Keywords
financial statements
dynamics
adaptation
investment climate
business processes
How to Cite
Abstract
Reliability and transparency of financial statements, prompt identification of inconsistencies and control over the efficiency of financial and economic activities are considered to be issues of primary importance in an unstable operating environment. The introduction of IFRS into the national economic environment in a crisis and amidst socio-political instability has the potential to upgrade the business sector and expand development opportunities. The purpose of this study is to analyze changes and adaptation of enterprises to international financial reporting standards. Particular attention in the study is focused on the advantages and capabilities of IFRS integration, among which-optimization of credit and financial support of business, leveling the main risks for investors, minimizing the costs of integration of the standardization system. The situation is complicated by the rapid dynamics of the macro- and microeconomic environment, which requires the transfer of internationally accepted financial reporting standards with appropriate consolidation in the legal framework. It is substantiated that the introduction of international standards provides favorable preconditions for intensification of the level of transparency of financial reporting and the development of public administration in the business sector, which guarantees optimization of the investment climate. The main related risks and challenges are determined, including an increased resource need for the adaptation period, the need to establish effective communication between interested parties, the importance of monitoring and controlling. Adaptation of the national business sector to IFRS will not only optimize the processes of financial reporting, investment planning and management, but will also help to achieve the financial stability of the entity and increase the competitiveness of companies in the international market.
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