Predictive information in integrated reporting

Abstract

Introduction. Recent trends in business management involve the use of methods that rely on value creation as a result of managing production, financial, human, and natural re­sources, as well as intellectual and social capital in a short-, medium- and long-term perspective. This approach applied to corpo­rate reports is supported by integrated repor­ting. Problem. The use of prospective informa­tion in integrated reporting promotes effective strategic decision-making and increases the significance of the study of forward-looking information disclosure in financial statements. The aim of the article is to study new directions of forward-looking information dis­closure in the framework of integrated repo­rting and identify current trends in non-financial reporting. Methods. A combination of methods and approaches is applied, namely: dialectic, syn­thesis and comparative methods; system and institutional approaches, method of generali­zation, unity of historical and logical methods. Results. The prospective data, specified in most sections of integrated reports, contains both financial and non-financial information, qualitatively and quantitatively illustrates the direction of the company’s development in a short-, medium- and long-term perspective. The forward-looking information serves as one of the sources of assessing the entity’s potential to maintain continuous operation. Under martial law and in terms of the COVID-19 pandemic in Ukraine, continuous operation as the basis for financial reporting is gaining critical importance. The article highlights the requirements to adjust business forecasts and plans when preparing corporate reports. Conclusions. The research on retrospective information disclosure focuses on the concept of integrated reporting, which allows for forecast indicators to support the correlation between current and prospective outcomes of the enterprise’s activity and to determine the factors that change and retain the value of a business in a short, medium and long-term perspective.