FINANCING HOUSING CONSTRUCTION THROUGH CORPORATE BONDS: IMPLEMENTATION AND ACCOUNTING-ANALYTICAL SUPPORT

Abstract

The article aims to investigate present challenges concerning financing, accounting, and analytical support of housing development through the issuance of directed corporate bonds. The hostilities in Ukraine resulted in the destruction of a significant number of residential buildings. The urgent need to rebuild destroyed housing generates the necessity to form a range of acceptable sources of financing and adequate accounting and analytical support for the construction of new residential facilities, in particular through the issuance of corporate bonds. The study is based on the application of a range of general scientific and special methods, in particular: dialectical; hypothetical and deductive; analogy; system analysis and synthesis; extrapolation. The study examines the peculiarities of financing and accounting for housing construction through the issue of corporate bonds. In particular, the procedure for issuing corporate bonds intended to finance housing construction is disclosed. The advantages of using this method of financing in the construction of housing are determined. It is proved that financing of housing construction through the issue of securities is a promising financing mechanism, since it allows attracting a significant number of investors in the field of housing construction. The article reveals the peculiarities of issuance, distribution and redemption of targeted corporate bonds and transfer of ownership of a real estate object, which is provided for by the contract of reservation of a construction object. The article identifies main accounting and analytical documents, which are drawn up when using the mechanism of financing housing construction through the issue of targeted corporate bonds. It has been determined that in this financing mechanism, the issuer (developer) forms a bond prospectus, which contains all the information about it, which allows potential bondholders to get acquainted with the information of the developer. It has been researched that bonds are distributed in separate lots for the corresponding area of housing. It is determined that the main documents for financing housing construction are the bond prospectus, bond purchase agreement, real estate reservation agreement, act of acceptance and transfer of completed works, act of commissioning of residential real estate, and certificate of registration of ownership of real estate. The article reveals the peculiarities of accounting for housing construction financing transactions through the issue of corporate bonds. In particular, accounting entries on the issue, placement and redemption of corporate bonds with the transfer of ownership of the construction object from the developer to the holder (buyer of housing) of the bonds are reflected. The additional expenses related to the issue and distribution of corporate bonds in the accounting system were highlighted.