Information support for the state-owned enterprises management under uncertainty caused by the COVID-19 pandemic

Abstract

The article highlights new approaches to understanding the place and role of accounting in business management within the modern views on essence and functions of management. Accounting is considered as a service function in relation to the management of entities, including state ones, but also it has assumed the task of providing the information support of risk management. The aim of the article is to study the information support of SOE management under uncertainty caused by COVID-19 pandemic. It has been proved that the state fiscal risks are associated with the asymmetry of SOE accounting information and financial statements. The information support of SOE management depends on financial planning. This is conducted through the financial plan as the subject of management. The financial plan defines the tasks and performance indicators that must be achieved by SOE. The author mentions the positive aspect of regulation of planning and reporting on the implementation of the plan of SOE saying that the legislation provides an approach to the formation of planning and reporting information based on national standards’ and IFRS methodology. At the same time, the assessment of methodology of planning SOE activities should take into account the contemporary state of financial plan preparation. Today preparation of SOE financial plan must comply with limits on expenditures set by CMU Resolution No. 1673. However, it doesn’t consider the IFRS existence, which affects the amount of costs and for which professional judgment is made. There is a possibility for costs’ manipulations in legislation for SOE. The COVID-19 pandemic increases fiscal risks and stimulates necessity to apply a number of measures aimed at overcoming them and improving management information support in the new conditions.