Construction of management accounting based on IFRS reporting. IFRS (International Financial Reporting Standards) International Accounting Standards IFRS

International Financial Reporting Standards (IFRS) are a set of international standards accounting, which indicate how specific types of transactions and other events should be reflected in the financial statements. IFRSs are published by the International Accounting Standards Board and they define exactly how accountants should maintain and present accounts. IFRS were created in order to have a “common language” in accounting, because business standards and accounting can differ from company to company and from country to country.

The goal of IFRS is to maintain stability and transparency in financial world... This allows businesses and individual investors to make expert financial decisions as they can see exactly what is happening to the company they want to invest in.

IFRS are standard in many parts of the world, including the European Union and many countries in Asia and South America, but not in the United States. The Securities and Exchange Commission (SEC) is in the process of deciding to adopt standards in America. The countries that benefit the most from standards are those that do and invest in international business. Experts suggest that the global implementation of IFRS will save money on opportunity comparative costs, as well as allow more freedom to transfer information.

In countries that have adopted IFRS, both companies and investors benefit from using this system as investors are more likely to invest in a company if the company's business practices are transparent. In addition, the investment cost is usually lower. Companies that do business internationally benefit the most from IFRS.

IFRS standards

Below is a list of current IFRS standards:

Presentation of financial statements in accordance with IFRS

IFRS cover a wide range of accounting transactions. There are certain aspects of business practice for which IFRS sets binding rules. Fundamentals of IFRS are elements of financial reporting, principles of IFRS and types of main reports.

Elements of financial statements in accordance with IFRS: assets, liabilities, equity, income and expenses.

IFRS principles

Fundamental Principles of IFRS:

• accrual principle. In accordance with this principle, events are reflected in the period when they occurred, regardless of the movement Money.
• the principle of going concern, which implies that the company will continue to operate in the near future, and the management has neither plans nor the need to wind down operations.

Reporting in accordance with IFRS must contain 4 reports:

Statement of financial position: it is also called balance. IFRS affect how the components of the balance sheet are interconnected.

Statement of comprehensive income: it can be one form, or it can be divided into an IFRS income statement and other income statement, including property and equipment.

Statement of changes in equity: also known as report on retained earnings... It reflects changes in profit for a given financial period.

Cash flow statement: This report summarizes the company's financial transactions for a given period, while cash flows are divided into flows for operating activities, investments and financing. Recommendations for this report are contained in IFRS 7.

In addition to these basic reports, the company must also submit annexes with a summary of its accounting policies... The full report is often compared to the previous report to show changes in profit and loss. The parent company must create separate reports for each of its subsidiaries, as well as consolidated IFRS financial statements.

Comparison of IFRS and American standards (GAAP)

There are differences between IFRS and generally accepted accounting standards in other countries that affect the calculation financial ratio... For example, IFRS is not as strict in determining revenue and allows companies to report earnings more quickly, therefore, the balance sheet under this system may show a higher revenue stream. IFRS also have other requirements for spending: for example, if a company spends money on development or investments for the future, it does not have to show it as an expense (i.e. it can be capitalized).

Another difference between IFRS and GAAP is the way in which inventories are accounted for. There are two ways to track inventory: FIFO and LIFO. FIFO means that the most recent unit of inventory remains unsold prior to the sale of previous inventory. LIFO means the most recent inventory will be sold first. IFRS prohibit LIFO, while US and other standards allow participants to freely use them.

History of IFRS

IFRS originated in The European Union with the intention of distributing them throughout the continent. The idea quickly spread around the world as the “common language” of financial reporting allowed for broader connections around the world. The United States has not yet adopted IFRS, as many view US GAAP as the “gold standard”. However, as IFRSs become a more global norm, this may change if the SEC decides that IFRSs are appropriate for US investment practices.

Currently, about 120 countries use IFRS, and 90 of them require companies to fully report their financial statements in accordance with IFRS requirements.

IFRSs are supported by the IFRS Foundation. The mission of the IFRS Foundation is “to ensure transparency, accountability and efficiency in financial markets around the world". The IFRS Foundation not only enforces and monitors financial reporting standards, but also makes various suggestions and recommendations to those who deviate from the best practices.

