Financial Reporting Standards and Corporate Market Positioning in the Energy Industry

Mikhail V. Rodchenkov

Lomonosov Moscow State University, Moscow, Russia Higher School of Management (EQC), Moscow, Russia

Abstract

In today's multipolar world, understanding the impact of international financial reporting standards on national businesses is crucial for safeguarding their interests. These standards significantly affect market opportunities and competitive strength. This study aims to evaluate the economically significant aspects of how these standards shape the perception of industry businesses. The central hypothesis is that the variation in key financial indicators measurements allowed by different reporting standards influences market opportunities for companies within the same industry, based on state-economic characteristics under similar economic conditions. The study examines the impact of international standards on business operations and their broader economic consequences, offering a comparative analysis of company perceptions shaped by financial statements adhering to these standards. Statistical analysis categorizes companies based on state and economic factors, constructing and comparing financial profiles within the same industry. The research methodology employs regression and multivariate analysis on financial reporting data from public companies during both economic expansions and global downturns. The findings reveal shortcomings in the current economic system's approach to defining and presenting economic metrics, leading to measurable discrepancies and a two-tiered differentiation in market opportunities. It identifies tools and assesses stratification outcomes for single-industry users across diverse standards. The research's theoretical contribution lies in connecting accounting systems with companies' market positioning and evaluating the growth potential of GAAP and IFRS. Its practical value stems from pinpointing flaws in how the current economic system defines and presents economic indicators, causing discrepancies and unequal market opportunities for companies within the same industry. It also suggests ways to lessen the adverse effects of international standards on the Russian economy.

Keywords

risks; corporate financial reporting; IFRS; GAAP; government; sustainable economic growth; board of directors.

JEL classification

References

1. Pavlenko, Y. (2022). The factors of the economic development of the modern state: an essay. Society and Economics, No. 11, 5–15. (In Russ.). https://doi.org/10.31857/S020736760023103-2

         2. Zaytsev, Y.K., Loshchenkova, A.N. (2024). The impact of sanctions on the revenues of Russian companies. Journal of the New Economic Association, No. 2, 57–74. (In Russ.). https://doi.org/10.31737/22212264_2024_2_57-74

         3. Zaytsev, Y.K., Loshchenkova, A.N. (2023). The impact of sanctions on the activities of Russian companies in the manufacturing sector of the economy in 2014–2021. Journal of the New Economic Association, No. 3, 50–65. (In Russ.). https://doi.org/10.31737/22212264_2023_3_50-65

         4. Gurvich, E., Prilepskiy, I. (2016). The Impact of financial sanctions on the Russian economy. Voprosy Ekonomiki, No. 1, 5–35 (In Russ.). https://doi.org/10.32609/0042-8736-2016-1-5-35

         5. Kuzyk, M.G., Simachev, Y.V. (2023). Strategies for adaptation of Russian companies to sanctions in 2022. Journal of the New Economic Association, No. 3, 172–180. (In Russ.). https://doi.org/10.31737/22212264_2023_3_172-180

         6. Simachev, Y.V., Yakovlev, A.A., Golikova, V.V., Gorodnyi, N. A., Kuznetsov, B.V., Kuzyk, M.G., Fedyunina, A.A. (2023). Russian industrial companies under the “second wave” of sanctions: Response strategies. Voprosy Ekonomiki, No. 12, 5–30. (In Russ.). https://doi.org/10.32609/0042-8736-2023-12-5-30

         7. Vedev, A.L., Eremkin, V.A., Tuzov, K.A. (2024). High risks and weak pace of economic growth: Russia macroeconomic forecast for the medium term. Voprosy Ekonomiki, No. 2, 5–22. (In Russ.). https://doi.org/10.32609/0042-8736-2024-2-5-22

         8. Gnidchenko, A.A. (2025). World trade concentration and product market segregation. Journal of the New Economic Association, No. 1, 36–53. (In Russ.). https://doi.org/10.31737/22212264_2025_1_36-53

         9. Rodchenkov, M.V. (2022). Comparability of accounting indicators of international financial statements from the position of investors. Finance, Money, Investments, No. 3, 18–23. (In Russ.). https://doi.org/10.36992/2222-0917_2022_3_18

         10. Hongying, L. (2022). Convergence of Chinese Accounting and Reporting Standards with IFRS: Particularities, Challenges, and Prospects. International Accounting, No. 1, 29–44. (In Russ.).  https://doi.org/10.24891/ia.25.1.29

         11. Huang, Y. (2023). Major Changes in IFRS and Comparison with US GAAP. Proceedings of the 3rd International Conference on Business and Policy Studies, Vol. 71, 92–99. https://doi.org/10.54254/2754-1169/71/20241439

         12. Turlington, J. (2016). U.S. GAAP vs. IFRS: A Comparative Study Regarding How Differences in Accounting Standards Can Affect Understanding of Company Financial Performance. Washington and Lee University Digital Archive. Available at: https://digitalarchive.wlu.edu/islandora/us-gaap-vs-ifrs-comparative-study-regarding-how-differences-accounting-standards-can

