scholarly journals FORMATION OF INFORMATION IN THE INTEGRATED REPORTING SYSTEM: A STUDY OF THE CURRENT STATE

2021 ◽  
pp. 49-62
Author(s):  
L. I. Kulikova ◽  
◽  
E. A. Minina ◽  
Keyword(s):  
Financial Reporting ◽  
Complete Information ◽  
Practical Experience ◽  
Time Range ◽  
Integrated Reporting ◽  
National Register ◽  
System A ◽  
Current State ◽  
Reporting Framework ◽  
Industry Affiliation

To date, many issues concerning the process of forming and presenting integrated reporting, its structure and content remain unresolved. The presence of problem areas indicates the importance of further studying the theoretical aspects and practical experience of compiling integrated reporting, showing the ability of an organization to create value in the short, medium and long term. The purpose of the article is to study the current state of information creating and disclosure in integrated reporting in the context of fundamental concepts, guidelines and content elements of the International Integrated Reporting Framework. The object of the study is the public reports of Russian companies published in the National Register of Corporate Non-Financial Reporting. To study the current state of the formation of integrated reporting, an analysis of reports posted in the National Register by industry affiliation was carried out, on the basis of which it was concluded that the largest number of reports are submitted by Russian companies operating in the energy, metallurgical and mining industries. At the same time, the structure and content of the integrated reporting submitted by various companies is very heterogeneous, there are no uniform methodological approaches. The principles of forming reports regulated in the International Framework of Integrated Reporting are not sufficiently observed, which makes it impossible to assess the completeness and reliability of disclosure of information on sustainable development and social responsibility of companies. To determine the directions for improving the indicators of reports, the criteria for evaluating the quality of information presentation in integrated reports of companies are defined. 18 evaluation indicators were identified in accordance with the fundamental concepts, guidelines and content elements established by the International Framework for Integrated Reporting. The evaluation was carried out using a point-rating system by comparing evaluation indicators, on the basis of which reports were identified that most correspond in their content to the concepts and principles of the International Framework for Integrated Reporting. The scientific novelty of the research consists in substantiating theoretical provisions and developing practical recommendations for evaluating the content of integrated reports for compliance with international principles of formation, comparing the indicators of reports of various companies. The practical application of the developed approaches in the preparation and presentation of integrated reporting will allow companies to form reliable and complete information, to compare both in the time range within the organization and with other businesses of a similar profile.

scholarly journals Barriers to implementing the International Integrated Reporting Framework

2017 ◽  
Vol 25 (4) ◽  
pp. 461-480 ◽  
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.

scholarly journals A balanced paradigm of higher education in the context of integrated reporting – academic teachers’ perspective

2019 ◽  
Vol 2019 (103 (159)) ◽  
pp. 23-38
Author(s):  
Katarzyna Chłapek ◽  
Sylwia Krajewska ◽  
Krzysztof Jonas
Keyword(s):  
Financial Reporting ◽  
Basic Research ◽  
Accounting Education ◽  
Synthesis Methods ◽  
Integrated Reporting ◽  
Reporting Requirements ◽  
Complex Process ◽  
Reporting Framework ◽  
Academic Teachers ◽  
Further Development

Integrated reporting is a complex process of creating and presenting information about an enterprise's activities that significantly exceeds the traditional financial reporting framework. Difficulties in the preparation of non-financial information and ensuring its high quality imply changes in the teaching model. The aim of this study is to examine the opinion of academic teachers on the content and teaching methods used in the context of their adaptation to integrated reporting requirements. According to the authors, only the combination of hard and soft skills in accounting teaching will allow further development of integrated reporting. The basic research methods used to verify this hypothesis are surveys and literature studies, as well as formulating conclusions on the basis of the deduction and synthesis methods. The conducted research indicates the need for modification of accounting education to adapt it to market requirements.

scholarly journals Circular Economy Initiatives through Energy Accounting and Sustainable Energy Performance under Integrated Reporting Framework

2020 ◽  
Vol 5 (6) ◽  
pp. 1032-1045
Author(s):  
Akeel Hamza Almagtome ◽  
Ahmed Jassim Al-Yasiri ◽  
Raed Saiad Ali ◽  
Hasan Latif Kadhim ◽  
Heider Nima Bekheet
Keyword(s):  
Sustainable Development ◽  
Financial Reporting ◽  
Sustainable Energy ◽  
Energy Performance ◽  
Financial Information ◽  
Accurate Information ◽  
Accounting System ◽  
Integrated Reporting ◽  
Reporting Framework ◽  
The Impact

