A practical model to implementing IFRS in the national accounting system: The case of Azerbaijan

The purpose of this article is to develop a methodological approach to substantiating the effective consolidation model of national accounting standards (NAS) with International Financial Reporting Standards (IFRS) for Azerbaijan. Using the questionnaire method, the advantages, and obstructions of IFRS implementation in Azerbaijan have been assessed, depending on the practicing models of consolidation of NAS and IFRS. Using fuzzy sets made it possible to determine the levels of development of advantages and obstructions associated with the introduction of IFRS into national accounting practice in Azerbaijan. We determined the most effective model of consolidation of NAS and IFRS for the enterprises of Azerbaijan. The effectiveness of implementing models for the consolidation of NAS and IFRS has been assessed to provide a balance between advantages and destructive factors in the implementation of IFRS.

Current determinants of the national accounting system transformation in Iraq

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.

Factors Influencing The Formation Of International Budget Accounting Systems

This article discusses the budget system, the areas it covers, the national accounting systems of countries in international practice and their specific features. Also discussed are the Continental European model (development of the accounting system through legislative initiative), the British model (development of accounting through the initiative of consultant accountants) and the United States model (development of accounting through the influence of general accountants and engineers).

Problems and specifics of the convergence of national accounting systems under the influence of IFRS

The research addresses the essence and outcomes of the convergence between national accounting and reporting systems (NARS) influenced by international financial reporting standards (IFRS). The aim of the study is to identify and examine the main elements of this process and its peculiarities in Russia; to highlight and evaluate the consequences of such convergence; to determine the areas for improving the effectiveness of NARS taking into consideration its current state. The methodology is based on the use of general scientific methods of theoretical and empirical research, including expert assessments and comparative analysis which allows to evaluate the changes observed in NARS. The findings help summarize and analize the organizational aspects of NARS elements transformation in the process of convergence under IFRS impact, including imbalances both in the NARS itself and in the relation between the NARS elements and other systems underlying the national market economic structure. The analysis concludes with an assessment of its effect on the NARS. The results will be of interest to specialists in the field of accounting and reporting as well as to regulatory agencies that implement state interests in this area.

Problems and specifics of the convergence of national accounting systems under the influence of IFRS

The research addresses the essence and outcomes of the convergence between national accounting and reporting systems (NARS) influenced by international financial reporting standards (IFRS). The aim of the study is to identify and examine the main elements of this process and its peculiarities in Russia; to highlight and evaluate the consequences of such convergence; to determine the areas for improving the effectiveness of NARS taking into consideration its current state. The methodology is based on the use of general scientific methods of theoretical and empirical research, including expert assessments and comparative analysis which allows to evaluate the changes observed in NARS. The findings help summarize and analize the organizational aspects of NARS elements transformation in the process of convergence under IFRS impact, including imbalances both in the NARS itself and in the relation between the NARS elements and other systems underlying the national market economic structure. The analysis concludes with an assessment of its effect on the NARS. The results will be of interest to specialists in the field of accounting and reporting as well as to regulatory agencies that implement state interests in this area.

False Accounting as Formalizing Practices

This article studies the inference procedures used to compute the macroeconomic indicators feeding into the International Monetary Fund’s monitoring and surveillance in Africa since the structural adjustment. In 2005, the IMF launched a procedure to denounce a Mauritanian “misreporting” over a twelve-year period. The article wonders how could the statistical fiction be validated by the IMF economists, and to what extent they took part in Mauritanian data production. The article argues that the auditor-auditee relation places less importance on the veracity and the pertinence of numbers than on the formal conformity of data and economic programs with expectations of the IMF bureaucracy. For programs and statistics to be considered consistent, tables of estimates must be filled out, even when data are missing, and the economic diagnosis must comply with monetarist-dominant orientations. By analyzing the financial programming tool, the article shows that the treatment of basic national accounting identities neglects variables like household consumption even when alternative methods exist. Changes in methods may be discarded to ensure the legibility of economic works over the years. The article therefore argues that the IMF and countries coproduce false accounts, whereby inferences of macroeconomic estimates serve other institutional functions inside the IMF besides veracity.

Ethical Issues of Artifi cial Intelligence in Accounting

The article examines the issues of economic ethics associated with the coming era of artifi cial intelligence and digitalization, and the introduction of these technologies into the system of national accounting and accounting (fi nancial) reporting. Analyzing the situation, the author comes to the conclusion that the reformation of the modern methodological paradigm is inevitable and imperative. Artifi cial intelligence technologies prioritize the information needs of the state and society as a whole, translating them into the category of the main interested users.

Analysis of Impact of Changes in IFRSs on Convergence of Accounting Systems in World

The article examines the impact of updated IFRS on the current convergence of national accounting and reporting rules in Japan, the USA, China, France, Germany, the UK, and Ukraine based on a theoretical analysis of 59 rules and concepts of IFRS. The new differences between the updated IFRS and GAAP of these countries based on the comparative analysis were revealed. The results of the study show currently Ukraine (51%) and the United Kingdom (47%) are the most convergent with IFRS, although their degree of convergence has decreased significantly after recent innovations in IFRS; a new question arises for the UK after Brexit regarding the further application of IFRS; countries with strong national accounting traditions continue to avoid rapid changes in their GAAP; 4) the increase in the convergence of GAAP Japan with IFRS will not be possible shortly. The conclusion states that the main obstacle in the convergent process GAAP and IFRS is that: 1) IFRS are changing based on GAAP USA, rather than vice versa; 2) IFRS do not belong to the “stable to change standards”, so users have a certain distrust of the declared high quality of IFRS. The study results add significant novelty to scientific and practical research on the impact of frequent changes in IFRS both locally and internationally.

Problems of Using Artifi cial Intelligence in Accounting

The article is devoted to the problems that await the national accounting system in the future in connection with the development of digital technologies and the corresponding use of artificial intelligence. The complexity of accounting tasks to reflect economic reality in the context of increasing the significance of probabilistic expert assessments is analyzed from the point of view of the utilitarian capabilities of modern computer systems. As a result, the author comes to the conclusion that it is impossible and unacceptable to eliminate accounting employees from their professional duties. Otherwise, the magnitude of the accumulated errors will affect the financial statements and the declared data will become risky and unsuitable for making management decisions.