scholarly journals Development of Accounting in Ukraine Based on the Implementation of IFRS: Problems and Prospects

2021 ◽  
pp. 36-43
Author(s):  
Tetiana Shepel ◽  
Keyword(s):  
Capital Markets ◽  
Financial Statements ◽  
International Standards ◽  
National Standards ◽  
Accounting System ◽  
Economic Activities ◽  
Additional Tool ◽  
Advantages And Disadvantages ◽  
Accounting Practice ◽  
Regulatory Bodies

For more than fifteen years in Ukraine, the process of reforming the accounting system has been carried out on the basis of the introduction of the IFRS methodology. New national standards have been adopted; many changes have been made to the Accounting Law that in the end gave enterprises the opportunity to apply original international standards, and their national counterparts. The purpose of the article is to systematize the problems of introducing IFRS into Ukrainian accounting practice and to substantiate the prospects for the development of domestic accounting on the basis of further implementation of the IFRS methodology. The problems of applying IFRS in Ukraine at different stages of their implementation were considered. The advantages and disadvantages of applying international standards in the accounting practice of Ukrainian enterprises were revealed. It was found that the employees of accounting services were not sufficiently prepared for the preparation of financial statements in accordance with IFRS, in connection with which the demand for accounting outsourcing services increased and there was a need to develop and conduct accounting training seminars. The adoption of national standards on the basis of international standards should only in theory ensure their complete identity, but in practice disagreements arose between the norms of certain standards. These circumstances led to the need for wider application of original IFRS, rather than their national counterparts. For national supervisory and regulatory bodies, IFRS have become an additional tool for effective monitoring and supervision of the economic activities of enterprises. The use of IFRS has opened access to Western capital markets for Ukrainian enterprises.

IFRS IMPLEMENTATION AS ONE OF THE FACTORS FOR IMPROVING THE INVESTMENT CLIMATE IN UKRAINE

2017 ◽  
Author(s):  
Kateryna Sova ◽  
◽  
Natalia Yatsenko ◽  
Denys Zagirniak ◽  
◽  
...  
Keyword(s):  
Financial Reporting ◽  
Direct Investment ◽  
Financial Statements ◽  
International Standards ◽  
Investment Climate ◽  
The European Union ◽  
Economic Activities ◽  
Financial Reporting Standards ◽  
Almost All ◽  
The Impact

The article is devoted to the study of the impact of the introduction of International Financial Reporting Standards (IFRS) on changes in the investment climate in Ukraine. The relevance of the topic is that improving the practice of applying IFRS as a tool for exchanging financial information is one of the key conditions for improving the investment climate in Ukraine. The authors have created the generalized scheme that illustrates the chronological list of enterprises that are required by law to prepare financial statements in accordance with IFRS. It was noted that in 2018, in accordance with Part 2 of Article 12 of the law on accounting and financial reporting in Ukraine and resolution of the Cabinet of Ministers of Ukraine No. 547 from 11.07.2018, the criteria of enterprises that are required to prepare financial statements in accordance with IFRS were updated. This step significantly increased the level of application of international standards due to the adoption of such a decision at the legislative level. The dynamics of the number of IFRS enterprises in Ukraine was analyzed. The analysis showed that over the past three years, the number of almost all enterprises that must apply international standards has been growing. The advantages of using IFRS for different users of financial statements were determined. It was determined that the priority users of IFRS financial statements are investors. At the same time, it was noted that the main advantage for other users of financial statements prepared in accordance with international standards is the improvement of the investment climate. The dynamics of the Investment Attractiveness Index of Ukraine based on the Likert scale in the period from 2016 to 2020 was analyzed. The direct investment receipts to Ukraine from the European Union countries were studied. The dynamics of direct investment in the Ukrainian economy was analyzed for two types of economic activities that should form financial statements in accordance with IFRS, namely, the extractive industry and quarrying, as well as financial and insurance activities.

COMPARATIVE ANALYSIS OF INTERNATIONAL STANDARDS IN THE FIELD OF NON-FINANCIAL REPORTING AND THE PRACTICE OF THEIR APPLICATION

2021 ◽  
Vol 2 (4) ◽  
pp. 146-152
Author(s):  
E. V. ANDRIANOVA ◽  
◽  
P. S. SHCHERBACHENKO ◽  
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Business Environment ◽  
International Standards ◽  
Positive Trend ◽  
Financial Indicators ◽  
Additional Tool ◽  
Foreign Companies ◽  
High Level ◽  
Source Of Information

