Challenges of targeted formation of financial reports in modern business conditions

Abstract

When compiling financial statements in accordance with IFRS, it is possible to apply several procedures and methods to capture the effects of certain events and transactions. The fact that the quality of accounting information is directly conditioned by the choice of accounting policies, the assessments made during the preparation of financial statements, as well as the professional judgment of the compiler of financial statements, there is an emphasized need to consider the scope of the target design of financial statements, since based on the information presented, the primary users of financial statements make decisions in the field of capital allocation. The aim of the work is to shed light on the area of conception and selection of accounting policies and thereby contribute to a better understanding of the presented financial information as a significant prerequisite for efficient decision-making by investors and the functioning of the capital market.

Keywords

• financial reporting policy
• accounting policies
• ifrs
• quality of earnings