Transformation of financial reporting of small enterprises according to IFRS

Fomina, O.; Semenova, S.; Berezovska, D.

Under martial law, businesses need comprehensive support to continue to operate and develop. Credentials are the basis for reporting and decision support. At the same time, the transition of enterprises to the use of international standards and the transformation of financial reporting are key to ensuring the transparency of financial reporting, attracting other partners to cooperation and investors, and supporting international organizations. The aim of the article is to determine the features of the organization and methods of transformation of financial statements of small businesses into reporting according to international standards, finding ways to improve them. During the study, the methodological basis of general and special methods of cognition: analysis, synthesis, induction, grouping, comparison, abstraction, generalization, and system approach are used. Methods of transformation and conversion of financial statements during the transition of enterprises to international financial reporting standards, their advantages and disadvantages are analyzed. The organizational and methodological aspects of the transformation of financial reporting are described, taking into account the peculiarities of accounting and reporting at small businesses in Ukraine under martial law. The conceptual principles of transformation and the types of differences that arise during the transformation and affect the reflection of the information in the reporting prepared according to international standards are established. Conclusions: transformation of financial statements into IFRS reporting is defined as the process of transition to accounting and preparation of financial statements in accordance with international standards with adjustments to current accounting policies and accounting information, regrouping of indicators prepared in accordance with national standards (including for small businesses) 1 or 25) in accordance with the requirements of IFRS for SMEs or the full package of IFRS on the date of such transition. Transformation of financial statements requires adjustments and taking into account differences that may affect the financial performance and evaluation of companies in martial law.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. 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. During the research, general scientific and special methods were used, in particular: induction, deduction, comparative analysis, synthesis, generalization, grouping, abstract logical methods. 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. 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.


	Наукова періодика України		Зовнішня торгівля: економіка, фінанси, право