span><\/i> (No. 4434-IX, May 14, 2025). <\/span>https:\/\/zakon.rada.gov.ua\/laws\/show\/4434-20<\/span><\/a> .<\/span><\/li>\n
  11. Kolisnyk, O. P., & Sudak, K. O. (2024, November 28). Formation of doubtful debts provision under martial law. In <\/span>Financial and credit mechanism of economic and social development: Proceedings of the All-Ukrainian scientific and practical conference<\/span><\/i>, Kropyvnytskyi, Ukraine. Central Ukrainian National Technical University. <\/span>https:\/\/kntu.kr.ua\/file\/content\/15568\/zbirnyk-tez-fbss-2024.pdf<\/span><\/a>.\u00a0<\/span><\/li>\n
  12. Ministry of Finance of Ukraine. (2000). <\/span>National Accounting Standard 25 \u201cSimplified Financial Reporting\u201d<\/span><\/i> (Order No. 39, February 25, 2000). <\/span>https:\/\/zakon.rada.gov.ua\/laws\/show\/z0161-00<\/span><\/a>.<\/span><\/li>\n
  13. Ministry of Finance of Ukraine. (1999). <\/span>Instruction on the Application of the Chart of Accounts for Assets, Capital, Liabilities and Business Operations of Enterprises and Organizations<\/span><\/i> (Order No. 291, November 30, 1999). <\/span>https:\/\/zakon.rada.gov.ua\/laws\/show\/z0893-99<\/span><\/a>.<\/span><\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received: 13 April 2026<\/span><\/strong><\/p>\n

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    Kolisnyk O., Sudak K. (2026). \u0410ccounting for Bad Debt: Modern Approaches and Regulatory Framework. Modern Economics, 56(2026), 128-134. DOI: https:\/\/doi.org\/10.31521\/modecon.V56(2026)-18.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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    [vc_row][vc_column][vc_column_text] JEL Classification: \u041c 40; \u041c41; \u041c49. DOI: https:\/\/doi.org\/10.31521\/modecon.V56(2026)-18 [\/vc_column_text][vc_column_text]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 Sudak Kseniia, Higher education student, State Tax University, Irpin, Ukraine ORCID: 0009-0005-7694-9313 e-mail: kseniia.sudak@gmail.com \u0410ccounting for Bad Debt: Modern Approaches and
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