Ukraine, as part of the global economic system, has been trying for several years to introduce international financial reporting standards (hereinafter IFRS). For the effective implementation of IFRS in Ukraine, it is necessary to know the positive aspects of accounting in accordance with IFRS, as well as take into account all the obstacles and difficulties of such a transition. The main reasons and driving factors for starting the preparation of financial statements in accordance with IFRS are “improving the quality of management information”, “increasing the number of investors” and “increasing opportunities to attract borrowed funds”. To enter the foreign market and stay there for a long time, the financial statements of the company must be prepared in accordance with international standards.
Imagine that you are the owner and decided to expand your business and attract investor funds. The first thing you come across is the search for an investor. They want to be sure that their contributions will bring profit in the future. Before investing in a company, they will conduct a full analysis of its activities. What the company does, what it releases, whether its activities are profitable, who manages the company – these are just some of the questions that you will need to answer.
First of all, you must understand each other at the level of numbers and speak the same financial language. In this case, this language is IFRS. After all, it is he who will help you visually demonstrate the financial results of your activities. In addition, prove that it is your business that is more attractive in the industry in the market.
In modern conditions of economic development, the task of increasing the competitiveness of business entities by ensuring their openness, leading to increased confidence in them by stakeholders, is becoming urgent. Openness is achieved through transparency. In fact, transparency means such a state of awareness of the company’s activities, its current financial condition and financial results, when any potential investor will have a complete picture of the company and its value without undertaking laborious surveying actions. Thus, the condition for investors to have complete, sufficient and reliable knowledge about the company of interest to them must be observed.
The long-term effect of the implementation of IFRS is that more reliable and high-quality information will be used to make managerial decisions, which means that business efficiency will increase – both current operating activities and investments.
The complexity of the process of transforming financial statements, as well as the lack of understanding by managers of the benefits that this transition will bring to the company. This manual process is cumbersome, time consuming and time consuming. The prevalence of manual interventions in the current distribution of financial statements is not a desirable option.
CFOs should automate the preparation of financial statements using a standard reporting tool. The introduction of financial reporting software can also help streamline the reporting process and reduce errors.
Automation of financial reporting can be achieved either through an ERP system or through specialized software such as CaseWare. Which provides the ability to automatically create personalized reporting.
And that tool is CaseWare Financials. This is a flexible software that combines everything you need to create financial statements. It allows you to collaborate in real time on the files of the working draft and make one-time adjustments that are transferred to all related documents. In addition, based on this module, three templates have been developed for working with IFRS financial statements. They are intended for banks, insurance companies and ordinary enterprises. Each of them implements the ability to export all reports and notes to XBRL.
Working at CaseWare will save you from paperwork in your work. At the same time, automation of all processes eliminates the risk of data distortion and, most importantly, makes it possible to update data instantly.
Use the opportunities for your organization. We offer a FREE Demo of the product where you can test the full effectiveness of working with it.
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