The financial reporting plays a significant role in sustainable development, as it contributes greatly to providing the information required to assess sustainable development performance. In order to achieve the sustainable development, accurate information should be provided to stakeholders on the energy consumed and the impact of energy consumption on the environment. Information on sustainable energy performance needs providing both of financial and non-financial information. However, the traditional financial reporting system is unable to provide information that helps measure and promote sustainable energy performance, as the current accounting system provides financial information only. It is therefore important to adopt an appropriate reporting framework to support the evaluation of sustainable energy performance. This paper proposes an approach to the measure the sustainable energy performance based on the integrated reporting framework. A unique feature of the approach is the selection of corporate energy performance indicators that cover both financial and non-financial information. This paper therefore sets out indicators for assessing sustainable energy performance based on the Integrated Reporting Framework. Furthermore, the application of the indicators proposed in this paper helps regulators and economic policy makers to develop sustainable development strategies at national level. Moreover, the adoption of the proposed indicators can provide accurate information on the real and future of sustainable energy in the country.

scholarly journals Integrated reporting

2021 ◽  
pp. 61-72
Author(s):  
Libor Závodný
Keyword(s):  
Financial Reporting ◽  
Business Performance ◽  
Stock Exchange ◽  
Integrated Reporting ◽  
Reporting Framework ◽  
Geographical Regions ◽  
The Usa ◽  
Narrative Reporting ◽  
Voluntary Basis

Companies struggle to communicate value through traditional reporting. Integrated reporting can prove to be an effective tool for businesses looking to shift their reporting focus from annual financial performance to long-term shareholder value creation. Such a shift should cover the demand from investors for a structured reporting framework that goes beyond the traditional financial reporting. The International Integrated Reporting Framework will encourage the preparation of a report that shows business performance against strategy, explains the various capital used and affected, and gives a longer term view of the organization. The framework will be attractive to companies who wish to develop their narrative reporting around the business model to explain how the business has been developed. Integrated reporting attained various degrees of popularity depending on the geographical regions. While it is mandatory for all companies listed in South Africa’s stock exchange, in other regions it is used by businesses on voluntary basis. Re-search shows that in the USA the adoption of integrated reporting is slower than in most of the other developed regions.

scholarly journals Practical use of the integrated reporting framework – an analysis of the content of integrated reports of selected companies

2017 ◽  
pp. 109-0
Author(s):  
Monika Raulinajtys-Grzybek ◽  
Gertruda Świderska
Keyword(s):  
Complete Information ◽  
Research Tool ◽  
Initial Assessment ◽  
Source Analysis ◽  
Integrated Reporting ◽  
Prospective Data ◽  
Empirical Verification ◽  
Reporting Framework ◽  
Guiding Principles

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.

scholarly journals Compiling invest-oriented integrated reporting: advantages, standards, recommendations

2021 ◽  
Vol 3 (13 (111)) ◽  
pp. 47-54
Author(s):  
Tetiana Momot ◽  
Maria Karpushenko ◽  
Hanna Sobolieva ◽  
Olena Lytovchenko ◽  
Iryna Filatova
Keyword(s):  
Financial Reporting ◽  
Information Needs ◽  
Social Issues ◽  
Market Value ◽  
Complete Information ◽  
Financial Indicators ◽  
Integrated Reporting ◽  
Corporate Reporting ◽  
Business Operations ◽  
New Concepts

Meeting the information needs of investors interested in acquiring a share of the enterprise, or individual intangible assets, the rights to use them, has led to the search for new concepts and models for compiling reporting information. It is important to know how the technologies used by an enterprise affect the environmental condition, what costs are necessary for personnel training, for staying competitive, etc. Under such conditions, the classic model of financial reporting does not meet modern requirements – it is retrospective in nature. To persuade investors to invest in companies focused on creating value, it is important to compile investment-oriented corporate reporting. This paper reports the devised theoretical and methodological provisions, as well as the substantiation of practical recommendations for compiling investment-oriented integrated reporting, which includes a sequence of activities and a system of indicators for assessing the financial and non-financial components of business operations, including indicators of the environmental and social activities of an enterprise, which ensures the transparency of information in terms of business risks and their management. It is stated that the main goal of investment-oriented corporate reporting is to inform users about increasing the company's market value. Indeed, the reflection of the importance of social and environmental priorities, attention paid and efforts applied made to resolve social issues give confidence in the reliability of business and stimulate the attraction of investment resources. The examples of the companies chosen for this study have proven that the submission of complete information based on the groups of non-financial indicators of integrated reporting is a factor in increasing the market value of the company, and, accordingly, enhancing its investment attractiveness. The devised proposals make it possible to summarize in a single format information about the activities of an enterprise, related risks, and its investment potential

scholarly journals A Comparison of the Structural Elements of the Integrated Reporting and the Management Report

