№ 11/2019

Fìnansi Ukr. 2019 (11): 31–43https://doi.org/10.33763/finukr2019.11.031

MONITORING SUSTAINABLE DEVELOPMENT GOALS

OLIYNYK Yana ¹, KUCHERIAVA Maria ²

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/
²SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-2948-1234

Improvement of legislation for non-financial reporting in Ukraine as the result of cooperation with international institutions

The article outlines the issues of the development of regulatory support for the preparation of non-financial reporting, in particular the necessity: to improve the institutional support for the preparation and administration of companies’ non-financial reporting; to eliminate the information asymmetry for such reporting in order to create the framework for its harmonization and comparability; to ensure further implementation of EU directive provisions and requirements. The results of cooperation between SESE “The Academy of Financial Management” (the Academy) and Intergovernmental Working Group of Experts on International Accounting and Reporting Standards (UNCTAD-ISAR) are outlined in the context of solving the issues and development of unified approach for determination of measures for unification of non-financial reporting and alignment of companies’ core indicators with macro-indicators of Sustainable Development Goals’ attainment. The necessity of assisting the enterprises in the preparation of the management report for disclosure of qualitative, relevant, useful financial and non-financial information to different stakeholders is substantiated. The results of preparation on behalf of the Ministry of Finance of Ukraine of the draft Practical Commentary on Preparing Management Report are presented (the draft). The draft is prepared in accordance with the requirements of national legislation and recommendations of international documents and initiatives on preparation of non-financial reporting. The draft expands the requirements of mentioned above documents with taking into account the specific issues of domestic entities’ activities. The developed document contains the provisions on principles, content and procedure for preparation of the management report, the list of indicators including the economic, environmental, social and managerial aspects of entities’ activities. The application of the draft recommendation will enhance the accountability and transparency of entities’ activities through the disclosure of qualitative information in the management report.

Keywords:Sustainable Development Goals, non-financial reporting, management report, Intergovernmental Working Group of Experts on International Accounting and Reporting Standards (UNCTAD-ISAR)

JEL: M41, M48, M49, Q01

OLIYNYK Y. . Improvement of legislation for non-financial reporting in Ukraine as the result of cooperation with international institutions / Y. . OLIYNYK , M. Kucheriava // Фінанси України. - 2019. - № 11. - C. 31-43.

Article original in Ukrainian (pp. 31 - 43)

Download

Downloads :46

1. United Nations. (2015). Transforming our world: the 2030 Agenda for Sustainable Development: Resolution A/RES/70/1 adopted by the General Assembly. Retrieved from sd4ua.org/wp-content/uploads/2015/02/SD_resolution_NY_2015.pdf [in Russian].
2. President of Ukraine. (2019). On the Sustainable Development Goals of Ukraine until 2030 (Order No. 722/2019, September 30). Retrieved from zakon.rada.gov.ua/laws/show/722/2019 [in Ukrainian].
3. UNCTAD ISAR. (2018). ISAR Honours 2018: Nominees. Retrieved from isar.unctad.org/isar-honours-2018-nominees/.
4. Humbert, F. (2019). Sustainability Reporting: A Critical Assessment of the E.U. CSR Directive and Its German Implementation from a Human Rights Perspective. Schmalenbach Business Review, Vol. 71, Iss. 2, 279–285.
doi.org/10.1007/s41464-018-0061-3
5. Carini, C., Rocca, L., Veneziani, M., & Teodori, C. (2018). Ex-Ante Impact Assessment of Sustainability Information – the Directive 2014/95/EU. Sustainability, Vol. 10, Iss. 2. doi.org/10.3390/su10020560
6. Stolowy, H., Paugam, L. (2018). The expansion of non-financial reporting: an explanatory study. Accounting and Business Research, Vol. 48, No. 5, 525–548.
doi.org/10.1080/00014788.2018.1470141
7. Vukić, N. M., Vuković, R., & Calace, D. (2018). Non-financial reporting as a new trend in sustainability accounting. Journal of Accounting and Management, Vol. VII, No. 2, 13–26.
8. Iefymenko, T. I., Zhuk, V. M., & Lovinska, L. H. (2015). Information in crisis management: the global aspect of standardization of accounting and financial reporting. Kyiv: DNNU “Akademiia finansovoho upravlinnia” [in Ukrainian].
9. Yevdokymov, V. V., Hrytsyshen, D. O., Hrytsyshen, O. O., & Baryshnikova, O. M. (2013). International models for regulation of sustainable development reporting: an analysis of the current status. Zhytomyr: ZhDTU [in Ukrainian].
10. Pylypenko, L. M. (2016). Development of concepts for building a corporate public reporting system in a post-industrial economy. Lviv: Vydavnytstvo Lvivskoi politekhniky [in Ukrainian].
11. Verkhovna Rada of Ukraine. (1999). On accounting and financial reporting in Ukraine (Act No. 996-XIV, July 16). Retrieved from zakon3.rada.gov.ua/laws/show/996-14 [in Ukrainian].
12. Ministry of Finance of Ukraine. (2018). On approval of the Guidelines for the preparation of the management report (Order No. 982, December 7). Retrieved from zakon.rada.gov.ua/rada/show/v0982201-18 [in Ukrainian].
13. Verkhovna Rada of Ukraine. (2016). On ratification of the Protocol on Pollutant Emissions and Transfer (Act No. 980-VIII, February 3). Retrieved from zakon.rada.gov.ua/laws/show/980-VIII [in Ukrainian].
14. The European Parliament and the Council of the European Union. (2013). Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings. Retrieved from eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013L0034&from=EN.
15. The European Parliament and the Council of the European Union. (2014). Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups. Retrieved from eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014L0095&from=EN.
16. The European Parliament and the Council of the European Union. (2009). Regulation (EC) No 1221/2009 of the European Parliament and of the Council of 25 November 2009 on the voluntary participation by organisations in a Community eco-management and audit scheme (EMAS), repealing Regulation (EC) No 761/2001 and Commission Decisions 2001/681/EC and 2006/193/EC. Retrieved from old.minjust.gov.ua/file/33365.docx [in Ukrainian].
17. European Commission. (2017). Communication from the European Commission: Guidelines on non-financial reporting (methodology for reporting non-financial information) (2017/C215/01). Retrieved from eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52017XC0705(01)&from=EN.
18. United Nations Global Compact. (n. d.). The Ten Principles of the UN Global Compact. Retrieved from www.unglobalcompact.org/what-is-gc/mission/principles.
19. UNCTAD ISAR. (2019). Guidance on Core indicators for entity reporting on contribution towards implementation of the Sustainable Development Goals. Retrieved from unctad.org/en/PublicationsLibrary/diae2019d1_en.pdf.
20. United Nations. (2011). Guiding principles Reporting Framework on Business and Human Rights (UN Human Rights). Retrieved from www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf.
21. International Labour Organization. (2017). Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy. Retrieved from www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/---multi/documents/publication/wcms_094386.pdf.
22. GRI. (n. d.). Global Reporting Initiative Standards. Retrieved from www.globalreporting.org/standards.
23. OECD. (2011). OECD Guidelines for Multinational Enterprises. Retrieved from www.oecd.org/corporate/mne/1922428.pdf.
24. ISO. (2010). ISO 26000:2010 Social Responsibility. Retrieved from www.iso.org/iso-26000-social-responsibility.html.