Improving Analysis of IFRS-Compliant Reports

As the modern world economy is becoming increasingly globalized, its development requires the utilization of well-trialled management instruments that are familiar to all market participants It is fair to say that today International Financial Reporting Standards (IFRS) are the most important globalization tool in the field of accounting and financial reporting. Preparing financial statements under IFRS make them more "transparent" and suitable for analysis by potential foreign lenders and investors who can provide the company with the capital it needs for further development. This adds to the already strong scientific and practical interest in improving the conceptual and methodological framework of analysis of financial statements prepared under IFRS. The improvements should increase the information value of the analysis results that gives a more accurate idea of the company's financial performance and financial standing, thus enabling interested users of analytical financial information (potential lenders and investors in the first place) to make management decisions. To solve the above problem, the author systematizes international and Russian practices and propose an original conceptual approach to analyzing financial statements prepared under IFRS that considerably improves the results of such analysis as regards the financial performance and financial position of companies. The approach proposes breaking down the analysis procedure into four consecutive stages: preparatory stage, interpretation, calculations and analysis, and forecasting