scholarly journals Reshaping Risk Disclosure through Integrated Reporting: Evidence from Italian Early Adopters

2017 ◽  
Vol 12 (10) ◽  
pp. 11 ◽  
Author(s):  
Francesca Manes-Rossi ◽  
Giuseppe Nicolo ◽  
Rebecca Levy Orelli
Keyword(s):  
Content Analysis ◽  
Financial Reporting ◽  
Information Needs ◽  
Bad News ◽  
Business Strategies ◽  
Risk Disclosure ◽  
Integrated Reporting ◽  
Early Adopters ◽  
Extensive Information ◽  
Different Dimensions

The purpose of this paper is to explore Integrated Reporting (IR) and risk disclosure (RD) and demonstrating the interconnection between business strategies and risk. Through a content analysis, the paper explores the management commentary and Integrated reporting of Italian companies at the end of 2015.The study reveals that many of the companies have embedded financial reporting into IR. We find extensive information about risks and opportunities, in relation to the management of the six capitals. The paper represents an investigation into risk disclosure in IR. It adds knowledge to the opportunity offered by IR in meeting stakeholder’s information needs, compared to traditional tools of corporate reporting.The results could be of interest both for legislator and standards setters, to bring them up to date with enhanced disclosure of risk and opportunities which IR offers with respect to the more traditional forms of disclosure.This is the first country-based study investigating risk disclosure provided through IR looking at three different dimensions: the metrics of RD (monetary or non-monetary); the outlook orientation (past, present or future) and the type of risk news (good or bad news). The results are relevant to detect how companies act and what can be done to improve risk disclosure.

scholarly journals Investigating risk disclosures in Italian integrated reports

2020 ◽  
Vol 28 (6) ◽  
pp. 1149-1178 ◽  
Author(s):  
James Guthrie ◽  
Francesca Manes Rossi ◽  
Rebecca Levy Orelli ◽  
Giuseppe Nicolò
Keyword(s):  
Content Analysis ◽  
Financial Reporting ◽  
Design Methodology ◽  
Alternative Form ◽  
Risk Disclosure ◽  
Integrated Reporting ◽  
Content Type ◽  
Risk Disclosures ◽  
Do So

Purpose The paper identifies the types of risks disclosed by Italian organisations using integrated reporting (IR). This paper aims to understand the level and features of risk disclosure with the adoption of IR. Design/methodology/approach The authors use risk classifications already provided in the literature to develop a content analysis of Italian organisations’ integrated reports published. Findings The content analysis reveals that most of the Italian organisations incorporate many types of risk disclosure into their integrated reports. Organisations use this alternative form of reporting to communicate risk differently from how they disclose risks in traditional annual financial reporting. That is, the study finds that the organisations use their integrated reports to disclose a broader group of risks, related to the environment and society, and do so using narrative and visual representation. Originality/value The paper contributes to a narrow stream of research investigating risk disclosure provided through IR, contributing to the understanding of the role of IR in representing an organisational risk.

scholarly journals The Common Good Balance Sheet, an Adequate Tool to Capture Non-Financials?

2019 ◽  
Author(s):  
Christian Felber ◽  
Vanessa Campos ◽  
Joan Ramon Sanchis
Keyword(s):  
Organizational Performance ◽  
Financial Reporting ◽  
Common Good ◽  
Information Needs ◽  
Balance Sheet ◽  
Validity And Reliability ◽  
Integrated Reporting ◽  
The Common Good ◽  
Corporate Reporting ◽  
The Common

In relation to organizational performance measurement, there is a growing concern about the creation of value for people, society and the environment. The traditional corporate reporting does not adequately satisfy the information needs of stakeholders for assessing an organization’s past and future potential performance. Practitioners and scholars have developed new non-financial reporting frameworks from a social and environmental perspective, giving birth to the field of Integrated Reporting (IR). The Economy for the Common Good (ECG) model and its tools to facilitate sustainability management and reporting can provide a framework to do it. The present study is the first one that empirically validates such metrics on a sample of 206 European firms. Consequently, it allows knowledge to advance as it checks their statistical validity and reliability.

scholarly journals Financial Risk Disclosure and Financial Attributes among Publicly Traded Manufacturing Companies: Evidence from Bangladesh

2018 ◽  
Vol 11 (3) ◽  
pp. 50 ◽  
Author(s):  
Ripon Dey ◽  
Syed Hossain ◽  
Zabihollah Rezaee
Keyword(s):  
Content Analysis ◽  
Financial Reporting ◽  
Firm Size ◽  
Financial Risk ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Risk Disclosure ◽  
Publicly Traded ◽  
Reporting Process ◽  
The Relationship

