REPORT ON PAYMENTS IN PROFIT OF STATE: STATUS AND DIFFICULTIES OF IMPLEMENTATION

Abstract

Objective. The objective of the article is to study the status and challenges of the application of reporting on payments in profit of state by mining companies within the implementation of the provisions of Directive 2013/34/EU and substantiate the conceptualframeworkfor further promo­tion of such reporting in order to increase the transparency of industry enterprise's payments. Methods. The following approaches and methods of scientific analysis for solving the scientific problems and achieving the ultimate goal of research, are applied: institutional, systemic, empiri­cal, structural and functional, comparative, retrospective, methods of induction, deduction, as well as logical, analytical and other methods. The institutional approach allows to conduct the compre­hensive study of national legislation in the context of the implementation of European legislation, in particular Directive 2013/34/EU. The application of the principles and methods of systematic approach makes it possible to determine the levels of the hierarchy of regulation of reporting on payments in profit of state. The application of the empirical approach makes it possible to carry out a structural andfunctional analysis of data, to monitor changes to national legislation on the regulation of reporting of mining enterprises. The comparative and retrospective analysis helps to determine the forms of implementation of the innovations of European legislation into the area of accounting and reporting. The methods of scientific induction and deduction makes it possible to establish the interconnections, interactions and influence of institutes and state institutions and on this basis to determine the conceptual basis for the further promotion of reporting on payments in profit of state by mining enterprises. Results. The value of the conclusions and suggestions obtained as a result of the study is in the developed conceptual framework for further improvement of the regulatory framework aimed to enhance the transparency in the extractive industries by assessing the status and identifying the difficulties of establishing the reporting on payments in profit of state taking into account in­novations in national legislation made within the provisions of the Directive 2013/34/EU. The development of these conceptual frameworks is caused by the necessity offurther implementation of measures to promote the reporting of enterprises engaged in mining activities in order to ensure their transparency and accountability for payments made to government to the society, state, and each other.