Cite: Dombrovskaya, E. Development principles for preparing financial reporting in the context of digitalization. J. Digit. Sci. 2(2), 44 – 51 (2020). https://doi.org/10.33847/2686-8296.2.2_5
Abstract. The information technology development and the digital economy have a significant impact on the business units’ information system. The impact has resulted in a significant increase in the amount of business data used. With increased information availability, development of new processing methods and algorithms, the approaches to financial reporting need to be adjusted and modified. All changes to the basic principles of financial reporting have been included in the new version of the Conceptual Framework for Financial Reporting. It will come into force on January 1, 2020 for all business units developing their reporting policies under IFRS. The paper overviews the amendments and innovations introduced by the new version of this document. The Conceptual Framework dialectics has been reviewed based on all document versions since 1989. We analyzed the impact of digital technology on the transformation of accounting methods and principles and on the preparation of financial statements. The paper is of practical importance and helps to assess various areas of system development of the IFRS methodology in the context of digital economy.
Keywords: Conceptual Framework, Financial reporting, Digitalization, Principles.
1. Henderson S. et al. Issues in financial accounting. Pearson Higher Education AU (2015).
2. Kachkova, O. E., Vakhrushina, M. A., Demina, I. D., Krishtaleva, T. I., Sidorova, M. I., Dombrovskaya, E. N., Klepikova, L. V. Developing the Accounting Concept in the Public Sector// European Research Studies Journal, 21(1), 636-649, (2018)
3. Flower J., Ebbers G. Global financial reporting. Macmillan International Higher Education (2018)
4. Eﬁmova, O., Rozhnova, O.: The corporate reporting development in the digital economy. In: Antipova, T., Rocha, A. (eds.) Digital Science. DSIC18 2018. Advances in Intelligent Systems and Computing, vol. 850, pp. 71–80. Springer, Cham (2019)
5. Alexander, D., Bonaci, C., Mustata, R.: Fair value measurement in financial reporting. Procedia Econ. Financ. 3, 84–89 (2012)
6. Macve R. A Conceptual Framework for Financial Accounting and Reporting: Vision, Tool, Or Threat?Routledge (2015)
7. Hendriksen, E., van Breda, M.: Accounting theory. Richard D. Irwin. Homewood, IL (1992)
8. Needles, B., Powers, M.: Principles of Financial Accounting. South-Western, Cengage Learning (2011)
9. Tassadaq F., Malik Q. A. Creative Accounting & Financial Reporting: Model Development & Empirical Testing //International Journal of Economics and Financial Issues, 2, 544-551, (2015)
10. Dombrovskaya E. Development of the conceptual framework for financial reporting in the context of digitalization. In: Antipova, T., Rocha, A. (eds.) Digital Science. DSIC 2019. Advances in Intelligent Systems and Computing, vol. 1114, pp. 334–344. Springer, Cham (2020).
Published online 29.12.2020