MANAGEMENT REPORT: INFORMATION AND REGULATORY PROVISIONS BY THE SUBJECTS OF FORMATION

Анотація

In terms of harmonization of domestic legislation with the EU legal field, an important area of regulation is accounting, as an information base for the economic development of individual enterprises and economies, and the European region and the world economy as a whole, especially given the informatization and globalization of socio-economic processes. However, the lack of experience in generating non-financial reports, especially in medium-sized enterprises and financial institutions belonging to micro and small enterprises, and the non-regulated form of the report somewhat complicate the process, so the research of the structure and information content of the management report is relevant. The article examines the legal regulation of the report on management in Ukraine, the main areas of information coverage, depending on the scope of operation, size, and nature of capital formation. The list of basic information to be disclosed in the management report is determined for enterprises (except banks, budgetary institutions, micro-enterprises, and small enterprises), for joint-stock companies, for financial institutions with share capital, for banks and banks with share capital. The difference in the content of the management report of all these entities arises due to differences in the composition of users of information and their needs for it, to make management or other decisions. Enterprises that prepare financial statements by international reporting standards may prepare a management report by domestic law. Any form of management report permitted by IFRS Practice Statement 1 “Management Commentary” In general, the history of non-financial reporting has proven its financial effectiveness, but at the same time, there are some problems associated with its formation. First, due to the lack of a regulated form and high dynamism of the external environment, there is a problem of the content of the report, which would meet the needs of stakeholders and work on a positive image of the company. Secondly, there is the problem of verifying the management report and confirming its compliance with the financial statements of the enterprise, especially in the non-financial component. And, thirdly, another problem that arises from the second – is the tax consequences of publishing a management report, they can be both negative and positive. All these issues need further research and proposals to address them.

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