Actual aspects of financial analysis of the activities of enterprises under martial law in Ukraine

The subject of the research is the theoretical and practical aspects of determining the mechanism
for conducting financial analysis at Ukrainian enterprises during martial law.
The aim of the research is to study the regulatory framework that determines the features of
financial analysis of the activities of enterprises in the conditions of martial law in Ukraine.
Research methods. In the process of writing the article, general scientific and special methods for
studying economic phenomena and processes were used, which are inherent in the study of financial
analysis of the activities of enterprises under martial law.
Results of the investigation. Because of writing the article, it was found that the beginning of a
full–scale invasion of Russia into the territory of Ukraine brought fundamental changes in all spheres
of life. It is determined that from February 24, 2022 all enterprises are simply trying to survive by
retaining the minimum number of employees necessary for their normal functioning in the conditions
of hostilities. It has been proven that when preparing financial statements and conducting general
financial analysis, enterprises need to take into account the impact of war on the continuity of their
activities and, if possible, conduct a sensitivity analysis of several possible scenarios. It was determined
that now, due to the instability of the country’s economic sphere, new obstacles arise in the way of the
functioning of enterprises, namely, unjustified risks, unforeseen expenses, losses of enterprises due
to the conduct of hostilities. It is established that all enterprises, depending on the impact of the war
on their business, which will depend on the specific circumstances of the enterprise, must disclose
in the notes to the financial statements information about the potential impact on the next reporting
period. In addition to the impact on business continuity, enterprises must constantly review all areas
of financial accounting that are affected by the uncertainty of judgments and estimates.
Scope of the results. Finance, Financial analysis, Financial accounting, Enterprise efficiency,
Financial diagnostics, Management, Risk management, Entrepreneurship.
Conclusions. It was determined that when preparing financial statements and conducting a general
financial analysis, all enterprises must necessarily take into account the impact of the war on their
activities. It was established that the Council of the Audit Chamber of Ukraine issued an information
letter on the impact of the military aggression of the Russian Federation on financial reporting and
audit reports, according to which all enterprises are required to prepare financial statements based
on accounting data, which in turn are based on the principles defined by the applicable conceptual
framework. It has been proved that during the period of martial law or a state of war, as well as within
three months after its completion, individuals, individuals – entrepreneurs, legal entities are not
subject to administrative and criminal liability for failure to submit or late submission of reports and
documents specified in subparagraph 1 paragraph 1 of Law No. 2115–IX. It is established that after
the end of martial law, regulated information is disclosed by issuers of securities within the following
periods: annual regular information for 2021 of the reporting year is disclosed within 90 days after
the end of martial law; interim regular information for the respective quarter of 2022 is disclosed
together with annual regular information for 2021; special information about facts that have arisen
during the period of martial law shall be disclosed within 30 days after the end of the martial law.