         13. Arioldi, D., Ventura, L., Witte, M.D. (2022). Network- adjusted market share and the currency denomination of trade. World Economy, Vol. 45, Issue 8, 2560–2592. https://doi.org/10.1111/twec.13239

         14. Loecker, J. de Eeckhout, J. (2018). Global market power. NBER Working Paper, No. 24768. National Bureau of Economic Research, 15 p.. Available at: https://ssrn.com/abstract=3206443

         15. Mashkova, A.L., Bakhtizin, A.R. (2024). Assessing the consequences of global trade wars for world economies: Tools and forecasts. Journal of the New Economic Association, No. 1, 12–30. (In Russ.). https://doi.org/10.31737/22212264_2024_1_12-30

         16. Polterovich, V.M. (2024). The formation of domestic value-added networks. Journal of the New Economic Association, No. 3, 251–257. (In Russ.). https://doi.org/10.31737/22212264_2024_3_251-257

         17. Bezrukov, A.O., Baidarov, D.Yu., Faikov, D.Yu. (2024). Technological leadership of the state: Conceptual understanding and formation mechanisms. Economic Revival of Russia, No. 1, 75–89. (In Russ.). https://doi.org/10.37930/1990-9780-2024-1-79-75-89

         18. Kapoguzov, E.A., Pakhalov, A.M. (2024). Technological sovereignty: Conceptual approaches and perceptions by the Russian academic experts. Journal of the New Economic Association, No. 3, 244–250. (In Russ.). https://doi.org/10.31737/22212264_2024_3_244-250

         19. Gevorgyan, R.A., Gevorgyan, G.K. (2025). Game-theoretic analysis of the global economic system with a dominant currency issuer. Voprosy Ekonomiki, No. 6, 22–41. (In Russ.). https://doi.org/10.32609/0042-8736-2025-6-22-41

         20. Drobyshevsky, S.M., Kazakova, M.V., Sinelnikova-Muryleva, E.V., Trunin, P.V., Fokin, N.D. (2023). Trend inflation: Estimates for the Russian economy. Voprosy Ekonomiki, No. 1, 5–25. (In Russ.). https://doi.org/10.32609/0042-8736-2023-1-5-25

         21. Woodford, M. (2014). Inflation Targeting: Fix It, Don’t Scrap It. Voprosy Ekonomiki, No. 10, 44–55. (In Russ.). https://doi.org/10.32609/0042-8736-2014-10-44-55

         22. Sukharev, O.S. (2025). Distributed management in macroeconomics: The cumulative effect. The Manager, Vol. 16, No. 2, 2–11. (In Russ.). https://doi.org/10.29141/2218-5003-2025-16-2-1

         23. Bessonov, V.A. (2016). On the costs generated by the problems of measuring inflation. Questions of Statistics, Vol. 10, 12–21. (In Russ.). https://doi.org/10.34023/2313-6383-2016-0-10-12-21

         24. Cioli, V., Giannozzi, A., Ippoliti, V., Roggim O. (2020). Cross-Border M&A and Financial Performance: Empirical Evidence on Bidder/Target Companies. International Journal of Business and Management, Vol. 15, No. 4, 67. https://doi.org/10.5539/ijbm.v15n4p67

         25. Jorissen, A., Lybaert, N., Orens, R., Van der Tas, L. (2013). A geographic analysis of constituents’ formal participation in the process of international accounting standard setting: Do we have a level playing field? Journal of Accounting and Public Policy, Vol. 32, Issue 4, 237–270. https://doi.org/10.1016/j.jaccpubpol.2013.04.005

         26. Larson, R.K. (2007). Constituent participation and the IASB’s International Financial Reporting Interpretations Committee. Accounting in Europe, Vol. 4, Issue 2, 207–254. https://doi.org/10.1080/17449480701727981

         27. Richardson, A.J., Eberlein, B. (2011). Legitimating transnational standard-setting: the case of the International Accounting Standards Board. Journal of Business Ethics, Vol. 98, Issue 2, 217–245. https://doi.org/10.1007/s10551-010-0543-9

         28. Lev, B. (2018). The deteriorating usefulness of financial report information and how to reverse it. Accounting and Business Research, Vol. 48, Issue 5, 465–493. https://doi.org/10.1080/00014788.2018.1470138

         29. Dechow, P., Sloan, R., Zha, J. (2014). Stock Prices and Earnings: A History of Research. Annual Review of Financial Economics, Vol. 6, 343–363. Available at: http://www.jstor.org/stable/44864085

         30. Liang, L., Riedl, E.J. (2014). The effect of fair value versus historical cost reporting model on analyst forecast accuracy. Accounting Review, Vol. 89, No. 3, 1151–1177. https://doi.org/10.2308/accr-50687

         31. Lo, K., Ramos, F., Rogo, R. (2017). Earnings management and annual report readability. Journal of Accounting and Economics, Vol. 63, Issue 1, 1–25. https://doi.org/10.1016/j.jacceco.2016.09.002

