BUDGETING AS A SYSTEM OF MANAGEMENT OF ENTERPRISE ACTIVITIES BASED ON INTERNATIONAL STANDARDS OF FINANCIAL REPORTING

Abstract

The article highlights the importance of compliance of budget plans with international standards, contributing to the improvement of financial transparency and ensuring the trust of stakeholders. The purpose of the article is to study the theoretical and practical aspects of budgeting as a management system of enterprise activities based on IFRS. To achieve the goal, scientific publications, normative documents, as well as practical experience of domestic and foreign enterprises were studied. This scientific article examines the issue of budgeting as a key system of managing the company's activities, focusing on the use of international financial reporting standards. The authors study the theoretical and practical aspects of the implementation of this system in order to ensure effective management of resources, financial stability and optimization of the company's financial processes. The budgeting implementation procedure is described and the possibility of using IFRS principles in it is noted. The article analyzes how the implementation of IFRS contributes to increasing the transparency and reliability of financial reporting, which affects the quality of management decisions. Challenges and benefits associated with adapting budget processes to IFRS requirements are also explored. In the process of the research, the role of the formation of the classifier of financial articles in the process of implementing budgeting was analyzed. A comparative analysis of the articles of the income and expenditure budget and the cash flow budget in relation to IFRS indicators was carried out. Interpretation of the data of the conducted comparative analysis allows you to see the reasons for the discrepancy between profit and cash flow. The results of the comparative analysis are presented in the form of a summary table. The logic and principles of grouping articles serve as the basis for the formation of a single plan of accounts at the enterprise, as well as the development of operating and financial budgets. The conclusions of the article are aimed at understanding and improving the practice of using IFRS in budgeting and management activities of enterprises to achieve better financial discipline and strategic management.