Reporting Without Borders: Ukrainian Realities in the IFRS Context

Abstract

In the contemporary global landscape, financial reporting has transcended the internal affairs of individual states or enterprises. Amidst globalization, integration into global capital markets, and the escalating role of investors, standards of transparency, understandability, and comparability of reporting are acquiring paramount significance. International Financial Reporting Standards (IFRS) have become the "common language of business" for over 140 countries worldwide. Simultaneously, Ukraine, despite substantial progress in IFRS implementation, continues to encounter a range of challenges, spanning from regulatory inconsistencies to practical difficulties in applying the standards within the domestic environment. The purpose of the article is to analyze the correlation between the national accounting system and IFRS, to identify existing gaps, and to assess the readiness of Ukrainian enterprises for full-fledged reporting under international regulations. The methodological foundation of the study comprises a synthesis of general scientific and specialized cognitive methods, enabling a comprehensive elucidation of the harmonization processes between the national accounting and financial reporting system and international standards. These methods include elements of analysis and synthesis; the comparative method; the systems approach; the generalization method; the institutional approach; and empirical methods (content analysis of scientific sources, regulatory frameworks, and enterprise financial statements). The analysis of scientific literature and the regulatory framework revealed significant discrepancies in the conceptual foundations, valuation principles, recognition criteria, and disclosure requirements between IFRS and National Accounting Regulations (NAS). It was determined that IFRS are based on the principle of economic substance and are oriented towards the needs of a broad spectrum of users, including investors, whereas NAS are more focused on legal form and the requirements of state regulators. The practical experience of Ukrainian enterprises was investigated. A distinct list of IFRS that lack complete analogues within the national accounting system was identified, highlighting substantial methodological gaps and complicating the transition to international standards. A series of measures to ensure the effective implementation of IFRS were proposed, including legislative harmonization, the development of methodological support, the enhancement of professional competence of specialists, the development of technical infrastructure, the promotion of a culture of transparency, and the adaptation of IFRS for Small and Medium-sized Enterprises (SMEs). The implementation of these proposed measures will contribute to the improvement of the investment climate in the country and the strengthening of the position of Ukrainian businesses in the international arena. The conducted research confirms the necessity for the further harmonization of the national accounting system with IFRS through the implementation of comprehensive measures at the legislative, methodological, and educational levels. The adoption of these measures will facilitate a more effective integration of Ukraine into the global economic space, enhance investor confidence, and ensure the understandability and comparability of Ukrainian enterprises' financial information at the international level.