ConCeption of reporting information formation for assessment of finanCiaL sYstem management of state enterprises

The analysis of main rates of activity of state enterprises, included in hundred most enterprises, was realized. It was established, that the rates of financial-property condition are not satisfactory that causes the unprofitable activity of enterprises. Such situation conditions additional budgetary financing of state enterprises as capitalization, subsidy, preferential crediting that negatively influences budgetary regulation. More effective management of financial-economic activity of state enterprises is favored especially by the grounded informational base, included in reporting. The content load of different forms of obligatory and non-obligatory reporting was studied by the method of comparison and analogues, on which base the matrix of coordination of the rates of forms of obligatory reporting of state enterprises for receiving the data about the influence of separate rates on condition and movement of capital and resources was constructed. State enterprises were offered to include in the reporting non-financial rates that characterize social, environmental and organizational components of activity, regulated in some countries of the world. On the base of financial and non-financial reporting it is recommended to elaborate for state enterprises the generalizing report on management with key rates that allow stakeholders and supervision council to assess the level of managerial activity, realized by leaders.


introduction
For today the one of node economic reforms in Ukraine provides the improvement of management system of state ownership objects. Government representatives many times accented the expedience of privatization of state enterprises, stopping of activity of enterprises in bankruptcy and orien tation on improvement of management policy of enterprises that are planned to be remained in existent status. Any changes in this field need the use of complex approach to the reconstruction of existent system of corporative management (development strategies, staff and investment policy, management of financial assets, control of opera tive activity) to increase its effectiveness for attaining the planned results. The effectiveness of enterprise functioning and management conception, directly offered by leaders can be estimated on the base of informational flows, generated in the reporting. The changes that take place at realization of the policy of improvement of corporative enterprises management need correspondent improvement as to the order of formation and generalization of rates in report forms. In such a case, the need in creation of report forms that allows realize the comprehensive assessment, especially the one of qua lity of realized management is urgent.

the object of research and its technological audit
The regulation of the management of financialeconomic processes and the objects of state ownership is realized by the Ministry of economic development and trade of Ukraine that annually analyzes the activity of hundred largest enterprises [1] for assessment of their develop ment and elaboration of further vectors of development of reformation, presented in the «Strategy of reforms of state ownership management», elaborated by the govern ment [2]. The Ministry of finances of Ukraine realizes monitoring of activity of state enterprises with most fis cal risks [3], that allows determine their influence on increase of state finances unbalance. The «Development of corporative social responsibility» center, supported by Embassy of the Netherland kingdom in Ukraine prepared the instruction for state companies «Transparency and corporative social responsibility» on the base of Trans parency index, according to which every enterprise can assess itself independently [4]. Taking into account the fact that enterprises of state sector form the essential share for today and have mainly unprofitable results of activity, the question of assessment of their functioning expedience (staying in state ownership) and effectiveness of managerial policy, realized by the leaders, becomes urgent.

the aim and objectives of research
The aim of this research is to analyze the essential structure of obligatory and not obligatory reporting, which rates are the informational base for assessment of manage rial decisions of the leaders of state ownership enterprises for elaboration of reporting format that would correspond to stakeholders' requirements.
The following scientific tasks were determined for at taining the set aim: 1. To realize the brief analysis of the main rates of Ukrainian state enterprises activity.
2. To study the content load of different types of re porting in Ukraine and abroad.
3. To recommend the reporting format that would fa vor the formation of informational base for assessment of management quality.

research of existing solutions of the problem
The works of many scientists are devoted to the for mation of rates of report forms of enterprises and their influence on managerial decisions. Thus, the works [5], where the authors studied the problem of introduction of international standards of financial reporting and formats ISSN 2226-3780 of integrated reporting in the native reporting system and [6], where the scientist studied the question of cor respondence of financial reporting to international stan dards and improvement of methodical aspects as to in crease of its reliability, are devoted to the improvement of financial reporting; the use of nonfinancial component in enterprises reporting is considered in the works [7] and [8]. The study of the modeling of corporative reporting was realized in [9], where the main requirements to re porting formation are given, in the work [10] is deter mined the influence of disclosure of information about corporative management and activity of company, and the work [11] includes the opinion of leading specialists and experts about the order of corporative reporting creation. The native scientists proved the necessity of formation and introduction of the rates on integrated reporting: [12] considers the expedience and possibi lity of using such reports at state enterprises; in [13] the author discovers the status of integrated reporting, preconditions and prospects of its introduction, in [14] the scientist elucidates the principles of preparation of integrated reporting, in [15] these reports were reviewed and generalized and the base of classification and descrip tion of the offered types of information was provided; in the works [16] and [17] the author gives the analysis of formation of integrated reports by foreign enterprises, the necessity and offers as to their formation are cha racterized and determined and content filling is charac terized by separate aspects. The German economist [18] accented attention on cost reporting, directed on stock holders' interests and other scientists [19] widened the aim of this reporting by the formation of rates, indepen dently chosen and normatively determined for decrea sing informational asymmetry between management and stockholders.
Reporting is an object of scientific research that at tracted attention of many scientists that is why the es sential number of questions was raised and elucidated by scientific community for all types of enterprises reporting as the main informational source of making decisions. At the same time the study of questions, connected with the formation of rates of reporting for the management quality assessment at state enterprises are for today in scientific search and need the grounded solution.

