The effect of accounting policies on an entity's financial statements

Relevance of the research topic. In modern conditions of the development of entrepreneurial
activity, there is a need for an in–depth study of the regulatory framework for regulating the financial
reporting of enterprises and the impact of accounting policies on its indicators. The relevance of the
research topic is determined by the strengthening of the need for the adoption of legal norms aimed
at ensuring guarantees of the timely provision of reliable information to an open circle of users about
the effectiveness of the economic activity of an enterprise, an adequate response to the emergence of
new financial structures, concepts and operations.
The purpose of the study is: a comprehensive analysis of modern problems of legal regulation
of financial reporting of enterprises in Ukraine, proposed ways to improve them and analysis of the impact
of the main elements of accounting policy on financial reporting.
Research methods. The article uses the dialectical method of scientific knowledge, the method of
analysis and synthesis, comparison, the method of generalizing data, the study is based on a systematic
approach to the problems under consideration, the study of their relationship and development.
Research results. The article examines the legal framework for regulating the financial reporting
of Ukrainian enterprises, discloses problematic aspects of regulation, suggests ways of improving
them. The main elements of the accounting policy and their influence on the indicators of the financial
statements of the enterprise have been investigated.
Scope of the results. In the field of economic sciences and practical activities of enterprises.
Conclusions on the article. Based on the study, it was found that the system of legal regulation
of financial reporting in Ukraine requires changes, in particular, it is necessary to develop and adapt
the legal and regulatory framework for accounting and financial reporting in Ukraine to the legislation
of the European Union (hereinafter EU) and IFRS. It was found that when organizing accounting and
reporting at an enterprise, accounting policy plays an important role. Based on the study of the main
elements of accounting policies, it has been established that it has a significant impact on the financial
statements of the enterprise.