Financial reporting is one of the main tools for providing information to market agents about business performance and financial position of corporations. The current format of financial reporting envisaged by the international and national standardization systems and other mandatory documents limits the possibility of complete and objective representation of corporations’ economic potential. The major deficiencies of the current format of financial reporting include the inability of faithful representation of intangible factors of corporations’ economic potential, as well as ignoring capital obsolescence due to the high level of dynamism of economic development.
The article presents the conceptual and methodological approaches to address the above problems. The application of intellectual capital maintenance concept in financial reporting framework permits to formulate methodological guidelines for adequate representation of intangible component of corporation economic potential on the balance sheet. The methodological approaches to moral depreciation of fixed capital disclosure in financial reporting, based on the provisions of organic balance sheet theory, are substantiated.
1. Baetge, J., Kirsch, H.J. & Thirle, S. ( 2014).Bilanzen. Überarbeitete Auflage,Düsseldorf: IDW Verlag
2. DiPiazza, S. A. Jr. & Eccles ,R. G. (2002). Buiding public trust. The future of Corporate Reporting .JOHN WILEY & SONS, INC.
3. General Requirements for Financial Reporting: National Regulation (Standard) of Accounting 1: Order of the Ministry of Finance of Ukraine of 07.02.2013 № 73. Retrieved from http://zakon3. rada.gov.ua/laws/show/z0336-13.
4. Zubilevych, S. (2014). Accounting EU directive and its impact on the composition and content of the reports of European companies and the prospects for Ukraine . Accounting and Auditing,7, 3–15.
5. The Conceptual Framework for Financial Reporting 2010, issued by the International Accounting Standards Board (IASB) Retrieved from http://www.ifrs.org/News/Press-Releases/Documents/ Conceptual FW2010vb.pdf.
6. Koryagin, M. V. & Kutsyk, P.O. (2016). Problems and prospects of financial reporting: monograph. Kyiv: Interservice
7. Krupka, Ya. D. & Nazarov, I.J. (2016). Balance sheet generalizations and reporting of enterprises in the period of reorganization changes .Economic Journal of Eastern European National University named by L. Ukrainka, 1 (5),108–114.
8. Legenchuk, S. F. (2010). Theory and methodology of accounting in the conditions of postindustrial economy: monograph. Zhytomyr: ZDTU
9. International Accounting Standard 1 "Presentation of Financial Statements". Retrieved from: http://www.ifrs.org/Documents/ IAS1.pdf.
10. Ozeran, A. V. (2015). Theory and methodology of formation of financial reporting: monograph. K.: KNEU.
11.Pylypenko, L.M. (2016). The reporting system of public corporations in conditions of post-industrial economy: Thesis for obtaining the scientific degree of Doctor of economic sciences: specialty 08.00.09 Accounting, analysis and audit. The National Academy of Statistics, Accounting and Auditing,
12. Yaremko, I. Y. & Fedak T.V. (2009). Accounting study in the context and format of economics methodology . Management and Entrepreneurship in Ukraine: problems and stages of development. Journal of The National Lviv Polytechnic University, 647, 547–552.
13.Directive 2013/34/EU of the European Parliament and of the Council on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC. Retriever from http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex %3A32013L0034.
14. Schmidt F. (1922). Die organische Bilanz im Rahmen der Wirtschaft: Betriebs-und Finanzwirtschaftliche Forschungen . Leipzig.: Herausgegeben von Prof. Dr.F.Schmidt