methods of research
The following methods were used for the solution of the set tasks: analysis and synthesis, logic generalization, analogues, abstractlogical and grouping, comparison, mono graphic and graphic methods.

research results
The functioning of enterprises, which property (or its part) belongs to the state ownership in Ukraine is charac terized by the stable tendency to unprofitable activity. This fact is proved by the results of the analysis of main rates of essential number of enterprises that are in bankruptcy or liquidation or continue unprofitable activity (Table 1), have essential level of depreciation of main means (for example, in Kharkiv region near 90 %), correspondingly the essential costs for amortization, low level of energy effectiveness and so on. As it can be seen from the data of the Table 1, the activity of studied enterprises is stably unprofitable with great specific weight of nonworking assets (mainly depre ciated) and obligations are near 40 % of sources structure. The growth of own capital takes place only at the ex panse of additional assessment and additional capitaliza tion of most enterprises (NSC «Naftogaz Ukraine» and PSC «Ukrzaliznytsya»), other node branches demonstrated its decrease. At the same time the volume of budgetary financing of 30 state enterprises with most fiscal risks (in cluding tax remissions) in 2014 was 15189545 thousand hrn. [3]. So, there is an urgent need in reformation, which main vectors are formulated in the Strategy of reforms of state ownership management [2]. So, unsatisfactory financialproperty status of enterprises with state ownership ratio and unprofitable results of their activity, financing of certain enterprises from the state budget, their activity and reporting, nontransparent for stakeholders, cause the necessity of elaboration of reporting that allows assess the effectiveness of the management. This requirement is also intensified by increase of the volume of total compensation of leaders of state enterprises up to the level of pay on analogous posts in private sector since 2015.
As it is testified by the analysis of scientific litera ture [5][6][7][8][9][10][11][12][13][14][15][16][17][18][19], the reporting (Table 2), that consists of enter prises in different countries of the world can be divided in: -obligatory (regulated at the state level): financial reporting (formed according to the standards) and Re port on realization of financial plan of enterprise for state enterprises of Ukraine; -nonobligatory (can also contain the rates of financial reporting): corporative and integrated, discovers the wide spectrum of component of enterprise activity on the market. In some countries of the word the practice of reporting formation of stable development, oriented on interested parties, including staff, clients, suppliers, local communi ties, is widespread [16].

