Development of IFRS Accounting Policies

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The development of IFRS accounting policies is a fundamental stage in the implementation of international financial reporting, which defines the uniform rules for the recognition, measurement, recording and disclosure of financial information. The correct formulation of accounting policies is essential for ensuring consistency in reporting, audit security and the trust of investors and creditors.


BDO in Ukraine provides comprehensive services for the development, updating, and adaptation of accounting policies in accordance with IFRS, regulatory requirements, and the company’s business model.


When IFRS accounting policies are required

IFRS accounting policies are critical in the following cases:

  • Transition from NAS or another local accounting system to IFRS
  • Preparation of the first financial statements under IFRS
  • Attraction of foreign investors or financing
  • Preparation for an audit in accordance with international standards
  • Changes in the group structure, M&A, or restructuring
  • Updates to IFRS standards or changes in the company’s business model


What the service includes

We develop practical, applicable and audit-ready accounting policies tailored to the specific company.

Key elements:

  • Analysis of the business model and operations from an IFRS perspective
  • Selection and justification of accounting choices
  • Development of accounting policies in accordance with all relevant IFRS standards
  • Reconciliation of professional judgements and estimates
  • Integration with accounting systems and internal procedures
  • Preparation of policies in Ukrainian and/or English


Our approach

BDO in Ukraine employs a risk-oriented and investor-focused approach, underpinned by:

  • Strict adherence to IFRS and leading international practices
  • Prioritisation of key business judgements
  • Minimisation of the likelihood of audit findings
  • Clear and well-organised document structure for management and users of financial statements


What is required from you at the start

  • Business model and key agreements (sales, lease, financing)
  • Chart of accounts, operating instructions, and policies in accordance with NAS or group policies (if any)
  • Access to ERP/BI systems for data understanding and mapping
  • Any restrictions or requirements from creditors, regulators, exchanges, or auditors


Result for the client

As a result, you receive:

  • Formalized accounting policy in accordance with IFRS, ready for implementation
  • Uniform accounting rules for the company or group
  • Reduced risk of adjustments and audit findings
  • Increased transparency for investors and banks


Advantages of working with BDO

  • Practicality: solutions that truly work within processes and systems
  • Industry experience: case studies from manufacturing and agriculture to energy, retail, and the financial sector
  • Group compatibility: alignment of policies with global requirements and reporting formats
  • Audit readiness: transparent justifications, traceable decisions, and a complete audit trail


Are you planning to transition to IFRS or update your accounting policy?

Contact us, and we will help you develop an accounting policy that is trusted by auditors and investors.

Key Contacts

Andrii Borenkov

Andrii Borenkov, CFA

Partner, Head of Advisory
View bio
Roman Gruba

Roman Gruba

Head of Accounting Advisory and TS
View bio

Related Publications

  • How does ‘accounting policy’ differ from ‘procedure’?

An accounting policy defines the principles and methods of accounting (what is accounted for and how), while procedures describe the steps to be followed in processes and systems (who does it, when, and where it is done).

  • When does a company need an IFRS policy?

A company needs an IFRS policy when transitioning to IFRS, when it is required by a group or by creditors/investors, for public reporting, and when the business model changes significantly.

  • If there is a policy under NAS, is it suitable?

No. IFRS follows different approaches (e.g., for revenue, leases, financial instruments, and impairment). A separate IFRS policy document is required.

  • Should the policy be updated annually?

The policy should be reviewed annually or whenever there are significant changes in standards, business models, or systems.

  • How can a local policy be aligned with the group policy?

We assist in establishing local accounting choices within the group framework, ensuring compatibility for consolidation.

  • Is consolidation included in this service?

If required, we can include policies on consolidation, as well as on investments in subsidiaries and associates, and related disclosures.

  • What is a ‘materiality policy’ and why is it needed?

A materiality policy sets thresholds and criteria for accounting and disclosures, reduces ‘noise’ in reporting, and focuses on the most important items.

  • Do you provide templates for notes?

Yes, we prepare sample disclosures and checklists in accordance with the selected policies.

  • How do you integrate policies into ERP?

We integrate them through account and reference mapping, configuration instructions, and test cases for initial implementation.

  • What are the risks of not having a formalized policy?

They include inconsistent accounting, increased audit risk, and additional costs for revising reports and systems.

IFRS — a globally recognized system of principles and rules for preparing financial statements, ensuring comparability and transparency of financial information.

Accounting policy — a set of principles, methods, and procedures that a company applies when preparing financial statements in accordance with IFRS.

Financial statements — a set of documents (including the balance sheet, income statement, statement of cash flows, and statement of changes in equity) that present the financial position and performance of a company.

Materiality — the assessment of the significance of information, determining whether its disclosure or non-disclosure will influence the decisions of users of financial statements.

Professional judgment — reasonable management decisions in applying IFRS standards in situations where interpretation is required.

Recognition — the process of including individual assets, liabilities, income, or expenses in financial statements.

Measurement — the procedures for determining the value of financial statement items (e.g., at amortized cost, fair value, etc.).

Transaction Identification — the process of identifying events or transactions that are subject to accounting in accordance with IFRS.

De-recognition — the process of removing assets or liabilities from accounts.

Fair value — the price that would be received to sell an asset or paid to transfer a liability between independent market participants.

Cost model — the valuation of assets at their initial cost, less accumulated depreciation and impairment.

CAS (Control Assessment Standard) — the analysis of controls over specific operations or risks in accordance with IFRS.

Consolidation — the process of combining financial statements of a parent company and its subsidiaries into a single set of financial statements.