THE EVOLUTION OF IFRS REGULATORY REQUIREMENTS FOR ACCOUNTING OF FOREIGN CURRENCY OPERATIONS AND THEIR IMPACT ON FINANCIAL INFORMATION QUALITY IN TIMES OF INSTABILITY

EDN: UUWKBH

DOI: https://doi.org/10.65891/2949-1983-2026-22-1-36-40

Authors:

RUBAN-LAZAREVA Natalia Vladimirovna, TOLMACHEV Georgy Olegovich

Abstract.

The purpose of the study is a critical analysis of the evolution of International Financial Reporting Standards (IFRS) governing the accounting of foreign currency transactions and hedging operations from the perspective of their ability to provide a neutral and relevant representation of a company's financial results in a high foreign exchange rate volatility environment. The article systematizes the key regulatory contradictions and conceptual complexities embedded in IAS 21 "The Effects of Changes in Foreign Exchange Rates", IAS 39, and IFRS 9 "Financial Instruments". The methodological basis is a comparative and retrospective analysis of regulatory requirements, as well as a deductive method for assessing their impact on the formation of the accounting model. As a result of the study, the phenomenon of "accounting noise" is identified and described — an artificial volatility of the income statement indicators generated by the rules of translation and recognition of exchange differences, which may not correspond to the company's real economic risks and reduce the usefulness of reporting for users. The theoretical significance of the work lies in structuring the scientific discussion about the mission of financial accounting in times of instability. The practical significance is in forming a clear problem field for the development of methods and models aimed at optimizing financial results through the lens of IFRS requirements.

Keywords:

IFRS, foreign exchange rates, exchange difference, financial reporting, earnings volatility, IAS 21, IFRS 9, financial information quality

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