USE OF INTERNATIONAL ACCOUNTING AND FINANCIAL REPORTING STANDARDS IN ENTERPRISE MANAGEMENT

Abstract

The subject of the research is a set of theoretical, methodological, organizational and practical bases for the formation of financial statements of enterprises in the context of its harmonization with international standards and management needs. The purpose of this work is to determine the advantages, functions and prospects of using international standards in accounting and financial reporting to improve enterprise management. The methodological basis of the article is both General scientific and special methods of scientific knowledge. Methods were used: dialectical, monographic, historical, system-structural analysis and synthesis, problem-and program-oriented approaches. The article defines the advantages, functions and prospects of using international standards in accounting and financial reporting to improve enterprise management. It is proved that the globalization of markets and the creation of a single international economic space actualizes the need to create in the enterprise management system such accounting, financial reporting and control, which would be built on the basis of the same principles and rules. It is determined that in modern conditions of activity management, international standards are an effective tool for increasing transparency and clarity of information that reveals the activities of business entities, creates a reliable basis for recognizing expenses, provides an opportunity to objectively disclose the financial risks of the enterprise and compare the results of activities. The conceptual framework provides that, depending on the legislation of the state in which the company operates, regulatory and additional reserves may be created as part of its own capital. The conclusions and results of the article can be used in the educational and scientific process of economic faculties of higher educational institutions. It is advisable to transfer them for practical use in enterprise management in order to increase its efficiency on innovative principles. It is important for the management of enterprises not only to use international standards in the organization of accounting and reporting, but also Notes to them. The notes to the annual financial statements should disclose the analysis of other comprehensive income by item, as well as information about the types of shares, indicating for each of them the par value, the amount of dividends recognized as payments to owners during this period, as well as the corresponding amount of dividends per share. In addition, it is necessary to detail the components of registered capital (the number of shares issued, indicating the amount paid, outstanding, and those withdrawn at the end of the reporting period). In order to obtain complete information for the management of enterprises, it is advisable to provide a description of each of the reserves created by the decision of the owners, with a definition of the documentary basis for its creation, as well as the purposes for which the reserve may be directed.