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The war in Ukraine has created significant challenges in accounting and valuing fixed assets, crucial for businesses and economic recovery. These problems include the destruction and damage of assets, legaluncertainties, depreciation complexities, inflation, andshortages ofskilledprofessionals. Solving these issues during the war andthe post-war periodis essentialfor stabilizing the economy and facilitating recovery. To address asset destruction due to military actions, standardized protocols for damage assessment should be adopted. A National War Damages Register can help document and assess the extent oflosses, which will also be needed for determination ofthe amount ofthe future reparations from the aggressor. Currently, after more than two years of full-scale war, the International Register ofDamages from russian aggression has been created in 2024, to which only slightly more than 10,000 applications from the affected parties have been submitted so far, although their expected number is from 6 to 10 million. The National War Damages Register has not yet been created. Insurance policies for wartime risks and government-backed compensation mechanisms are vital for mitigating losses. Temporary legal frameworks should be established to guide businesses on assetwrite-offs, depreciation, andtaxation during the war. Flexible tax policies, such as deferredpayments for affected businesses, can ease the financial burden. Post-war legal reforms will also be necessary to address these challenges retrospectively. Clear guidelines must be introduced to account for war-damaged assets, allowing businesses to apply impairment testing and accurately report the value ofdamagedor destroyedassets. Businesses shouldalso have the option to suspenddepreciation for idle assets to avoid overstating expenses. Asset relocations due to war should be documented through digital asset management systems to track and account for moved assets. Government subsidies and financial assistance can help businesses manage relocation costs, ensuring minimal financial disruptions. Assets seized by occupying forces should be recorded as losses in financial statements. International legal mechanisms should be pursued to seek compensation, and accounting standards should allow for recognition oflosses due to expropriation. To combat the effects ofinflation, inflation-adjusted accounting should be implemented, allowing businesses to maintain accurate valuations. Regular revaluations based on current market conditions will help businesses manage inflationary impacts on their asset values. The war has led to a shortage ofaccountants and auditors. Temporary support from international accounting organizations and remote auditing solutions can help bridge this gap. Additionally, training programs should be developed to increase the supply of qualified financial professionals for the post-war recovery period. Addressing these challenges is crucial for business continuity, transparency, and economic recovery in Ukraine. Implementing government-led initiatives, leveraging international support, and updating legal frameworks will ensure that businesses can manage their fixed assets effectively during and after the war. These solutions are essential for long-term recovery, helping Ukraine rebuild its economy and infrastructure.

During martial law in Ukraine, accounting for fixed assets faces significant challenges due to the ongoing war. Key issues include the destruction or damage ofassets, making it difficult to assess their value and determine impairment losses. Businesses often face disruptions in operations, leading to challenges in tracking asset usage, depreciation, and maintenance. The conflict complicates asset verification, as physical inspections may be impossible due to restricted access or destroyed records. Impairment ofassets is a major concern, as companies must evaluate the reduced value or functionality ofassets, often without access to reliable data. Additionally, relocation ofassets to safer regions complicates tracking and valuation, while regulatory uncertainty around tax and depreciation rules adds further complexity. Businesses also face inflation and currency devaluation, making asset valuation even more challenging. Legalissues, such as assetseizure or expropriation, presentfurther complications, particularly in determining ownership and potential compensation. The lack of clear guidelines on accounting for war-damagedassets, combinedwith the displacement ofaccounting personnel, exacerbates these problems. Overall, businesses must adapt their accounting practices to navigate the unpredictable environment while maintaining compliance and transparency.

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