TRANSFORMATION OF FINANCIAL REPORTING DURING MARTIAL LAW

Abstract

Introduction. Under martial law, businesses need comprehensive support to continue to ope­rate and develop. Credentials are the basis for reporting and decision support. At the same time, the transition of enterprises to the use of international standards and the transformation of financial reporting are key to ensuring the transparency of financial reporting, attracting other partners to cooperation and investors, and supporting international organizations. The aim of the article is to determine the features of the organization and methods of transformation of financial statements of small businesses into reporting according to inter­national standards, finding ways to improve them. Methods. During the study, the methodo­logical basis of general and special methods of cognition: analysis, synthesis, induc­tion, grou­ping, comparison, abstraction, genera­lization, and system approach are used. Results. Methods of transformation and con­version of financial statements during the transition of enterprises to international finan­cial reporting standards, their advantages and disadvantages are analyzed. The organizational and methodological aspects of the transfor­ma­tion of financial reporting are described, taking into account the peculiarities of accounting and reporting at small businesses in Ukraine under martial law. The conceptual principles of trans­formation and the types of differences that arise during the transformation and affect the ref­lection of the information in the reporting prepared according to international standards are established. Conclusions. Transformation of financial statements into IFRS reporting is defined as the process of transition to accounting and pre­paration of financial statements in accor­dance with international standards with adjustments to current accounting policies and accounting information, regrouping of indicators prepared in accordance with national standards (inclu­ding for small businesses) 1 or 25) in accor­dance with the requirements of IFRS for SMEs or the full package of IFRS on the date of such transition. Transformation of financial state­ments requires adjustments and taking into account differences that may affect the financial performance and evaluation of companies in martial law.