FORECAST ANALYSIS OF INTEGRATED REPORTING AS A PRIORITY DIRECTION OF ANALYSIS OF CORPORATIONS’ FINANCIAL AND ECONOMIC ACTIVITY

Abstract

This article is dedicated to the study of the key aspects of predictive analysis of integrated reporting. The concept of "integrated reporting", its fundamental concepts, principles and elements have been considered. It’s approved that integrated reporting provides much more opportunities due to its complexity and functionality in the context of managing and providing information to both internal and external users. There is an opinion in the economic literature that the transition of companies from standard financial reporting to integrated, as a tool for highlighting financial and non-financial information about social and environmental responsibility, corporate governance, corporate strategy, should increase the predictive ability of accounting information and its comparability. Comparison with financial reporting was also carried out, comparative characteristics of these types of reporting were defined. Also, the key advantages and problems of integrated reporting were identified. The integrated report contains not only financial indicators, but also indicators of a non-financial and qualitative nature. The research discusses the key elements of integrated reporting that significantly distinguish it from the financial one, which justifies the use of a qualitatively new approach to its forecasting. First of all, it is related with financial, social, human, intellectual and natural capitals which are the key categories of integrated report. These categories require a radically different approach to analysis and forecasting due to their "non-financial" nature. The author proposed a list of key indicators for the analysis of each type of capital. The main methods of predictive analysis are also defined, which, in turn, can be divided into quantitative and qualitative. The qualitative methods of forecasting, which cannot be called leading, but their results can serve as an addition or clarification to quantitative forecasting. The author identifies a comprehensive approach and the application of a certain set of forecasting tools and methods. It’s defined that the purpose and goals of forecasting, the specifics of the object of analysis and its operating conditions should be taken into account.