- Social responsibility of business. It provides a description of the environmental
policy of the enterprise and interaction with the external environment (environmental
impact), compliance with social standards, contribution to solving social and
environmental problems, product quality assessment, investment in human capital,
compliance with legislation, participation in partner programs and social development
projects.
- Organization of management activities. It provides disclosure of information on
the composition of management on the main functional responsibilities.
- Internal and external control. The characteristic of the internal control system
with the indication of structural units and their functional responsibilities is given, an
assessment of the results of the last control checks is given. Information about
conducting a statutory audit of financial statements by external auditors or audit firms
is given. Information on the auditor's report is given.
- Risk management. The main types of risks inherent in the activities of the
enterprise (price, credit, liquidity risk and cash flow risk, etc.), the main analytical
indicators of risk assessment, the purpose and policy of the enterprise in relation to
financial risk management, including management methods, are indicated.
- Forecasting development and promising activity. Extrapolation of the key
financial indicators of the enterprise activity with the indication of the extrapolated
methods is used (information may be provided in graphical or tabular form). The
priority directions of development and expansion of activity are described.
- Corporate Governance Report (included by public interest entities as a separate
section in the Management Report in accordance with Directive 2013/34/EU) provides
for a reference to the corporate governance code and should include information on
corporate governance practices, etc.
- Final provisions (management proposals for further development of the
company, information on subsequent shareholders' meetings, etc.).
The proposed structure of the management Report is typical and has a
recommendatory nature. The structure of the Report and the number of sections may
vary depending on the specifics of the activity, the scope of the management of the
enterprise and may be supplemented or reduced at the discretion of the management of
the company. Some indicators, in the opinion of the management, may constitute
commercial secrets, and therefore may not be presented in this report. However, as
outlined in Directive 2013/34/EU, the review should be a balanced and comprehensive
analysis of the development, activities and state of the enterprise, in line with the size
and complexity of the business [9]. Therefore, we believe that the proposed structure
of the management Report is sufficiently substantiated and has a wide range of
indicators that sufficiently reveal the activities of the enterprise and present the abilities
for its potential development.
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