The impact of international financial reporting standards on the quality of accounting data

Abstract

Importance: the article highlights the peculiarities and mechanisms of the influence of international financial reporting standards on the quality of accounting (financial) reporting data. The article also analyzes the factors related to the definition and assessment of the quality of financial statements and to differences in the interpretation of standards and technological limitations of accounting processes. Purpose: accounting (financial) reporting plays a crucial role in business management not only within companies in one country but internationally as well. This provision is especially relevant for those corporations that are part of non-sanctioned international organizations or participate in trading on stock exchanges. Research design: accounting (financial) reporting as it is called in Russia reflects the financial condition of these companies and promotes evidence- based decision-making by investors and creditors concerning the choice of an economic sector for effective investment in a particular country. Taking into account the importance of transparency and reliability of financial information generated in financial statements based on established principles (rather than rules) for the entire world, it becomes necessary to conduct research on the impact of the application of IFRS standards on the quality of financial reporting. Results: in order to eliminate risks in cross-border investments as part of financial regulatory reforms and economic restructuring in countries at different levels of development, it is important to determine the economic consequences of applying standards and their impact on the quality of financial reporting data. It is also necessary to take into account differences in the levels of economic development of states, which directly affects the susceptibility of national financial systems to changes in the regulatory environment. The article highlights these aspects of the research results.