Change-over to International Financial Reporting Standards (transformation of financial statements in accordance with the IFRS) is a global tendency appearing in the world economy.
Development of foreign economic relations requires availability of so- called common communication language which is international accounting and reporting standards.
The main purpose of transformation of financial statements in accordance with the IFRS is unification of financial accounting principles applied by companies all over the world for preparation and publication of financial statements.
Decision on change-over to the IFRS and transformation of the financial statements is aimed at improving investment climate of the country, as well as enhancing foreign investors’ confidence in Ukrainian companies.
Advantages of accounting and reporting when transformation of financial statements according to the IFRS:
Creation of information base for effective managerial decisions making
Comparability of financial statements with financial statements of other companies regardless of the country of residence or territory of business operations
Strengthening of investors’ confidence, which enables toallowing to attract foreign investments and credits and thus increasing capital inflows of business
Provision of reliable information which ensures transparency of reporting and evaluation of actual results of business activity
What companies have to prepare financial statements according to the IFRS?
Currently, the Law of Ukraine «On accounting and financial reporting in Ukraine» stipulates obligatory application of the IFRS for joint stock companies, banks, insurance companies, as well as the companies carrying out their activities under types defined by the Cabinet of Ministers of Ukraine.
Methods of IFRS application:
Parallel accounting is maintenance of accounting maintenance in accordance with the Ukrainian Accounting Standards and the IFRS whereby all economic transactions of the company are registered twice
Transformation of financial statements whereby indices of financial statements according to the IFRS are formed based on data of financial statements according to the UAS adjusted for the value of variations in estimates, recognition criteria and principles of accounting maintenance and financial statements preparation
Professionals of our company possess necessary knowledge and extensive experience in preparing financial statements in accordance with the IFRS.
We also render training services for transformation of financial statements.