The aim of the transition to IFRS is to simplify international comparisons as much as possible. This is difficult because each country has its own set of rules. For example, US GAAP differs from Canadian GAAP. The synchronization of accounting standards around the world is an ongoing process in the international accounting community.

Transformation of financial statements in accordance with IFRS

One of the main methods of preparing financial statements in accordance with IFRS is transformation.

The main stages of transformation of financial statements in accordance with IFRS:

• Accounting policy development;
• Selection of functional and presentation currencies;
• Calculation of initial balances;
• Development of a transformation model;
• Assessment of the corporate structure of the company in order to determine the subsidiaries, associates, affiliates and joint ventures included in the accounting;
• Determining the specifics of the company's business and collecting information necessary to calculate the transformation adjustments;
• Regrouping and reclassification financial statements according to national standards up to IFRS.

Automation IFRS

In practice, the transformation of IFRS financial statements is difficult to imagine without its automation. There are various programs on the 1C platform that can automate this process. One such solution is WA: Financier. In our solution, it is possible to translate accounting data, carry out mapping to the accounts of the IFRS chart of accounts, make various adjustments and reclassifications, and eliminate intra-group turnovers when consolidating financial statements. In addition, 4 main IFRS reports have been customized:

Fragment of the Statement of Financial Position IFRS in "WA: Financier": IFRS tab "Fixed assets".

1. International financial reporting standards: essence and meaning

2. International financial reporting standards: structure, hierarchy, content, application procedure

1. International financial reporting standards: essence and meaning

International Financial Reporting Standards(IFRS) is a system of generally accepted requirements, principles, rules and procedures that define a general approach to the preparation of financial statements, useful to a wide range of interested users, and establish uniform requirements for the recognition, measurement and disclosure of financial and business transactions.

Historically, each country has created its own accounting and reporting standards that meet, first of all, the requirements that its main users put forward for reporting.

Development international trade , the emergence of multi-national companies, capital market globalization, globalization economic processes and information technology has caused the need to harmonize the financial statements of companies in different countries. This was due to the need to obtain and provide transparent, useful, informative, comparable, homogeneous financial information, understandable to a wide range of interested users. It was for this purpose that it was decided to develop international standards. financial accounting and reporting, which were supposed to provide a unified methodological base and establish the basic accounting principles in accordance with which enterprises could keep financial records.

Today financial statements prepared in accordance with either IFRS or US GAAP are internationally recognized, since only statements prepared in accordance with these standards are recognized by the majority stock exchanges the world: US GAAP - for American, IFRS - for non-American. In this regard, depending on which exchange's quotation list the firm wants to enter, the appropriate accounting model is selected.

Development and use of IAS and IFRS in practice:

Allow to provide a unified approach to the formation of high-quality, transparent, comparable and reliable reporting v different countries;

They help investors and shareholders from different countries to better analyze the reports of potential recipients of investments (again from different countries), prepared according to uniform principles, which means they are comparable;

They allow firms entering stock exchanges in different countries to prepare not several sets of financial statements (separately for each national exchange), but a single set of financial statements for all exchanges, i.e. reduce the cost of attracting capital ;

They increase the general culture of management within transnational corporations, improve their internal control system and audit .

2. International financial reporting standards: structure, hierarchy, content, application procedure

IFRS is a set of related documents, which include:

Preface to the provisions of IFRS;

Conceptual Framework or Principles for the Preparation and Presentation of Financial Statements;

Standards proper;

Clarifications to standards or interpretation.

All of them form a single system and cannot be applied separately, at the same time, each document as an element of the system has a specific purpose.

The Foreword summarizes the objectives and procedures of the IFRS Board (Committee), and explains the procedure for the development and application of IFRS.

Conceptual frameworks define the procedure for the preparation and presentation of financial statements for external users. It addresses issues such as the objectives of the financial reporting, underlying assumptions and quality characteristics determining the usefulness of the reporting information, the definitions, the procedure for the recognition and measurement of the elements of the financial statements are given. By themselves, they are not standards. The conceptual framework serves as the basis for the development of the provisions of the standards, determines the approach to the preparation and presentation of financial statements and determines the possibility of applying professional judgment when solving various kinds of issues.

Actually International Financial Reporting Standards are public interest provisions on the preparation and presentation of financial statements for individual sections of accounting.

Clarifications to IFRS give unambiguous interpretation of ambiguous provisions of the standards and ensure their uniform application.

