CHALLENGES OF TIMELY AND ACCURATE MANAGEMENT OF INFORMATION FLOWS IN IFRS IMPLEMENTATION IN THE DIGITAL ECONOMY

Abstract

The paper examines problems of managing information flows in the application of IFRS in the digital economy. In digital environments, financial data are formed across several interconnected systems, such as ERP platforms, bank and tax interfaces and electronic invoices. As a result, the transparency, comparability and timeliness required by IFRS depend not only on compliance with the text of the standards, but also on how data are managed from the moment they arise until they are reflected in the reports. Based on the IFRS Conceptual Framework and the academic literature, the study divides the financial information flow into six stages and identifies the typical risk points at each stage. The analysis shows that risks concentrate mainly at the transition points between stages: system interfaces, conversion from national accounting practice to IFRS, and period-end closing. The Azerbaijani context is considered through the legal framework on accounting and the criteria used to determine the entities required to report under IFRS. The paper proposes a management mechanism based on six principles (single data source, IFRS chart of accounts mapping, interface controls, closing calendar, data ownership, audit trail) and a system of indicators for monitoring its effectiveness. The study is conceptual; empirical testing of the proposed indicators is planned for subsequent stages of the research.