Accounting for Impairment of Receivables Based on International Standards

Abstract

Article examines the procedures for accounting receivables based on International Financial Reporting Standards (IFRS), with a focus on creating provisions for impairment of receivables based on the IFRS 39 and 7 standards. According to these standards, accounts receivable are a financial asset and must be tested for impairment. The article will consider the procedure for calculating impairment in a textile company using the reserve matrix. At the end, recommendations are also given for improving accounts receivable accounting.