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Abstract:
The article is devoted to the problem of using modern information
technologies in the formation of financial statements according to international standards.
The application of the principles of IFRS in the preparation of financial statements makes
it possible to present information characterizing the property status and financial results
of an organization in a language understandable to users around the world, and as a result,
in the least time-consuming way to gain the trust of investors, including foreign ones.
Keywords:
Information Technology, International Financial Reporting Standards (IFRS),
IFRS Implementation, Accounting
Introduction
Currently one of the most actively discussed and topical issues is rapid
development of the digital economy. However, to a much lesser extent the
preparation of scientific and methodological materials and articles by analysts
gives quick practice for the development of the digital economy, attention to the
environment, and the effectiveness of its use. The majority of issues of the digital
economy at present are associated with the processes of distribution, exchange
of the results of the activities of economic entities, financial sphere, but to a lesser
extent the problems of direct production processes, including both innovation
processes, and traditional business processes. In this regard, in the context of
the development of the digital economy, standardization of terminology used in
economic management is of paramount importance. An example of this area of
work was the use of International Financial Reporting and Accounting Standards
(IFRS) in most countries of the world.
1
1
Javdatovna A. N. FOREIGN EXPERIENCE IN ACCOUNTING AND CONTROL OF FIXED ASSETS IN THE PUBLIC SEC-
TOR //ResearchJet Journal of Analysis and Inventions. – 2021. – Т. 2. – №. 4. – С. 1-5.
THE IMPORTANCE OF
MATHEMATICS AND
MODERN INFORMATION
TECHNOLOGIES IN
IMPROVING THE
IMPLEMENTATION OF
INTERNATIONAL FINANCIAL
REPORTING STANDARDS IN
THE DIGITAL ECONOMY
https://doi.org/10.47689/STARS.univer-
s i t y - 5 - p p 2 7 9 - 2 8 3
MAKHMUDOVA MALIKA YUNUSALIYEVNA
Student of 3
rd
year
Tashkent Institute of Finance
malikamahmudova22@gmail.com
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International Financial Reporting Standards are a set of international accounting
standards that specify how specific types of transactions and other events should
be reflected in financial statements. Accounting standards are designed to clarify
the principles and requirements for both compilers of financial statements and
investors. They were created in order to create a common accounting language.
International financial reporting is constantly evolving, as the developers of
standards strive to meet the demand for a greater amount of better information
in financial statements.
International Financial Reporting standards make financial reporting more
transparent, improving the quality of information about the finances of companies
and helping to easily evaluate and compare this information enabling investors
and market participants to make informed financial decisions. They also increase
the accountability of the company, which ensures the openness of information to
regulatory authorities and, if necessary, provides information that is required to
hold management accountable. The use of a single language of financial reporting
contributes to the improvement of economic efficiency worldwide since it helps
the investor to correctly identify opportunities and risks, therefore, it improves the
distribution of capital.
IFRS Implementation: The Need for Information Technology Support
In modern conditions of economic development, integrated reporting has
gained great importance, capable of accumulating both financial and non-financial
information about the activities of a company or group of companies. The growing
importance of such reporting is due to the fact that “only a small percentage of
the company’s value is currently expressed in its tangible and financial assets...the
remaining value of the company is represented by intangible assets”, reflected in
the non-financial part of the report. Obviously, accounting is not a source of non-
financial information (or it is, but partially), which cannot be said about financial
information, which, as a rule, is presented in consolidated form, that is, in the
form of consolidated financial statements. Without the use of modern automation
processes, it will be extremely time-consuming to generate such reports, and the
probability of errors increases dramatically. That is why the formation of financial
information in integrated reporting using modern information technologies will
ensure high-quality reporting and minimize the cost of its presentation.
Meanwhile, the analysis of the introduction of information technologies into
the system of processes for the formation of consolidated financial information
showed the presence of problems of both organizational and methodological
nature.
1.Lack of personnel preparing the financial information in accordance with IFRS.
2.Difficulties in the implementation of information technology in the reporting
process.
3.The problem of comparability of financial information prepared on the basis
of various professional judgments.
2
Abdukarimovich O. A. Budget organizations formation and improving accounting for out-of-budget budgets //Inter-
national Journal of Advanced Science and Technology. – 2020. – Т. 29. – №. 8. – С. 11-16.
STARS International University
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4.Problems with processing large amounts of information coming from the
group’s companies.
5.Difficulties in reflecting certain data in reporting (pension plans, hedging, etc.).
