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International Financial Reporting Standards' (IFRS) application peculiarities: a case study

Author

Listed:
  • Hafis Ahmed oglu Hajiyev

    (Azerbaijan State University of Economics, Azerbaijan)

  • Marina Stolyarova

    (Kuban State Agrarian University, Russian Federation)

  • Olga Kalacheva

    (Plekhanov Russian University of Economics, Russian Federation)

  • Victoria Malitskaya

    (Plekhanov Russian University of Economics, Russian Federation)

  • Yana Ivanova

    (Plekhanov Russian University of Economics, Russian Federation)

  • Lyudmila Malysheva

    (Southwestern State University, Russian Federation)

Abstract

This article raises the topical issue of the main aspects of International Financial Reporting Standards (IFRS) 5 "Non-current assets held for sale" and their more logical and structured explanation according to the standard for a more accessible understanding by all stakeholders of this standard, including students, since at the moment IFRS 5 little known and rather difficult to understand. The authors describe the processes of recognition and evaluation of non-current assets held for sale, using the financial statements of the largest Russian company as an example. A brief overview of the effectiveness of its activities is given, indicating the importance of the occupied market share and the representativeness of the results obtained. The write-off procedure for the asset held for sale is presented under this heading, taking into account the particulars of the depreciation process for the assets in question. The study showed that normally a sale of an asset must take place within one year, but this may not always be the case, which is reflected in this article. The conclusion presented results and recommendations which, on the one hand, improve the reliability of the company’s financial statement, on the other hand, facilitate the understanding of the accounting area for interested users.

Suggested Citation

  • Hafis Ahmed oglu Hajiyev & Marina Stolyarova & Olga Kalacheva & Victoria Malitskaya & Yana Ivanova & Lyudmila Malysheva, 2021. "International Financial Reporting Standards' (IFRS) application peculiarities: a case study," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(2), pages 255-267, December.
    • Handle: RePEc:ssi:jouesi:v:9:y:2021:i:2:p:255-267
    DOI: 10.9770/jesi.2021.9.2(17)
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    References listed on IDEAS

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    1. Stergios Leventis & Panagiotis Dimitropoulos & Asokan Anandarajan, 2011. "Loan Loss Provisions, Earnings Management and Capital Management under IFRS: The Case of EU Commercial Banks," Journal of Financial Services Research, Springer;Western Finance Association, vol. 40(1), pages 103-122, October.
    2. Abed Al-Nasser Abdallah & Wissam Abdallah & Feras M. Salama, 2018. "The Market Reaction to the Adoption of IFRS in the European Insurance Industry," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 43(4), pages 653-703, October.
    3. Costanza Fabio, 2018. "Voluntary application of IFRS by unlisted companies: evidence from the Italian context," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 15(2), pages 73-86, May.
    4. Ester Chen & Ilanit Gavious & Baruch Lev, 2017. "The positive externalities of IFRS R&D capitalization: enhanced voluntary disclosure," Review of Accounting Studies, Springer, vol. 22(2), pages 677-714, June.
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    More about this item

    Keywords

    cultural approach; non-current assets; recognition; disposal; simplification;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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