This article discusses and analyzes the most popular standards of non-financial reporting, which has a significant impact on the transformation of the business environment. Already, domestic and foreign companies with a high level of responsibility are beginning to publish non-financial statements in addition to financial statements, which is an additional tool for communication with stakeholders and a new source of information about their activities. To date, reports of this type are clearly unregulated, there are no verification standards, however, there is already a positive trend and the active introduction of non-financial indicators in the regular reporting of companies.

scholarly journals Financial statements as the main source of information on the enterprise activity

2021 ◽  
Vol 11/1 (-) ◽  
pp. 27-30
Author(s):  
Nina OVSIUK ◽  
Zhanna SHALIIEVSKA ◽  
Kateryna HULKO
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
International Standards ◽  
Foreign Banks ◽  
Practical Implementation ◽  
Economic Activities ◽  
Management Decisions ◽  
Economic Relations ◽  
Intelligent Technology ◽  
Transparency And Disclosure

The essence of effective management of each business entity depends primarily on transparency and disclosure of information about its financial and economic activities. The financial report itself covers all important information about the state of the enterprise and provides an opportunity to obtain financial status with it by the interested user for further analysis and decision-making on further activities. As a rule, investors of creditors, state bodies, representatives who are preparing in construction with the business entity are interested in financial reporting. In order to provide more detailed and informative financial reporting to users, it is necessary to compile it with international standards, which act as tools for globalization of the economy and contribute to the development of global economic relations. During 2020–2021, the activities of enterprises took place in extremely difficult conditions, which is why the pandemic significantly affected the financial reporting indicators. Today, there is an appropriate use of intelligent technology and computer technology in the formation of financial statements. Financial statements based on taxonomies of financial statements for IFRS are prepared and presented in a single electronic format using Extensible Business Reporting Language (XBRL). XBRL is a generally accepted international standard for presenting financial statements in accordance with IFRS in electronic form. With the help of IFRS, Ukrainian companies have more effectively solved the following tasks: attracting investments and loans from the world's largest companies and banks, the ability to service financing from foreign banks and other organizations; placement of shares on international stock exchanges; providing the company's management with reliable information for making management decisions, as well as evaluating their adoption. Thus, today the economy of Ukraine depends on the choice of IFRS as a conceptual basis for accounting and its practical implementation. After all, the financial statements are fully open to internal and external users to make informed management decisions regarding cooperation with the relevant entity.

scholarly journals Current determinants of the national accounting system transformation in Iraq

2021 ◽  
pp. 114-121
Author(s):  
K.S.A. Ahmed ◽  
A. K. Musaelyan ◽  
M. V. Krasnoplakhtich
Keyword(s):  
Financial Reporting ◽  
System Development ◽  
International Standards ◽  
National Standards ◽  
Accounting System ◽  
System Transformation ◽  
Cultural Traditions ◽  
National Accounting ◽  
Current Accounting ◽  
The Republic

The article examines the most relevant issues of the external and internal factors’ influence on the accounting current development in Iraq. Historically, Iraq’s accounting system has been shaped by cultural traditions, religion, economic development and political trends over a long period, from ancient times to the present. Its origins date back to the Sumerian kingdom and before the overthrow of the S. Hussein regime. At present, not only national priorities but also global accounting trends have changed. Being formed in parallel with the development of the Republic of Iraq, the current accounting system is not oriented towards the requirements of International Financial Reporting Standards. In order to identify the current determinants of the national accounting system development, the actual model features and the conditions for consolidation with international standards have been analysed. The main directions of accounting harmonisation in the Republic of Iraq towards the international standards integration into the national system have been identified. The main steps of the transformation of national standards to international standards have been presented. 

scholarly journals Understanding the Essence of the Accrual Method According to the International Standards

2021 ◽  
pp. 57-66
Author(s):  
Bidzina Grigalashvili ◽  
Keyword(s):  
Subject Matter ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Conceptual Frameworks ◽  
Accounting Practice ◽  
Accounting Policy

Assumption of international accounting standards was considerable event in the accounting practice of Georgia. One of the innovation was the introduction of "accounting policy" and establishment such an element in the compilation of financial statements as "accrual method". Mentioned method was not used in Soviet accounting. Based on his explanation, after the introduction of international standards, the definitions have undergone some changes. The article analyzes the implemented changes, definitions, given in international standards and conceptual frameworks, outlook of various authors concerning subject matter and relevant conclusions drawn. Based on researches have been proven that, the "accrual method" should be used by the enterprise in recognizing / reflecting income and expenses and not in relation to assets and liabilities. Based on the reconciliation and analysis of different definitions, the author's designation of the "accrual method" is proposed.