These problems indicate that the process of forming financial information as part
of an integrated report without modern information technologies is long and time-
consuming. Currently, for the formation of such information, it is common to use
separate files (for example, Excel files) in which financial data on group companies
are generated, transformational and consolidation adjustments are made, and the
entire reporting package is formed. Meanwhile, it can be extremely difficult to
generate and verify such data on fact, since at the stage of collecting information,
it is necessary to provide financial data on such analytics so that they allow for the
formation of further adjustments and corresponding disclosures in the statements.
Meanwhile, separate information files also do not allow disclosing information
at the level of the primary document, and if necessary, appropriate accounting
systems should be opened, the data which are reflected on the basis of primary
documents. The process of analytical disclosures without the use of automation
tools requires regular verification, comparison, and justification of numerical data.
If certain changes are made to the Russian accounting data, for example, when
errors requiring retrospective correction are detected, the relevant information
files should also be corrected. All the problems considered allow us to conclude
that IT is necessary to use information technologies in the development of a
unified centralized system that provides the reliable presentation of consolidated
financial information.
IFRS Implementation: The Changes to Existing
Information Technology Systems
The use of information technologies in accounting has a lot of advantages
over the classical method of accounting because it allows you to significantly
increase the productivity of employees of the accounting department and reduce
the time for reporting and documentation, which is of particular importance in
modern conditions of reduced labor productivity compared to other countries.
The introduction of IT technologies into the functioning of accounting allows you
to reduce time by automating operations, find errors in reporting and accounting,
assess the financial condition and results of both an individual company and a
group of companies, as well as predict the prospects for their future development.
The automation system in accounting must meet the following requirements:
•full coverage of all operations and business processes;
•the correct methodological basis for the construction of planned and accounting
indicators;
•efficiency of accounting operations;
•completeness, reliability, and accuracy of the credentials.
Currently, information technology created on the basis of the decentralized
processing of accounting data has been widely used. Its features are as follows:
•formation of multilevel and local area networks;
•increase in the composition of accounting calculations performed by computers;
•creating a single database;
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•the possibility of information and reference services for accounting staff;
When choosing software to create an accounting information system, it is
compared and analyzed for a number of features with other software products. To
a greater extent, this determines the technological basis for building an accounting
information system.
The composition of information support is formed with the participation of
users, as well as at the design stage of information systems. The foundation of
its development is data. When creating information support, an important role is
assigned to the results of the task statement, during which the specific composition
of the summary and primary documents is determined. The design of information
support is carried out in conjunction with software and automated data processing
technology.
The first accounting systems were accounting complexes created before the
advent of personal computers. The development of technologies in this area
is moving towards the creation of a complex of new analytical, trading, and
management modules. Such a complex can be equipped with data exchange
facilities between automated workstations. In this segment, the most time-
consuming accounting tasks are automated - accounting for production costs,
wages, and material assets, as well as the ability to generate consolidated financial
statements for the group of companies as a whole. It is obvious that the main
users of software products are companies with large staffs and a large turnover
of material resources. The accounting complex in modern conditions is a set of
programs for various areas of accounting, combined into a single whole.
IFRS Implementation: The Determinants of
Impact on Information Technology Systems
The impact of IFRS implementation on the information technology structure of
any organization varies depending on the organization’s existing structure and
environment. This may include its information technology and financial systems
capability/integration, industry complexity, company size, the relevance of
business process/transaction, internal control structure, mergers and acquisitions
process, and other attributes. The extent to which systems will need to change
depends upon multiple factors and choices, including the quantity and nature of
accounting changes driven by IFRS, size, and complexity of the business, strategy
for responding to IFRS, characteristics of the current infrastructure and capabilities
and a number of applications that are involved in the collection of financial data
and the generation of financial statements.
1
1
Information Technology Implications of IFRS https://www.researchgate.net/publication/315643000_Information_Technology_Implications_of_
IFRS_Implementation_in_Nigeria_Challenges_to_Auditors
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References:
1.Javdatovna A. N. Foreign experience in accounting and control of fixed assets
in the public sector //Research Jet Journal of Analysis and Inventions. – 2021. – Т.
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Information Technology Systems on the Accounting Information Quality -2013-
pp. 41-42.
3.Daferighe Emmanuel Emekaponuzo, Ofonime Okon Jeremiah, Emah Joseph
Alfred. Information Technology Implications of IFRS Implementation Vol. 6, No. 1,
2017, pp. 22-27. doi: 10.11648/j.jim.20170601.14