We explore the relationship between the degree of financial risk disclosure and a firm’s financial attributes. Financial risk disclosure indices (FRDIs) are calculated based on a set of 30 disclosure identifiers through content analysis of the annual reports of 48 manufacturing companies over a six-year period (2010–2015) in Bangladesh. We find no common practice among the companies in disclosing financial risk by integrating a customized financial risk disclosure into their financial reporting process. The results indicate that firm size, financial performance, and auditor type are positively and significantly associated with the level of financial risk disclosure.

scholarly journals Integrated Reporting as a Tool for Communicating with Stakeholders – Advantages and Disadvantages

2018 ◽  
Vol 35 ◽  
pp. 06004
Author(s):  
Iwona Matuszyk ◽  
Bartosz Rymkiewicz
Keyword(s):  
Comparative Analysis ◽  
Financial Reporting ◽  
Information Needs ◽  
Primary Source ◽  
Financial Data ◽  
Literature Analysis ◽  
Integrated Reporting ◽  
Main Interest ◽  
Advantages And Disadvantages ◽  
Wide Range

Financial and non-financial reporting from the beginning of its existence is the primary source of communication between the company and a wide range of stakeholders. Over the decades it has adapted to the needs of rapidly changing business and social environment. Currently, the final link in the evolution of organizational reporting, such as integrated reporting, assumes integration and mutual connectivity to both financial and non-financial data. The main interest in the concept of integrated reporting comes from the value it contributes to the organization. Undoubtedly, the concept of integrated reporting is a milestone in the evolution of organizational reporting. It is however important to consider whether it adequately addresses the information needs of a wide range of stakeholders, and whether it is a universal tool for communication between the company and its stakeholders. The aim of the paper is to discuss the advantages and disadvantages of the concept of integrated reporting as a tool for communication with stakeholders and to further directions of its development. The article uses the research methods such as literature analysis, the content analysis of the corporate publications and comparative analysis.

scholarly journals Information Needs of an Environmentally Conscious Society regarding the Functioning of Animal Husbandry Enterprises

2020 ◽  
pp. 22-29
Author(s):  
Dmytro Liudvenko ◽  
◽  
◽  
Keyword(s):  
Financial Reporting ◽  
Information Needs ◽  
Public Information ◽  
Animal Husbandry ◽  
Integrated Reporting ◽  
Significant Discrepancy ◽  
Environmentally Conscious ◽  
Study Results ◽  
Business Entities ◽  
Integrated Information

A significant discrepancy between the indicators for assessing the ecological state in Ukraine and global trends is due to shortcomings in the formation of the ecological consciousness of society. One of the ways to improve the ecological situation in the country is to create an effective system of access to public information on the protection of the natural environment. The purpose of the article is to determine the information needs of an environmentally conscious society regarding the functioning of animal husbandry enterprises for the formation of indicators, which provide integrated information about the activities of such enterprises. Today, information on the compliance of the activities of business entities with the requirements of the concept of sustainable development is disclosed in various reporting documents, which led to the formation of integrated reporting. Based on the study results, the system of indicators was formed to provide integrated information on the activities of animal husbandry enterprises. This system includes a number of elements that satisfy the information needs of both internal (employees, owners, in particular shareholders) and external (contractors, product consumers, creditors, investors, government agencies, public organizations) stakeholders. The main directions of the enterprise's activity, which are of the greatest interest to internal and external stakeholders, and are subject to disclosure in non-financial reporting, have been determined. These main directions can be used as the basis for the development of a long-term strategy for the formation of non-financial reporting of such enterprises, which will simplify the preparation of information for its full disclosure. The environmental consciousness of society is gradually growing and there is a high probability that in the near future even potential employees will be interested in the non-financial performance of the enterprise. So, an enterprise's image will grow if it can publish such indicators.

scholarly journals Prerequisites for integrated reporting development

2019 ◽  
pp. 116-126
Author(s):  
Nataliіa Shevchuk
Keyword(s):  
Financial Reporting ◽  
Rational Expectations ◽  
Information Needs ◽  
Comprehensive Evaluation ◽  
Regulatory System ◽  
Financial Statements ◽  
Economic Research ◽  
Accounting System ◽  
Integrated Reporting ◽  
Economic Relations

