The Structure of Equity Capital in Accordance with IFRS in a Market Economy

Abstract

This research article comprehensively examines the structure and classification of equity capital in accordance with International Financial Reporting Standards (IFRS) within a modern market economy, clarifying both its theoretical foundations and practical implications. The subject of this study focuses on the financial components, measurement criteria, and reporting disclosure requirements of equity capital in market-driven economic systems. Based on the study's primary findings and a thorough analysis of the nature, characteristics, and economic content of equity capital, a detailed description and breakdown of each capital type are systematically provided. Furthermore, the paper investigates the critical role of corporate equity in ensuring financial stability, evaluating investment attractiveness, and minimizing financial risks for enterprises. The practical part of the research highlights the specific challenges faced by companies when transitioning to IFRS-compliant equity reporting. Ultimately, the results and strategic conclusions of this study offer valuable recommendations for improving accounting policies, enhancing financial transparency, and optimizing capital management structures in contemporary organizations.