ADOPTING INTERNATIONAL FINANCIAL REPORTING STANDARDS TO REDUCE THE RISK OF FINANCIAL REPORTING FRAUD AND ENHANCE THE TRANSPARENCY OF FINANCIAL STATEMENTS

Abstract

The paper discusses the important role of IFRS in improving the quality of financial reporting. The research method used is qualitative, with the main technique being document collection. The authors found that IFRS adoption helps standardize the process of preparing corporate financial statements, thereby minimizing financial reporting misstatement. At the same time, IFRS Standards boost transparency, comparability and trust in financial reporting. This paper also emphasizes the importance of training human resources and building information technology systems to support enterprises in the process of transforming to financial reporting according to IFRS. From there, we propose some solutions for enterprises to actively apply IFRS to get the reputation and trust from the related parties.