Chinese Model of Land Use Accounting: Lessons for Ukraine

Serhiy Ostapchuk ()
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Serhiy Ostapchuk: 'Institute of Agrarian Economics' National Scientific Center, Kyiv, Ukraine

Oblik i finansi, 2017, issue 2, 57-62

Abstract: One of the most effective methods for solving economic problems is the study of foreign experience. The article is devoted to the disclosing the basics of accounting for land-use in China and determining the prerequisites for the introduction of an effective model of accounting for land-use in Ukraine. Attention is focused on the legal and accounting aspects of land relations in China. The analysis of methodological bases of the accounting of the rights to use land which are contained in the Chinese Accounting Standards is carried out. It was revealed that Chinese enterprises do not reflect land in the financial statements, but show in the balance the right to use land, which is classified as an intangible asset. The cost of such right is determined by calculating the costs associated with its acquisition. Therefore, the rights holder in China can more quickly capitalize lease payments as assets in the balance sheet than recognize them as expenses, even if in economic terms it is an operating lease. The accounting of the expenses related to the right occurs due to the annual accrual of depreciation for its cost. Based on the study of China's experience, the prerequisites for effective construction of accounting of agricultural lands and the rights to use land in Ukraine was determined.

Keywords: legal status; land relations; accounting for land-use; right to use land; agricultural land; Chinese Accounting Standards (search for similar items in EconPapers)
JEL-codes: M41 Q15 (search for similar items in EconPapers)
Date: 2017
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