Efficient implementation of trading activities requires an appropriate accounting treatment of trading transactions and their recognition in accounting records of respective business entities. The relevance of the topic addressed in the article stems from the crucial role of correct accounting treatment of trading transactions, the presence of a large number of economic disputes related to implementation of trading transactions, and just a sketchy study of these issues in the economic law doctrine.

The purpose of this article is to identify and expand on the signs of trading transactions as a type of economic transactions, to formulate, on their basis, the doctrinal definition of the concept of trading transaction, to establish the linkage between the terms “trading transaction” and “economic trade contract”, to mark out the specifics arising when economic courts consider economic disputes relating to implementation of trading transactions and their record keeping by business entities.

It is proved that trading transactions are a type of economic transactions. The article also provides definitions of “economic transaction” and “trading transaction” taken from the regulatory legal framework of Ukraine. The author formulates the signs of trading transactions and, on their basis, offers own definition of the concept “trading transaction”. Besides, the author establishes the interrelation and linkage between the terms “trading transaction” and “economic trade contract”, in particular, the conclusion is made that trading transactions mediate the performance of economic trade contracts.

The analysis and systematization of case law on resolution of economic disputes relating to implementation of trading transactions allow formulating the following main conclusions. A mere availability of signed primary documents does not confirm that a trading transaction has really been carried out. To establish the fact of “reality” of a trading transaction (except for the circumstances of execution of primary documents), the courts investigate the circumstances of transportation of the goods delivered under the contested expenditure invoice, the circumstances of storage and use of the goods in economic activities of the buyer, and etc. Circumstances which are evidence in the case, in particular, signing of primary documents, may not be the subject matter of a lawsuit. Where the counterparty of a bona fide taxpayer does not have material and labor resources, this does not preclude the possibility that it really performed the economic transaction. If the rules of execution of primary documents are violated, this does not automatically entail their invalidity but affects the capability of the party to prove the circumstances in support of which it submitted the relevant documents. 

Bibliography

Edited book

1. Rieznikova V ta Orlova O, ‘Problemy pravovoho rehuliuvannia bukhhalterskoho obliku ta finansovoi zvitnosti sub’iektiv hospodariuvannia’ [‘Problems of Legal Regulation of Accounting and Financial Reporting of Business Entities’] v Aktualni problemy hospodarskoho prava (Osoblyva chastyna) [Actual Problems of Economic Law (Special Part)] (Shcherbyna V ta Rieznikova V red, Lira-K 2018) (in Ukrainian).

Journal articles

2. Rieznikova V ta Kravets I, ‘Klasyfikatsiia tovariv: hospodarsko-pravovyi aspekt’ [‘Classification of Goods: Economic and Legal Aspect’] [2019] 2 (53) 25–46 (in Ukrainian).

3. Rieznikova V ta Kravets I, ‘Poniattia, vydy ta sklad torhovelno-poserednytskykh pravovidnosyn’ [‘The Concept, Types and Composition of Trade and Intermediary Relations’] (2019) 8 Pravo Ukrainy (in Ukrainian).

4. Smolov K, ‘Spivvidnoshennia poniat “pravochyn” ta “hospodarska operatsiia” v konteksti zdiisnennia administratyvnoho sudochynstva’ [‘The Relationship Between the Concepts of “Transactions” and “Business Transaction” in the Context of Administrative Proceedings’] (2016) 9 Pidpryiemnytstvo, hospodarstvo i pravo 97–8 (in Ukrainian).

Theses

5. Rieznikova V, ‘Teoretychni problemy rehuliuvannia poserednytstva u sferi hospodariuvannia Ukrainy’ [‘Theoretical Problems of Regulation of Mediation in the Sphere of Economy of Ukraine’] (dys d-ra yuryd nauk, 2011) (in Ukrainian).

Website

6. ‘Pervynnyi dokument: rol v obliku ta vymohy do oformlennia’ [‘Primary Document: Role in Accounting and Design Requirements’] (Interaktyvna bukhhalteriia, 13.05.2019)<https://interbuh.com.ua/ua/documents/ib/9310/59170> (accessed: 26.06.2020) (in Ukrainian).