HOW DOES THE RUSSIA-UKRAINE CONFLICT REFLECT ON FINANCIAL STATEMENTS?
DOI:
https://doi.org/10.5281/zenodo.10488099Abstract
Russia's military attack on Ukraine and the related sanctions against Russia and Belarus have had a significant impact on businesses. Particularly considering that many financial statements as of December 31, 2021, had not yet been finally audited or prepared for presentation, the question of how this reflects on the accounting and auditing of businesses has emerged. This study examines the expected impacts and changes in financial statements due to the economic and geopolitical effects of the war under International Accounting Standards (IAS), based on examples. As a result, in accordance with the standards, due to the crisis period, the Russia-Ukraine conflict is expected to significantly affect the financial statements. This also includes the determination of fair value, the sustainability of the business, rising inflation, interest rates, and exchange rates, as well as potential disruptions in the supply chain.
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