Proskurina Nelia, Doctor of Economic Sciences, Professor, Professor of the Department of Accounting and Taxation, Zaporizhzhia National University, Zaporizhzhia, Ukraine

ORCID: 0000-0001-8674-1720
e-mail: profauditzp@ukr.net

Goncharova Valentina, Candidate of Sciences in Public Administration, Associate Professor, Associate Professor of the Department of Accounting and Taxation, Zaporizhzhia National University, Zaporizhzhia, Ukraine

ORCID: 0000-0001-5556-7192
e-mail: synthez_audit2016@ukr.net

Konovalova Anastasia, Chief Accountant, LLC NMC «GLOBAL ACCOUNT AUDIT», Zaporizhzhia, Ukraine

ORCID: 0000-0001-5036-1603
e-mail: nastya.gn07@gmail.com

Accounting Estimates as a Factor in the Transformation of Financial Statements Under Ifrs

Abstract. Introduction. Accounting estimates play an increasingly significant role in modern financial reporting under International Financial Reporting Standards (IFRS). The growing reliance on professional judgment, combined with economic uncertainty and volatility, has led to a substantial expansion of estimated values within the structure of financial statements. As a result, accounting estimates have become a critical determinant of the reliability, comparability, and decision-usefulness of financial information for users.

Purpose. The purpose of the article is to investigate accounting estimates as a key factor in the transformation of financial statements under IFRS and to substantiate their impact on the qualitative characteristics of financial information.

Results. The study reveals the economic substance of accounting estimates and determines their role within the system of professional judgment. The differences between accounting estimates, accounting policies, and accounting errors are substantiated. Particular attention is given to the influence of accounting estimates on transformation adjustments during the transition to IFRS, including the measurement of assets and liabilities, the recognition of provisions, fair value determination, and impairment testing. It is established that accounting estimates significantly affect not only the technical aspects of financial statement transformation but also the formation of financial results and the financial position of an entity. The findings demonstrate that identical economic conditions may lead to different financial outcomes depending on the assumptions, valuation techniques, and estimation models applied.

Conclusions. The study concludes that accounting estimates should be regarded as a substantive factor in IFRS-based financial reporting rather than a purely technical instrument. The increasing role of estimates necessitates enhanced methodological guidance for their development, improved disclosure practices, and a higher level of professional responsibility among those involved in accounting judgments. Strengthening these aspects contributes to improving the transparency and analytical value of financial statements prepared in accordance with IFRS. 

Keywords: accounting estimates; financial statements; IFRS; financial statement transformation; professional judgment; reliability of information.

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