Transformation of Accounting Data about Fixed Assets While Transition to International Financial Reporting Standards (Case Study: Enterprises of the Mining and Metallurgical Complex of Ukraine)

During the transition to the International Financial Reporting Standards (IFRS) and in view of the first application of these standards, mining and metallurgical enterprises (MMEs) of Ukraine face with the necessity to transform financial reporting data compiled according to national standards. Since the activities of the MMEs are usually provided with large production facilities, one of the balance sheet items (financial statements), which should be given special attention to during the transformation, is fixed assets. The purpose of the scientific paper is to reveal the peculiarities of the transformation of accounting information about fixed assets for the implementation of the IFRS into the mining and metallurgical enterprises of Ukraine. To achieve this purpose, comparison, generalization, horizontal analysis and dialectic methods were used. Based on the analysis of the financial statements of a number of MMEs of Ukraine, drawn up before and after the transition to IFRS, it has been found out that the transition to IFRS has had a different effect on the change of the balance sheet value of fixed assets. The reasons for such changes have been identified and recommendations on the correct transfer of fixed assets of an enterprise to the accounting system in accordance with the IFRS have been given. Three stages of the transformation of accounting and financial information about the fixed assets of an enterprise are defined: 1) development of accounting policy; 2) preparation of transformation adjustments; 3) preparation of financial statements. The analysis of the fixed assets of a number of MMEs of Ukraine to reveal differences in their accounting in comparison with the Accounting Regulations and Standards and IFRS has been made. The approach to determining the necessary transformation adjustments has been developed on the basis of the analysis of such characteristics of fixed assets as their method of receipt and application. The main transformation adjustments that the MMEs of Ukraine may face during the transition to the IFRS are illustrated. The peculiarities of fixed assets, which should be considered during the transformation are presented, as well as the features of fixed assets that are subject to transformation adjustments during the transition to the IFRS are specified.