Reporting as a Tool of Enterprise Management: Conceptual Foundations and Managerial Value

Abstract

Changes in approaches to the formation of the information system, the growing information needs of its users, and the orientation of the economy toward the principles of sustainable development require transformation of existing reporting forms, their enrichment with new objects and indicators, in line with increased requirements for their content and quality. The purpose of the article is to develop the conceptual foundations for forming a set of enterprise reporting forms that will ensure the disclosure of the economic, social, and environmental components of its activities in their interrelation and interdependence, and will also contribute to reducing information asymmetry among reporting users. To investigate the prerequisites for the formation of reporting and the interrelationship between the economic, social, and environmental components of an enterprise’s activity, the methods of generalisation, analysis, synthesis, system-based approach, abstract-logical reasoning, induction, and deduction were employed; in distinguishing the types of reporting, the requirements for the quality of its information, as well as in identifying the advantages and risks of preparing non-financial reporting, the methods of grouping, comparison, generalisation, and analogy were applied. The prerequisites for reporting formation are disclosed, and the expediency of its development is substantiated, taking into account potential benefits for the enterprise, provided that legislative and regulatory requirements are strictly observed. The interrelation between the components of sustainable development (economic, social, and environmental) is examined, considering their influence on the achievement of enterprise objectives and the specifics of their reflection in the relevant reporting forms. It is recommended to consolidate the set of reports into three groups within the framework of basic, managerial, and strategic levels. Within each level, the types of reporting, their users, and the requirements for information quality are outlined. Particular attention is paid to the issue of maintaining information confidentiality in the preparation of non-financial reporting. The advantages and risks of non-financial reporting formation by Ukrainian enterprises are identified.