Financial reporting under IFRS: Ukrainian context, transformation challenges, and prospects for improvement

Abstract

The article investigates the peculiarities of the implementation and adaptation of International Financial Reporting Standards (IFRS) in Ukraine, focusing on the challenges of transformation under the conditions of martial law, economic instability, and global uncertainty. The purpose of the study is to identify current issues in the application of IFRS in the Ukrainian business environment and to outline strategic directions for improvement. The methodological basis includes analytical and comparative approaches, systematization, synthesis, abstraction, and elements of legal analysis. The research revealed that the full implementation of IFRS is hindered by outdated infrastructure, an insufficient number of qualified professionals, gaps in national legislation, and the slow digital transformation of accounting systems. The war has significantly intensified these problems, creating additional barriers to accurate financial reporting and reducing access to global financial markets. At the same time, it has accelerated the demand for transparency, reliability, and comparability of Ukrainian companies’ financial statements in the context of donor support and foreign investment. The article substantiates the importance of synchronizing national standards with international practice, improving educational and methodological support for IFRS implementation, and increasing the role of digital technologies in reporting. Special attention is paid to the experience of countries that have undergone similar transformations. The practical value of the study lies in identifying concrete steps for harmonizing financial reporting with EU requirements and international norms.