Improvement of the management strategy in elaborating of accounting policies of the entity in accordance with IFRS

Abstract

In modern conditions, the role of enterprise management is increasing significantly, and this is primarily due not only to the ability to manage the enterprise qualitatively, to approve the correct policy of its activities, to concretize budgets, but also, based on the approved development strategy, to understand which indicators, in which assessment should be reflected in financial statements. For the correct completing of the financial statements of the enterprise and presentation of high-quality financial information, the management of the enterprise must correctly develop and approve its accounting policies. If an entity prepares financial statements in accordance with Internatiol Financial Reporting Standards (IFRS), then in elaborating accounting 99 policies it should use the provisions of International Financial Reporting Standard (IAS) 8 "Accounting Policies, Changes in Accounting Estimates and Errors". In a real situation, there may be cases when an enterprise plans certain transactions, however, IFRS do not disclose information: how to reflect such transactions in accounting, in such cases, management must make the right decision, choose the option that will allow to correctly reflect income and expenses, calculate the correct financial result, as well as disclose information in the financial statements. CZU: 005.21:657:006.44; JEL: M21, M41.