ISSN 2226-3780
Ukrainian state enterprises for today form only obliga tory financial reporting, Financial plan and Report on real ization of financial plan of enterprise. Financial information, that is not a component of financial reporting, is formed on methodological grounds, applied by enterprise according to legislation, tax and statistical reporting [20]. Taking into account this fact, we elaborated the matrix ( Table 1) that determines a possibility of revelation of the influence of reporting rates on each other within their coordina tion at formation of informational flows for assessment of economic effectiveness of activity and financial support of state enterprises. The cross of columns gives a rate, for example, АІ, that characterizes the mutual influence of property elements (structure, condition and effectiveness of use) at analysis of elements А on horizontal and І on vertical that is the data of assets of Balance and Sec tion IV of the Report on realization of financial plan of enterprise «Capital investments». At receiving of manage rial inquiry as to characteristics of the separate activity rates, it allows systematize financial information for analy sis within the data coordination by reporting forms and receiving of timely and complete conclusions as to the objects of analysis.
Financial reporting of state enterprise is formed on the base of accounting standards that determine methodical principles, techniques and ways of accounting and forma tion of reporting rates. That is why information, given in the reporting, reflects the real influence of just managerial arrangements as to property condition and formation of financial results incompletely. Certain misinterpretation of information in financial reporting to manage resources is especially noted in scientific works [6] and [7]. The scien tists studied the influence of separate methodical aspects on accountingreporting object and so, regulatory items on financial reporting format. The problem of transfer pricecreation that influences financial reporting rates and determination of casual connections between cost factorscost creation and future financial results is raised by the foreign researcher [21]. In the monograph [22] the author recommends the methods of financial reporting correction for enterprise cost formation to guarantee the objective assessment.
Taking into account the probability of influence of separate accounting methods on assessment of property cost, capital and financial results of activity the need of leveling of influence of such reporting rates on the qua lity of managerial decisions in reporting period appears. That is why at formation of informational base for mat rix construction (Table 3) it is recommended to realize the specifying calculations at determination of separate rates (debtor liability, guarantee and so on) that allows take into account the data that directly characterize the influence of leaders' managerial decision on financial property condition.
The imperative norm as to reporting promulgation by state enterprises if for today observed by unessential number of enterprises that considerably lowers transpa rency index of their activity and accountability to society and all interested persons. Informational transparency is the one of main components of corporative management according to the «Principles of corporative management of OECD». In this connection the center of «Corporative social responsibility» elaborated the instruction for state companies «Transparency and corporative social respon sibility» [4]. The authors paid attention to the necessity of activity assessment in the following directions: corpo rative management, including anticorruption policy and compliance; human rights and labor practices; relations with stakeholders; fair operational practices; environment protection policy; development and support of communities; strategy and reporting. However at realization of owner's rights by the state, its duties especially, includes: rendering and control of realization of wider purposes and tasks by state companies: establishment of reporting systems that allows management body to trace and assess the working results, to realize audit regularly [23]. Information, useful for investors, lenders and other creditors and also information about potential object of investment; description of risks and uncertainties of company; monitoring of dynamics of creation of corporation property; prognostication and assessment of corporation cost [8] Free structure Response to the questions of interested persons Integrated reporting (financial and non-financial information) To explain to the capital (especially, financial) suppliers, how the enterprise creates cost during long time [5] Financial and non-financial rates are selected independently by enterprise and are given in free form Information about the system of used resources, orientation of strategy, management, activity and prospects of economic agents for costs creation, activity and results of using capitals in past, today and future [12]; how organization creates value with time [16] ISSN 2226-3780 So for assessment of the system of management of financialproperty condition of state enterprises the obliga tory reporting is not enough that conditions the neces sity of forming reporting that includes nonfinancial rates. The improvement of forms, requirements and content of financial reports of enterprises in time did not result in possibility to estimate the real condition of financialeco nomical activity taking into account the full spectrum of factors that influence its characteristics and to give full information as to managerial activity for stakehol ders of state enterprises. The author pays attention to the fact that traditional reporting model is based only on financial information that is incomplete in the context of necessity of wide use of spectrum of financial and non financial activity rates, definitely recognized as indicators of corporative success for today. The scientist notes that financial reports are essentially grounded on assessments, judgments and models and not on precise reflection of economical phenomena [8]. The outstanding importance of nonfinancial rates in outlining of conditions of company functioning and features of businessenvironment that be comes especially urgent under dynamic market conditions was accented by V. Beattie, because, according to him, paying attention only to financial rates doesn't correspond to pluralistic approach to business [15]. The author notes that the absence of instrument of assessment of the re sults of managerial decisions is the one of obstacles for ma king decisions on appropriation of funds for realization of environmental and social programs [24].
The author group of the instruction for state com panies [4] studied the experience of leading countries in formation and regulation of nonfinancial information for giving it to stakeholders (Table 4).
On the base of information, presented in the Table 4 is seems to be expedient to provide in Ukraine the normative regulation of formation and presentation of nonfinancial rates in report using the experience of foreign countries. Such information may be presented as a set of qualita tive and quantitative rates that must add and widen the present informational support of managerial decisions [15]. The dynamic development of corporative reporting forms, changes of approach to its formation, appearance of panel of not only additional financial parameters but also non financial information is just the example of active interaction between subject and object of reporting on the base of epistemological constructivism [8]. It is offered to realize the assessment also of industrial capital for state enterprises to demonstrate the increase of operational effectiveness, safety and protection of environment, rationality of outgoings [12].
Corporative management of state enterprises must pro vide responsibility and its assessment according to certain criteria (financial and nonfinancial ones) and system of different rates of different reporting forms. The users of analytic information as to the management quality must understand the reliability and completeness of data that must be presented for different fields of enterprise acti vity: resources distribution, staff management, processes organization, ecologization, counteragents and so on. So there is recommended the model of reporting on management that allows take into account the inquiries of stakeholders of all levels and supervision council as owner's representative under conditions of existing combination of economic, financial, staff and organizational regularities for assessment of the set aims realization (Fig. 1). The report on management must include qualitative and quantitative financial and nonfinancial rates, their assessment (effective ness analysis, operational analysis and so on) and descriptive part that characterizes processes, operations, conditions that influence managerial decisions but have not determined rates system (field specificity, quasifiscal operations, safety and so on). We offer to prepare such report after formation of financial and corporative (integrated, managerial) ones, having corrected their separate rates.
For each section of report it is necessary to determine the totality of rates that determine parameters and effec tiveness of managerial activity, elucidating the potential possibilities of state enterprise development. The special attention must be paid to the choice of assessment rates, which quality must not be burdenedsome for understanding and at the same time must be enough for determination of management quality. We offer to choose the assessment rates according to the following aspects: KPI (according to strategy), effectiveness of resources use and effectiveness of capital. Foreign practice testifies that for big companies it is optimal to establish on average eleven KPI compar ing with six for small and middle business [25] that must reflect Strategic Value Drivers that is be oriented on ef fective types of activity that guarantee the future success. To report on non-financial rates according to general reporting model: -organizational management: information about company, management of social responsibility and process of attraction of interested persons; -economic activity: information about economic purposes, achievements and rates (incomes, state support and indirect financial results); -human resources: policy and approaches to staff management, staff structure (including staff turnover), restructurization and stop of labor relations, rates of gender equality, pay schemes, training and qualification improvement of staff, health and safety of staff; -environment: environmental purposes, problems of increased risk; environmental rates (electric power, water supply, wastes) correspondence to the normative requirements; -society: participation in local communities, counteraction to corruption, participation in state policy (for example, lobbing), behavior on market (observance of competition rules) and also observance of laws and rules; -responsibility for production quality; rates of clients' satisfaction, health and safety of production and services; -human rights: question of human rights in connection with economic activity of the company; -management of supplying chains; -principle of reporting and calculations (non-obligatory section): methodological information about report preparation and principles of all its calculations