The questions for clarification are usually those related to:

Or using existing standards that are practical and of greatest interest to users,

Or arising as economic relations develop.

The highest priority is given to the standard international reporting and mandatory annexes to it.

IFRS may be accompanied by annexes that are not part of the standard:

Basis for conclusions;

Illustrative examples;

Correspondence tables (between the new and old editions of the standard);

Guidelines for the implementation of the standard.

Finally, IFRS is based on the Principles of preparation and presentation of financial statements in accordance with IFRS, which are not a standard and are not formally included in hierarchy IFRS.

A key aspect in the development of new standards, interpretations and annexes is their compliance with these Principles.

Each standard is dedicated to a separate topic and has the following structure:

Purpose - discloses accounting issues, as well as the purpose of publication of this standard;

Scope of use - defines the boundaries of the standard, indicates the conditions under which it does not apply. It may also contain information on the termination of previously issued standards due to the release of new ones;

Definition - reveals the content of the main terms found in the text of the standard;

The description of the entity is itself most of, most often consists of several sections, which set out the basic principles of problem solving;

Information disclosure is a mandatory part of the standard, containing information that must be disclosed in financial statements, notes to it, accounting policies;

Effective date - indicates the date of entry into force of this standard;

Appendices - are an optional part, which provides detailed explanations for individual clauses of the standard.

Each standard contains information of the following nature:

Accounting object - a definition of the accounting object and the basic concepts associated with this object is provided;

Recognition of the accounting object - the criteria for referring accounting items to different reporting elements are given;

Display in financial statements - disclosure of information about accounting items in different forms financial reporting.

In practice, the following cases of applying IFRS in conditions modern level development and harmonization of accounting and reporting:

Use of IFRS along with national standards;

Adaptation of national standards to IFRS;

Application of IFRS as national standards.

Topic 8. Council for International Financial Reporting Standards: structure, operating procedures

1. The International Accounting Standards Board: general information, targets and goals

2. Structure and procedure for appointing members of the International Financial Reporting Standards Board

3. Procedure for the development and adoption of international financial reporting standards

1. The International Accounting Standards Board: general information, goals and objectives

With the aim of creating and improvement of uniform unified financial reporting standards for all countries of the world on June 29, 1973, as a result of an international agreement, an independent non-governmental organization with headquarters in London was formed - the Committee on International Financial Reporting Standards (IASB) ( International Accounting Standards Committee, IASC). The Committee includes representatives of 10 major world powers: Australia, Canada, France, Germany, Japan, Mexico, Holland, Great Britain, Ireland and the USA.

In 2001, the Committee was transformed into the International Accounting Standards Board (IASB).

IASB Committee or Board (IASB) is an independent, non-governmental professional organization whose members are accounting (auditing) organizations from different countries.

The purpose of the IASB is to:

1.developing, in the public interest, a single set of high-quality, understandable (understandable) and practical global accounting standards that provide for the formation of high-quality, transparent and comparable information in financial statements in order to assist participants in global capital markets and others users of information in making economic decisions;

2. implementation, widespread dissemination of standards, control over their observance and ensuring their uniform interpretation;

3. active work with bodies setting national standards to achieve convergence of these standards with IFRS in the interests of high-quality solution of accounting problems.

Until 2000, the IASB set the task harmonization of national accounting standards... This process was the IASB's development of high-quality solutions to accounting problems, which were then to be used as a basis for the unification of national standards.

New Bylaws Process convergence involves the development of the IASB, together with national regulatory authorities, of solutions to accounting problems that provide the most efficient and high-quality preparation and presentation of information in financial statements.

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The Conceptual Framework for Financial Reporting is a supporting document that is not part of IFRS reporting, but is directly related to them. The Conceptual Framework was first created and approved by the International IASB in 1989. After that, the document was updated and republished several times. Why was this document created and what function it has - let's understand further.

Conceptual framework for financial reporting in accordance with IFRS: the main objectives of creation

First, let's once again clarify the key difference between IFRS reporting and national accounting standards. The latter are used to provide information government bodies and for making the right economic decisions within the company. IFRS reporting in turn is aimed at investors, lenders and other external lenders.

