Preconditions for Introducing Integrated Reporting in Ukraine

Abstract

Transformations taking place nowadays in the global economy require new approaches to scientific research related to providing the users with the information on activities of economic entities. Traditional approaches to presenting information, which are regulated by legislation, do not satisfy the users any more. In modern dynamically changing business environment, both the enterprise management and external users want to possess not only the actual (static) information about the activities of the enterprise but also the indicators that reveal the enterprise potential in the medium and long terms. For modern practices, there are also necessary indexes and indicators characterizing the enterprise activities in the areas that are not directly related to its business activities and achievement of profitability, they being activities in the area of environmental protection, social sphere and infrastructure sector. Ukraine has already created preconditions for implementing the integrated reporting as a tool for socially responsible business that provides information about the impact of the company's activities on the development of society, economy and environment. The analysis of the differences between the existing and integrated reporting systems shows the role of the integrated reporting, which provides stakeholders (companies, contractors, and society) with essential information on the organization's strategy, management and solution of commercial, environmental and social issues. The integrated reporting has a certain range of users, specific components and sources of information necessary for its preparation and is closely linked with the existing financial and statistical reporting.