International Accounting Standards (IAS)
Discussions about transition to international accounting standards (IAS for short) have started recently. However, a lot of entrepreneurs still have doubts whether such action is necessary. Following organizations are required to provide documentation in compliance with international standards:
- Insurance and clearance companies;
- Private pension funds and management companies;
- Companies managing investment funds, mutual funds;
- State unitary enterprises;
- Open joint stock companies.
Besides, those entrepreneurs who want to expand their business, involve foreign investors or customers, resort to this service as well. Moreover, a lot of domestic businessmen want to cooperate with foreign banks. In this case transition to international accounting standards in Ukraine is obligatory. Subsidiaries or affiliates of international companies also provide reports in compliance with international standards. It is necessary to have a proper strategy of transition to international standards, in order to get the maximum efficiency.
IAS in Ukraine: Procedure Features
In conditions of business reality in Ukraine, big iron and steel enterprises and machine-building enterprises were the first to implement new system of international standards. However, this complicated process is time-consuming and requires profound changes.
Small companies will be able to easier and faster adopt international standards and even make some procedures more efficient. In order to implement IAS, a company needs to define the stages of this process. It is necessary to start from reports preparation and organization of comprehensive accounting.
Financial accounting transformation can be one of the ways of transition to international standards. This is a classical approach. At the same time, a lot of lawyers can offer more efficient procedures and even own certified methods. The main advantage of the classical method is its simplicity; however, it has substantial weak points. The transition process it based on quarterly or annual basis. Hence, it is impossible to get information at the intermediate stage.
Besides, human error may also take place, since the transition process is performed on the basis manual analysis and processing of charts, schedules and diagrams. Such a method is possible in case a company provides comprehensive and accurate accounting.
Transition to IAS with CACS Company
Experts of CACS Company offer one of the most popular services – transition to international standards of financial accounting. The procedure can be performed in two ways:
- Since its very establishment, a parent company sets standards for its subsidiary or affiliate enterprises in Ukraine concerning real-time financial accounting;
- Temporary transformation. Such method suits to small companies or enterprises that perform small number of transactions.
If you want to switch to international standards, our experts will help you with this complicated procedure. Company CACS provides accounting and legal services in full. Our long-term experience allows us to provide services in compliance with international requirements and within the shortest terms.