№ 1/2022

№ 1/2022

Nauk. pr. NDFI 2022 (1): 104–113https://doi.org/10.33763/npndfi2022.01.104

ACCOUNTING AND TAXATION

KORNIEIEVA Iuliia ¹

¹SESE "The Academy of Financial Management"
OrcID ID : https://orcid.org/0000-0002-1823-7618

Single electronic format of non-financial reporting

The article highlights the EU experience on gradual introduction of a non-financial reporting system in a single electronic format. The article analyzes the processes of transformation of disclosure requirements in the field of environmental and social impact of economic entities, as well as corporate governance (Environmental Social Governance, ESG), enshrined in the Non-Financial Reporting Directive 2014/95/EU (NFRD) and presented in the draft of the new Corporate Sustainability Reporting Directive (CSRD). The author describes advantages and disadvantages, strengths and weaknesses of the process of forming the modern architecture of ESG reporting in the EU, which is based on the requirement to transmit information in electronic format XHTML (eXtensibleBusiness Reporting Language) in accordance with the regulations of the EuropeanSingle Electronic Format (ESEF). The main advantages of CSRD are defined as follows :1) mandatory reporting - as common reporting structure for non-financial data is established at the legislative level so the data manipulation and use of SDG-washing and Cherry-picking practices will be reduced; 2) sustainability-related data disclosure on regular basis – strict requirement for annual reporting; 3) accuracy and completeness of sustainability-related information disclosure - bridging gaps in non-financial reporting; 4) saving company time and resources needed to be spend on reporting - reduction of the number of indicators, deduplication and unification of reporting forms. It is substantiated that the transition to a single electronic format of non-financial reporting over time willexpand Ukraine's investment potential during the postwar recovery.

Keywords:single electronic reporting format, non-financial reporting, reporting standards, information disclosure, sustainable development

JEL: М41, О19

Kornieieva I. . Single electronic format of non-financial reporting / I. Kornieieva // Наукові праці НДФІ. - 2022. - № 1. - C. 104-113.

Article original in Ukrainian (pp. 104 - 113)

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