HARMONIZATION OF INVESTMENT PROPERTY ACCOUNTING IN UKRAINE IN LINE WITH IFRS: CHALLENGES AND PROSPECTS

Abstract

Investment property plays a significant role in the structure of enterprise assets and serves as an important source of both stable income and long-term capital growth. In the context of Ukraine’s integration into the global economic environment, as well as the challenges of post-war recovery, the harmonization of accounting practices with International Financial Reporting Standards (IFRS) is becoming increasingly important. Such harmonization ensures transparency, reliability, and comparability of financial statements, which are essential for attracting foreign investment and strengthening economic stability. Purpose. The purpose of this article is to analyze the peculiarities of accounting for investment property in Ukraine, identify the main problems associated with harmonization with IFRS, and propose practical directions for improving national accounting practices in line with international requirements. The research is based on a combination of general scientific and specialized methods, including analysis and synthesis, comparative analysis, abstraction, and systematization. A comparative approach is applied to identify key differences between national accounting standards and IAS 40 “Investment Property”, with particular attention paid to recognition, measurement, and disclosure requirements. The study reveals that despite the similarity in the conceptual definition of investment property, significant differences persist in methodological approaches, especially in terms of measurement. In particular, the application of fair value remains limited in Ukrainian practice. This is обусловлено underdevelopment of the professional valuation market, the lack of reliable market information, as well as the significant impact of tax legislation on the accounting policies of enterprises. Additionally, the impact of wartime conditions on asset valuation, market activity, and financial reporting reliability is emphasized, highlighting increased uncertainty and risk. The research confirms that effective harmonization of investment property accounting requires a comprehensive and systematic approach. This includes improving national accounting standards, developing valuation infrastructure, enhancing regulatory support, and strengthening the professional competencies of accountants and appraisers. The implementation of these measures will improve the quality and transparency of financial reporting and contribute to increasing the investment attractiveness and competitiveness of Ukrainian enterprises.