2019 ◽  
pp. 24-31
Author(s):  
K. V. Bezverkhiy
Keyword(s):  
Financial Reporting ◽  
Central Government ◽  
Structural Elements ◽  
Integrated Reporting ◽  
Simultaneous Application ◽  
Reporting Framework ◽  
New Type ◽  
Ministry Of Finance ◽  
Medium Enterprises ◽  
Management Report

A new type of reporting has been introduced both in the international and Ukrainian practice: the integrated reporting and the management report. The integrated reporting in Ukraine is not subject to regulation by central government, whereas the structure and format of the management report is legally fixed (the Law of Ukraine “Accounting and Financial Reporting in Ukraine). However, as of 01.12.2018, a unified format for the management report was not approved by the Ministry of Finance of Ukraine. According to the abovementioned Law of Ukraine, micro-enterprises and small enterprises are exempt from the management report, whereas medium enterprises are not obliged to show non-financial data in the management report. The integrated reporting can be submitted separately from the financial reporting, but, following the above Law of Ukraine, the management report is to be submitted together with the financial statement and the consolidated financial reporting in the legally fixed procedure and time limits.          The purpose of the study is to compare the structural elements of the integrated reporting according to the International Integrated Reporting Framework, the management report according to the Draft Methodical Recommendations on Compilation of Management Report by the Ministry of Finance of Ukraine, and the management report according to the Draft Methodical Recommendations on Preparation of Report from Kreston GCG, in order to identify their differences and the feasibility of their simultaneous application in the national reporting practice. Based on the analysis, the main differences between the Integrated Reporting and the Management Report are highlighted. A comparative analysis of the structural elements of the integrated reporting and the management report is conducted, to find out the correlation of their structural elements. It is demonstrated that the differences between the integrated reporting and the management report are negligible; it is, therefore, recommended to combine these two types of reporting in one optimal format.

Sustainability Reporting and Financial Reporting

2013 ◽  
pp. 167-194
Author(s):  
Teresa Cunha Pinto ◽  
Ana Maria Bandeira
Keyword(s):  
Financial Reporting ◽  
Sustainability Reporting ◽  
Integrated Reporting ◽  
Actual Case ◽  
Business World ◽  
Integrated Method ◽  
Corporate Reporting ◽  
Current State ◽  
History Of ◽  
A Company

In the business world, there are issues such as globalisation, environmental awareness, and the rising expectations of public opinion which have a specific role in what is required from companies as providers of information to the market. This chapter refers to the current state of corporate reporting (financial reporting and sustainability reporting) and demonstrates the need for evolution to a more integrated method of reporting which meets the stakeholders’ needs. This research offers a reflection on how this development can be achieved, which notes the ongoing efforts by international organisations in implementing the diffusion and adoption, as well as looking at the characteristics which are needed for this type of reporting. It also makes the link between an actual case of a company that is one of the world references in sustainable development and integrated reporting. Whether or not the integrated reporting is the natural evolution of the history of financial and sustainability reporting, it still cannot yet claim to be infallible. However, it may definitely be concluded that a new approach is necessary to meet the needs which are continuously developing for a network of stakeholders.

Beyond Financial Reporting. Integrated Reporting and its determinants: Evidence from the context of European state-owned enterprises

2019 ◽  
pp. 43-72
Author(s):  
Giuseppe Nicolò ◽  
Gianluca Zanellato ◽  
Francesca Manes-Rossi ◽  
Adriana Tiron-Tudor
Keyword(s):  
Financial Reporting ◽  
Empirical Investigation ◽  
Gender Diversity ◽  
Accounting Standards ◽  
International Accounting Standards ◽  
Integrated Reporting ◽  
Financial Reports ◽  
The Public ◽  
Explanatory Factors ◽  
Board Gender Diversity

Integrated reporting (IR), which aims to overcome the limitations of both tradi-tional financial and stand-alone non-financial reports, has gained momentum as a single comprehensive tool merging financial and non-financial information. Initially conceived for private sector entities, IR is also establishing itself in the public sector context as a vehicle for transparency and accountability. This research offers an empirical investigation of IR practices in the State-Owned Enterprises (SOEs) context. More specifically, the paper investigates the levels of disclosure provided through IR by a sample of 34 European SOEs and explores the effects of potential explanatory factors. The results indicate a fair level of IR disclosure and a trend of reporting information already requested under international accounting standards. The findings also highlight that industry (basic materials and financials) and size positively influence the level of IR disclosure in a particularly strong way, while governance features (board size and board gender diversity) and the provision of external assurance do not exert any impact.

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