Proceedings of the 26th and the 27th International Academic Conference (Istanbul, Prague)

TYPES OF FINANCIAL STATEMENTS, QUESTIONS OF THEIR SUBMISSION AND COMPARATIVE ANALYSIS ACCORDING TO THE IFRS

LEVAN SABAURI, NADEZHDA KVATASHIDZE

Abstract:

In conditions of globalization there is increased significance of financial statements increased, the qualitative characteristics of information of which define its usefulness for user of information. Information is useful when it helps the information user to make economical decision. For making of economical decisions users need different statements, rules of preparation and submission of which are regulated by International Financial Reporting Standards (IFRS). These statements are of general purpose, individual. consolidated, combined, pro forma. International Accounting Standards Board (IASB) constantly works on improvement of submission of information from such statements, and as result there were made so many changes in the corresponding IFRS during the last years (2011-2016). These changes are expressed in explanation of doctrines, parameters of consolidation, methods of estimation of statements indexes, explanatory notes etc. For all this we need to think from the beginning about what purpose and contents has any kind of financial statement, how do they differ from each other, in which case which statement shall be submitted, which statement does the user need.

Keywords: Purpose of financial statement; conception of enterprise, conception of owner; standards of small and average enterprises; financial statement of general purpose; individual financial statement; consolidated financial statement; combined financial statement; pro forma financial statement

DOI: 10.20472/IAC.2016.027.041

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