Report on management
Corrected rates in the aspect of obligatory reporting forms Financial rates Assessment rates Non-financial rates

Descriptive part
Rates in the aspect of non-obligatory reporting forms that elucidate the quality of managerial activity in observance of social responsibility, staff policy and staff management, cooperation with counteragents (native and foreign) and governmental institutions, environmental policy, information about financial rates that was not included in obligatory reports (conventional duties and assets, events after balance) Rates that determine the growth of result of managerial policy (of resources, capital, staff) -KPI of managerial effectiveness, effectiveness of the use of: resources, capital, purpose-oriented financing, crediting The obligatory element at report creation must be the riskoriented approach that allows take into account the influence of negative factors on state enterprises activity.
So, the movement of informational flows at formation of managerial report must provide reliability and complete ness of the data, necessary for assessment of managerial activity and have unified form in sections. It is expe dient to regulate the articles of report in minimal number and to give the rest for independent determination by supervision council of enterprise taking into account the specificity, influence of micro and macrodeterminants.

sWot analysis of the results of research
Strengths. The strong side of the research is the analysis of reporting of enterprises in different countries of the world and in Ukraine that determined the necessity to create the Report on state enterprises management, in which the influence of methodological aspects and profes sional judgment of its authors on the quality of managerial decisions would be leveled.
Weaknesses. The weak side is the fact that financial reporting of overwhelming majority of state enterprises is not published, and formation of nonfinancial rates is not realized.
Opportunities. The opportunities for further researches are the study of experience of foreign countries as to formation of reports that contain nonfinancial rates and characterize managerial activity of state enterprises.
Threats. The threats for the results of research are in fact that state enterprises are unprofitable in node branches and receive financing from budget that distorts its real financialproperty condition. At that it is rather difficult to assess the financing effectiveness that has negative in fluence on outgoing part of budget.

Conclusions
The key rates that characterize the activity of hundred most state enterprises of Ukraine were characterized. Their unsatisfactory financialproperty condition and mainly un profitable activity were established.
1. For assessment of managerial activity of state en terprises were studied the forms of obligatory and non obligatory reporting in Ukraine and abroad. There were offered the recommendations as to creation of matrix that allows group the rates of obligatory reporting for determination of their influence on condition and move ment of property, capital, obligations and activity results. There was proved the necessity of formation and presen tation of nonfinancial rates of state enterprises activity that allow reveal the influence of factors, not connected with rates of obligatory reporting. At that they take into account the influence of socioenvironmental and orga nizational component on the condition and development of enterprise.
2. The formation of Report on management is recom mended for state enterprises. It is recommended to be composed by the following components: sections, descrip tive part and conclusion. It is expedient to compose the report on the base of financial and nonfinancial reports of enterprise; its rates allow realize the assessment of managerial activity quality by supervision council and internal and external stakeholders.