Consolidated Financial Statements: The Genesis of Normatively Regulating in Ukraine

The exacerbation of competition in the domestic market and the intensification of the economic struggle in the international (external) market is an important prerequisite for the centralization and unification of capital of business entities. In this regard, there is a need to prepare consolidated financial statements reflecting the effectiveness of the group. The purpose of the article is to substantiate the legal and theoretical provisions of the formation and use of the consolidated financial statements of a group of enterprises for management purposes. The main objectives of the study are: the historical genesis of the formation of indicators of consolidated financial statements in Ukraine; critical analysis of regulatory factors for consolidating financial statements; theoretical generalization of consolidation methods for a group of enterprises. The degree of dependence between business entities in accordance with the share in the capital was determined. The structure of the consolidated group of enterprises was disclosed. Signs of dependence of subsidiary enterprises with the legislation of Ukraine were systematized. The approaches to determining the composition of the consolidated group of enterprises were considered. The main features of the assessment of control and authority of members of the group of enterprises for the needs of consolidation were identified. The stages of consolidation of financial statements were described. The main accounting requirements for the consolidation of financial statements were systematized. The regulatory procedures for the consolidation of financial statements were analused. The theoretical provisions for the preparation of consolidated financial statements for information needs were summarized. It was revealed that the need to improve the methodological and organizational approaches to the formation of consolidated financial statements is caused not only by the increase in the number and volume of activities of associations and enterprise groups, but also by the inconsistency and imperfection of the current regulatory framework, the mismatch of the structure and content of the consolidated reporting to the requests of various user groups.