Who should submit financial statements under IFRS? According to Art. 2 of the Federal Law of the Russian Federation “On Consolidated Financial Statements”, international standards are required to apply:

• banking institutions and Insurance companies;
• non-state pension funds;
• management companies investment funds, mutual investment funds and non-state pension funds; clearing enterprises;
• federal state unitary enterprises the list of which is approved by the Government of the Russian Federation;
• joint stock companies whose shares are in federal ownership, and the list of which is approved by the Government of the Russian Federation;
• audit companies;
• other companies, securities which are admitted to organized trading by including them in the quotation list.

As for Ukraine, from January 1, 2018, amendments to the Law of Ukraine “On Accounting and Financial Reporting” entered into force, which significantly expanded the list of those who are required to submit reports in accordance with IFRS. These include:

• Large enterprises that match at least two of the following criteria: book value assets is more than 20 million euros, net income- more than 40 million euros, the number of employees is on average more than 250 people;
• enterprises that are of public interest;
• public joint stock companies;
• mining companies useful resources of national importance.

Let's go directly to the goals of creating the Conceptual Framework for Financial Reporting. The first and most significant is the expansion of the use of IFRS. In the event that International Financial Reporting Standards do not have direct guidance on resolving a particular situation, one should be guided by the principles set out in Conceptual framework... In general, this additional document takes precedence over national accounting standards, and it is important to keep this in mind.

In addition, other goals for the creation and use of the Conceptual Framework are highlighted:

• The conceptual framework assists the International IASB in creating new standards;
• they can be used as a basis for the formation of national standards;
• assist auditors in drawing up opinions on the compliance of financial statements with IFRS;
• contribute to the correct interpretation of data presented in reports prepared in accordance with IFRS, etc.

Check yourself:
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Content and basic principles of the IFRS Conceptual Framework

• Financial reporting objectives.
• Qualitative characteristics of useful financial statements. These criteria are used to assess the usefulness of the information for current and potential investors, lenders and other creditors. In addition to standard data on economic resources, operations and requirements for the organization, reports can include development strategies, investment expectations, and other predictive analytics.
• The principles of recognition and element evaluation, of which the financial statements consist.
• Capital concept and maintaining its value (financial position, assets, liabilities, equity, etc.)

Let's take a look at the most important principles outlined in the document. Relevance and truthfulness are recognized as fundamental qualitative characteristics of useful financial statements. Additionally highlighted are comparability, timeliness, verifiability and intelligibility.

As for the fundamental assumptions on which the Conceptual Framework is built, there are two of them:

• Accrual basis (that is, all business transactions should be displayed in the same month in which they were performed).
• Going concern (that is, an organization or an enterprise must operate on an ongoing basis and without the prospect of closure in the foreseeable future).

Both theses are quite logical, since reporting that does not comply with the specified principles is unlikely to inspire confidence in existing or potential investors and will testify to the stability and transparency of the company's activities.

It is worth noting an important difference between the current version of the Conceptual Framework from the previous ones, namely, the absence of the principle of priority economic content before the legal form. This principle turned out to be inappropriate due to the fact that in many countries financial reporting forms for entering economic data are enshrined at the legislative level. Besides, in new version the document lacks the principle of prudence, since the emphasis is on the truthfulness of the information provided.

In addition, the document proposes two approaches to the concept of capital: physical and financial. The first concept treats capital in terms of the production capacity of an enterprise or based on the quantity of products produced per day. The second concept treats capital in terms of assets and equity capital... The choice of the concept depends on the tasks in the presentation of information, i.e. from what the users of reporting are more interested in - the operating capacity of the enterprise or, for example, the value of net assets.

Conceptual framework as “heart and soul” of IFRS

The conceptual framework does not contain precise templates for reporting under IFRS, but they have a deeper meaning. By carefully studying this document, you will understand the logic behind international standards and how they should be applied in everyday practice. In addition, the Conceptual Framework provides support in cases where IFRS does not provide clear guidance on specific actions and transactions. Acquainted with complete list official financial reporting forms in accordance with IFRS you can in a separate article.

If you are just starting to study International Financial Reporting Standards, we suggest you go through distance course“IFRS and the practice of transformation”. The training program is designed for those who want to understand IFRS from the basics and is aimed at gaining valuable practical skills in transforming balance sheet items and generating financial statements in accordance with IFRS. Important! You can take the first module of the online course absolutely free of charge.