Financial reporting as an instrument of anti-crisis management

Abstract

The article considers fnancial reporting as a tool of crisis management, taking into account the innovations of current legislation (Code of Ukraine on bankruptcy procedures, 2018) and the high level of unproftability of economic entities and its inability to ensure the effectiveness of fnancial and economic activities. The purpose of the study is to summarize the main provisions of the preparation and submission of fnancial reporting in accordance with national and international standards and to justify its mandatory use in crisis management of economic entities. The methodological basis of the study is the fundamental principles of theory of fnance and fnancial management. Monographic method, theoretical method, method of comparative analysis, tabular method were used achieve the objectives of the study. The conceptual bases of business entities fnancial reporting in accordance with the national and international standards are defned on the basis of certain criteria (regulatory support, essence, composition, principles of formation). The balance sheet is a leading source of information for the analysis of non-current and current assets, receivables and payables, investments and innovations along with the liquidity and fnancial stability indicators. The income statement is a leading source of information for the analysis of production costs and proftability. Defciencies of the current system of methodological support for the analysis of the fnancial and economic condition of economic entities comprise the lack of integration of orders of the Ministry of Justice of Ukraine with the current forms of fnancial reporting. Guidelines for identifying signs of insolvency and signs of actions to conceal bankruptcy, fctitious bankruptcy or bankruptcy as of January 19, 2006 № 14 to the provisions of National regulation (standard) of accounting 1 have been adapted in order to improve the information support of the analysis of fnancial and economic condition of economic entities in the context of crisis management. Key words: crisis management, bankruptcy, insolvency, fnancial reporting, national regulations (standards) of accounting, international fnancial reporting standards.