it meets all the requirements that are relevant to the financial statements with
international standards, and therefore is a complete feature of the financial statements
with specified terms of submission and regulatory regulation.
Taking into account the requirements of IFRS, according to which enterprises
should add two forms (equity statement and statement of cash flows) and the fact that
the information of these two forms is important for financial analysis and forecasting
of bankruptcy of enterprises, we have provided essential information regarding
changes in equity and cash flows to be included in the Notes to the financial statements
by separate sections (for small and medium enterprises) or a separate section of the
Management Report (for large enterprises and entities public interest).
Features of the formation and content of the Management Report as an
element of financial reporting of enterprises. In accordance with the requirements
of Directive 2013/34/EU, the Management Report (consolidated management report)
is an important element of financial reporting [9], since there is a need to provide a fair
overview of the company's development and its state, which is commensurate with the
size and complexity of the business. Information on the management report should not
be limited to the financial aspects of the enterprise, it should also include: a description
of the main risks and uncertainties, an analysis of the environmental and social aspects
of the enterprise's activities, necessary for understanding the development,
performance or state of the enterprise. The management report uses a lot of Balance
Data and Profit and Loss Statements, but they are more affordable and "useful" to the
consumer for such information.
Ukraine has not yet approved a single normative document that would regulate
the procedure for drawing up a Management Report and does not standardize its form.
At the same time, it is an important informational resource, due to the fact that:
1.
Outlines the company's strategic indicators for assessing and monitoring the
effectiveness of its activities. Yes, the financial statements did not include such
indicators so far, and in order to evaluate the effectiveness, it was necessary to carry
out a financial analysis of the indicators further.
2.
Allows users to better understand market position and growth trends. Such
information provides the opportunity to conduct comparative assessments of major
competitors and focus on the chosen or rebuild its strategy.
3.
The Report information sets benchmark for operational and financial activities
and serves as a basis for planning and forecasting at both area and state levels.
4.
Strengthens communication among partners, investors, clients who use
accounting information to make managerial decisions.
5.
The Report's information illustrates the opportunities and potential threats to
development, and therefore for the state it can be a signal for timely response to certain
situations and changes.
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