PROBLEMS OF FORMATION OF FINANCIAL REPORTING INDICATORS OF UKRAINIAN COMPANIES ACCORDING TO IFRS

Abstract

Today, more and more Ukrainian enterprises use international standards for the formation of financial statements. And this is caused not only by legislative requirements, but also by the desire of enterprises to enter the international market. Financial reporting compiled on the basis of international standards enables foreign partners and investors to analyze the activities of Ukrainian enterprises. The scientific article is devoted to the research analysis of the main difficulties and problems that arise in enterprises during the preparation of financial statements according to international standards. The relevance of the study is determined by the fact that the financial statements of the enterprise are the main source of information when developing a business development strategy, which is why the reliability and objectivity of the data is important. In addition, the financial reporting of the enterprise is the most important tool for ensuring the management of the financial stability of the enterprise, which is possible thanks to careful analysis. In the case of information distortion, the process of analyzing economic indicators and data does not allow obtaining an objective assessment of the current financial state of the enterprise. The procedure for forming elements of financial reporting allows enterprises to fulfill their obligations to the main stakeholders. The article examines the essence and composition of financial reporting, its practical significance for making management decisions. The problems of forming the company's financial statements due to the distortion of information in it were analyzed, errors that most often occur during the preparation of financial statements according to international standards were identified. The qualitative characteristics of the financial information provided in the reports - fundamental and reinforcing, and their interrelationship - have been studied. Recommendations are also given for choosing a basis for evaluating financial reporting indicators, taking into account the qualitative characteristics of information. The procedure for taxonomy of financial reporting indicators, existing approaches to taxonomy - using standard tables and data tagging of already formed reporting are considered, the advantages and disadvantages of each of the approaches are highlighted.