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№ 4/2020

Nauk. pr. NDFI 2020 (4): 95–105https://doi.org/10.33763/npndfi2020.04.095

ACCOUNTING AND TAXATION

OLIYNYK Yana ¹, KUCHERIAVA Maria ², ZINCHENKO Alla ³, KORYTNYK Liliya ⁴

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0001-5895-282X
²SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-2948-1234
³National University of “Kyiv-Mohyla Academy”
OrcID ID : https://orcid.org/0000-0002-1193-6109
⁴SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-7241-9324

Practice of non-financial reporting of enterprises of the extractive industry of Ukraine

In 2017, Ukraine has joined the countries whose legislation set the requirements for large and medium-sized undertakings to prepare and publish a management report as a type of non-financial reporting. Prior to the adoption of the relevant legislation, the practice of non-financial reporting preparation by domestic enterprises was voluntary and had extremely low submission rates. Therefore, this study aims to determine whether there is an expansion of the practice of non-financial reporting preparation, including management reports, by examining the disclosure of information on the undertakings’ impact on the economy, environment and society before and after the adoption of relevant regulations. The extractive industry undertakings were chosen for the purposes of the study. This is caused by their strategic importance for Ukrainian economy and existing positive experience of Extractive Industries Transparency Initiative (EITI) implementation. Among the undertakings of the industry were selected entities included in the 100 largest taxpayers of Ukraine in 2018, according to the data of State Fiscal Service of Ukraine. Within the study, the reports were evaluated by four areas, defined by EU directive requirements, in particular: the context of economic, environmental, social and institutional impact. The observation showed that after the implementation of the regulation on the mandatory preparation of management reports, in Ukraine there was an increase in the number of extractive industry companies that prepare non-financial reporting. In addition, it was conducted within the study that companies with long experience in preparation of non-financial statements in accordance with the requirements of recognized international documents show the best level of disclosure, in particular in the management report. Companies prepared non-financial statements (management report) at first time after the implementation of mandatory legislative rules have a lower level of non-financial data disclosure. At the same time, the level of non-financial reporting data usefulness still remains low. Therefore, it was suggested by authors that a further increase in the transparency of extractive industry companies’ activities can be achieved by improving the quality of non-financial reporting.

Keywords:non-financial reporting, management report, non-financial information, disclosure, extractive industry entities

JEL: M41, M48, M49, Q01

OLIYNYK Y. . Practice of non-financial reporting of enterprises of the extractive industry of Ukraine / Y. . OLIYNYK , M. Kucheriava, A. Zinchenko, L. Korytnyk // Наукові праці НДФІ. - 2020. - № 4. - C. 95-105.

Article original in Ukrainian (pp. 95 - 105)

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