FEATURES OF ACCOUNTING AND FINANCIAL REPORTING OF TRANSNATIONAL CORPORATIONS

Nature of the transnational corporations' activities led to the transformation of the financial accounting's organization. A need for a more accurate assessment of resources, financial results and display of relevant consolidated information in financial statements appeared. The erasure of national capital borders required the creation of uniform accounting rules that are understandable for all business entities and investors, regardless of geographic location. The article examines the concept of accounting efficiency of TNCs. Its main features include: adaptation of activities, tax and accounting procedures to the requirements of the legislation of the countries where branches are located; consideration of multi-currency relations between branches, etc. The main tasks of accounting of transnational structures are disclosed. The sequence of the accounting process from primary documents to consolidated financial statements is shown. The concept of consolidated financial reporting in national and international standards was considered and conclusions were drawn regarding the similarity of approaches in interpretations. Forms of consolidated financial statements approved in domestic legislative acts are indicated. A grouping of the compiling consolidated financial statements' problems of TNCs is provided in two categories: organizational and methodical. The first category includes the instability and complexity of legislative regulation, the complexity of the process of general accounting organization for the needs of consolidation of corporate structures' reporting located in different countries, insufficient number of highly qualified specialists. The second category is represented by the multi-currency factor, the difficulty of determining the contribution of each subsidiary structure to the overall indicators of the TNC, the shares in the capital, the high labor intensity and duration of reporting and its transformation. Particular attention is paid to the recommendations for preparing consolidated financial statements according to international financial reporting standards 10 «Consolidated Financial Statements» and national accounting regulations (standard) 2 «Consolidated Financial Statements».