The purpose of the research - sections 1 and 2 of the International Financial Reporting Standard for Small and Medium-sized Enterprises describe the characteristics of small and medium-sized enterprises, as well as assets, liabilities, capital, income and expenses for the qualitative reflection of information in the financial statements of these entities. The state of application of the concepts and basic principles of recognition and evaluation of elements of financial statements was studied in this research.
The metodology of the research – methods such as synthesis, analysis and comparison were used during the research on the recognition and evaluation of the elements of financial statements based on the requirements specified in the 2nd section of the "International Standard of Financial Reporting for Small and Medium Business Entities".
The practical importance of the research – taking into account the importance of small and medium-sized businesses in the formation of financial resources, analyzes were carried out to recognize and evaluate the elements of financial statements using examples for a more reliable and transparent reflection of information in financial statements.
The results of the research - in order to obtain high financial indicators calculated for the continuous implementation of activities in small and medium-sized enterprises, studies were carried out that ensured an increase in the qualitative characteristics of the elements of financial statements recognized and evaluated in financial statements.
The originality and scientific novelty of the research – as a result of studying the conceptual approaches reflected in the 3rd topic "Qualitative characteristics of useful financial information" of the Conceptual Framework for Financial Reporting adopted in 2010, as well as the requirements reflected in the regulatory legal acts adopted in Azerbaijan related to the recognition and evaluation of elements financial statements, in this study, comments and suggestions were given on the presentation of information in a more reliable and transparent form in financial statements, improving the qualitative characteristics of these elements in terms of disclosure of individual items specified in sections 1 and 2 of the "International Financial Reporting Standard for small and medium businesses".
Keywords: International financial reporting standards for small and medium-sized enterprises, basic concepts and principles, financial reporting, qualitative indicators, initial cost, fair value.
Elkhan Orkhan Jafarov
Musayeva Nəzakət Məmməd qızı