IMPROVEMENT OF FINANCIAL REPORTING ON ACCOUNTING FOR NON-CURRENT ASSETS
DOI:
https://doi.org/10.37332/Keywords:
financial reporting, accounting, non-current assets, reporting forms, Notes to the Annual Financial Statements, construction enterprisesAbstract
Zadorozhnyi M.Z. IMPROVEMENT OF FINANCIAL REPORTING ON ACCOUNTING FOR NON-CURRENT ASSETS
Purpose. The aim of the article is to improve alternative forms of financial reporting in terms of presenting information on non-current assets in order to optimize the information support for different groups of stakeholders.
Methodology of research. The study employs system analysis, logical generalization, comparative analysis, and a structural-functional approach, which made it possible to comprehensively reveal the prospects for improving alternative forms of financial reporting related to the accounting of non-current assets.
Findings. The presentation of non-current assets in the financial reporting system of construction enterprises has been improved. The titles and codification of the relevant reporting items, as well as the structure and content of the sections of the Balance Sheet (Statement of Financial Position), the Statement of Financial Results (Statement of Comprehensive Income), the Cash Flow Statement (direct method), the Notes to the Annual Financial Statements have been clarified. The proposed changes are aimed at ensuring compliance with national and international regulations, achieving information synchronization with other elements of the accounting method, and establishing interrelations between different forms of financial reporting.
Originality. For the first time, the use of the Notes to the Annual Financial Statements as an information base for the formation of internal (managerial) reporting in electronic form has been proposed. This is achieved through the refinement of the structure of the first, second, and third sections of the Notes, with the possibility of significant analytical detailing, as well as structural and dynamic interpretation of indicators. Such an approach enhances the informational value of reporting data on non-current assets for various groups of stakeholders.
Practical value. The practical significance of the obtained results lies in the possibility of their application for improving the formation and presentation of information on non-current assets in the financial reporting of construction enterprises. The proposed approaches to clarifying the titles, codification, and content of reporting items can be applied in the preparation of the Balance Sheet (Statement of Financial Position), the Statement of Financial Results (Statement of Comprehensive Income), the Cash Flow Statement, the Notes to the Annual Financial Statements, and the Management Report.
The research findings contribute to enhancing the informativeness and consistency of financial reporting, ensuring its compliance with national and international requirements, and strengthening the interrelation between individual reporting forms. The practical implementation of the proposed provisions will improve the quality of accounting and analytical information on non-current assets, which in turn will facilitate more well-grounded managerial decision-making and increase the transparency of construction enterprises for external users.
Key words: financial reporting, accounting, non-current assets, reporting forms, Notes to the Annual Financial Statements, construction enterprises.
References
1. Storozhuk, T.M. and Blyshchyk, L.V. (2019), “Features of the reflection of non-current assets in the balance sheet according to national and international standards”, Ekonomika, oblik i audyt, Iss. 29, pp. 607-615, available at: https://api-ir.dpu.edu.ua/server/api/core/bitstreams/362b88e7-5653-427e-852f-5c375f27bb19/content (access date January 20, 2026).
2. Voskalo, I. (2015), “Features of reflecting information on non-current assets in accounting and reporting”, Naukovyi visnyk Uzhhorodskoho universytetu. Seriia Ekonomika, no. 45(2), pp. 317-320, available at: http://www.visnyk-ekon-old.uzhnu.edu.ua/images/pubs/45/2/45_2_317-320_Voskalo.pdf (access date January 20, 2026).
3. Liashko, D.Yu. (2011), “Features of the formation of economic information according to the balance sheet items of domestic enterprises”, Biuleten Mizhnarodnoho Nobelivskoho ekonomichnoho forumu, no. 1(4), pp. 241-246, available at: http://duan.edu.ua/uploads/bjulleten2011/13151.pdf (access date January 20, 2026).
4. Pasenko, N.S. (2018), “Directions for improving notes to financial statements regarding non-current assets as an information base for analysis”, Suchasni problem upravlinnia pidpryiemstvamy: teoriia i praktyka : materialy mizhnarodnoi naukovo-praktychnoi konferentsii [Modern Problems of Enterprise Management: Theory and Practice : Proceedings of the International Scientific and Practical Conference] (Kharkiv, 29-30 March 2028), Kharkiv National University of Economics named after S. Kuznets, Kharkiv, Ukraine, pp. 358-360.