         32. Gassen, J., Schwedler, K. (2010). The Decision Usefulness of Financial Accounting Measurement Concepts: Evidence from an Online Survey of Professional Investors and their Advisors. European Accounting Review, Vol. 19, Issue 3, 495–509. https://doi.org/10.1080/09638180.2010.496548

         33. Egan, M., Yanxi, X.W. (2020). The true and fair view: exploring how managers, directors and auditors engage in practice. Accounting Forum, Vol. 44, Issue 4, 398–420. https://doi.org/10.1080/01559982.2020.1727177

         34. Yip, R.W., Young, D. (2012). Does mandatory IFRS adoption improve information comparability? The Accounting Review, Vol. 87, No. 5, 1767–1789. https://doi.org/10.2308/accr-50192

         35. Lin, S., Riccardi, W.N., Wang, C., Hopkins, P.E., Kabureck, G. (2019). Relative effects of IFRS adoption and IFRS convergence on financial statement comparability. Contemporary Accounting Research, Vol. 36, Issue 2, 588–628. https://doi.org/10.1111/1911-3846.12475

         36. Altamuro, J., Chen, L.H., Li, Y. (2025). Are U.S. GAAP-based and IFRS-based accounting amounts more comparable after the revised lease standards? Evidence from ASC 842 and IFRS 16. Review of Accounting Studies, Vol. 30, 2673–2723. https://doi.org/10.1007/s11142-025-09874-8

         37. Chatterjee, C. (2020). Efficiency gains from accounting regulatory compliance. SSRN. Available at: ssrn.com/abstract=3692813

         38. Christensen, D., Lynch, D., Partridge, C. (2025). Improvements in investment efficiency prior to a mandated accounting change: Evidence from ASC 842. Contemporary Accounting Research, Vol. 42, Issue 1, 615–648. https://doi.org/10.1111/1911-3846.13007

         39. Froschhammer, M., Haller А. (2012). IFRS-Konvergenz im Rahmen der BilMoGErstanwendung – Eine empirische Analyse. Zeitschrift fur Internationale und Kapitalmarktorientierte Rechnungslegung, Vol. 12, Issue 1, 17–25. Available at: https://epub.uni-regensburg.de/23105/

         40. Zicke, J., Kiy, F. (2017). The effects of accounting standards on the financial reporting properties of private firms: evidence from the German Accounting Law Modernization Act. Business Research, Vol. 10, 215–248. https://doi.org/10.1007/s40685-017-0051-1

         41. Barth, M.E., Landsman, W.R., Lang, M., Williams C. (2012). Are IFRS-based and US GAAP-based accounting amounts comparable? Journal of Accounting and Economics, Vol. 54, Issue 1, 68–93. https://doi.org/10.1016/j.jacceco.2012.03.001

         42. Hope, O-K. (2003). Disclosure Practices, Enforcement of Accounting Standards, and Analysts’ Forecast Accuracy: An International Study. Journal of Accounting Research, Vol. 41, Issue 2, 235–272. https://doi.org/10.1111/1475-679X.00102

         43. Hosmer, D.W. Jr., Lemeshow, S.A., Sturdivant R.X. (2013). Applied Logistic Regression. 3rd edition. Hoboken, NJ, Wiley. https://doi.org/10.1002/9781118548387

         44. Greene, W.H. (2018). Econometric Analysis. 8th edition. New York, Pearson. Available at: https://api.pageplace.de/preview/DT0400.9781292231150_A39514649/preview-9781292231150_A39514649.pdf

         45. Oke, O.O., Ajeigbe, K.B. (2024). Evaluating the Relationship between Accounting Variables, Value-Based Management Variables, and Shareholder Returns: An Empirical Approach. Journal of Risk and Financial Management, Vol. 17, Issue 8, 371. https://doi.org/10.3390/jrfm17080371

         46. Mela, C.F., Kopalle, P.K. (2002). The impact of collinearity on regression analysis: the asymmetric effect of negative and positive correlations. Applied Economics, Vol. 34, Issue 6, 667–677. https://doi.org/10.1080/00036840110058482

About Authors

Mikhail Viktorovich Rodchenkov

Candidate of Economic Sciences, Doctoral Candidate, Department of Accounting, Analysis and Audit, Faculty of Economics, Lomonosov Moscow State University, Moscow, Russia (119991, Moscow, GSP-1, Leninskie Gory, 1, building, 46); Chief Researcher, Higher School of Management (EQC), Moscow, Russia (107014, Moscow, 1-ya Boevskaya street, 2/12, building, 4); ORCID https://orcid.org/0000-0002-6938-2313 e-mail: M.Rodchenkov@gmail.com

For citation

Rodchenkov, M.V. (2026). Financial Reporting Standards and Corporate Market Positioning in the Energy Industry. Journal of Applied Economic Research, Vol. 25, No. 3, 1078-1108. https://doi.org/10.15826/vestnik.2026.25.3.036

Article info

Received February 27, 2026; Revised May 19, 2026; Accepted May 25, 2026.

DOI: http://dx.doi.org/10.15826/vestnik.2026.25.3.036

Download full text article: