FINANCIAL REPORTING AS IMPORTANT SOURCE OF INFORMATION FOR TAKING MANAGERIAL DECISIONS

Subject of research is financial reporting viewed as the element of accounting and important source of information for taking managerial decisions. Aim of research is substantiation of key elements and factors characterizing financial reporting as important source of taking managerial decisions and characteristic of its legal and regulatory framework. Work methodology: Work is performed on the results of analyzing modern opinions on the main aspects of defining financial reporting, its components and legal and regulatory framework. Work results: The work substantiates the role of financial reporting in taking managerial decisions; characterizes the legal and regulatory framework concerning the methodology of preparation and disclosure of financial reporting; analyzes modern approaches to the interpretation of the concept ?financial reporting?. The work shows that financial reporting as the source of information for taking managerial decisions cooperates with managerial functions. Branch of result application: One of the main peculiarities of reporting campaign for the 1st quarter of 2013 is preparation of financial reporting in accordance with the new form. National Accounting Regulation (standard) №1 ?General Requirements to Financial Reporting? was introduced on March 19, 2013. But this standard in some provisions does not comply with both the local legislation in the sphere of accounting regulation and the international standards. Therefore, for the time being there is the necessity for the Ministry of Finance of Ukraine to introduce changes into the Law of Ukraine ?On Accounting and Financial Reporting in Ukraine? and AR(S), what is probably to take place in the nearest future. Conclusions: Financial reporting is viewed as the instrument for objective and correct assessment of financial and property condition, results of activities and cash flows of the company. Financial reporting shall provide complete, unbiased and true information on current conditions and results of company operations and be reliable source of analytical conclusions on further development and determination of economic potential of the company.