Integrated corporate reporting structure

2020 ◽  
pp. 101-110
Author(s):  
T. P. Satsuk ◽  
Keyword(s):  
System Approach ◽  
Practical Importance ◽  
Capital Gains ◽  
Strategic Analysis ◽  
Integrated Reporting ◽  
Reporting Standard ◽  
Business Sustainability ◽  
Corporate Reporting ◽  
Reporting Framework ◽  
Reporting Structure

Objective: To analyze the concepts, principles, and structure of integrated corporate reporting and propose modifications to the integrated reporting elements. Methods: Comparative analysis, structuring and generalization of material, statistical methods and a system approach are used. Results: The analysis of the drivers of historical development of reporting made it possible to structure the prerequisites for the genesis of integrated reporting, which should be prepared as a separate report and include seven interrelated content elements, pursuant to the international integrated reporting standard. However, upgrading the integrated reporting structure by combining elements and adding new ones is advisable. Such a structure introduced suggests a reduction in the reporting volume, makes it consistent and coherent, and determines the overall strategic area of the company's activities. The key elements of the proposed integrated reporting framework are “strategic analysis”, “business model and results”, and “stakeholder engagement”, since the goal of integrated reporting is to show stakeholders how value and capital gains are generated. Practical importance: The integrated reporting structure presented will significantly reduce its volume and increase its transparency to achieve business sustainability

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

2020 ◽  
Vol 28 (5) ◽  
pp. 889-914 ◽  
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.

The diffusion and adoption of integrated reporting: a cross-country analysis on the determinants

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Megawati Oktorina ◽  
Sylvia Veronica Siregar ◽  
Desi Adhariani ◽  
Aria Farah Mita
Keyword(s):  
Empirical Evidence ◽  
Diffusion Of Innovation ◽  
Disclosure Quality ◽  
Integrated Reporting ◽  
Diffusion Of Innovation Theory ◽  
Content Type ◽  
Corporate Reporting ◽  
Country Level ◽  
Reporting Framework ◽  
New Entrants

Purpose This study aims to provide empirical evidence on the determinants of voluntary integrated reporting (<IR>) disclosure quality. Design/methodology/approach The samples include companies from the Integrated Reporting Examples Database on the International Integrated Reporting Committee’s (IIRC) website, except South Africa and Brazil, where reporting is mandatory. The final sample includes 29 countries, with 148 companies and 592 observations for the study period 2014–2017. Content analysis is used to measure <IR> disclosure quality derived from the <IR> principles and elements published by IIRC (2013). The fraction regression probit model is used to test the proposed hypothesis. Findings This study provides empirical evidence that competition from new entrants and country-level accounting competence encourage companies to implement the International Integrated Reporting Framework (IIRF). Signaling theory and diffusion of innovation theory can be used to explain this association. Meanwhile, product market competition of existing rivals has been found to reduce the adoption of the <IR> framework, which is consistent with the proprietary cost theory. Finally, this study finds that company reputation does not affect voluntary <IR> disclosure quality. Research limitations/implications This study did not examine the barriers to entry to explain the effect of competition from new entrants as a possible determinant of <IR> disclosure quality. Furthermore, the inclusion of <IR> in the accounting curriculum of universities and certification bodies in certain countries has not been considered as a control variable. The results might also be limited to companies that voluntarily submitted into the Integrated Reporting Examples Database on the IIRC website. All these limitations provide ample avenues for future research. Practical implications This research provides implications for governments and standard setters to further sharpen the competence of accountants through memberships in professional accountancy organisations or through training and seminars related to <IR>. The results also suggest that universities should include the topic of <IR> in the accounting program curriculum to increase the understanding of prospective accountants about this reporting regime. The results also show differences on the impact of competition between new entrants and existing rivals on <IR> disclosure quality. This can be used by IIRC or other standard setters to predict the <IR adoption>. Originality/value This study uses the diffusion of innovation theory to explain the association between country-level accounting competence and <IR> disclosure quality. Few studies have researched this association. The results show that a country’s accounting competence increases the application of the IIRF in corporate reporting. <IR> has been considered an innovation in corporate reporting and can be implemented by the company if its professional accountants have enough knowledge of this reporting framework.

