• Nataliia Ivanchuk
Keywords: financial statements, financial condition, financial analysis


Financial statements contain a wide range of indicators that are required for the correct assessment of the financial resources, directions of investment and efficiency of financial resources usage at the enterprise. This enables to ensure the adoption of the necessary management decisions, to raise funds to finance the activities of the entity from potential investors.
In the research, the author has considered the essence, the purpose of drawing up and interested users of the financial statements, its shortcomings in the analysis of a financial condition. The article has proved that the financial statements of the company need improvement to ensure fuller satisfaction of the information needs of interested users, as the existing system of indicators of this report does not fully solve all the problems of financial condition analysis of the company. The author has suggested the following ways to improve the structure of financial statements of the enterprise:
1) in the Income Statement:
– adding lines that will show fixed and variable costs of the enterprise;
– showing in a separate line the financial costs related to the accrual of interest for the use of borrowed funds;
2) in the Cash Flow Statement (created by the direct method):
– adding an additional section, which reflects the monthly receipt and expenditure of cash (during the reporting and previous period);
3) in the Financial Statement Notes:
– providing a detailed interpretation of the articles from the previous forms so that users do not have questions about the content of articles that contain the word «others»;
– providing the necessary information about the renewal of fixed assets; the usage of equipment; rationing of current assets; changes in overdue receivables; structure of receivables and payables in terms of such types as debts under the terms of contracts and overdue debts;
– publishing the index of prices for products of the enterprise and the index of change in the cost of production compared to the previous year; buyers and suppliers the company interacts with; prices and profitability of securities owned by the company; investments in inventory incurred during the year;
4) approving a single form of the Financial Statement Notes that will ensure uniformity of information presentation by all domestic enterprises.