RECOGNITION OF SR-BUSINESS RESPONSIBILITIES BASED ON THE IDENTIFICATION OF OWNERSHIP POWERS AS AN IMPERATIVE OF THE SOCIO-ECONOMIC MODEL OF FINANCIAL REPORTING

Abstract

A great deal of research is focused on such issues as financial reporting theory, usefulness of information for investors, and optimisation of the reporting information field. The need for reporting information on ESG-behaviour of business in the context of socio-economic development paradigm makes these issues particularly acute. In this regard, the aim of the paper is to identify the criterion for recognising SR-business responsibilities as the basis of the socio-economic model of financial reporting and to develop an innovative approach to its preparation. To achieve the research objective, a three-stage algorithm has been developed according to which: 1) interpreted the concept of SR-business in the context of modern interpretation of associated ownership; 2) identified the point of convergence of economic and social concepts to recognize the results of ESG-behaviour as a business contribution to sustainable development; 3) assessed the current international trend in developing an approach to prepare information on ESG-business contribution to sustainable development. The solution to this problem is to establish a point of convergence between accounting methodology and the concept of social responsibility. The study has scientific relevance for the improvement of financial reporting theory and practical significance for the transition to a socio-economic model of accounting and reporting.

The study concludes that an eclectic approach to financial reporting, combining an economic and social approach with elements of a legal approach, is needed to improve accounting methodology.