CONCLUSION
Financial reporting is the main information resource and means of communication
in the context of international integration and globalization processes. We have
determined that financial reporting is an integral system of general indicators of
financial and economic activity of an enterprise that should meet the information needs
of potential users in order to make effective managerial decisions. It allows it to obtain
relevant structured information on significant changes in the economic activity of
enterprises and, in modern conditions, is an important tool for monitoring, control and
management of the enterprise as a whole.
Following the provisions of the Directive 2013/34/EU on a definite classification
of the categories of companies and groups, we summarize the components of the annual
financial statements of enterprises. The main components of reporting for all types of
companies are the Balance Sheet, Income Statement, and Notes to the Financial
Statements, as well as the management Report, which is compulsory by large
enterprises and public interest entities. Micro and small enterprises can be exempted
from its composition, provided that information about the company's acquisition of its
own shares will be disclosed in the notes to the financial statements. Medium-sized
enterprises may not be listed in the Non-Financial Information Management Report.
Taking into account the importance of the information of the Cash Flow Statement and
the Equity Report for the financial analysis and forecasting of the bankruptcy of
enterprises, we have proposed to include it 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 subjects of public interest).
It is substantiated that the management Report is an important information
resource, since it outlines the company's business prospects, strengthens
communication among partners, investors, clients, illustrates the opportunities and
potential development threats, and provides an opportunity to highlight information
that is strategically important to the enterprise but has not been reflected in foreseen
forms of reporting. The proposed structure of the management Report is sufficient and
relevant and helps to understand the financial capabilities of the enterprise (whether
the company can develop and expand, how well it operates in the market, whether the
enterprise complies with financial norms, accounting standards and social
responsibility requirements), etc.
BIBLIOGRAPHICAL REFERENCES
1.
Tsyhan R. M. Improvement of the classification of cash flows in the light of
modern economic conditions. Actual problems of the economy. 2010. No. 4. P. 150-
155.
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