The article provides an analytical review of the accounting literature and other scientific sources, which allowed highlighting the main stages of the development of financial statements, determining the historical and practical prerequisites for the formation of integrated reporting and outlining the basic requirements for information reporting capabilities. The purpose of the study is the conceptual understanding of the integrated reporting evolvement. General scientific and special economic research methods, such as dialectical and abstract and logical ones are used to systematize available theoretical material to reveal the element of accounting method. Methods of theoretical generalization, analysis and synthesis have been applied to comprehensive evaluation of the stages of financial reporting development. According to the results of the study, significant influence on the development of the integrated model of accounting has led to the development of economic relations, legal foundations of the functioning of the economy, information needs, the evolution of economic theories: new institutional, evolutionary, theory of rational expectations, theory of exhaustive resources, theory of human capital and the application of these theories to management systems. The main problems of the existing financial statements in accordance with the informational expectations of the stakeholders are identified and substantiated. Formation of new approaches to the development of accounting integrated reporting in Ukraine on the basis of consideration the national peculiarities of accounting system of the current regulatory system requires further study. The study of the formation of integrated reporting in the world economy, international initiatives in the field of integrated reporting, in order to implement the best world practices in Ukraine are pivotal.

scholarly journals INDICES OF ENVIRONMENTAL PERFORMANCE OF THE COMPАNIES FROM THE AUTOMOBILE SECTOR IN THE CONTEXT OF INTEGRATED REPORTING

MEST Journal ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 207-215
Author(s):  
Desislava Yosifova ◽  
Magdalena Petrova-Kirova
Keyword(s):  
Financial Reporting ◽  
Information Needs ◽  
Global Scale ◽  
Transport Sector ◽  
Social Aspect ◽  
Integrated Reporting ◽  
Negative Effects ◽  
Financial Return ◽  
Corporate Reporting ◽  
Negative Effect

Until very recently business operations were most strongly motivated by the ambition to maximize financial return and the purpose of the corporate accounting statements was to present information mainly on the cash flow, the financial and the asset position, as well as the financial outcome of the company. The development of the world economy and the thereby arising positive and negative effects on society is not fully covered by conventional accounting and financial reporting system. The insufficiency of such information obstructs satisfying the information needs of various interested parties, resulting in growing expectations and pressure over the companies to accept not only the positive, but also the negative effect on their behaviour in the economic, environmental, and social aspect. All of the above prerequisites, along with the capital restriction the companies are facing, require a change towards an appropriate upgrade of traditional corporate reporting. This problem is particularly significant for Bulgaria, which, being a member state of the EU, is expected to apply all European Directives for implementation of environmental requirements essentially related to the transport sector. In addition, the country’s geostrategic position, through which territory 5 of the ten Pan-European transport corridors run through, makes the problems related to the development and the application of methodologies and the toolkit for covering, registering, and reporting the effect of transport companies’ activities (especially those in the automobile sector) on the environment, people, and society as a whole, particularly important. Integrated reporting is ready to face these challenges and to solve a significant part of the problematic fields, which, in complex with the data and the indicators, registered and accounted for by traditional financial reporting, can provide together, to a sufficient and full extent, the demand for information in the implementation of environmental policy on a national, local and global scale.

scholarly journals THE CONTRIBUTION OF INTEGRATED REPORTING IN DETERMINING THE PERFORMANCE AND VALUE OF A SUSTAINABLE ORGANIZATION

2021 ◽  
Vol IV(1) ◽  
Author(s):  
Camelia Mihalciuc ◽  
Keyword(s):  
Business Model ◽  
Financial Reporting ◽  
Information Needs ◽  
Business Environment ◽  
Essential Elements ◽  
Integrated Reporting ◽  
Nonfinancial Information ◽  
Real Performance ◽  
International Integrated Reporting Council

In the current business environment, financial reporting has become insufficient in terms of information, which is caused by the increasing information needs of stakeholders. In this context, an integrated reporting modality has emerged thanks to the International Integrated Reporting Council (IIRC), where the information presented is both financial and nonfinancial information, such reporting being called “Integrated Reporting”. Thus, starting from this consideration, the main objective of the paper aims at the main aspects that lead to the presentation of the benefits of implementing integrated reporting in organizations, through the ability to understand, in a more complete way, the "real" performance of a sustainable organization. The essential elements contained in an integrated reporting concern the capital, the business model and the process of creating and maintaining value, this reporting must be integrated in the strategy and vision of the organization, allowing through the transparency of these integrated reports the observation of all aspects led to the results obtained by the organization, as well as providing information on the role of the organization in society and the context in which it operates, the image of the organization being complete. The purpose of this paper is to highlight the importance and role assigned to integrated reporting in measuring the performance of a sustainable organization, by making it easier to understand the cause and effect of the link between financial performance and sustainability by stakeholders.

