Investment Accounting and Reflection of Financial Instruments of Digital Economy Development in IFRS 4.0

Abstract

The research aims to identify the promising outlines of IFRS 4.0, where these standards will ensure the digital competitiveness of the economy and entrepreneurship. The authors systematize international experience with reference to the World Bank's statistics for 2022 and develop an econometric model that mathematically describes the cause-and-effect relationships of the IFRS 4.0 application. The model showed that an increase in the degree of information disclosure in corporate reporting ensures the inflow of investment, growth of high-tech exports, and the development of domestic high-tech industries (i.e., strengthens the digital competitiveness of the economy and entrepreneurship). The author's main conclusion is that IFRS 4.0 should provide for investment accounting and reflection of financial instruments for developing the digital economy for these standards to ensure the digital competitiveness of the countries and enterprises applying them. As for theoretical significance, this research, for the first time, proposes a promising outline of IFRS 4.0, with which these standards will ensure the digital competitiveness of the economy and entrepreneurship. That is, they will be applicable and highly effective in an Industry 4.0 environment. The managerial significance is that the author's recommendations on the development, implementation, and application of IFRS 4.0 will improve current corporate accounting and reporting practices in Industry 4.0. The practical significance is disclosed in perspective of IFRS 4.0 application in Uzbekistan proposed control values of target indicators, which can be used in drawing up a road map for strengthening the digital competitiveness of the economy and entrepreneurship of Uzbekistan.

Citation

Karrieva, Y.K., Masharipova, S.A., Karrieva, S.S., Karriev, K.S. and Sobirova, N.B. (2024), "Investment Accounting and Reflection of Financial Instruments of Digital Economy Development in IFRS 4.0", Eshov, M.P., Abdurakhmanova, G.K., Burkhanov, A.U., Abdusalomova, N.B. and Ergasheva, S.T. (Ed.) Development of International Entrepreneurship Based on Corporate Accounting and Reporting According to IFRS (Advanced Series in Management, Vol. 33A), Emerald Publishing Limited, Leeds, pp. 49-55. https://doi.org/10.1108/S1877-63612024000033A006