Transformation of Financial Statements Under IFRS

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Activation of European integration processes in Ukraine, attraction of foreign investments, development of international cooperation and internationalisation of Ukrainian enterprises require transformation of accounting system in accordance with the International Financial Reporting Standards (further — IFRS). Transformation of financial statements under IFRS guarantees openness and transparency of the financial indicators of reporting entities.

Transformation of financial statements under IFRS is a reporting process that meets the requirements of IFRS by making adjustments to the statements prepared under national or other accounting standards.


Who needs transformation of financial statements under IFRS?

Preparation of financial records under IFRS is mandatory for public joint-stock companies, banks, insurance companies and entities of certain types of activities defined by the Cabinet of Ministers of Ukraine. Read more here.

Also, organizations can independently decide on the transition to international standards or about transformation. Transformation of accounting statements is used if reporting under IFRS is required, but the accounting is kept under different standards (e.g., due to legislative requirements, lack of necessary skills of staff, etc.). Transformation of financial statements

Advantages of service for transformation of the statements under IFRS from BDO in Ukraine, are the following ones:

  • practical experience in implementing projects in all spheres of the economy (industry, agro, retail, IT, etc.)
  • highly-qualified specialists and demanding international domestic BDO standards
  • combination of the best world practices and detailed knowledge of Ukraine

 

Read more about services in the field of IFRS from BDO in Ukraine here.

 

Do you want to know how BDO can help you with transformation to IFRS? Please contact our specialists for more details.

Key Contact

Roman Gruba

Roman Gruba

Head of Accounting Advisory and TS
View bio

Related Publications

  • What is the transformation of financial statements under IFRS Accounting Standards?

The transformation of financial statements under IFRS Accounting Standards is the process of preparing financial statements in accordance with the International Financial Reporting Standards by making adjustments to the statements prepared under national or other accounting standards.

  • Who is required to prepare financial statements under IFRS Accounting Standards?

Preparation of financial statements under IFRS Accounting Standards is mandatory for public joint-stock companies, banks, insurance companies and certain entities as defined by regulations of the Cabinet of Ministers of Ukraine.

  • Can other organisations voluntarily adopt IFRS Accounting Standards?

Yes, any organisation may voluntarily decide to adopt IFRS Accounting Standards, even if its current accounting is conducted under national standards.

  • What are the most common reasons for transitioning to IFRS Accounting Standards?

•    Entry into international markets

•    Attraction of foreign investment

•    Participation in international projects

•    Integration into the European space

•    Legislative requirements

  • What are the benefits of transforming financial statements under IFRS Accounting Standards?

The main benefits include compliance with international requirements, increased investor confidence, opportunities to attract capital, adaptation to the international business environment and support for foreign economic activities.

IFRS Accounting Standards — the International Financial Reporting Standards applied to ensure transparency, comparability, and openness of financial information of entities.

Preparation of financial statements under IFRS Accounting Standards — the creation of financial statements in accordance with the requirements of IFRS Accounting Standards by adjusting data prepared under national or other accounting standards.

Transformation of financial statements — the process of adjusting financial indicators prepared under other accounting standards to bring them into compliance with IFRS requirements.

Financial statements under IFRS Accounting Standards — financial statements prepared in accordance with International Financial Reporting Standards (IFRS Accounting Standards), ensuring transparency and openness for investors, partners and international markets.