Determinants of forward-looking disclosures in integrated reporting

2018 ◽  
Vol 33 (1) ◽  
pp. 115-144 ◽  
Author(s):  
Merve Kılıç ◽  
Cemil Kuzey
Keyword(s):  
Content Analysis ◽  
Design Methodology ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Board Composition ◽  
Least Squares Regression ◽  
Integrated Reporting ◽  
Content Type ◽  
Early Adopters ◽  
Forward Looking

Purpose This paper aims to examine the nature and extent of forward-looking disclosures in early examples of integrated reporting and to investigate the determinants of those disclosures. Design/methodology/approach The sample for research involved 55 non-financial companies whose reports are available in the Integrated Reporting Examples Database for the year 2014. The authors used content analysis to investigate the quantitative and qualitative forward-looking disclosures among early adopters of integrated reporting. The forward-looking disclosure index (FLDI) was categorized into two main groups, quantitative and qualitative, including 30 items in total. Multivariate ordinary least squares regression was used to investigate the associations proposed in the research hypotheses. Findings The authors determined that the majority of the entities tended to provide qualitative forward-looking disclosures rather than quantitative. Further, the findings showed that gender diversity and firm size are positively related to forward-looking disclosures, whereas leverage is negatively related to forward-looking disclosures. Contrary to expectations, the authors did not find a significant impact created by board size, board composition, profitability or industry on forward-looking disclosures. Originality/value The research contributes to the current integrated reporting and forward-looking disclosure literature. To the best of the authors’ knowledge, there is no prior study that has investigated forward-looking disclosures in integrated reports. This study contributes to the current literature by examining the determinants of forward-looking disclosures by categorizing them as quantitative and qualitative. Further, this research adds empirical findings to the literature on the association found between female directors and forward-looking disclosures.

DEVELOPMENT OF XBRL FORMAT AS A FURTHER DIRECTION OF DIGITALIZATION OF FINANCIAL STATEMENTS

2017 ◽  
Author(s):  
Maria Shygun ◽  
◽  
Kostiantyn Bezverkhyi ◽  
Keyword(s):  
Financial Reporting ◽  
Information Needs ◽  
Information Technologies ◽  
Financial Statements ◽  
Integrated Reporting ◽  
Reporting Standard ◽  
Electronic Reporting ◽  
Reporting Practice ◽  
The World ◽  
Analysis And Synthesis

Introduction. In the conditions of constant technical discoveries, an increase in the introduction of the latest technologies into practical activities, the question arises of introducing them into the domestic reporting practice. Without proper organization of the preparation of financial statements of an enterprise, it is impossible to introduce information technologies, in particular, to establish a process for submitting such reports. The introduction of the IFRS taxonomy for financial reporting gave impetus to the development of such an electronic reporting standard as XBRL. Therefore, an urgent issue will be to consider the XBRL format as a further direction in the development of digitalization of financial reporting. Purpose. The aim of the study is to analyze the implementation of the XBRL format and alternative formats for the purposes of presenting financial statements in various countries of the world, to identify the relevant stakeholders using this format, and to determine the further direction of the digitalization of the reporting process. Methods. During the research, the following methods were used: analysis and synthesis (analysis of the dynamics of the use of the XBRL format in the countries of the world); groupings (allocation of the number of institutions in the context of the countries of the world that use XBRL in the formation of financial statements); observations (highlighting foreign institutions that use the XBRL format in the formation of financial statements); logical generalization of results (formulation of conclusions). Results. In the course of the study, the stakeholders who use the XBRL electronic reporting format were identified, namely: 1) regulators; 2) companies; 3) government; 4) data providers; 5) analysts and investors; 6) accountants, which made it possible to characterize their information needs. Alternative formats of digital reporting (PDF, HTML, XML, JSON, RDBMS), which will provide management personnel with the necessary information regarding the appropriateness of their use in domestic and international reporting practice, are characterized. The article analyzes the number of institutions in the context of the countries of the world that use XBRL and the dynamics of its use for 2001 - 2020. in the world. Discussion. Further research is proposed to focus on developing a unified taxonomy for integrated reporting. This will allow the introduction of a format such as XBRL in the presentation of integrated reporting to all interested stakeholders.

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