METHODOLOGY FOR PREPARATION AND ANALYSIS OF AN ENTERPRISE'S FINANCIAL STATEMENTS
Main Article Content
Abstract
Introduction. In modern conditions of market economy, with the active development of entrepreneurial activity and Ukraine's integration into the European economic space, the importance of financial reporting as a management tool is growing significantly. Requirements for the quality, transparency, and timeliness of financial information used by both external and internal users to make strategic and tactical decisions are increasing. The reform of the accounting system in Ukraine, in particular the introduction of International Financial Reporting Standards (IFRS), requires the improvement of reporting methods to ensure its reliability, comparability, and analytical usefulness. At the same time, the issue of high-quality financial analysis remains relevant, as it allows for the assessment of the effectiveness of an enterprise's activities and the identification of financial risks, internal reserves, and development prospects.
Thus, research into methodological approaches to the preparation and analysis of financial statements is relevant from both a theoretical and practical point of view, as it directly affects the quality of management decisions, investment attractiveness, and financial stability of an enterprise.
Purpose. Research methodological approaches to the compilation and analysis of a company's financial statements, taking into current requirements of accounting and the laws of Ukraine. Identify modern methods for compiling and analyzing companies' financial statements, and identify their practical significance for ensuring effective management.
Results. The article examines the composition and content of the main forms of financial reporting; clarifies the structure and information content of financial reporting; analyzes the methodology for preparing reports; studies methods for analyzing financial reporting; characterizes the regulatory framework for reporting in Ukraine; summarizes methods of financial analysis and determines the significance of reporting analysis for corporate management.
Originality. Based on an analysis of current practices and recent research, a number of proposals can be formulated to improve the quality of financial reporting, presentation, and analytical use:
- Expand the use of single-format reporting for small businesses (based on IFRS for small and midsize enterprises).
- Provide access to free online report builders based on government resources (Ministry of Finance, State Tax Service).
- Provide access to free online report builders based on state resources (Ministry of Finance, State Tax Service).
- Introduce a single API interface between accounting programs (M.E.Doc, 1C:Enterprise, BAS) and the State Tax Service/Statistics.
- Encourage the integration of artificial intelligence to verify the accuracy of reporting forms before submission.
- Introduce mandatory calculation of basic financial coefficients (liquidity, profitability, turnover) in the notes to the reports.
- Adapt forms for comparative analysis with previous periods (for example two-year or three-year structure of indicators).
- Revise NABU (National Accounting and Business Uniformity) standard 1-34 to bring them fully into line with the relevant IFRS.
- cancel duplicate regulations and develop a single methodological instruction for the transformation of reporting in the format “NABU - IFRS.”
- enshrine in law the requirement to disclose key accounting policies and reasons for significant changes in reports (for example a significant decrease in assets or income);
- Introduce a standard form of management analysis for the reports of large enterprises.
- Expand the state program for retraining and upgrading accountants' skills, focusing on IFRS, digital tools, and analytics.
- Create an open national methodological portal that'll have explanations, templates, examples, and video tutorials.
Conclusion. Financial reporting is an important tool for strategic and operative management of an enterprise. Its formation requires compliance with legal requirements, methodological accuracy, and reliability. Analysis of reporting allows assessing financial stability, identifying internal reserves, avoiding risks, and making informed decisions.
Following established accounting standards, filling out reporting forms correctly, and taking a deep analytical view when evaluating them makes sure the financial information needed for effective decision-making is trustworthy. In the current environment of digitalization and integration into the international economic environment, the use of IFRS, automated accounting systems, and analytical platforms for flexible and objective analysis of financial statements is also of particular importance. In today's environment, it is recommended to use automated analytical systems, comparative analysis with competitors, and to integrate internal reporting with external performance indicators to form a comprehensive picture of the enterprise's activities.
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