Accounting and Disclosure of Information on Collateral in the Financial Statements when Transitioning to IFRS (Case Study: Enterprises of the Mining and Metallurgical Complex of Ukraine)

The purpose of the article is to reveal the peculiarities of accounting and disclosure in the financial statements of information on collateral when transitioning to IFRS by enterprises of the mining and metallurgical complex of Ukraine. The analysis of the information about the security disclosed in the financial statements of the enterprises of the mining and metallurgical complex of Ukraine, compiled according to the national and international standards for the same date. It was found out that the main types of long-term securities that mining enterprises are most often accrued during the transition to IFRS are the provision of expenses for the liquidation of fixed assets and the reclamation of land plots, as well as provision for the payment of preferential pensions. The features of accounting for such provisions and disclosure of information about them in the financial statements at the first application of IFRS are disclosed. On the basis of the analysis of norms of international standards the algorithm of recognition of security is substantiated. It is proved that the decision on the creation of collateral should be based on the analysis of the peculiarities of the legislation concerning the activity of the enterprise, its contractual relations and future legal obligations. A form of test-analysis was proposed to determine the need for accrual of certain types of collateral.