REPORTING ON PROVISION OF FUTURE COSTS AND PAYMENTS IN ENTERPRISE RISK MANAGEMENT: ACCOUNTING AND MANAGEMENT ASPECTS
Keywords:
Key words, provision of future expenses and payments, risks, financial reporting, management reporting.Abstract
Holovatska S.I., Kurak A.I. REPORTING ON PROVISION OF FUTURE COSTS AND PAYMENTS IN ENTERPRISE RISK MANAGEMENT: ACCOUNTING AND MANAGEMENT ASPECTS
Purpose. The aim of the article is structuring and defining the composition of financial, non-financial and internal management reporting to ensure future costs and payments, as a means of formalizing the requirements of users to the accounting information, with the goal of comprehensive information support for enterprise risk management.
Methodology of research. The following methods of scientific research are used when writing this article: comparison – to determine the differences and common features of the phenomena being investigated; grouping – to determine the conceptual features of a research object; synthesis and analysis – in order to detail the object of research, by its expansion into parts.
Findings. It is determined that the reporting of enterprises is a reflection of their financial and property status and performance. It is established that the information disclosed in the reporting and directly intended for users has a certain degree of uncertainty. It is revealed that accounting methods in neutralizing or reducing the negative impact of business risks on the financial performance of an enterprise is the creation of various types of reserves and provision of future costs and payments. The problem of disclosure of information and forecasts of the impact of risks on the activity of the enterprise and creation of the provision of future costs and payments in financial and management reporting, which contributes to the formation of objective and reliable information about the results of activities and the financial and property status of the company to meet the needs of users, is substantiated.
Originality. The scientific novelty of the research results is to improve the theoretical, methodological and organizational provisions for determining the composition of financial and non-financial statements for provision of future costs and payments for effective risk management of the enterprise and the effective use of the reporting system.
Practical value. The obtained results of the study will be useful for practical application of domestic enterprises, as they will ensure the implementation of the norms of European legislation in the Ukrainian practice of reporting by enterprises, as well as provide users with the reporting of high-quality and reliable information, will give an opportunity to evaluate the results of activities, forecast indicators of improving the efficiency of economic activity, attract investors and motivate to make strategic management decisions.
Key words: provision of future expenses and payments; risks; financial reporting; management reporting.
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