5. Mychak, N.O. (2018), “Procedure for disclosure of information on non-current assets held for sale in the financial statements of enterprises”, Ekonomichnyi visnyk Zaporizkoi derzhavnoi inzhenernoi akademii, Iss. 2, pp. 139-143, available at: http://nbuv.gov.ua/UJRN/evzdia_2018_2_29 (access date January 21, 2026).
6. Azizan, S., Marzuki, M., Jamil, M. and Safeei, R. (2025), “Navigating accounting for digital assets: the mediating role of regulatory clarity in enhancing financial reporting quality in Malaysia”, International Journal of Research and Innovation in Social Science, Volume IX, Issue IX, pp. 3829-3837, DOI: https://doi.org/10.47772/IJRISS.2025.909000317.
7. Tsiutsiak, I. and Tsiutsiak, A. (2024), “Accounting and reporting procedure for fixed assets in the context of digital transformation”, Ekonomichnyi analiz, Volume 34, no. 4, pp. 283-293, DOI: https://doi.org/10.35774/econa2024.04.283.
8. Wu, J. (2026), “Intangible assets and market valuation: rethinking disclosure in the digital economy”, Journal of Innovation and Development, Vol. 14, no. 2, pp. 575-583, DOI: https://doi.org/10.54097/sadkjm75.
9. Kuzyk, N., Shevchuk, K., Mishchenko, T. and Venher, A. (2025), “International financial reporting standards in the national practice of accounting for revaluation and impairment of fixed assets”, Bioeconomics and Agrarian Business, Vol. 16, no. 1, pp. 214-233, DOI: https://doi.org/10.31548/economics/1.2025.235.
10. Mudimba, C. (2025), “Impact of non-current assets disclosure on financial reporting quality in churches and church-owned schools in Bulawayo”, International Journal of Research and Innovation in Social Science, Volume IX, Issue I, pp. 2659-2679, DOI: https://doi.org/10.47772/IJRISS.2025.9010215.
11. Bila, Yu. (2025), “Methodology of representing bioenergy assets in integrated reporting”, Svit finansiv, no. 1(82), pp. 44-56, DOI: https://doi.org/10.35774/sf2025.01.044.
12. Hinke, J. and Zborkova, J. (2014), “Comparison of approaches to financial reporting of non-current assets according to the IFRS for SMEs and IAS/IFRS”, Procedia Engineering, Vol. 69, pp. 696-703, DOI: https://doi.org/10.1016/j.proeng.2014.03.044.
13. Muravskyi, V.V. (2009), “Organizational aspects of the formation and presentation of financial reporting under the influence of hypertext information technology”, Visnyk ZhDTU, no. 1(47), pp. 2-9, available at: https://share.google/images/sp6yWzKeG0J1FDn1K (access date January 21, 2026).
14. Zadorozhnyy, Z., Muravskyi, V., Semaniuk, V. and Humenna-Derij, M. (2022), “Global management accounting principles in the system of providing resource potential of the enterprise”, Financial and Credit Activity: Problems of Theory and Practice, Volume 3(44), pp. 63-71, DOI: https://doi.org/10.55643/fcaptp.3.44.2022.3765.
Downloads
Published
Issue
Section
License
Open-access articles (open-access journals)
Authors whose articles are published in open-access retain all rights to the content of the articles.
Open access articles are committed to be published under Creative Commons Attribution (CC BY) 4.0. This license allows others to distribute, edit, correct and build upon your work, even commercially, as long as they indicate your authorship. Detailed information at Creative Commons site: https://creativecommons.org/licenses/by/4.0/
Permissions for open-access journals
If the article is published in open-access under CC BY 4.0 or CC BY-NC 4.0 (which was possible till the 15th of December, 2018) licenses, users may reproduce it in accordance with their terms.
Additionally, if the article had been published under CC BY-NC 4.0 (this license authorizes others to download your works and share them with others as long as they indicate your authorship, but they can’t use them commercially in any case.), the use for the following commercial purposes requires permission:
– reproduction of content in a work or product intended for sale;
– reproduction in presentations, brochures or other marketing materials used for commercial purposes;
– distribution of the content to promote or market a person, product, course, service or organization;
– text and data mining for the purpose of creating a saleable product or product which benefits from promotional or advertising revenue;
– use of the content by a commercial entity or individual for the purposes of remuneration, directly or indirectly through sale, licensing, promotion or advertising;
– linking to the content (in an email, webpage, portable electronic device or otherwise) for the specific purpose of marketing or advertising a person, product, course, service or organization for commercial benefit.
For further details and permission requests, please contact.
