IFRS (International Financial Reporting Standards)
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Accounting – is an economic activity which has been recognized as an effective tool for the control and regulation of economic indicators quite a long time ago. But during the entire time of its existence global accounting has evolved and improved, changing standards and accounting rules. Naturally, as a result these rules began to look very different in various countries, which in most cases has made international economic relations only more complicated.
The decision to develop unified standards for the accounting was made when the first versions of the consolidated balance sheet were drawn, in 1906. The decision to develop unified standards for the accounting was made when the first versions of the consolidated balance sheet in 1906. In the first place, setting the unified standards should facilitate the accounting operations in the companies that constitute a single holding company. But the truly optimized and global IFRS have been created only in 1973. From that moment there was a new impetus to the development of international financial relations.
Currently quite a lot has changed among the IFRS rules and for compliance of financial documentation with these standards enterprise need highly qualified staff. More and more countries are adopting this system as determining for their business. But for full compliance with IFRS accounting requires constant close monitoring of the reports that has been filled, which is quite difficult to perform by the same staff that this reports has made.
The most appropriate option is to involve outsourcing organization that can objectively evaluate the level of compliance of papers with IFRS and give their recommendations. Our company has long been engaged in registration reporting under international standards, advice and assistance in complex financial transactions in accordance with IFRS. The FChain of more than 14 years monitors all changes in the international financial standards, and our experts are constantly improving their professional skills.
Just since the beginning of the 2000s to the present IFRS and IAS were subjected to major changes, and were revised many times. The purpose of such transformations – unification of a global assessment system, that helps to improve the quality of international accounting, eliminates the errors and inaccuracies in the management accounting. But to possess all of the IFRS tools – not an easy task, that requires as the professional skills in finance, so and professional skills of subjective judgments based on the analysis of each situation individually.
The system of IFRS regulations — is a set of excerpts and the general provisions, which does not consider special cases. Therefore, for organizations with a narrow specific activity, the ordering of documents in accordance with these standards can be very challenging. Moreover, not enough to just know all provisions of IFRS and be able to follow them in the analysis of the simple accounting operations. It is also necessary to understand the connection between some standards, which will submit the accounting in a much more correct form.
For example, during the merger of the business an accountant is obliged to take account of the acquisition of fixed assets (FA) and should be guided not only by the principal provisions of IAS 16, which describes the very essence of the acquisition, but also to be able to reflect this by IFRS 3 Business Combinations. Equally challenging is the reflection in the accounting of purchase or sales of FA in exchange for shares, the acquisition of FA based on crediting or through targeted funding by the state.
But these operations are quite common in the medium and big businesses areas, so they can not be ignored. For European countries recording by means of IFRS is a prerequisite for the existence of the company in the share market since 2005.
Fortunately, FChain — an expert in the integration of IFRS in enterprises. We can offer our professional help and standardize your enterprise’s reporting to achieve the international level as soon as possible. Just contact FChain and your business will take a leading position in the international market.