The integration of Ukrainian businesses into the global economy necessitates the improvement of financial reporting quality. In the context of globalization, many Ukrainian enterprises aim to meet international financial reporting standards, as this facilitates attracting investments, enhances trust in financial reports, and ensures comparability of financial indicators with foreign companies. National accounting standards are gradually being adapted to international requirements, which requires continuous study and comparison. A deep understanding of the differences between national and international standards allows businesses to respond promptly to changes in accounting and take into account the requirements of both systems.

The requirements for preparing financial statements depend on the target audience of the reports and the category of the enterprise: some national companies are required by law to comply with international standards, while others can freely choose between international and national standards based on their needs and goals.

The reliability of financial indicators in reporting largely depends on the effective accounting of inventory, which is a significant component of a company's current assets, influencing its liquidity structure, profitability, and overall financial condition. The "correct" reflection of inventory contributes to the transparency of financial reporting, which is important for attracting investors, ensuring creditworthiness, and complying with regulatory requirements. The primary international standard regulating inventory accounting is IAS 2 "Inventories", while at the national level, companies use the Ukrainian accounting standard UAS 9 "Inventories". To reflect the balances of inventory accounts in financial statement forms, companies follow UAS 1 "General Requirements for Financial Reporting", or International Standards, including IAS 1 "Presentation of Financial Statements", IFRS 10 "Consolidated Financial Statements", and IFRS 13 "Fair Value Measurement".

Standards define the key principles, structure, and content of reporting, ensuring its comparability, transparency, and reliability for users of financial information. However, despite the common goal, IFRS and Ukrainian Accounting standards (UAS) have certain differences in the disclosure requirements for inventory. Studying these differences in the disclosure of production inventory under IFRS and UAS helps to better understand the methodological distinctions between these standards and their impact on the completeness of disclosures and the quality of financial reporting for enterprises.

One of the key differences between UAS and IFRS is the level of detail in the requirements for the format of financial statements.

UAS 1 provides standard reporting forms, in which inventories are reflected in line 1100 of section II of the balance sheet assets, while production inventories are an additional item located in line 1101.

IFRS, in turn, do not set strict requirements for the structure of the balance sheet, giving companies more freedom in choosing the formats for presenting information. Although IAS 1 provides a minimum list of items, including inventories, that must be presented in the Statement of Financial Position, it also allows these items to be aggregated into groups, as long as such aggregation does not significantly affect the users understanding of the financial information.

Under IFRS 10 "Consolidated Financial Statements," inventory must be presented at the group level as a single asset, ensuring consistency in financial reporting. Any intercompany inventory (such as supplies between companies within the same group) should be excluded from the consolidated balance sheet to avoid double counting. Furthermore, the Notes to the financial statements should include information about the accounting methods and any differences that may impact the valuation of inventory.

IAS 34 "Interim Financial Reporting" requires the disclosure of only significant changes in inventory levels or valuation methods compared to the previous reporting period, allowing investors and other stakeholders to quickly assess changes in the financial position of the company without overloading interim reports with excessive details.

Thus, international standards place greater emphasis on the detail and transparency of inventory accounting, requiring additional disclosure in the Notes to the financial statements. This helps improve the quality of reporting for users, particularly investors and creditors. They also require the unification of accounting policies within a group of companies (IFRS 10) to ensure the accurate presentation of the group's financial position in the consolidated financial statements.

National accounting standards have a more specific approach to defining inventories than international standards. UAS 9 provides a detailed list of items that are included in the inventory, which allows for the precise identification of production inventories, whereas IFRS uses more general terms.

When comparing Ukrainian Accounting Standards (UAS) 9 and IAS 2, significant differences in the approaches to inventory valuation can be observed. Ukrainian standards provide detailed regulations for inventory valuation at the stages of receipt, disposal, and at the balance sheet date, using the concept of "cost of acquisition." This allows for a clear structure in accounting and recording the value of inventories at each stage of their movement.

IAS 2 focuses on comparing two values: cost and net realizable value, and inventories are valued at the lower of the two. International standards do not have separate requirements for valuation at each stage, which provides flexibility but may complicate data comparison for financial statement users.

Both National Accounting Standards of Ukraine and IFRS allow enterprises to choose inventory valuation methods (FIFO, weighted average cost). However, IFRS places more emphasis on the justification of net realizable value and the valuation of inventories based on economic benefit. An analysis of IFRS 13 and UAS 1 reveals their specific characteristics, particularly regarding the valuation and disclosure of information in financial reporting.

Flexibility and detail in international standards enhance the comparability and transparency of reporting, which is especially important for enterprises striving to integrate into the international business environment.