Unification and Harmonization of National Accounting Procedures in the Context of Adaptation to International Accounting and Reporting Standards

Abstract

Introduction. The main characteristics of the modern world economy are globalization and integration processes, attempts to create and develop various forms of joint economic activity between countries, companies, businesses. The processes of international integration of the economy lead to the need to build a rational mechanism for the formation of information about the activities of economic units at the global level, which can be done in the process of international standardization of accounting and financial reporting. Methods. General and special methods were used in the course of the research, in particular: the analytical method was used in the review of literature sources; the method of classification made it possible to differentiate the main components of international accounting and reporting standards; method of description – to give them a detailed description; the monographic method was used in the study of literature sources on the details of the elements of international standards of accounting and reporting; the system and analytical method is applied at processing of the received information. Results. The article considers the theoretical, organizational and practical principles of harmonization, unification and standardization of the main aspects of national and international accounting and financial reporting. It is established that in the convergence of national accounting and IFRS there is a need to identify and eliminate methodological and practical differences between them, identify rational ways to assess the basic elements of financial reporting, based on the formation of concepts of unification of accounting processes as a major problem facing the international accounting community. A number of problems have been identified related to the formation of methodological, regulatory and organizational mechanisms that ensure the development and implementation of IFRS and IAS, compliance with their application at the international and national levels, as well as the elimination of conflicts between them. Discussion. The received recommendations can be used for implementation of the basic elements of process of harmonization and unification of national standards that will promote increase of efficiency of domestic accounting practice. It is expedient for domestic enterprises to unify and harmonize accounting and financial reporting standards. Keywords: accounting, harmonization, unification, standardization of accounting and financial reporting, international standards, IFRS, IAS.