TY - JOUR AU - H. М. Kurylo PY - 2018/09/04 Y2 - 2024/03/29 TI - Problems of Decision-Making on the Basis of Financial Reporting Data: The Theoretical Aspect JF - Statistics of Ukraine JA - Stat. Ukr. VL - 82 IS - 3 SE - Articles DO - 10.31767/su.3(82)2018.03.08 UR - https://su-journal.com.ua/index.php/journal/article/view/202 AB - As the accounting is a mirror of the company performance, information contained in financial reporting shows its operative results. The objective of the article is to study the set of problems related with recording of the accounting data in financial reports, assurance of the materiality of reporting (accounting) data, and to formulate recommendations for reducing its negative impact on decision-making.An essential problem of the Ukrainian accounting is its statistical character given that the accounting by international standards, sought by Ukraine, is management one. International Financial Reporting Standards (IFRS) do not contain clearly defined norms (requirements): all of them are intended as recommendations. Clearly defined requirements, norms or rules are built by companies into their own accounting policy in view of their needs and the materiality of information. It calls for close interactions between accounting and management units when building up the accounting policy of a company. To have the national standards harmonized with IFRS, the existing inconsistencies need to be corrected, such as the right to choose the accounting principles, which must be left to consideration of company management. The accounting needs to be focused on finding internal company reserves and providing reliable, sound and authentic data on the real situation with the company performance and future development prospects.             Analysis of financial reporting allows company managers to identify the reasons of drawbacks in the company operation, to assess the effectiveness of company units (responsibility centers) and take relevant decisions, including ones on setting or correcting selected performance indicators, i. e. to correct the system motivating one to achieve the company objectives. The interactions of the accounting unit with company management need to be strengthened, to turn the financial reporting into a tool for taking management decisions. This can be achieved by the high quality accounting policy developed by collaborative effort and the system for its control. The accounting will not be capable to meet the needs of businesses (investors) unless the management (internal company) accounting is organized on scientific grounds. Also, the accounting should be organized by use of advanced technologies, advanced software (for example, by adopting electronic circulation of all the documents using the electronic-digital signature, which legal framework has already been elaborated in Ukraine). ER -