Application of International Accounting Standards by Enterprises in the Context of Modern Challenges

Abstract

The modern economy sets society the task of transitioning Ukrainian enterprises to International Financial Reporting Standards. The use of IFRS in the practice of Ukrainian enterprises will generate transparent and understandable information for users at all levels, attract financial and credit resources for development and expansion, according to the analysis of reliable reporting to identify ways to optimize business, will be a driving force for enterprise management and gaining competitive advantage. The implementation of IFRS in the practice of Ukrainian enterprises has not only economic but also social significance, as reliable information allows to make more informed decisions at the level of industries and the country as a whole, provides effective investment of resources to obtain final financial results. All economic entities, regardless of their organizational and legal forms and forms of ownership, are required to keep accounts and prepare financial statements throughout the period of operation. According to the Law of 16.07.99 No. 996-XIV “On Accounting and Financial Reporting in Ukraine” accounting is the process of determining, measuring, registering, accumulating, summarizing, storing and transmitting information about the company’s activities to external and internal users for decision-making. The main legislative acts regulating the organization of accounting are Law No. 996 and National Accounting Regulations (Standards) in Ukraine (NP (S) BU). The main purpose of the NP (S) BU is to determine the principles and methods of accounting in Ukraine, including the preparation of financial statements in accordance with the laws of Ukraine and International Financial Reporting Standards (IFRS). IFRS are documents adopted by the International Accounting Standards Board, which determine the procedure for preparing financial statements. International standards, which are set out in the state language and officially published on the website of the central executive body, which ensures the formation and implementation of state policy in the field of accounting, are used to prepare financial statements. According to the Law of Ukraine “On Accounting and Financial Reporting in Ukraine”, enterprises for which accounting is required by IFRS, prepare and submit financial statements and consolidated financial statements to public authorities and other users at their request in the manner prescribed this Law, on the basis of taxonomy of financial statements according to international standards in a single electronic format. Possession of knowledge accumulated by the world international accounting community will allow to better understand the principles of accounting and financial reporting, improve the professional qualities of employees and better understand the need to develop accounting and reporting system for further development of Ukraine’s economy. This monograph is devoted to the above problems and their solutions based on the assessment of International Financial Reporting Standards and the adaptation of Ukrainian enterprises to their practical application. The monograph reveals the scientific and practical principles of accounting policy in accordance with IFRS, highlights the practical aspects of accounting for assets in accordance with IFRS and practical aspects of accounting for collateral and liabilities in the context of IFRS, reveals the features of accounting in accordance with IFRS.