HARMONISATION OF NATIONAL AND INTERNATIONAL ACCOUNTING AND REPORTING STANDARDS FOR PROVISIONS FOR FUTURE PAYMENTS AND LIABILITIES: CLASSIFICATION AND METHODOLOGICAL ASPECTS

Abstract

Introduction. Harmonization of the national accounting system with International Financial Reporting Standards (IFRS) is one of the key directions in the development of accounting theory and practice under the conditions of European integration. Issues related to the accounting of provisions for future payments and charges are of particular importance, as they involve a high degree of professional judgment, measurement uncertainty, and a significant impact on an entity’s financial position.

Purpose. The purpose of the study is to conduct a comparative analysis of national and international accounting and financial reporting standards concerning provisions for future payments and charges as a component of the sources of asset formation of business entities.

Materials and Methods. The research is based on the provisions of IAS 1, IAS 37, IAS 19, IFRS 16, the Conceptual Framework for Financial Reporting, National Accounting Standard (NAS) 11, NAS 26, the Chart of Accounts for Accounting, and scientific works of domestic and foreign scholars. The study employs methods of comparative analysis, systematization, classification, logical generalization, analysis, and synthesis.

Results. The article substantiates that the classification of provisions into current and non-current categories constitutes an integral element of their measurement and presentation in financial statements in accordance with the conceptual principles of IFRS. It is established that IFRS provides a comprehensive approach to accounting for provisions based on the principles of relevance, faithful representation, and comparability of information. A comparison of IFRS and NAS requirements across seven conceptually significant parameters demonstrates that national standards generally correspond to international approaches at the level of fundamental definitions and recognition criteria; however, they are characterized by a lower degree of methodological elaboration. The most significant differences were identified in the areas of discounting long-term provisions, recognition of constructive obligations, organization of accounting and analytical support, and disclosure requirements in the notes to financial statements. The study proves that the current Chart of Accounts does not fully ensure consistency between the synthetic accounting of provisions and financial reporting requirements, thereby creating risks of reduced analytical value and transparency of accounting information.

Discussion. Future research should focus on developing methodological recommendations for accounting for provisions in specific sectors of the economy, improving approaches to the discounting of long-term liabilities, and further harmonizing the national accounting system with current IFRS requirements and the IFRS UA XBRL Taxonomy.