scholarly journals International methods of accounting and giving financial reporting to banking institutions

2020 ◽  
pp. 115-123
Author(s):  
S. Khomovyi ◽  
N. Khomyak ◽  
N. Tomilova-Yaremchuk ◽  
V. Litvinenko
Keyword(s):  
Financial Reporting ◽  
Financial Management ◽  
Political Influence ◽  
Financial Information ◽  
International Standards ◽  
Accounting System ◽  
Advantages And Disadvantages ◽  
The World ◽  
Banking Institutions ◽  
Ifrs Implementation

The article analyzes the trends of annual increase in the number of countries that encourage the use of IFRS in their territories in different companies and in different spheres of activity. Developed system of IFRS implementation, their transparency and openness will further lead to a significant improvement in relations with investors and increase their confidence in banks. The comparison of the status of the IFRS use for organizations around the world has been conducted. The immediate connection between the effective activity of banking institutions in foreign countries and the introduction of IFRS has been demonstrated. The factors of proximity of countries to the political forces formed in IASB have been highlighted, and the indicators of probable national strategies of IFRS implementation in different countries of the world have been given. While Ukraine is one of the countries that has quite weak political influence on the management decisions of the IASC. It was found out that in Ukraine the process of harmonization of accounting with IFRS in the banking sector began in 1998, however they began to be considered as a subject of regulation only recently. Nowadays, IFRS is already the basis of UAS and other regulations, which indicates the effectiveness of the process of combining national characteristics of doing business in Ukraine with international ones. It has been established that an important factor in adjusting the Ukrainian banking accounting system is to provide real financial information about the true price of assets of the bank, their profitability, transparency of accounting activities, creating effective methodological and legal documents governing the accounting of financial instruments under international rules. The plans of bank accounts before and after the reform have been considered, their advantages and disadvantages have been outlined. In this research the general problems in banking institutions in the process of implementing international standards, as well as possible ways to solve them have been also analyzed. The process of monitoring the quality of financial reporting in banks is also important. The analysis of foreign systems of this process has shown that the most favorable for Ukrainian banks is the control structure used in Germany. Among the main risks of full implementation of IFRS in banking institutions of Ukraine, we have identified: 1) internal ‒ an increase in the number of users of financial information; content of corporate reporting (integrated, non-financial, management); corporate auditing policy; 2) external ‒ financial risks; the danger of rapid integration into international financial markets; interest rate risks. Key words: accounting, IFRS, banks, organization of accounting, chart of accounts, regulation of accounting standard, financial

scholarly journals Extending The Use And Effectiveness Of The Monopoly® Board Game As An In-Class Economic Simulation In The Introductory Financial Accounting Course

2017 ◽  
Vol 10 (2) ◽  
pp. 75-80 ◽  
Author(s):  
Stephen B. Shanklin ◽  
Craig R. Ehlen
Keyword(s):  
Learning Experience ◽  
Financial Statements ◽  
Financial Accounting ◽  
Accounting System ◽  
Board Game ◽  
Robust Learning ◽  
Accounting Practice ◽  
Extended Approach ◽  
Economic Simulation

This paper extends the use of the Monopoly® board game as an economic simulation exercise designed to reinforce an understanding of how the accounting cycle impacts the financial statements used to evaluate management performance. This extension adds elements of debt not previously utilized to allow for an introduction of the fundamentals of ratio analysis at a foundation level in financial accounting instruction. This extended approach uses the rules and strategies of a familiar board game to create a simulation of business and economic realities, which then becomes an effective, interactive, in-class financial accounting practice set. The unique combination of each player’s skill and luck provides for unlimited outcome possibilities, delivering an interpretive result that students can neither predict nor easily manipulate. This pedagogical approach serves to provide students with a sense of proprietorship in the activities of the instruction and fosters a competitive spirit to succeed in class activities that will ultimately be presented to the entire class. While the instructor surrenders a significant level of control in the class exercise, the uniqueness of each Monopoly® team’s game results requires active engagement in-class and additional individual effort on the follow-up assignments outside the classroom. In the previous use of the Monopoly® board game, the class activity provided a valuable parallel for reality in practicing the financial accounting cycle and emphasizing its use by external parties. Because of the dynamic sense of capturing the “real-time” aspect of the game into finished financial statements for analysis, students start to sense a greater appreciation for the role that accounting cycle activities play in business reporting and the assessment of operating results. Using the Monopoly® board game in the first course in financial accounting tends to generate a higher level of competitive energy in the classroom experience, with more actively engaged students grasping the nature and purpose of the financial accounting system more quickly and actively than with other pedagogical approaches previously used. More recently, using Microsoft Excel to reflect the game results and present the financial statements has added to the robust learning experience achieved by incorporating the Monopoly® board game. 

