Do industrial companies respond to the guiding principles of the Integrated Reporting framework? A preliminary study on the first companies joined to the initiative

Practical use of the integrated reporting framework – an analysis of the content of integrated reports of selected companies The purpose of the article is to provide a research tool for an initial assessment of whether a company’s integrated reports meet the objectives set out in the IIRC Integrated Reporting Framework and its empirical verification. In particular, the research addresses whether the reports meet the goal of improving the quality of information available and covering all factors that influence the organization’s ability to create value. The article uses the theoretical output on the principles of preparing integrated reports and analyzes the content of selected integrated reports. Based on the source analysis, a research tool has been developed for an initial assessment of whether an integrated report fulfills its objectives. It consists of 42 questions that verify the coverage of the defined elements and the implementation of the guiding principles set by the IIRC. For empirical verification of the tool, a comparative analysis was carried out for reports prepared by selected companies operating in the utilities sector. Answering questions from the research tool allows a researcher to formulate conclusions about the implementation of the guiding principles and the completeness of the presentation of the content elements. As a result of the analysis of selected integrated reports, it was stated that various elements of the report are presented with different levels of accuracy in different reports. Reports provide the most complete information on performance and strategy. The information about business model and prospective data is in some cases presented without making a link to other parts of the report – e.g. risks and opportunities, financial data or capitals. The absence of such links limits the ability to claim that an integrated report meets its objectives, since a set of individual reports, each presenting different information areas, is not what an integrated report was meant to be.

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Improving the integrated reporting of electric-power industry companies

International Accounting ◽

10.24891/ia.23.8.922 ◽

2020 ◽

Vol 23 (8) ◽

pp. 922-939

Author(s):

N.V. Malinovskaya ◽

M.D. Malinovskii

Keyword(s):

Comparative Analysis ◽

Electric Power ◽

Electric Power Industry ◽

Power Industry ◽

Integrated Reporting ◽

Strategic Objectives ◽

Methods Of Analysis ◽

Analysis And Synthesis ◽

Guiding Principles

Subject. This article deals with the issues relating to improving integrated reporting in terms of dovetailing strategic objectives with capital changes. Objectives. The article aims to develop a system of indicators for disclosure of capital types in integrated reporting of electricity generating companies, as well as recommendations aimed at implementing the fundamental concepts and guiding principles of integrated reporting. Methods. For the study, we used the methods of analysis and synthesis, comparison, generalization, and abstraction. As a case study, we conduct a comparative analysis of the disclosure of six types of capital by the largest electricity generating companies, namely PAO Inter RAO, AO Rosenergoatom and PAO RusHydro. Results. The article formulates proposals for disclosure of capital information to address such a lack of accountability as a contradiction to the principle of coherence. It proposes a system of indicators (core and additional) for disclosure of six types of capital by electricity generating companies. Conclusions. A significant reporting problem is the lack of correlation between key strategic objectives and capital changes. The formulated recommendations for disclosure of capital information can help solve this problem, and increase the attractiveness of the integrated report for capital providers.

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The Adoption of the Integrated Reporting Framework: A Perspective of Supervisory Board Members on the Drivers and Benefits

SSRN Electronic Journal ◽

10.2139/ssrn.3454615 ◽

2019 ◽

Author(s):

Brigitte de Graaff ◽

H. B. A. Steens

Keyword(s):

Supervisory Board ◽

Board Members ◽

Integrated Reporting ◽

Reporting Framework

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Adoption of integrated reporting in Sri Lanka: coverage and trend

Journal of Financial Reporting and Accounting ◽

10.1108/jfra-04-2020-0116 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Cited By ~ 1

Author(s):

Thilini Cooray ◽

Samanthi Senaratne ◽

Nuwan Gunarathne ◽

Roshan Herath ◽

Dileepa Neelangi Samudrage

Keyword(s):

Sri Lanka ◽

Design Methodology ◽

The Other ◽

Sri Lankan ◽

Legitimacy Theory ◽

Integrated Reporting ◽

Content Type ◽

Disclosure Requirements ◽

Comprehensive Index ◽

Reporting Framework

Purpose This paper aims to examine the coverage of and trends in reporting content elements in the integrated reports of the Sri Lankan companies following the International Integrated Reporting Framework (IIRF). Design/methodology/approach Based on a comprehensive checklist developed on the content elements of the IIRF, 171 corporate integrated reports were content-analyzed over a period of three years. The results were theorized subsequently using the legitimacy theory. Findings The study identifies that the extent of and trend in the coverage of content elements of the IIRF have increased during the period under consideration despite some under-addressed areas. It indicates that Sri Lankan companies are making progress in the preparation of integrated reports in line with the IIRF, which provides evidence in support of both strategic and institutional perspectives of the legitimacy theory because of the proactive actions taken by managers to acquire legitimacy along with the other normative and mimetic pressures available in the IR landscape. Originality/value This is one of the first studies that evaluate the compliance of IR adopters with the IIRF overtime in the entirety of a single country. It also develops a comprehensive index to capture the disclosure requirements of IR and extends the analysis to a voluntary context using both strategic and institutional perspectives of the legitimacy theory.

