{"id":2729,"date":"2022-08-18T14:36:08","date_gmt":"2022-08-18T11:36:08","guid":{"rendered":"http:\/\/consulting.ua\/transformacziya\/"},"modified":"2022-09-06T15:45:28","modified_gmt":"2022-09-06T12:45:28","slug":"transformacziya","status":"publish","type":"post","link":"https:\/\/consulting.ua\/en\/transformacziya\/","title":{"rendered":"Transformation"},"content":{"rendered":"<p><b>International Financial Reporting Standards (IFRS) <\/b>represent a single set of world-wide standards and interpretations used by companies to prepare financial statements, a critical source of information published annually, useful to various stakeholders (shareholders, debtors, clients, employees and governments) in understanding a company&#8217;s financial performance and management\u2019s stewardship of the company\u2019s resources.<\/p>\n<p>Contrary to some national generally accepted principles of financial statements preparation, IFRS provide general guidance for preparation of financial statements, rather than setting tough rules for reporting. <b>The goal of IFRS <\/b>is to enable compilers of financial statements to follow the same principles, and not to look for loophole in clearly defined rules in order to pass them by. Among the <b>main principles<\/b> are: accrual basis of accounting, going concern principle, principle of prudence, principle of relevance, etc.<\/p>\n<p><b>Reasons for IFRS application by companies:<\/b><\/p>\n<ul>\n<li>possibility to obtain information necessary for taking managerial decisions;<\/li>\n<li>improve comparability of financial statements across national jurisdictions, since international financial reporting standards make it easier to compare figures and are understood internationally, that helps multinational businesses to stay up-to-date and competitive in the globalization of markets;<\/li>\n<li>provide investors, who seek comparable financial information to make well-informed investment decisions, with a cohesive view of finances, that consequently attracts investments and loans, facilitates entrance of foreign markets, enhances prestige and favours trust from potential partners;<\/li>\n<li>fair disclosure and transparency of information achieved through following the same rules of financial statements preparation and detailed explanatory notes to statements.<\/li>\n<\/ul>\n<p>Preparation of statements in compliance with IFRS is performed either through <b>parallel accounting<\/b> or <b>transformation<\/b> of financial statements.<\/p>\n<p>When <b>transferring statements<\/b>, figures of financial statements as per IFRS are formed based on figures from statements as per national standards, adjusted by difference in principles of preparation of accounts and statements.<\/p>\n<p><b>Such work results in set of financial statements prepared in compliance with IFRS principles:<\/b><\/p>\n<ul>\n<li>transformed Balance Sheet,<\/li>\n<li>transformed Profit and Loss Report,<\/li>\n<li>transformed Cash Flow Statement,<\/li>\n<li>transformed Statement on Changes in Equity,<\/li>\n<li>Notes to Financial Statements,<\/li>\n<li>transformation tables.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>International Financial Reporting Standards (IFRS) represent a single set of world-wide standards and interpretations used by companies to prepare financial statements, a critical source of information published annually, useful to various stakeholders (shareholders, debtors, clients, employees and governments) in understanding a company&#8217;s financial performance and management\u2019s stewardship of the company\u2019s resources. Contrary to some national<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/consulting.ua\/en\/wp-json\/wp\/v2\/posts\/2729"}],"collection":[{"href":"https:\/\/consulting.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/consulting.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/consulting.ua\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/consulting.ua\/en\/wp-json\/wp\/v2\/comments?post=2729"}],"version-history":[{"count":3,"href":"https:\/\/consulting.ua\/en\/wp-json\/wp\/v2\/posts\/2729\/revisions"}],"predecessor-version":[{"id":3131,"href":"https:\/\/consulting.ua\/en\/wp-json\/wp\/v2\/posts\/2729\/revisions\/3131"}],"wp:attachment":[{"href":"https:\/\/consulting.ua\/en\/wp-json\/wp\/v2\/media?parent=2729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/consulting.ua\/en\/wp-json\/wp\/v2\/categories?post=2729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/consulting.ua\/en\/wp-json\/wp\/v2\/tags?post=2729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}