International Accounting Standards (IAS) and National Accounting Standards (NAS) of Ukraine have similar and different sides. At the same time, the standards recognized internationally do not have priority over the Ukrainian legislative framework in force at the moment.
IAS is a tool for communication of business representatives at the world level. This is a kind of international language. Nevertheless, not all organizations use it even in European countries. Therefore, in different countries the methodology of accounting has its own peculiarities.
Differences in approaches to accounting significantly complicate the analysis of the financial situation in the affairs of the company, services for the restoration of accounting and other transactions.
IAS Application in Ukraine
Ukraine has moved to a market economy relatively recently. Therefore, the question of the extent to which IAS is used in the activities of Ukrainian organizations is very acute. Now international standards have a recommendatory character, that is, it is a benchmark that should be kept for the leadership of the organization, if there is a goal to reach the world level. Reforming of accounting in accordance with the norms of IAS is approved by the Cabinet of Ministers of Ukraine and is carried out gradually.
Popularization of international standards for the current moment is conditioned by the requirements of owners, investors and creditors, who are often citizens of foreign countries, and they need to report to financial institutions of other states.
In addition, there are clearly visible trends in the globalization of business, and they also require a comparison of information on the financial situation of companies from different countries. So keeping accounting in accordance with IAS is important. Meanwhile, the National Bank of Ukraine is recognized as the leader in the application of international standards in our country. In 2017, it marks the 20th anniversary of the introduction of IAS.