Comparative legal analysis of standards, accounting methods, and the regulation of public investments in the European Union and Ukraine

Abstract

This article examines the comparative legal analysis of standards, accounting methods, and the regulation of public investments in the European Union and Ukraine. The relevance of the study is determined by the need to improve Ukraine’s national public investment management system in the context of European integration, post-war economic recovery, and the approximation of national legislation to the legal framework of the European Union. The paper analyzes the main approaches adopted by the European Union to regulate public investments, the functioning of its contemporary economic governance framework, the role of fiscal rules, and investment support instruments, particularly the InvestEU Programme. It also examines the significance of the International Financial Reporting Standards (IFRS), the European Sustainability Reporting Standards (ESRS), the Corporate Sustainability Reporting Directive (CSRD), and Environmental, Social, and Governance (ESG) principles in ensuring transparency, accountability, and the efficient use of public financial resources. The study further explores contemporary approaches to public investment accounting based on the application of the International Public Sector Accounting Standards (IPSAS) and the development of the European Public Sector Accounting Standards (EPSAS). The necessity of further harmonizing Ukrainian legislation with European standards is substantiated, together with the improvement of strategic planning mechanisms, public sector accounting, financial and non-financial reporting, the digitalization of public investment management processes, and the integration of ESG criteria into the evaluation framework for public investment projects. It is concluded that the implementation of European approaches will contribute to greater transparency in the use of public funds, improve the efficiency of public investment management, and strengthen Ukraine’s investment attractiveness. Keywords: public investments; European Union; Ukraine; IFRS; IPSAS; EPSAS; ESRS; CSRD; ESG; InvestEU.