Financial reporting in times of crysis: information gaps and decision-making challenges

Abstract

This study examines systemic information gaps in financial reporting that undermine the quality of managerial decision-making in volatile environments. Through case analyses of three major enterprises: Astarta Holding PLC (agriculture), JSC UkrSibbank (banking), and PrJSC Kharkiv Tile Plant (industry) we identify critical challenges in financial data quality, timeliness, and relevance under conditions of extreme volatility. Our findings reveal that standardized financial reporting, regardless of the applied standards (IFRS or national accounting frameworks), suffers from significant temporal lags, excessive aggregation, and over-reliance on subjective judgments, particularly in fair value assessments and expected credit loss modeling. These limitations create structural information asymmetries between compliance-oriented external reporting and the granular, forward-looking data required for strategic and operational management. The research highlights three key problem areas: (1) temporal mismatches, where 3-4 month audit cycles render data obsolete in rapidly changing markets; (2) methodological rigidities, where the duality of reporting standards (IFRS/national) and compliance priorities overshadow managerial needs; and (3) integration failures, where financial statements exclude critical non-financial metrics (ESG, operational KPIs) and stress-testing scenarios. These gaps compel managers to maintain parallel internal reporting systems, increasing administrative burdens and risks of data inconsistency. Crisis conditions further exacerbate these issues, as macroeconomic instability and infrastructure disruptions significantly erode the reliability of financial projections. The study proposes a conceptual framework for transforming financial reporting systems to bridge these gaps, emphasizing proactive analytics, automated segmental granularity, and unified information architectures capable of simultaneously meeting regulatory requirements and managerial needs. Enhancing data quality and timeliness is critical for improving decision-making resilience and ensuring sustainable enterprise development in high-stress environments. These findings contribute to the broader discourse on financial reporting in volatile conditions and offer actionable insights for key stakeholders in crisis-affected economies.