Abstract:

The experienced crises, the consequences of which make themselves felt so far, have exposed the problem of the formation of high-quality financial reporting, which is the most important factor for investors, creditors and other users. The article focuses on the importance of considering risks when preparing financial reporting of enterprises, particularly industrial ones, due to their larger exposure to the influence of volatile market factors. This circumstance determines the research objective - to develop a methodical tool for improving the quality of financial reporting due to considering risks and ensuring the investment attractiveness of industrial enterprises based on their financial potential assessment. The authors draw attention to the need for using the evaluation of assets, liabilities and capital at fair value in accordance with the IFRS, which assumes considering risks, but at the same time emphasize the importance of a parallel evaluation of the balance sheet ratios at nominal value. The use of the method of combining nominal balance-sheet ratios and ratios calculated at fair value allows one to determine the enterprise’s financial strength, which is an indicator of its financial potential, the use of which will improve the company’s financial soundness and increase return on investment. The proposed approach allows investors, on the one hand, to obtain information on the minimum guaranteed return on investment taking into account risks and, on the other hand, on the potential for its growth under favorable circumstances. Such opportunities allow investors to judge on the availability of the enterprises’ financial potential, which is aimed at increasing their investment attractiveness by ensuring a greater information content and transparency of financial reporting.