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Integrated reporting and integrated thinking in Italian public sector organisations

Meditari Accountancy Research ◽

10.1108/medar-06-2017-0155 ◽

2017 ◽

Vol 25 (4) ◽

pp. 553-573 ◽

Cited By ~ 75

Author(s):

James Guthrie ◽

Francesca Manes-Rossi ◽

Rebecca Levy Orelli

Keyword(s):

Public Sector ◽

Processes Of Change ◽

Press Releases ◽

Structured Interviews ◽

Integrated Reporting ◽

Content Type ◽

Early Adopters ◽

Academic Literature ◽

Reporting Framework ◽

History Of

Purpose This paper aims to explore the linkages between integrated reporting (IR) and organisations’ internal processes, specifically focusing on investigating the internal mechanisms of change that can lead organisations to adopt IR disclosure and how this impacts on integrated thinking internally. Design/methodology/approach The paper draws upon previous analysis and insights provided in the IR academic literature, as well as analysing several directives, policy and framework pronouncements. The study also draws on the management accounting change literature, using it as a lens to observe early adopters’ practice. In addition, it provides detailed case studies considering the internal processes of change in five early adopters of the integrated reporting framework (<IRF>) and whether the adoption leads to internal “integrated thinking”. Five Italian public sector organisations are analysed, and the authors make use of official documents, press releases and in-depth semi-structured interviews with the major internal actors. Findings The research highlights that the processes of change in organisations adopting IR is their adoption of a way of thinking, that is, integrated thinking, as a result of the process of internalisation. Research limitations/implications Given the short history of IR, this sample is small due to the small number of early adopters. Originality/value The paper provides academics and policymakers with insights into the process of change to be considered while adopting the <IRF> and responds to calls in the IR literature for further field-based studies on IR’s impact on internal processes. Also, the paper highlights that the European Directive on the disclosure of non-financial and diversity information (2014/95/EU) has the potential to increase environmental, social and governance disclosures amongst European companies.

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Top ten South African companies’ disclosure of materiality determination process and material issues in integrated reports

Journal of Intellectual Capital ◽

10.1108/jic-01-2017-0002 ◽

2018 ◽

Vol 19 (2) ◽

pp. 230-247 ◽

Cited By ~ 5

Author(s):

Natasja Steenkamp

Keyword(s):

South African ◽

Environmental Issues ◽

Integrated Reporting ◽

Content Type ◽

Sustainable Performance ◽

Award Winning ◽

Reporting Framework ◽

Determination Process ◽

Practical Implications ◽

Insight Into

Purpose The purpose of this paper is to develop guidelines of what award winning companies, leading practice in integrated reporting (IR) disclose in their integrated reports about material issues and their materiality determination processes. Also, to provide insight into what they disclose about their perception of materiality. Design/methodology/approach A content analysis was conducted to investigate what the top 10 South African companies of the 2015 Ernst and Young Excellence in Integrated Reporting Awards disclosed in their 2014 and 2015 integrated reports about their materiality determination processes, material issues and what materiality means to them. Thematic analyses were conducted in developing guidelines. Findings All except one company applied the International Integrated Reporting Framework. The materiality determination processes, material issues and companies’ descriptions of materiality are diverse. Material issues most companies identified relate to employees, social and environmental issues, customers and sustainable performance. Practical implications The proposed guidelines will provide useful strategies for organisations embarking on the IR journey about what issues could be considered as material and therefore included in integrated reports. It also proposes activities companies can undertake to identify, evaluate and prioritise material issues and execute their materiality determination process. Originality/value This paper is the first to develop guidelines of material matters and materiality determination processes. It also adds to existing literature on IR practice and the application of materiality.

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Do corporate attributes drive integrated reporting amongst listed companies in Nigeria?

Journal of Economic and Financial Sciences ◽

10.4102/jef.v14i1.673 ◽

2021 ◽

Vol 14 (1) ◽

Author(s):

Michael O. Adelowotan ◽

Ini E. Udofia

Keyword(s):

Stock Exchange ◽

Least Square ◽

Annual Reports ◽

Primary Data ◽

Integrated Reporting ◽

Listed Firms ◽

Reporting Framework ◽

Primary Data Analysis ◽

High Level ◽

The Impact

Research purpose: The purpose of this paper was to investigate the association between corporate attributes and the implementation of Integrated Reporting (IR) among quoted companies on the Nigerian Stock Exchange which currently operates a voluntary based disclosure environment.Design and method: Using content analysis to derive the disclosure scores for integrated reporting and corporate attributes, the authors investigated the impact of corporate attributes on the implementation of the integrated reporting of a sample of 90 listed firms. The annual reports covering 2013–2017 were analysed using the disclosure methodologies developed by prior researchers in IR. The hypotheses were tested using panel least square regressions.Main findings: The authors found that corporate attributes have a statistically positive and significant impact on the implementation of integrated reporting framework, that share ownership structure and firm age have an insignificant influence over corporate implementation of the integrated reporting framework. The research findings extend integrated reporting research in Nigeria from mere primary data analysis to quantitative data analysis.Practical implications: The empirical findings provide regulators with evidence on the current level of integrated reporting disclosures and the influence of corporate attributes in driving integrated reporting.Originality and value: The study makes significant contributions to integrated reporting literature from a developing country’s perspective. It also provided empirical evidence of a high level of disclosure compliance with the IR framework among quoted companies in Nigeria.

