Rosia Montana Gold Corporation Ltd

This chapter contains historical data regarding the set-up and evolution/expansion of the Romanian Company Rosia Montana Gold Corporation. We also mention their reporting practices, as well as main achievements from economic, social, and environmental perspectives.

Theories on Integrated Reporting

This chapter seeks to explain the main theories used for studying integrated reporting. Scholars and academics conducted research on non-financial information (investigating environmental/social/governance reports), and even on integrated reports (still few studies in this field) involving a set of theories: institutional and neo-institutional theory, legitimacy theory, positive accounting theory, agency theory, accounting constellation theory, etc.

IR in Romania

This chapter investigates the topic of integrated reporting at national level. We demonstrate that a Romanian company, Rosia Montana Gold Corporation, issued in 2010 an Annual Report that can be considered a real prototype of an integrated report. Derived from the need to fulfill the gaps in corporate reporting (lack of non-financial information in the annual reports, organizations' failure in explaining social/environmental/other impacts, aggregation of CSR/environmental/social reports in the annual reports – without any connectivity to the financial performance, etc.), the new IR trend should be shaped by international accounting organizations and accountancy profession. This is one of the few studies that aimed to develop a conceptual model for the integrated report that can be applied by companies intending to implement this reporting practice. The originality of our book results from the various perspectives contained in our model: from the IIRC content elements and principles, to IASB/IFRS implications for integrated reporting. Finally, we strongly believe that the evolution of integrated reporting will end with a common standard issued by IASB/IFRS in cooperation with IIRC, and even European legislation/ or going further- national requirements. Therefore, research on a complex framework for integrated reporting (that has to address both financial and non- financial focus) and provide extended guidelines for an integrated report, should be useful for standard setters – for regulatory purposes, and companies- for a successful implementation of this reporting scheme.

Accountancy and International Perspectives on Integrated Reporting

The aim of the IIRC is to break down all the country and industry barriers through adoption and implementation of integrated reporting; ultimately obtaining a common set of standards that would define IR as the “corporate reporting norm” (IIRC, 2013, p. 1). FEE highlights that regulators should have a crucial role in the evolution of IR, as well as the global standard setters.1

Case Study on Rosia Montana

This chapter represents the case study on Rosia Montana Gold Corporation. We assumed from the beginning of our research that the 2010 Annual Report issued by Rosia Montana Gold Corporation has the prototype of an integrated report. As we can deduct from the research methodology section, a report becomes an integrated report if it complies with the conceptual model based on the IIRC content elements and principles, capital, value creation, and accountability, environmental and CSR information extracted from IFRS/ IASB requirements.

Non-Financial Reporting Initiatives

This section of our book explains the main non-financial reporting initiatives. From reporting schemes (developed at micro or macro level, or even global reporting guidelines), to specific regulation in France, USA, Denmark, Sweden, South Africa, the first reporting initiatives on non-financial sector were meant to contribute to the development of corporate reporting field, being an initial step in the revolution of IR.

The Landscape of Integrated Reporting

The aim of the current chapter is to set the main coordinates of the study. We make a broad literature review analysis in order to understand the process of integrating non – financial information in the annual report and the interrelations between sustainability/corporate social responsibility and financial information. The early integrated reporting literature is based on the socio- environmental literature, and explains the nature of disclosure, and integration, as key-elements for an integrated report. Corporations should be aware of what information to disclose in the IR and what integration actually means. In addition, an integrated report is not just a mixture of financial, sustainability, and CSR information. All these elements have to be connected and interrelated based on a business model approach.

The Concept of Integrated Reporting

Chapter 3 defines the process of integration, and deeply explains the concept of integrated report. We provide a wide range of literature review sources, for the purpose of establishing the characteristics of integrated reporting. Integrated reports cannot be fully understood until we clarify the meaning of the first word: integrated. This section of the book concentrates on defining the term of integration. Kirkpatrick and Lee (1999) links the notion of integration to sustainable development and economic, social, and environmental impacts on the decision-making process. Krajnc and Glavic (2005) mentions that corporations need to integrate the information related to sustainable development so that it becomes useful for decisions.