Features of the formation of IFRS financial statements in context of digitalization and the impact of COVID-19 pandemic

Purpose of the research – to consider the impact of the coronavirus pandemic on the preparation of financial statements in accordance with IFRS in the context of digital transformation.

Methodology - in the process of the research, such general scientific methods as theoretical generalization, scientific abstraction, expert and analytical assessment, analysis of causes and consequences were used.

Originality / value of the research – an applicable methodology presented for reflecting the consequences of the pandemic in the financial statements in general, based on the analysis of the activities carried out by the IASB for the digital transformation of financial statements and based on the current edition of international financial reporting standards.

Findings – it was found that the outbreak of the virus and the pandemic had a significant impact on the pace of digitalization of all economic processes, including the preparation and provision of financial statements of companies, and also contributed to the acceleration of the digital transformation of the IFRS Foundation itself, which led to a need of a new 21st century reporting model in the language of business reporting.

The direct and indirect impact on the functioning of companies was not influenced by the virus itself, but by the methods of fighting against it. According to IFRS(IAS)10 current pandemic situation is not an adjusting event but a significant one. This means that companies, at least, should reflect this in the notes when submitting a report.

The ultimate impact of the COVID-19 pandemic on financial statements as a whole varies depending on the specific business risks and circumstances of any given company.

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