Subject The paper analyzes the disclosure of information in annual reports in terms of compliance with the principle of integrated reporting Strategic Focus and Future Orientation. Objectives The aim is to study the quality of disclosure of information on financial standing and financial results based on financial statements presented by Russian companies, and determine to what extent the companies are ready to openly interact with all stakeholders. Methods We used scientific methods of analysis, synthesis, comparison, as well as methods of economic-mathematical modeling, in particular, correlation analysis and semantic analysis. Results We summarized the results of semantic analysis of the texts of reports to determine to what extent the opinion of senior management is pronounced about the company's ability to create value in the short, medium and long term. The paper presents the results of correlation analysis of dependence of company's financial ratios and the views of senior management on its financial position. Conclusions and Relevance We justified the conclusion about problems with the quality of disclosure in corporate financial reporting of Russian companies and its non-compliance with the Strategic Focus and Future Orientation principle. This fact shows that companies are not ready for open interaction with all stakeholders. It is required to introduce a new system of financial indicators and their interpretation in the context of integrated reporting. This will enable an effective collaboration of company management with stakeholders and increase the level of confidence.
Barilenko V.I. [Business analysis as a tool for sustainable development of economic entities]. Uchet. Analiz. Audit = Accounting. Analysis. Audit, 2014, no. 1, pp. 25–31. (In Russ.)
Efimova O.V. [Reporting on sustainable development of the company: Evaluation of information needs of users]. Vestnik Rossiiskogo universiteta druzhby narodov. Ser.: Ekonomika = RUDN Journal of Economics, 2012, no. 4, pp. 75–82. (In Russ.)
Efimova O.V. [Efficiency of interactions with stakeholders as a factor of company's sustainable development]. Ekonomika i upravlenie: problemy i resheniya = Economics and Management: Problems and Solutions, 2014, no. 3, pp. 109–114. (In Russ.)
Efimova O.V. [A Sustainability Report as a new form of corporate reporting of companies]. Auditorskie vedomosti = Audit Journal, 2014, no. 8, pp. 36–47. (In Russ.)
Efimova O.V. [Integrated reporting as an information base for analysis of sustainable development of the company]. Materialy X mezhdunarodnoi nauchnoi konferentsii studentov, aspirantov, prepodavatelei “Bukhgalterskii uchet, analiz i audit: istoriya, sovremennost' i perspektivy razvitiya” [Proc. 10th Int. Sci. Conf. Accounting, Analysis and Audit: Past, Present and Development Prospects]. St. Petersburg, Saint Petersburg State University of Economics Publ., 2015, pp. 7–8.
Plotnikova V.V. [The importance of the report on the opinion of executives on financial position and financial performance of the company for stakeholders]. Materialy mezhdunarodnoi nauchno-prakticheskoi konferentsii “Bukhgalterskii uchet, upravlenie i finansy: perspektivy razvitiya v usloviyakh ekonomicheskoi nestabil'nosti” [Proc. Int. Sci. Conf. Accounting, Management and Finance: Prospects for Development Under Economic Instability]. Saratov, Saratov Socio-Economic Institute of Plekhanov Russian University of Economics Publ., 2016, pp. 138–142.
Barron O.E., Kile C.O., O'Keefe T.B. MD&A Quality as Measured by the SEC and Analysts' Earnings Forecasts. Contemporary Accounting Research, 1999, vol. 16, iss. 1, pp. 75–109. URL: Link
Loughran T., McDonald B. Trust, but Verify: MD&A Language and the Role of Trust in Corporate Culture. Journal of Business Ethics, 2016, vol. 139, iss. 3, pp. 551–561. URL: Link
Dainelli F., Bini L. The Informational Capacity of Financial Performance Indicators in European Annual Reports. Maggioli Editore, 2011, 114 p.
Verbitskii V., Gulyaev K., Akhmed I. [Clear thinking delivers clear statements and acts]. Rynok tsennykh bumag = Securities Market, 2014, no. 8, pp. 42–45. (In Russ.)
Clarkson P.C., Kao J.L., Richardson G.D. Evidence That Management Discussion and Analysis (MD&A) Is a Part of Firm's Overall Package. Contemporary Accounting Research, 1999, vol. 16, iss. 1, pp. 111–134. URL: Link
Hambleton W., Rouse R., Weirich T. MD&A: Latest Guidelines Force Even More Disclosure. Journal of Corporate Accounting and Finance, 2004, vol. 15, iss. 5, pp. 65–71.
Rogers R., Grant J. Content Analysis of Information Cited in Reports of Sell-Side Financial Analysts (Digest Summary). Journal of Financial Statement Analysis, 1997, vol. 3, iss. 1, pp. 17–30. URL: Link
Barilenko V.I. [Business analysis as a new direction of analytical work]. Sibirskaya finansovaya shkola = Siberian Financial School, 2011, no. 3, pp. 32–35. (In Russ.)
Pisano S. Human Capital Disclosure in the MD&A Statement: An Analysis on Italian Public Utilities. Journal of Human Resource Management, 2015, vol. 3, iss. 2-1, pp. 39–46. URL: Link
Pisano S., Alvino F. New European Union's Requirements and IFRS Practice Statement “Management Commentary”: Does MD&A Disclosure Quality Affect Analysts' Forecasts? Journal of Modern Accounting and Auditing, 2015, vol. 11, iss. 6, pp. 283–301. URL: Link
Goel S., Uzuner O. Do Sentiments Matter in Fraud Detection? Estimating Semantic Orientation of Annual Reports. Intelligent Systems in Accounting, Finance and Management, 2016, vol. 23, iss. 3, pp. 215–239. URL: Link
Nusbaum E.E., Weiss J. Proposed Guidance for Attest Engagements on Management's Discussion and Analysis and a New Standard on the Auditor's Consideration of Fraud. Journal of Corporate Accounting and Finance, 1997, vol. 8, iss. 4, pp. 119–123. URL: Link
Caserio C., Panaro D., Trucco S. Management Discussion and Analysis in the U.S. Financial Companies: A Data Mining Analysis. In: Strengthening Information and Control Systems. Lecture Notes in Information Systems and Organisation. Springer International Publishing, 2016, pp. 43–57.
Loughran T., McDonald B. When Is a Liability Not a Liability? Textual Analysis, Dictionaries, and 10-Ks. TheJournal of Finance, 2011, vol. 66, iss. 1, pp. 35–65. URL: Link