TRANSITION OF UKRAINIAN ENTERPRISES TO INTERNATIONAL ACCOUNTING AND REPORTING STANDARDS: THE ROLE OF MULTINATIONAL CORPORATIONS

Abstract

Ukrainian enterprises face a number of problems during the transition to international financial reporting standards on their own initiative or in a mandatory manner in accordance with the requirements of the law. Analysis of these problems, their systematization, characterization will allow to determine the most effective ways to overcome them, prepare for the transition to IFRS, support such entities so that they can take full advantage of the use of international standards to popularize them in Ukrainian business, ensure transparency and investment attractiveness. A special role in this process is played by transnational corporations, which, through the introduction of internal accounting policies, conducting training programs and sending qualified specialists, act as catalysts for change and suppliers of best practices for Ukrainian enterprises.

During the research, general scientific methods of cognition were used, including analysis, synthesis, comparison, analogy, induction, deduction, systematization, comparison, systematic approach.

The transformation of accounting and reporting in accordance with the requirements of IFRS has advantages and disadvantages. The advantages of the implementation and application of IFRS include the fact that business entities that have prepared financial statements according to uniform global requirements thereby provide themselves with opportunities to enter international trade and stock markets, new capital markets, will contribute to the creation of joint ventures, the activation of interstate investment, lending and investing. The company's financial statements, which are prepared in accordance with the requirements of IFRS, highlight the results of its activities in a single format and thereby facilitate the search for partners and investors in the international market, contribute to the emergence of international business associations. Along with this, the transition to IFRS has a number of difficulties and obstacles, the most significant of which are additional costs, attracting more qualified personnel or training one's own, new software, changing the accounting policy and adjusting reporting, the obligation to submit reports according to the IFRS taxonomy. The practice of developed countries demonstrates the

convergence and harmonization of national and international accounting and reporting standards. In its European integration aspirations, Ukraine should also support the implementation of IFRS to ensure business transparency, attract investments, and increase the competitiveness of the national economy. Our findings show that while IFRS implementation demands significant up-front investment, the long-term benefits-enhanced access to global capital markets, improved investor confidence, and increased potential for joint ventures and cross-border lending-outweigh the costs. Practical significance. The given description of the problems that hinder the implementation and popularization of IFRS, practical aspects and difficulties in the transition to IFRS for enterprises of various sizes and sectors of the economy of Ukraine will allow a more complete understanding of the ways to solve them and formulate recommendations for companies that seek to use international standards. The proposed measures create a favorable environment for international accounting standards to become not an exception, but a norm for domestic business, which will increase the competitiveness of the national economy and its deeper integration into the global financial space.