Transformation of financial reporting  of small enterprises according to IFRS

Olena FOMINA; Svitlana SEMENOVA; Darіa BEREZOVSKA

doi:10.31617/3.2022(123)04

Authors

Olena FOMINA State University of Trade and Economics https://orcid.org/0000-0002-4962-3298
Svitlana SEMENOVA State University of Trade and Economics https://orcid.org/0000-0001-7250-7482
Darіa BEREZOVSKA https://orcid.org/0000-0001-8394-6894

DOI:

https://doi.org/10.31617/3.2022(123)04

Keywords:

transformation, reporting, trans¬formation of reporting, international financial reporting standards, small business, small enterprise.

Abstract

Introduction. Small businesses play an important role in ensuring the economic stability of Ukraine, but during the war they are in a difficult situation and need support.

Problem. For small enterprises, overcoming existing problems is possible thanks to cooperation with European companies, investors, counterparties, international financial organizations, entering foreign markets, attracting capital, participating in grant projects, startups, etc., but this requires a transition to international accounting standards and the transformation of financial reporting.

The aim of the article is to highlight the peculiarities of the transition of small business enterprises to international accounting and reporting standards and to find practical recommendations for improving the transformation of financial reporting.

Methods. During the research, general scientific and special methods were used, in particular: induction, deduction, comparative analysis, synthesis, generalization, grouping, abstract logical methods.

Results. The sequence and scheme of the transition of small business enterprises from national accounting and reporting standards to international ones is analyzed, the stage of transformation of simplified financial reporting into reporting according to the International Financial Reporting Standard for Small and Medium Enterprises (IFRS for SMEs) is highlighted. The characteristics of financial reporting transformation procedures, examples and features of reclassification of individual accounting objects and reporting items, typical for small enterprises, are given. An amendment table is provided for the transformation of the financial statements of a small enterprise into reporting according to international standards.

Conclusions. The transformation of the financial reporting of a small business entity into reporting according to international standards involves a number of organizational and technical measures to reformat the accounting policy, adjust the accounting system and digitize it according to new rules and approaches, etc. The proposed corrective table helps control the reporting transformation process and track the relationship between the changes made, promotes information disclosure and reporting transparency.

Author Biographies

Olena FOMINA, State University of Trade and Economics

Doctor of Sciences (Economics), Professor, Head of the Department of Accounting and Taxation

Svitlana SEMENOVA, State University of Trade and Economics

PhD (Economic), Associate Professor, Associate Professor at the Department of Accounting and Taxation

Darіa BEREZOVSKA

auditor of Grant Thornton Legis LLC, stakeholder

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