Public Policy and Accounting

Enhancing financial failure predicting using Kida and Grover models «Case study of Saidal and Biopharm companies during the period 2022–2023»

Abou Bakr Essedik KIDAOUENE — Tue, 28 Jan 2025 00:00:00 +0200

The ultimate purpose of establishing a company is to accomplish and maintain the activity for an extended length of time. However, in order to accomplish this goal, effective material and human capacities are needed, capacities that can oversee the company by evaluating both the internal operations of the company and its external surroundings. But, as the business matures, it encounters challenging conditions brought on by internal or external forces, whether they originate in the nation in which it conducts business or from foreign entities with whom it transacts. This results in financial failure that could eventually lead to bankruptcy for the company. Given the variety of instruments available, the company's management must possess the abilities and resources to anticipate financial failure before it happens in order to surmount these challenges and avoid financial failure. Since Saidal and Biopharm are the only two businesses with a focus on producing pharmaceutical materials and are listed on the Algiers Stock Exchange, we attempt to apply the Kida and Grover models to these two institutions in this study. Given that their financial statements are consistent with the financial statements, our study's findings will be positively impacted by the fact that their financial statements are trustworthy and compliant with International Accounting Standards (IAS/IFRS). The purpose of this study was to demonstrate how the Kida and Grover failure prediction models can be used to improve the prediction of financial failure. To this end, we applied both models to the Saidal and Biopharm companies, using the deductive approach in the theoretical part to make theoretical concepts related to the study variables clearer and simpler, and the inductive approach in the applied part to analyze and interpret the findings. Based on these approaches, the study concluded that the Kida model indicates a high likelihood of financial failure for the Saidal and Biopharm companies, while the Grover model indicates that the two companies are not at risk of bankruptcy.

Assessment of the development of the biomethane market in Ukraine during and after martial law: environmental and customs approaches

Iryna Zamula, Tetiana Nazarenko, Daria Seletska — Tue, 28 Jan 2025 00:00:00 +0200

The article examines the development of the biomethane market in Ukraine during and after martial law from environmental and customs perspectives. The relevance of the topic is driven by the need to increase state budget revenues to support the activities of the Armed Forces of Ukraine. Estimates suggest that the country’s losses from military actions amount to approximately $499 billion. Leading experts consider the production and export of biomethane – a renewable gas with a high methane content (over 96 %) that significantly reduces greenhouse gas emissions – as one of the viable investment directions for developing the national economy. The use of biomethane aligns with the goals of the Paris Agreement and is in demand in EU countries aiming to reduce greenhouse gas emissions by at least 55 % by 2030 compared to 1990 levels. In Ukraine, potential biomethane production could reach 20 billion m³ per year, attracting up to 40 billion euros in investments in this sector. From an environmental standpoint, replacing natural gas with biomethane will contribute to achieving sustainable development goals. The article also provides a SWOT analysis of the biomethane market in Ukraine, highlighting its strengths, such as a significant raw material base and successful project implementations, as well as weaknesses, including an imperfect legislative framework.

The article discusses the possibilities of implementing effective mechanisms to stimulate biomethane production, attracting international investments, developing the biomethane market as a motor fuel, and exporting to EU countries. Special attention is given to legislative initiatives aimed at improving the regulatory framework for the development of the biomethane market, including the adoption of a law on the customs clearance of biomethane. The article concludes by emphasizing the necessity of developing biomethane production to achieve Ukraine’s energy independence, reduce waste volumes, create additional jobs, and attract investments, all of which will promote sustainable economic development in the country.

Budget security public administration mechanisms in Ukraine

Tue, 28 Jan 2025 00:00:00 +0200

The article solves the scientific task of developing theoretical and methodological provisions and practical mechanisms fo the public administration of budget security in Ukraine. The description of budget security is worked out, the essence of state management of budget security is revealed, its functions, principles, methods are developed. It justifies the allocation of mechanisms of State management of budgetary security by blocks: «Frame-support» (hierarchical-coordination, information-communication); «Functional-nodal» (directive-functional, political-strategic, financial-budgetary); «Social security» (motivational-stimulating, moral-ethical, socio-psychological). A model of an integral mechanism of public administration of budgetary security is formed as a formalized idea of an inseparably united set of various mechanisms of public administration of the latter in the general outline of components. The institutionalization of public administration of budgetary security is carried out in the context of subjects of direct and indirect leading action. The hierarchical coordination mechanism of public administration of budgetary security is developed in the context of three types of managerial relations: subordination, coordination, re-coordination. The classification of information flows of management information has been developed and an information and communication mechanism for public administration of budget security has been formed with an appropriate canvas of components. The procedure for making managerial decisions within the framework of directive-functional, political-strategic, financial-budgetary mechanisms has been developed, and a complex functional-nodal mechanism of public administration of budget security has been formed with the corresponding canvas of components. The socio-psychological mechanism of public administration of budgetary security has been formed, including: the governing bodies of the process of training the public community in the field of public administration of budgetary security; participants in the process of preparing a public community in the field of public administration of budget security by type of education; canvas components.