On October 16, 2023, a new КЕ resolution on international accounting standards will come into force. What changes do international accounting standards include? Find out!

New international accounting standards

Under the new regulation, the MSR/MSSF will apply to all UE economic entities that prepare financial statements for public use. These include companies whose shares are listed on the stock exchange, as well as other large economic entities.

The new regulation introduces, in particular, the following changes:

  • expands the range of persons required to apply the MSSF. From October 16, 2023, this obligation applies to all large organizations and capital groups, regardless of their place of registration;
  • introduces new requirements for the presentation of financial statements. These include: the obligation to use a single financial reporting format, to provide information about risks and uncertainties, as well as information about non-financial aspects of the enterprise;
  • changes the rules of application of MSSF for small businesses. Now small businesses can use simplified MSSFs that are less voluminous and require less data.

The implementation of the new KE Regulation will require EU businesses to take a number of preparatory actions. These organizations will need to review whether they meet the criteria for applying the MSR/MSSF, adapt their financial reporting to the new requirements and implement appropriate systems and procedures.

Purpose of making changes

The new KE resolution is the next step towards the harmonization of international accounting standards. This provision is intended to ensure that financial statements prepared in accordance with the MSR/MSSF are more transparent, comparable and reliable.

“The purpose of MSSF 17 is to ensure that a company provides information in its financial statements that fairly reflects its insurance contracts. This information provides users of financial statements with a reliable basis for assessing the impact of insurance contracts on the financial position, financial performance and cash flows of the company.” – indicates Commission Regulation (UE) 2023/1803.