FINANCIAL AND NON-FINANCIAL INFORMATION OF THE MANAGEMENT REPORT

Abstract

The paper reflects the Management Report as part of a complete set of annual financial reports as well as the requirements for its formation. The issue of the report structure, the methodology for disclosing its key indicators in the context of the financial and non-financial information component, as defined by the current legislation, needs to be studied. The analysis of the legal support was carried out. The requirements for the Management Report formation in the context of different categories of enterprises are highlighted as well as its relation to the composition of financial reports. The conditions for publication are determined. In addition, the stages of the Management Report formation are presented as well as the disclosure of financial and non-financial information in the report and the relationship of the Management Report considering tax forms and statistical reporting. For medium-size and major businesses the directions for the indicator’s formation of the Management Report are presented. The stages of formation and submission of the Management Report are disclosed. Preparatory stage (defining the main users of reporting information, the amount of reporting data (basic set of key indicators), identification of information sources, formation of a working group to compile the report). Financial indicators formation of the Management Report (formation of a basic set of key indicators; identification of information sources, including information on the organisational structure and description of the enterprise performance, performance results, liquidity and liabilities, financial investments). Non-financial indicators formation of the Management Report (formation of a basic set of key indicators; identification of information sources, including information on environmental and social aspects, including personnel policy, risks, research and innovation, development prospects, corporate issues). Internal audit of the Management Report indicators reliability (information verification, errors elimination, disclosure and ensuring its availability to stakeholders). Submission of the Management Report as part of the financial reports (consolidated financial reports) to the Financial Reporting Collection Center. Management Report publication (if required for financial reporting) along with the auditor's report on the web page (website) of the enterprise. Submit the proposed form of the Report taking into account the specifics and risks of the enterprise.