Transition to IFRS

FAQ

• Elements of financial statements in accordance with IFRS

  The elements of financial statements are the information from which they are prepared. Conventionally, such elements are divided into categories: Elements for assessing the financial position that is part of the balance sheet: assets - according to IFRS, these are resources and property that the company controls, are the result of past events and are expected to benefit from them in the future. liabilities - the debt of the enterprise, which arises from past events and, for the sake of settlement, leads to an outflow of resources containing economic benefits. These include loans, debt obligations, bank loans, debt. The obligation can also be extinguished by other means, such as refusal or loss by the creditor of his rights. capital (equity) - own share of the company's assets after deducting liabilities. It can be divided into the following parts: capital from shareholders, the capital received as a result of its own activities. Elements that evaluate the economic activity and make up the income statement: income - an increase in the assets of an enterprise or a decrease in liabilities, the result of which is an increase in capital (but it should not occur at the expense of owners' contributions). Income can be in two forms: revenue - regular income from ordinary activities. winnings - income of an irregular nature, such as fines, compensation, subsidies, sale of fixed assets, exchange rate differences. expenses - this is a decrease in economic benefits for the reporting period as a result of the disposal of assets and the emergence of liabilities, which lead to a decrease in the capital of the organization. Expenses are divided into two groups: ordinary expenses that are carried out to generate income in the future; other expenses that do not create any economic benefits in the future.

• Report preparation

  There are several ways to prepare reports in accordance with IFRS: using primary (parallel) accounting in accordance with IFRS. By transforming national reporting into IFRS format. Parallel accounting is of higher quality, but too labor-intensive and may be economically unjustified. The transformation of reporting allows you to significantly save preparation resources. It is based on the regrouping and adjustment of reporting items prepared in accordance with national standards for reporting in accordance with international standards.