RECOGNITION AND DISCLOSURE OF ENVIRONMENTAL COSTS, LIABILITIES AND PROVISIONS IN FINANCIAL REPORTING UNDER INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

Abstract

This article examines the recognition and disclosure of environmental costs, liabilities and provisions in financial reporting under International Financial Reporting Standards. The study analyzes the regulatory framework of IFRS, with particular attention to IAS 37, IAS 16, IAS 38 and IAS 1, which indirectly regulate environmental accounting practices. The research identifies key challenges related to measurement uncertainty, professional judgment and insufficient disclosure of environmental obligations. The results demonstrate that environmental costs and provisions have a significant impact on financial performance and transparency of financial statements. The article emphasizes the importance of improving accounting practices and disclosure quality to enhance comparability, reliability and decision-usefulness of financial reporting in the context of sustainable development.