The effect of accounting policies on an entity's financial statements

Relevance of the research topic. In modern conditions of the development of entrepreneurial activity, there is a need for an in–depth study of the regulatory framework for regulating the financial reporting of enterprises and the impact of accounting policies on its indicators. The relevance of the research topic is determined by the strengthening of the need for the adoption of legal norms aimed at ensuring guarantees of the timely provision of reliable information to an open circle of users about the effectiveness of the economic activity of an enterprise, an adequate response to the emergence of new financial structures, concepts and operations. The purpose of the study is: a comprehensive analysis of modern problems of legal regulation of financial reporting of enterprises in Ukraine, proposed ways to improve them and analysis of the impact of the main elements of accounting policy on financial reporting. Research methods. The article uses the dialectical method of scientific knowledge, the method of analysis and synthesis, comparison, the method of generalizing data, the study is based on a systematic approach to the problems under consideration, the study of their relationship and development. Research results. The article examines the legal framework for regulating the financial reporting of Ukrainian enterprises, discloses problematic aspects of regulation, suggests ways of improving them. The main elements of the accounting policy and their influence on the indicators of the financial statements of the enterprise have been investigated. Scope of the results. In the field of economic sciences and practical activities of enterprises. Conclusions on the article. Based on the study, it was found that the system of legal regulation of financial reporting in Ukraine requires changes, in particular, it is necessary to develop and adapt the legal and regulatory framework for accounting and financial reporting in Ukraine to the legislation of the European Union (hereinafter EU) and IFRS. It was found that when organizing accounting and reporting at an enterprise, accounting policy plays an important role. Based on the study of the main elements of accounting policies, it has been established that it has a significant impact on the financial statements of the enterprise