scholarly journals Using The Monopoly Board Game As An In-Class Economic Simulation In The Introductory Financial Accounting Course

2007 ◽  
Vol 4 (11) ◽  
Author(s):  
Stephen B. Shanklin ◽  
Craig R. Ehlen
Keyword(s):  
Financial Statements ◽  
Financial Accounting ◽  
Accounting System ◽  
Board Game ◽  
Active Engagement ◽  
Accounting Practice ◽  
Accounting Courses ◽  
Lack Of Control ◽  
Economic Simulation ◽  
Individual Effort

This paper discusses using the Monopoly® board game as an economic simulation exercise to reinforce an understanding of how the accounting cycle impacts financial statements used to evaluate management performance. This approach uses the rules and strategies of a familiar board game to create a simulation of business and economic realities, which then becomes an effective in-class financial accounting practice set. The unique combination of each player’s skill and luck provides for unlimited outcome possibilities, delivering an interpretive result that cannot be predicted. This provides the students with a sense of ownership and “their own business” activities to record and present in class. While there is a definite lack of control over homework assigned by the instructor, the uniqueness of each Monopoly® team’s game results requires active engagement in class and individual effort on the assignments outside the classroom. The game establishes a valuable parallel for reality in practicing the financial accounting cycle and emphasizing its use by external parties. Because of the dynamic sense of capturing the “real-time” aspect of the game into finished financial statements for analysis, the students start to sense a greater appreciation for the role that accounting plays in business. This makes the first course in financial accounting move more quickly, and students appear to grasp the nature and purpose of the financial accounting system more readily and actively than with other pedagogical approaches previously used. This tends to offset the generally negative reputation of financial accounting courses on campus and also creates positive buzz about the principles of accounting class for students who must take it as a required course.

scholarly journals IMPROVEMENT OF THE EFFICIENCY OF SYSTEMS OF ACCOUNTING AND ANALYTICAL SUPPORT OF INVESTMENT ACTIVITIES OF ORGANIZATIONS

2020 ◽  
Vol 7 (4) ◽  
pp. 6-10
Author(s):  
Nadezhda Morozova ◽  
Elena Gul'kova
Keyword(s):  
Financial Reporting ◽  
Structural Changes ◽  
Point Of View ◽  
International Standards ◽  
Economic Science ◽  
Accounting System ◽  
Economic Activities ◽  
Information Platform ◽  
Accounting Management ◽  
Tax Accounting

The article discusses the practical aspects of the development of accounting, management and tax accounting systems from the point of view of improving the accounting and analytical support for the investment activities of Russian organizations, the reliability and information content of the generated reports, and the effectiveness of performance evaluations. The problems and possibilities of convergence of Russian accounting standards and international standards of financial reporting, accounting, management and tax accounting are identified, and areas of reorganization of the accounting and analytical support system from the point of view of efficiency of use in investment activities are highlighted. The conclusions are formulated that due to serious financial and structural changes in the organization as part of investment activities, the need to develop a system of accounting and analytical support, development of accounting policies for integrated accounting and the creation of an integrated accounting system that aggregates data from different accounting subsystems of the organization will allow complete and balanced information in conjunction with future results in a concise and concise manner. The prospect of developing accounting and analytical support in the form of integrated accounting will be an information platform that combines several areas of economic science, namely, accounting, analysis, planning, diagnosis and control to achieve the prospective development of economic activities of organizations in the Russian Federation.

scholarly journals Understanding the Essence of the Accrual Method According to the International Standards

2021 ◽  
pp. 30-39
Author(s):  
Bidzina Grigalashvili ◽  
Keyword(s):  
Subject Matter ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Conceptual Frameworks ◽  
Accounting Practice ◽  
Accounting Policy

Assumption of international accounting standards was considerable event in the accounting practice of Georgia. One of the innovation was the introduction of "accounting policy" and establishment such an element in the compilation of financial statements as "accrual method". Mentioned method was not used in Soviet accounting. Based on his explanation, after the introduction of international standards, the definitions have undergone some changes. The article analyzes the implemented changes, definitions, given in international standards and conceptual frameworks, outlook of various authors concerning subject matter and relevant conclusions drawn. Based on researches have been proven that, the "accrual method" should be used by the enterprise in recognizing / reflecting income and expenses and not in relation to assets and liabilities. Based on the reconciliation and analysis of different definitions, the author's designation of the "accrual method" is proposed.

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