№ 10/2022

Fìnansi Ukr. 2022 (10): 80–102https://doi.org/10.33763/finukr2022.10.080

ACCOUNTING AND REPORTING

KUCHERIAVA Maria ¹

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

The development of entities’ non-financial reporting preparation in the context of digitalization

Introduction. International institutions and national regulators focus their activities on improving quality of non-financial reporting within the developing of the regulatory framework. Digitalization of the processes of forming and submitting such reports raises the need to address organizational issues related to the improvement of the mechanism of data collection and processing through the introduction of an electronic format of submission using XBRL.
Problem statement. The application of the electronic format of submission of non-financial reports of enterprises requires methodological support, in particular in terms of determining approaches to the construction of the Taxonomy of non-financial reporting of enterprises.
The purpose is to scientifically substantiate the development of non-financial reporting of enterprises in the context of digitalization through the description of the architecture of its Taxonomy.
Materials and methods: graphical method, bibliographic analysis, analysis, synthesis.
Results. The analysis of international experience has shown that in the EU Member States the Taxonomies of open and closed type for non-financial reporting are widely used. This makes it expedient to create a separate national Taxonomy of non-financial reporting of enterprises. The structure of such a Taxonomy in the presented study considering the peculiarities of the preparation of non-financial reporting forms of Ukrainian enterprises in accordance with the current legislation of Ukraine and taking into account the EU directive requirements (management report, non-financial report, corporate governance statement, sustainability report, management commentary).
Conclusions. The necessity of considering the basic level of disclosure (a list of basic financial and non-financial indicators included in the Taxonomy of Non-Financial Reporting and its extensions established at the legislative level) and the extended level of disclosure (integration of open Taxonomies into the reporting software for the Taxonomy of Non-Financial Reporting: generally accepted (GRI, EU Taxonomy) and extensions of enterprises that take into account industry specifics and specifics of functioning) is scientifically substantiated The principles of construction and structure of the Taxonomy of non-financial reporting, key relationships with the Taxonomy UA IFRS XBRL approved by the Ministry of Finance of Ukraine in 2021 are substantiated. In the context of the uncertainty impact on the entities’ activities (in particular under martial law), it is necessary to form proper information support for decision-making. This can be realized in the context of the application of electronic format for reporting through the formation of an additional extension of the Taxonomy of Non-Financial Reporting (“The impact of uncertainty on the entities’ performance”).

Keywords:non-financial reporting, management report, corporate governance statement, sustainability report, management commentary, Taxonomy, XBRL, digitalization

JEL: M41, M48, M49, Q01

Kucheriava M. . The development of entities’ non-financial reporting preparation in the context of digitalization / M. Kucheriava // Фінанси України. - 2022. - № 10. - C. 80-102.

Article original in Ukrainian (pp. 80 - 102)

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