The association between accountant’s competences, organisational culture and integrated reporting practices

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Laura Orobia ◽  
Racheal Nturaninshaba ◽  
Juma Bananuka ◽  
Kasmwakat Reuel Dakung
Keyword(s):  
Civil Wars ◽  
Organisational Culture ◽  
Manufacturing Firms ◽  
Integrated Reporting ◽  
Manufacturing Firm ◽  
Content Type ◽  
Reporting Practices ◽  
Corporate Reporting ◽  
Reporting Framework ◽  
Study Results

Purpose This study aims to investigate the association between accountant’s competences, organisational culture and integrated reporting practices. Design/methodology/approach A questionnaire survey of 43 manufacturing firms in Mbarara district (South Western Uganda) was undertaken. The unit of inquiry was senior staff in the accounts office while the unit of analysis was the manufacturing firm. The study hypotheses were tested using regression analysis with the aid of Statistical Package for Social Sciences software version 21. Findings The findings revealed that while there is a positive and significant association between accountant’s competences and integrated reporting practices, the association between organisational culture and integrated reporting practices is insignificant. In the additional analysis, this study finds that accountant’s competences are significantly associated with all the content elements of an integrated report as enshrined in the International Integrated Reporting Framework of 2013. Surprisingly, organisational culture is not significantly associated with any of the content elements of an integrated report as enshrined in the International Integrated Reporting Framework of 2013. Practical implications To the academia, this study expands on the understanding of what matters for improvement in integrated reporting practices in an emerging economy such as Uganda whose history is characterised by civil wars and political unrest. Those in practice may use this study results to promote better reporting practices through the attraction of professional accountants with the necessary proficiencies in corporate reporting practices. The policymakers may also opt to mandate integrated reporting among manufacturing firms. Originality/value This study provides a first-time and in-depth understanding of the association between the accountant’s competences, organisational culture and integrated reporting practices using evidence from a developing African Country – Uganda.

scholarly journals Compliance evolution toward the IIRF in the case of European financial institution: public vs. private organization

2021 ◽  
Vol 14 (2) ◽  
pp. 105-137
Author(s):  
Gianluca Zanellato
Keyword(s):  
Essential Role ◽  
Financial Institution ◽  
Economic Crises ◽  
Integrated Reporting ◽  
Financial Reports ◽  
The Public ◽  
Corporate Reporting ◽  
Private Organization ◽  
Reporting Framework ◽  
Need For Information

Financial organizations are playing an essential role in our societies. The economic crises brought a loss of confidence by citizens, had repercussions in government budgets as aid was provided to save financial organizations. Today after ten years of unfortunate events, stakeholders are more interested in the activity of similar organizations than ever. The increasing need for information brought financial organizations to adopt different non-financial reports to communicate their activity toward their stakeholders, including the latest trend in corporate reporting: “Integrated Report.” Therefore, the present paper analyses the compliance evolution toward the International Integrated Reporting Framework and contraposes the results in the context of the public-owned institution and private-owned institutions. The results of the study outline an increasing compliance toward the framework and it demonstrates State Owned Enterprises predilection toward content that help them in explaining their existing reasons.

scholarly journals From stakeholder to investor – evolution of the concept of the integrated report main user according to the International Integrated Reporting Framework and its importance for the global acceptance of the concept

2018 ◽  
Vol 2018 (98 (154)) ◽  
pp. 123-146
Author(s):  
Katarzyna Kobiela-Pionnier
Keyword(s):  
Information Needs ◽  
Management Accounting ◽  
Sustainability Reporting ◽  
Financial Capital ◽  
New Paradigm ◽  
Integrated Reporting ◽  
Corporate Reporting ◽  
Reporting Framework ◽  
Business Perspective

When the International Integrated Reporting Committee was established in 2010, its main objective was to improve sustainability reporting. However, three years later IIRC published the International <IR> Framework adopting a business perspective, aimed at presenting information to the provider of financial capital. The aim of the article is to present changes in the IIRC approach to the main user of the integrated report between 2011 and 2013 and to answer the question why the concept of this report adopted a busi- ness direction, departing from its original assumptions. Attention was also paid to the convergence of approaches to the main user of information in the financial and integrated reports, as well as to an addi- tional aspect of the integration of management accounting guidelines. Moreover, an attempt was made to answer the question whether integrated reporting has a chance to become a new paradigm of corporate reporting and what role in this process the focus on the information needs of capital providers plays.

scholarly journals Analysis of Voluntary Disclosure Before and After the Establishment of the Integrated Reporting Framework

2018 ◽  
Vol 3 (4) ◽  
pp. 105-113
Author(s):  
Nahariah Jaffar ◽  
Azleen Shabrina Mohd Nor ◽  
Zarehan Selamat
Keyword(s):  
Voluntary Disclosure ◽  
Listed Companies ◽  
Jel Classification ◽  
Annual Reports ◽  
Integrated Reporting ◽  
Corporate Reporting ◽  
Reporting Framework ◽  
Before And After ◽  
Governance Strategy ◽  
Do So

