THE ROLE OF МСФЗ AND CONSULTING SERVICES IN ENHANCING THE QUALITY OF FINANCIAL REPORTING OF TRADE ENTERPRISES

Abstract

The article substantiates the role of International Financial Reporting Standards (IFRS) and consulting activities in enhancing the quality of financial reporting of trading enterprises. It is argued that IFRS constitute an external methodological framework that defines the principles of recognition, measurement and disclosure of financial information; however, their formal application does not automatically ensure high-quality financial reporting. The study emphasizes that trading enterprises operate in an environment characterized by high transaction volumes, significant inventories, complex revenue structures, extensive use of discounts and loyalty programs, lease arrangements and substantial trade receivables, which increases the risk of material misstatements in financial statements. The paper demonstrates that the principle-based nature of IFRS requires the application of professional judgement, well-developed accounting policies, consistent internal procedures and adequate disclosure practices. In this context, consulting activities play a critical role in bridging the gap between regulatory requirements and their practical implementation. Consulting support contributes to the development of IFRS-compliant accounting policies, transformation of financial statements, adjustment of accounting processes and information systems, and substantiation of professional judgements related to revenue recognition, inventory valuation, lease accounting and expected credit loss models. An integrated approach to improving the quality of financial reporting of trading enterprises is proposed. This approach is based on the coordinated interaction of IFRS requirements, internal organizational resources of the enterprise and consulting activities as a professional support mechanism. The implementation of such an approach enhances the fundamental and enhancing qualitative characteristics of financial reporting, including relevance, faithful representation, comparability, verifiability, timeliness and understandability. As a result, the analytical value of financial information increases, information asymmetry is reduced and stakeholders’ trust in financial statements is strengthened, contributing to more informed managerial and financial decision-making.