IFRS financial statements

IFRS financial statements in brief

The modern international market is successfully mastered by various Ukrainian companies. This leads to the need for competent accounting. And to do this is very difficult. After all, the practice of accounting in the country is aimed only at meeting state standards. International standards require a different approach: focusing on the interests of the owner of the company. This is what led to the need to transform reporting under IFRS. If you need advice on this issue or highly qualified assistance, Crystal Tax employees are ready to help you with this.

IFRS reporting: what is it?

IFRS stands for International Financial Reporting System. It is used by business representatives in more than hundreds of countries around the world. The transformation of reporting into the IFRS format is based on the principles of truthfulness and relevance of the information provided. In addition, the data must necessarily reflect the financial condition of a company.

Since 2005, it has become mandatory to adopt consolidated financial statements based on international accounting standards. This applies to those companies whose shares are highly quoted on European commodity exchanges.

The main principle of IFRS – balance approach. It provides for the possibility of evaluating the company's financial statements for any of the periods.

Transformation of financial statements according to IFRS: why is it needed?

Transformation of reporting in IFRS – a procedure that provides for the introduction of certain changes in reporting items. The adjustment is carried out by reconciliation with the main provision of the international financial reporting standard. This procedure is carried out before the reporting day.

Consolidation of financial statements according to IFRS allows you to:

• attract foreign investors;
• increase the level of trust of potential partners;
• bring business closer to international market standards;
• standardize information systems for international forms;
• save funds that will be required to translate reporting into the standards familiar to investors and partners;
• increase your chances of getting a bank loan to grow your business.

Please note that the consolidation of IFRS financial statements ensures that a true balance sheet is available and can be provided upon request. In turn, you will be able to get a better chance of a positive result of a foreign tender.

Preparation of IFRS financial statements

Preparation of IFRS statements provides for several points:

• a detailed study of the main prescriptions that are directly related to documentation in accordance with the standard;
• performing a comparative analysis of current national and international standards;
• exploring differences and inconsistencies in assessment;
• study conditions and requirements;
• Creating or modifying an entity's accounting policies to comply with IFRS requirements.

The preparatory stage is very important for the further result. Therefore, do not neglect them.

International IFRS reporting: next steps of transformation

Preparation of financial statements in accordance with IFRS – this is only the first stage of consolidation. Then comes the actual execution of this procedure. It includes:

• analysis of accounting policies, which allows you to compare statements to identify the number of adjustments;
• preparation of working papers;
• immediate adjustment;
• collecting the material that is needed to carry out the transformation;
• reporting in accordance with the requirements of the international standard;
• preparing a statement of changes in equity;
• preparation of ODDS.

After all the steps are completed, you should also take care of preparing explanations for the report.

Preparation of IFRS statements with Crystal Tax specialists

Crystal Tax employees provide quality services for the preparation of IFRS statements. In addition, cooperation with specialists allows you to get:

• operational result;
• competent approach to the task;
• consultations;
• collaboration with experienced staff;
• low cost of services.

To use the services of the company's specialists, leave a request on the website. The manager will contact you as soon as possible to clarify the details.

The cost of services is calculated on an individual basis. Contact a company specialist to find out more. Contacts are listed on the site.