A theoretical and legal analysis of the definition of “damages” is carried out and it is proposed to consider it as the gap between what was and what remains after the occurrence of a negative event, expressed in money, and three main components of losses are outlined. The methodological principles of assessing and accounting for losses incurred are studied, practical aspects of identifying, assessing and reflecting in the accounting system losses caused to business entities as a result of military actions are presented. Considerable attention is paid to a comparative analysis of domestic legislation and international financial reporting standards regarding the recognition of asset losses, lost profits and restoration costs, and determining the fair value of damaged property. The author identifies key differences between national approaches and international practice, in particular in the context of asset depreciation and compensation accounting. It is substantiated that loss accounting in the context of sustainable development is transformed from a passive tool for recording financial results into a strategic system for managing the long-term viability of the company. It forces businesses to take financial responsibility for their environmental and social footprint, which is a basic condition for global survival and adaptation to strict legislative requirements. Based on the results of the study, recommendations were formulated for improving the system for accounting for losses from war damage, their assessment in order to ensure transparency of financial reporting and the formation of an evidentiary base for future reparations. Of particular practical value are the author’s proposals for forming a relationship between the accounting process and loss compensation mechanisms, which allows us to consider the reflection of losses not only as an accounting statement of this fact, but also as preparation for legal and compensation procedures.
Publication Date: 2026-06-11