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Barriers to implementing the International Integrated Reporting Framework

Meditari Accountancy Research ◽

10.1108/medar-05-2017-0150 ◽

2017 ◽

Vol 25 (4) ◽

pp. 461-480 ◽

Cited By ~ 81

Author(s):

John Dumay ◽

Cristiana Bernardi ◽

James Guthrie ◽

Matteo La Torre

Keyword(s):

Financial Reporting ◽

Early Stage ◽

Academic Research ◽

General Concept ◽

Future Research ◽

The European Union ◽

Integrated Reporting ◽

Content Type ◽

Stage Of Development ◽

Reporting Framework

Purpose This paper is motivated by the call for feedback by the International Integrated Reporting Council (IIRC) from all stakeholders with knowledge of the International Integrated Reporting Framework (<IRF>) and specifically of the enablers, incentives and barriers to its implementation. The paper synthesises insights from contemporary accounting research into integrated reporting (IR) as a general concept and <IR> as espoused by the IIRC in the <IRF> (IIRC, 2013). The authors specifically focus on possible barriers and emphasise the specific issues the authors feel could be rectified to advance the <IRF>, along with the areas that may potentially hinder its wider adoption and implementation. Design/methodology/approach The paper draws upon and synthesises academic analysis and insights provided in the IR and <IR> academic literature as well as various directives, policy and framework pronouncements. Findings The flexibility and lack of prescription concerning actual disclosures and metrics in the <IRF> could allow it to be used for compliance, regardless of the other benefits lauded by the IIRC. Thus the authors see forces, both external and internal, driving <IR> adoption, with one prominent example being the European Union Directive on non-financial reporting. Because of the different ways in which IR is understood and enacted, there are numerous theoretical and empirical challenges for academics. The authors paper highlights potential areas for further robust academic research and the need to contribute to <IR> policy and practice. Research limitations/implications The paper provides the IIRC, academics, regulators and reporting organisations with insights into current practice and the <IRF>. The authors highlight the need for further development and evidence to help inform improvements both from a policy and a practice perspective. A key limitation of the authors’ work is that the authors draw upon a synthesis of the existing literature which is still in an early stage of development. Originality/value The paper provides the IIRC with several insights into the current <IRF> and specifically with the enablers, incentives and barriers to its implementation. Also, it provides academic researchers with a number of important observations and an agenda upon which the authors can build their future research.

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Using the International Integrated Reporting Framework to comply with EU Directive 2014/95/EU: can we afford another reporting façade?

Meditari Accountancy Research ◽

10.1108/medar-01-2020-0695 ◽

2020 ◽

Vol 28 (5) ◽

pp. 889-914 ◽

Cited By ~ 1

Author(s):

Lucia Biondi ◽

John Dumay ◽

David Monciardini

Keyword(s):

Environmental Sustainability ◽

National Level ◽

Secondary Data ◽

Integrated Reporting ◽

Environmental Implications ◽

Reporting Standard ◽

Content Type ◽

Eu Directive ◽

Reporting Framework ◽

The Eu

Purpose Motivated by claims that the International Integrated Reporting Framework (IRF) can be used to comply with Directive 2014/95/EU (the EU Directive) on non-financial and diversity disclosure, the purpose of this study is to examine whether companies can comply with corporate reporting laws using de facto standards or frameworks. Design/methodology/approach The authors adopted an interpretivist approach to research along with current regulatory studies that aim to investigate business compliance with the law using private sector standards. To support the authors’ arguments, publicly available secondary data sources were used, including newsletters, press releases and websites, reports from key players within the accounting profession, public documents issued by the European Commission and data from corporatergister.com. Findings To become a de facto standard or framework, a private standard-setter requires the support of corporate regulators to mandate it in a specific national jurisdiction. The de facto standard-setter requires a powerful coalition of actors who can influence the policymakers to allow its adoption and diffusion at a national level to become mandated. Without regulatory support, it is difficult for a private and voluntary reporting standard or framework to be adopted and diffused. Moreover, the authors report that the <IRF> preferences stock market capitalism over sustainability because it privileges organisational sustainability over social and environmental sustainability, emphasises value creation over holding organisations accountable for their impact on society and the environment and privileges the entitlements of providers of financial capital over other stakeholders. Research limitations/implications The authors question the suitability of the goals of both the <IRF> and the EU Directive during and after the COVID-19 crisis. The planned changes to both need rethinking as we head into uncharted waters. Moreover, the authors believe that the people cannot afford any more reporting façades. Originality/value The authors offer a critical analysis of the link between the <IRF> and the EU Directive and how the <IRF> can be used to comply with the EU Directive. By questioning the relevance of the compliance question, the authors advance a critique about the relevance of these and other legal and de facto frameworks, particularly considering the more pressing needs that must be met to address the economic, social and environmental implications of the COVID-19 crisis.

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