MANAGEMENT REPORTING OF AN ENTERPRISE: CLASSIFICATION, QUALITY CRITERIA AND FEATURES OF FORMATION

Abstract

Introduction. Today, the economic activity of enterprises largely depends on external challenges and the specific features of the economic environment. To ensure the effective activity and further development of a business entity, its management system must be coordinated and capable of responding quickly to internal and external factors and changes in operating conditions.

For the adoption of well-founded management decisions, high-quality information support is necessary, an important component of which is management reporting. Its formation is accompanied by a number of problems related to the improper organisation of management accounting at the enterprise, insufficient qualification of personnel, distortion of information due to subjective factors, as well as a high level of uncertainty intensified by military actions in Ukraine and other global challenges. This actualises the need for the proper organisation of the process of preparing management reporting, optimisation of its forms and identification of requirements for the quality of information, which will make it possible to form appropriate information support for the management system and will facilitate the adoption of well-founded decisions for the successful functioning of business.

Purpose. The purpose of the study is to disclose theoretical and methodological approaches to the formation of enterprise management reporting, to systematise its classification features and to clarify quality criteria in order to create an appropriate informational basis for the adoption of well-founded management decisions.

Materials and methods. The materials of the study are the scientific works of Ukrainian and foreign scholars concerning the development of management accounting and management reporting under the influence of changes in the management system, digitalisation and global challenges, as well as official data of the State Statistics Service of Ukraine, which characterise the current conditions of enterprise functioning. In the course of the study, the following scientific methods were used: the system approach — for considering management reporting as a component of information support for enterprise management; theoretical generalisation, grouping, systematisation, induction and deduction — for generalising scientific approaches to the essence and features of the formation of management reporting, as well as for distinguishing its classification features; comparison, analysis and synthesis — for determining the quality criteria of management reporting, requirements for reporting information and the system of its indicators.

Results. The role of management reporting as a component of information support for the management system has been determined. The stages of implementing management accounting and management reporting at an enterprise have been disclosed. Approaches to the grouping of management reporting have been systematised, taking into account current trends in its development, and it has been proposed to classify it according to the following features: purpose, nature of management decisions, periodicity, data source, management levels, and forms of presentation. Requirements for management reporting indicators as a basis for decision-making and evaluation of the results of their implementation have been outlined. The quality criteria of management reporting have been substantiated, compliance with which will ensure the fulfilment of the functions assigned to it, namely: reliability, relevance, timeliness, completeness, materiality, understandability and ease of perception, integration, verifiability, comparability, economic efficiency, and confidentiality. The problems that arise in the process of forming management reporting have been investigated, as they reduce the quality of reporting information and complicate the adoption of well-founded management decisions.

Prospects. Further scientific research should be directed towards the development of practical recommendations for the formation of management reporting, the determination of the optimal structure of its forms and the procedure for the movement of reporting information between management levels.