Objective - The goal of integrated reporting is to enhance the cohesiveness and efficiency of corporate reporting. It encourages organizations to create greater value by identifying the factors that have a material impact on its operations. The Integrated Reporting (IR) Framework guides the overall content of an integrated report through the Guiding Principles and Content Elements. The Framework has eight elements. This study explores the level of voluntary disclosure of information related to these eight elements by companies listed on the Bursa Malaysia before and after the establishment of the Framework. Methodology/Technique - This study examines the annual reports of 603 Main Market listed companies of Bursa Malaysia between 2012 and 2015. The year 2012 is referred to as the "pre-issuance period" while 2015 is referred to as the "post issuance period". Findings - The findings of the study show that the companies that do disclose more information, do so in relation to three out of the eight elements only. These are: governance, strategy and resource allocation, and outlook. Overall, there is a lack of lineage among the information related to the IR elements presented in the annual reports. Novelty - The findings demonstrate the need for the full adoption of integrated reporting in Malaysia. Type of Paper Empirical Keywords: Content Elements; Integrated Reporting Framework; Listed Companies; Pre and Post Issuance Period; Voluntary Disclosure. JEL Classification: M40, M41, M49.

scholarly journals Why “Less is More” in Non-Financial Reporting Initiatives: Concrete Steps Towards Supporting Sustainability

2020 ◽  
Vol 10 (2) ◽  
Author(s):  
Georgina Tsagas ◽  
Charlotte Villiers
Keyword(s):  
Financial Reporting ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Integrated Reporting ◽  
Less Is More ◽  
Csr Reporting ◽  
Corporate Reporting ◽  
Long Run ◽  
The Individual ◽  
Key Aspects

AbstractCalls are repeatedly made on corporations to respond to the challenges facing the planet from a sustainable development perspective and governments take solace in the idea that corporations' transparency on their corporate activity in relation to sustainability through voluntary reporting is adequately addressing the problem. In practice, however, reporting is failing to deliver truly sustainable results. The article considers the following questions: how does the varied reporting landscape in the field of non-financial reporting impede the objectives of fostering corporations' sustainable practices and which initiative, among the options available, may best meet the sustainability objectives after a decluttering of the landscape takes place?The article argues that the varied corporate reporting landscape constitutes a key obstacle to fostering sustainable corporate behaviour, insofar as the flexible and please all approach followed in the context of corporate sustainability reporting offers little to no real incentive to companies to behave more sustainably and ultimately pleases none in the long run. The case made is that “less is more” in non-financial reporting initiatives and hence the article calls for a revision of key aspects of the European Non-Financial Reporting Directive, which, as is argued, is more likely to achieve the furtherance of sustainable corporate behaviour. Although the different reporting requirements offer the benefits of focussing on different corporate goals and activities, targeting different audiences and allowing for a level of flexibility that respects the individual risks to sustainability associated with each industry, the end result is a landscape that lacks overall consistency and comparability of measurements and accountabilities, making accountability more, rather than less, difficult to achieve.The article acknowledges the existence of several variances relating to the notion of sustainability per se, which continues to remain a contested concept and variances between companies and industries in relation to how each is operating sustainably or unsustainably respectively. Such variances have so far inhibited the legislator from easily outlining through tailored legislation the individual risks to global sustainability in an all-encompassing manner. The end product is a chaotic system of financial reporting, CSR reporting, non-financial reporting and integrated reporting and little progress to increase comparability and credibility in order for companies to be held accountable and to behave in ways that do not harm the planet. A “clean up” of the varied initiatives in the terrain of non-financial reporting is recommended.

Generating reports on the efficiency of the use of production resources in the corporate reporting system

2020 ◽  
pp. 18-26
Author(s):  
Mary Konstantinovna Dzhikia
Keyword(s):  
Reporting System ◽  
Market Price ◽  
Integrated Reporting ◽  
Production Potential ◽  
Corporate Reporting ◽  
Operating Profit ◽  
Manufactured Products ◽  
Monitoring Report ◽  
Management Report ◽  
Production Resources

This article discusses the issues of reporting the use of production potential in the corporate reporting system. Formed the requirements for corporate and integrated reporting organizations proposed reporting on effectiveness of using production resources: production and management report segment and consolidated management report segment information, operational monitoring report of the process of formation cost and market price for manufactured products; reports with the results of factor analysis of the use of material, labor and other types of production resources, a list of cost items is defined to assess margin income, operating profit and break-even of production.

Adoption of integrated reporting in Sri Lanka: coverage and trend

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
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.

Sign in / Sign up

Export Citation Format

Share Document