QUALITY OF FINANCIAL REPORTING AS A FACTOR OF ENTERPRISE ECONOMIC SECURITY: EUROPEAN DETERMINANTS AND THEIR IMPLEMENTATION IN THE UKRAINIAN ACCOUNTING SPACE

Abstract

The purpose of this article is to substantiate the role of financial reporting quality in the context of integrating non-financial information and to determine its significance for ensuring enterprise economic security within the framework of European regulatory practices. Particular attention is paid to the analysis of the transformation of reporting approaches under the influence of sustainable development requirements, International Financial Reporting Standards (IFRS), and EU directives, as well as to the identification of key challenges and prospects for improving the national accounting and reporting system in Ukraine. The study employs general scientific and specialized research methods, including analysis and synthesis, induction and deduction, comparative and systemic approaches, as well as the method of generalization. The information base comprises regulatory and legal acts of the European Union and Ukraine, International Financial Reporting Standards, findings from empirical studies on corporate transparency and non-financial reporting, and academic publications addressing issues of reporting quality and internal control. The article demonstrates that traditional financial indicators do not provide a comprehensive representation of corporate performance and are insufficient for adequately assessing long-term sustainability and the level of economic security. The expediency of integrating non-financial information into financial reporting is substantiated along the dimensions of accessibility, credibility, and strategic embeddedness. The issue of information overload inherent in contemporary reporting practices is identified, and the advantages of approaches focused on enhancing the relevance of disclosures are highlighted. A universal model for improving financial reporting quality is proposed, in which the internal control system plays a pivotal role as a tool for risk mitigation and for strengthening stakeholder confidence. The current state and dynamics of non-financial reporting development in Ukraine are analyzed, revealing positive trends alongside the persistence of fragmented practices and a relatively low level of report dissemination. It is concluded that enhancing financial reporting quality through the integration of non-financial information is a necessary prerequisite for strengthening enterprise economic security and harmonizing national practices with European standards. The implementation of the proposed approaches requires comprehensive changes in regulatory frameworks, the further development of internal control systems, and the establishment of institutional mechanisms for administering non-financial reporting.