Accounting Theory and Contemporary Issue

Running head: ACCOUNTING THEORY AND CONTEMPORARY ISSUES
ACCOUNTING THEORY AND CONTEMPORARY ISSUES
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Author’s Note

ACCOUNTING THEORY AND CONTEMPORARY ISSUES
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EXECUTIVE SUMMARY:
This report discusses about the integrated reporting method. The detailed analysis of the
integrated reporting method has been provided in this report. The report also provides advantages
and disadvantages of the integrated reporting. This report also provides complete insight about
the methods that are required to train the employees about the integrated reporting. The process
of adoption of the integrated reporting method in the business are also been discussed in this
report. To solidify the advantages of the integrated reporting different articles and journals are
being reviewed.

ACCOUNTING THEORY AND CONTEMPORARY ISSUES
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ACCOUNTING THEORY AND CONTEMPORARY ISSUES
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BACKGROUND OF INTEGRATED REPORTING
Founded in the year 2009 by the Prince of Wales along with the investors companies and
accounting bodies, the integrated reporting is based on International Integrated Reporting
Framework which helps to adopt the use of integrated reporting across the world. Integrated
reporting is used in most of the countries across the organisation around the world. It is an
evolution from corporate reporting which was a narrow concept in the financial statements.
Certain information’s cannot be found from the corporate report therefore the integrated report
came into practice. It is a process which helps to increase the value of the business over time.
Integrated report is a concise and detailed report which helps the organisation to understand the
strategy of the organisation as well as successfully perform in the market. To understand the
allocation of capital which is delivered to the investors, integrated reporting is very important as
it provides the necessary data about capital as well as helps the organisation to properly allocate
their capital in the business. It delivers not only financial but also non- financial performance in a
report which also provides non-financial data as social and environmental parameters. Integrated
reporting also helps the investors and stakeholders to analyse the company’s ability to create
market value in the long run (Steyn 2014). It is a sustainable report which helps the organisation
to create the value of their firm over a period of short, medium and long time. This is a broader
concept of non-financial data as well as the financial reports of the company. Integrated report
should follow the six elements to make integrated reporting successful in the organisation.
Integrated reporting should also strategically focus the goals of the organisation. It also helps the
directors with different kinds of information from the report. The stakeholders and investors also
find useful information which helps them to understand the position of the business in the
market.