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Yagmur Ekaterina
Ph.d.,
Pencheva Olga
Donetsk National University of Economics and Trade
named after
Mikhailo Tugan-Baranovsky
Donetsk
GLOBALIZATION AND ITS IMPACT ON ACCOUNTING
Globalization is a
centuries old phenomenon of growing interaction between national economies. In
recent decades, this phenomenon has gained a new momentum, because of political
developments and progress in information and communication technology. The
traditional interrelations, e.g. in closely connected financial markets, have grown
considerably.
At the same time there
has been a deepening of globalization through, for example, international value
added chains. Increasingly production processes extend over the whole world. These
developments have had a positive impact on worldwide income and productivity [1].
Due to the fact that
many companies follow the globalization process, so they need some global accounting
in order to follow this process and the present financial situations which use
a unique accounting procedures that can be understand by the entire business
community [1].
In connection with the declaration of Ukraine's
course towards European integration Parliament has adopted the Law of Ukraine
"About the National Program for Ukraine Adaptation to the European
Union", which clearly defines the priority areas for Ukraine adaptation,
including accounting companies [2].
The main aim of this article is considering the most
important features of International Financial Reporting
Standards and their impact on Ukraine’s accounting.
The problem of choosing the
application between IFRS or
Provisions (standards) of accounting is not an important factor in the
economic situation in Ukraine for domestic enterprises. Moreover, this problem cannot be considered as the cause of changing in the current legislation of accounting, because the national Provisions
(standards) of accounting match the IFRS in
all material respects [3].
However, existing theoretical basis for IFRS (which corresponds to the
interests of developed countries) has been reviewed within
a reasonable idea of sustainable development of new accounting
doctrine.
The strategy of application of international financial
reporting standards clearly states
that the process of the world economy globalization,
strengthening the protection of investors
and ensure transparency of
international capital markets have led
to new approaches for improving
the methodology disclosure of
economic information about the
entity primarily issuers of international financial markets.
Globalization - is inevitable economic process that transforms national characteristics to the whole world.
Due to the fact that there is the expansion of
integration processes in the world economy, the idea of accounting standardization gets significant popularity.
Standardization allows accounting policies, principles, the accounting and reporting system to be globalized.
It is carried out within the framework
of accounting harmonization at
the international level, conducted by the International Accounting Standards Board
[4].
The approach
of accounting standardization is a set of standards for any accounting situation in
any country. There is no need to
develop national standards.
International standards play significant role in improving the
national accounting and its
integration into the world community.
International accounting standards cover a range of issues that are of
great international importance in the development of foreign trade,
transnational corporations, globalization of financial markets. They play a significant
role in improving the national accounting standards and integration into the world
community [4].
In Ukraine, the national Provisions
(standards) of accounting must comply with International
Financial Reporting Standards, which are constantly reviewed
and improved. in national
accounting standards is indicated on them are not
applicable to the preparation of financial statements in accordance with IFRS
Summarizing all above mentioned we may conclude that the
study of economic
globalization has special meaning
and influence on the Ukraine’s accounting system
development. The main features of Ukraine’s accounting according to globalization
processes are:
·
National accounting standards are not applicable for financial statements in accordance with IFRS;
·
Public stock companies, banks, insurance
companies execute financial statements and consolidated financial statements according to international accounting
standards;
·
Reporting in accordance with IFRS’s requirements should be based on accounting of IFRS.
References
1.
Raffournier B., Walton P.
Accounting differences and financial statement analysis / P. Walton, A. Haller,
and B. Raffounier (eds.) //International Accounting, 2011. - 429 p.
2. Про
загальнодержавну програму адаптації законодавства України до законодавства
Європейського Союзу [Електронний ресурс]: Закон України / Верховна Рада
України № 1629-IV. – [Затверджений від 2004-03-18]. – Режим
доступу: http://search.ligazakon.ua/
3.
Міжнародні стандарти бухгалтерського обліку/ перекл. з
англ. за ред. С. Ф. Голова. —К. : ФПБАУ, 2008. — 1270 с.
4.
Сопко В.В. Глобалізаційні процеси та їх вплив на бухгалтерський
облік / В.В. Сопко // Бухгалтерський облік та аудит.-2011.- №10. – С. 2-11.
5. Губина
И. МСФО: украинская версия / И.Губина // Бухгалтерия - 2012. - № 1-2. - С.16 .
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