Management Report as a Component of Nonfinancial Reporting in Ukraine: Theory and Practice of Drafting

Olena  Petryk; Alla Basok; Tetiana  Marenych; Natalia  Yatsenko; Sergіy  Kalinichenko

doi:10.14807/ijmp.v12i3.1523

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Published: May 1, 2021

DOI: https://doi.org/10.14807/ijmp.v12i3.1523

Keywords:

Management report Nonfinancial reporting Corporate social responsibility Disclosure of nonfinancial information

Olena Petryk

Kyiv National Economic University named after Vadim Hetman

Alla Basok

Kyiv National Economic University named after Vadim Hetman

Tetiana Marenych

Kharkiv Petro Vasylenko National Technical University of Agriculture

http://orcid.org/0000-0002-8502-1884

Natalia Yatsenko

Kremenchuk National Mykhaylo Ostrogradskiy University

http://orcid.org/0000-0001-7795-7300

Sergіy Kalinichenko

Kharkiv Petro Vasilenko National Technical University of Agriculture

https://orcid.org/0000-0003-3958-4763

صندلی اداری

Abstract

The article covers the issue of compiling the Management Report. The need to implement a management report in Ukraine is caused by the processes of implementation of the European Union legislation on accounting in the national regulatory framework. The purpose of this report is to complement the annual financial statements with the necessary information, which should contain a reliable overview of development, activities and condition, as well as a description of the main risks and uncertainties in the work of an enterprise. This paper reviews the legislative framework for the preparation and publication of the Management Report and analyzes the Management Reports of domestic enterprises for compliance with regulatory requirements and the quality of these indicators. It has been defined that the lack of common normatively approved qualitative issues of the report and requirements for it are the significant problems. The format, scope, structure and accuracy of the information are determined at the discretion of an enterprise. The contained performance measures of enterprises significantly differ from each other and are not always given in comparison with the similar measures for the previous periods. Such presentation of data causes poor and uninformative reports. The results of the study prove that the Management Report should be based on the following principles: reliability and completeness, materiality, conciseness, integrity and comprehensibility; comparability of indicators. It is necessary to apply a risk-oriented approach and adhere the logic of presenting information with the elements of its visualization for its preparation. The study is based on the requirements of Directives 2013/34 / EU and 2014/95 / EU, the Law of Ukraine On Accounting and Financial Reporting in Ukraine, Methodological recommendations for the preparation of a management report, as well as empirical data obtained in the analysis of reports on management of Ukrainian enterprises.

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Issue

Vol. 12 No. 3 (2021): Independent Journal of Management & Production (Special Edition ISE, S&P)

Section

Integration System of Education, Science and Production

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Author Biographies

Olena Petryk, Kyiv National Economic University named after Vadim Hetman

Doctor of Economics, Professor, Head of the Audit Department. She is the certified auditor of Ukraine, the member of the editorial board of several professional editions, the expert of the higher accreditation commission of the Ministry of education and science of Ukraine, specializing in accounting and taxation, the academician of the Academy of economic sciences of Ukraine, specializing in Accounting and Auditing. She cooperates with professional organizations of accountants and auditors, is a participant of the World bank STAREP project. Scientific interests: Theory, Organization and Methodology Independent, Internal and State Audit.

Alla Basok , Kyiv National Economic University named after Vadim Hetman

Ph.D. Student at the Audit Department. She has two higher educations: - graduated from Kyiv National University of Trade and Economics and obtained a master degree in accounting and audit in the entrepreneurship; - graduated from Kyiv National Economic University and obtained a master degree from personnel management and labor economics. She has a practical experience: worked as an accountant for 6 years at PJSC «Scientific and technical enterprise «Electronprylad». Since 2020 she has been working as an administrative specialist at Danfoss LLC. Scientific interests: non-financial reporting, organization and accounting of wages.

Tetiana Marenych, Kharkiv Petro Vasylenko National Technical University of Agriculture

Doctor of Economic Sciences (2007), Professor of Accounting and Audit (2008), Head of the Department of Accounting and Audit Kharkiv Petro Vasylenko National Technical University of Agriculture.

He teaches disciplines taught: accounting (general theory), financial accounting, accounting and reporting according to international standards, professional ethics of accountants and auditors.

Scientific interests: Mechanisms of economic regulation of agricultural producers in the conditions of formation of innovative model of agrarian and industrial complex; Organization and methods of accounting in agricultural enterprises of various organizational and legal forms. Author of more than 400 scientific works.

Natalia Yatsenko, Kremenchuk National Mykhaylo Ostrogradskiy University

Ph.D. in Economics, Associate Professor Department of Accounting and Finance. She teaches disciplines taught: Accounting, Organization and methods of audit, Accounting, management and financial reporting, Accounting in enterprise management, Enterprise reporting. Scientific interests: management reporting of enterprises, features of accounting in online commerce, cryptocurrency accounting

Sergіy Kalinichenko, Kharkiv Petro Vasilenko National Technical University of Agriculture

Ph.D. in Economics, Associate Professor, Deputy Director of the Educational and Scientific Institute of Business and Management, the Assistant professor of the Department of Production, Business and Management of the Petro Vasilenko National Technical University of Agriculture. He teaches disciplines taught: organization of production; planning and control at the enterprise; organization and management of business activities; business planning methodology.

Scientific interests: The mechanism of increasing Competitiveness; Development of Economic and Production-Technological Potential of Subjects of Agro-Industrial Production. Author of more than 100 scientific works. Scopus AuthorID: 57213620238 http://www.scopus.com/inward/authorDetails.url?authorID=57213620238&partnerID=MN8TOARS

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