INTEGRATED REPORTING: PURPOSE OF FORMATION AND FEATURES OF CONTROL

Abstract

The main problems preventing the improvement of the quality of financial reporting in modern market conditions are considered. The main areas of information requests related to the company's reporting are highlighted, namely: strategic planning, financial management, resource management, control and internal audit. The reasons for the need for the formation of integrated reporting were investigated and it was proposed to consider it as "an approach to the preparation of enterprise reporting, which consists in collecting and presenting information about various aspects of the enterprise's activity in one document." The advantages of using integrated reporting are highlighted: systematicity, integrity, transparency, efficiency, compliance with international standards and stimulation of sustainable development. The main international standards regulating the procedure for forming and submitting integrated reporting are considered. The positive impact of the application of this type of reporting in different terms of the prospects of the enterprise's activity and in relation to different types of the firm's capital is revealed. An assessment of the effectiveness of the use of a single normatively approved form of integrated reporting (the "Management Report") in Ukraine was carried out, the main advantages and disadvantages of the procedure for forming and submitting this report were highlighted. It was found that the vast majority of large domestic business entities support the UN initiative regarding the 17 global goals of sustainable development by 2030. The most frequently mentioned goals from the specified list, which Ukrainian enterprises work to achieve, are: "good health and well-being", "quality education", "affordable and clean energy", "mitigation of the consequences of climate change" and "partnership for sustainable development". An important role in the effectiveness of the use of integrated reporting should be played by internal control at the enterprise, since it is it that makes it possible to draw conclusions about whether the tasks set before the enterprise have been fulfilled and whether the indicators by which the results are evaluated meet the defined goals. The main steps regarding the expansion of the use of integrated reporting in Ukraine are proposed: the creation of normative acts that would stimulate the preparation of such reporting; dissemination of information among interested parties regarding the benefits and usefulness of implementing integrated reporting; creation of a reference information base on this issue.