Management report: is it a component of financial, nonfinancial or integrated reporting?
Journal Title: Проблеми теорії та методології бухгалтерського обліку, контролю і аналізу: міжнародний збірник наукових праць - Year 2019, Vol 42, Issue 1
Abstract
The new requirements of the Law «On Accounting and Financial Reporting» demand enterprises to publish the «Management Report» in order to supplement the annual financial statements with information that should help users obtain reliable data on the results of activities, development prospects, major risks, achievement of declared objectives and strategic plans.The combination of financial and non-financial information is typical for integrated reporting, which has recently emerged in world-wide reporting practice. The article analyzes how legislative changes can sort out the issues that exist in Ukrainian reporting practice, as well as identify problems that may arise at the enterprises in the process of publishing new reporting. It is determined that in order to improve the quality of the «Management Report», western practice should be taken into account. The conclusions were made based on the comparative analysis of non-financial reports of Ukrainian and world companies. When preparing a report for an enterprise it is important to determine its form, since the form itself influences the expansion of the user’s circle, increasing their loyalty and consolidating a positive reputation at the market. The global trends of development of reporting point to the fact that integrated reporting is becoming widespread, as it accurately disclose information on cost creation in the context of six types of capital, in particular, social. In turn, the distribution of financial and non-financial reporting stops to be relevant because such reporting is not sufficiently accessible, objective and incapable of meeting the information needs of all stakeholders. Therefore, the «Management Report» can positively affect the quality of reports published by Ukrainian enterprises and contribute to the development of integrated reporting.
Authors and Affiliations
I. V. Zhyhlei, D. M. Zakharov
Keywords
Related Articles
- EP ID EP565170
- DOI -
- Views 104
- Downloads 0
Elements of country financial capacity
This research is devoted to studying the structure of financial potential of the country. The aim of the investigation is to determine the elements of financial potential of the country and relations between them. The au...
Synergetic effect as a key aspect of the activity of the united territorial communities
The article presents the results of the theoretical investigation of the synergetic effect as an economic category and its provision by the financial and economic relations of the united territorial communities. The dece...
Accounting as a system of information resources generating: task transformation
The article studies the works of scientists in the field of various types of accounting and accounting methodology. The tasks of accounting are grouped according to the areas of their manifestation, the historical stages...
Transparency of financial statements prepared under IFRS as an instrument of anti-corruption activity in Ukraine
Corruption as a social phenomenon leads to a decrease in foreign investment, worsens the economic, political and social situation. As practice shows, measures taken in Ukraine over the last decades, are not sufficiently...
Multivariate accounting in international financial reporting standards
The necessity of the research on the basis of the positivist model of scientific knowledge is proved. The value of the conceptual framework in the process of bookkeeping selection is analyzed. The differences of the acco...