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Digest Finance

Assessing the institutional and financial factors of the IFRS Foundation management from the perspective of the Eurasian Economic Union

Vol. 26, Iss. 4, DECEMBER 2021

PDF  Article PDF Version

Received: 27 September 2021

Received in revised form: 11 October 2021

Accepted: 30 October 2021

Available online: 27 December 2021


JEL Classification: F53, F55, F65, G15, M49

Pages: 470482


Mikhail V. RODCHENKOV Lomonosov Moscow State University, Moscow, Russian Federation


Subject. This article explores the impact of the modern institutional and financial structure of the IFRS Foundation on the quality and functionality of the international financial reporting standards, as the main instruments of globalization of the financial and economic sphere, caused by insufficiency in the management of the IFRS Foundation.
Objectives. The article aims to identify the reasons for the growth of risk factors in the IFRS Foundations activities caused by its institutional and financial structure, taking into account the previously identified problems of the IFRS Foundation management, assess the position of the Eurasian Economic Union (EEU) in the IFRS management system, and develop practical proposals to minimize the identified risks.
Methods. For the study, I used a comparative analysis.
Results. The article finds that the institutional and financial structure of the IFRS Foundation is characterized by disproportion of the current national, sectoral, and financial representation in the Foundations management bodies. This creates risks of inharmonious development of IFRS and confirms the ongoing pendency of the Foundation's unresolved management problems previously identified. The current position of the EEU is characterized by a significant imbalance between functional and financial representations in the Foundation's management system. To reduce such risks, the article proposes to diversify the industry representation, and introduce financial participation coefficients and national representation into the practice of the Foundation's management, based on a transparent and understandable algorithm using public data.
Conclusions. The formulated proposals can be useful for the authorized federal governing bodies of the Russian Federation and the EEU governing bodies when developing growth strategies in the field of accounting and reporting, to improve international standards, and protect the national economic interests of the EEU countries in the course of the IFRS Foundations activities under present-day conditions.

Keywords: IFRS Foundation, EEU, globalization, accounting process, management


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