THE PLACE AND ROLE OF QUALITY IN THE SYSTEM OF CONSOLIDATED REPORTING: MANDATORY REPORTING OR VOLUNTARY INITIATIVE

Elena B. Gerasimova, Tatiana M. Rogulenko, Lyubov V. Postnikova, Daria D. Postnikova

Abstract: Companies provide information on the quality of products at their discretion, but rarely in consolidated reports of companies, and more often - in marketing and analytical reports. The problem is that in this case, the information on quality is incomplete (companies do not focus on the advantages of their products and do not speak the products' drawbacks), fragmentary (the data on the quality of various products cannot be compared), and periodical (not available for all periods). This does not allow evaluating the change of quality and dynamics of the ratio between the quality of various products. The purpose of this paper is to study the place and role of quality in the system of consolidated reporting of companies. The authors determine the essence and advantages of compiling consolidated reporting according to the international requirements and norms. A comparative analysis of the system of consolidated reporting and standards financial reports of companies is performed, with the designation is their pros and cons. During the comparison of these systems of reporting, the authors consider two aspects of their formation: as a condition of mandatory reporting or manifestation of a voluntary initiative of companies' managers. The authors substantiate the advantages of the international approach to the compilation of consolidated reporting directly for companies and interested users of this information. A conclusion on the importance of quality in the system of consolidated reporting of companies and the necessity of its provision within the international requirements, methodologies, and norms is made.

Keywords: Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS), IFAC (Federation of Accountants) requirements, Key Performance Indicators (KPI), European Accounting Association (EAA), Corporate Social Responsibility (CSR), Committee for Economic Development (CED), Quality Indicators, Quality in Corporate Reporting.

DOI: 10.24874/IJQR17.01-09

Recieved: 07.10.2021  Accepted: 23.05.2022  UDC: 005.336.3

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