DEVELOPING THE METHODS OF MANAGEMENT ACCOUNTING REPORTS FORMATION IN THE SYSTEM OF CORPORATE GOVERNANCE

Abstract

Introduction. The effectiveness of governance largely depends on the quality of its information support. Financial reporting due to the shortcomings of its methodology and limitations of completeness is unable to meet the information needs of managers. This problem is even more acute in corporate structures with multi-level management systems and multifaceted information needs of managers, which highlights the necessity for the development and implementation of management reporting systems. Methods. Methods of comparison, analysis, generalization, analogy, and classification are used in the course of research. Results. It is established that the management reporting of corporations should perform at least two functions – to be a tool for providing information to managers and a means of controlling the corporate performance and budget execution. The classification of management reporting was elaborated in order to study its essence. The list of characteristics of management reporting as well as qualitative criteria of disclosed information was defined. The key differences between management reporting and general purpose financial reporting were outlined. Approaches to the formation of management reporting and its content were analysed. It is defined that this reporting should be formed by segments and types of activity for each responsibility center. The stages of formation of management reporting and stages of its implementation in corporate entities were substantiated. The main criteria for the assessment of management reporting effectiveness were indicated. Discussion. Prospects for further research on this topic are related to the development and improvement of specific forms of management reports.