Development and contemporary challenges of financial reporting in the context of globalization

Financial reporting represents one of the key instruments of modern business and corporate governance, as it enables transparent and reliable communication of financial position and performance to investors, creditors, regulatory institutions, and other stakeholders. The aim of this paper is to analyze the development of financial reporting and identify the most significant challenges it faces in the context of globalization. Particular attention is devoted to the process of international harmonization of accounting standards, the role of International Financial Reporting Standards (IFRS) in improving the quality of financial information, and the impact of the institutional environment on the effectiveness of their implementation. The analysis of relevant scientific literature indicates that the harmonization of financial reporting contributes to greater comparability, transparency, and reliability of financial statements; however, its effects depend on the quality of regulatory oversight, the development of capital markets, and the professional competencies of participants in the reporting process. The paper also examines contemporary challenges arising from digital transformation, the automation of accounting processes, the growing importance of non-financial and ESG reporting, and increasing demands for corporate transparency. The findings suggest that the future development of financial reporting requires the integration of financial and non-financial information, the continuous improvement of regulatory frameworks, and adaptation to technological changes shaping the global business environment.