Accounting ends reporting and ifrs – starting from h

Orlova V. K., Kafka S. N.

The application of international financial reporting standards (IFRS) in Ukraine has led
to contradictory approaches in business accounting of enterprises. First and foremost it is
connected with different tasks which are solved by accounting and IFRS. The combination of
such different tasks is likely to cause the inability of accounting records to perform its core
functions and its essence would be distorted. The article describes the possible approaches to
solving the problem of the accounting and IFRS coexistence.
The purpose of the article is to show the difference between the essence of accounting
and the tasks solved by IFRS. The upshot is to find out the connection between accounting
and financial reporting that takes into consideration the requirements of IFRS.
The main purpose of accounting is a registration (fixation) of the condition and
movement of economic resources. Accounting course takes great control function during the
registration status and movement of economic resources. Accounting has appeared and
developed for this necessity.
The remainders of all accounts are entered in the reporting form - balance, which
control value can not be overestimated. Of course, the value of an accounting object at the
market can not match the size of the balance in the account (the price of real estate, securities
or other assets has decreased or increased) on the reporting date (balance sheet date). Such
information is essential for decision-making managers or investors. The necessity to correct
this information in reporting occurs. However, the accounting should not reflect these
adjustments as they are not associated with the economic resources movement. They are
associated with the assessment of the balance on the balance sheet date.
Showing adjustments according to the assessment on the balance sheet date in
accounting will change the essence of accounting, distort its oversight function and financial
performance of the company.