USE OF IFRS IN ACCOUNTING FOR RELATED PARTY TRANSACTIONS

The article examines the issue of information support of operations with related parties. The characteristic features of the disclosure of information on related parties of the company are identified and described, which is one of the most important requirements, since only with the availability of such information can interested users make an informed economic decision. Along with this, it was concluded that the reflection of such information in reporting is rather laborious for accountants due to the large amount of information required for disclosure and its “closeness.” Based on the study of the current regulatory practice of accounting and reporting on transactions of related parties, the author found that the existing accounting software provided in accordance with national accounting standards is poorly adapted to disclose information about the impact of transactions with related parties on business results and requires improvement in order to improve the quality of information generated. Particular attention is paid to the current mechanism for preparing information about affiliates in financial statements in the national accounting system. This question is supplemented by a consideration of the practical significance of such information for analyzing the financial position of a company and predicting its development. The idea is substantiated that the application of certain and necessary provisions of international standards can significantly increase the reliability and quality of reporting required by users. In conclusion, some results of the study of the problem of applying certain provisions of the International Financial Reporting Standards when reflecting facts of economic life committed under the influence of related parties are summarized.

organization, management, investors, profit, business operations, accounting, related parties, International Financial Reporting Standards, National accounting standards, analysis.

Komarova M. A. Use of IFRS in accounting for related party transactions. Business. Education. Law, 2019, no. 4, pp. 269–273. DOI: 10.25683/VOLBI.2019.49.462.