Integrated Reporting: The Future of Corporate Reporting

Running Head: Management Accounting
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Project Report: Management Accounting

Management Accounting
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Contents
Introduction.......................................................................................................................3
Analysis............................................................................................................................3
Conclusion........................................................................................................................9
References.......................................................................................................................11

Management Accounting
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Introduction:
Integrated reporting is a framework which offers huge number of information in order
to represent the financial information, organizational structure and the strategically position
of an organization to its stakeholders. It offers the information to the stakeholders which are
used by them to understand the risk associated with the business and get those measurements
of performance in short, medium and long term. Integrated reporting is a corporate
communication process which results in presenting the integrated report to the stakeholder in
order to communicate about the overall performance of the business (García-Sánchez,
Rodríguez-Ariza and Frías-Aceituno, 2013).
Integrated reporting represents that the financial statement alone are not sufficient in
order to present the information and performance of the organization to its stakeholders.
Integrated reporting makes it easier for the business to prepare the information in better
manner and present them to stakeholders of the business in order to manage the overall
performance of the business. Better reporting in a corporate could lead to the business
towards better capital allocation and it is also promising towards the market driven
approaches of the business and the overall performance of the business (Frias‐Aceituno,
Rodríguez‐Ariza and Garcia‐Sánchez, 2014). In the rapidly increasing market, integrated
reporting would surely improve the level of corporate reporting and offer better information
to the stakeholders of the business.
Corporate reporting is an essential means through which the companies communicate
and share about their steward obligation and accountability to their stakeholder. This paper
mainly takes the idea that how the integrated reporting would be the future of the corporate
reporting in an organization. The main focus has been done on that area where the future
development in the corporate reporting takes place and how the integrated reporting would
help the corporate reporting to be better.
Currently, the financial reporting is the main reason behind the corporate reporting
but along with the time, a new practice has been evolved in the corporate reporting which
depicts to brief and expose all the information about the internal changes and the external
impact on the business (Tapscott and Barry, 2009). Mainly the corporate reporting is based
on the financial and non financial reporting of the business.
Analysis:

Management Accounting
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Atkins and Maroun, (2015) explains that the corporate reporting is a report which are
announced and published by the companies in order to present all the financial and non
financial information of the company to its stakeholders. Corporate reporting is built on the
premises to offer the proper information about the entity to its internal and external
stakeholders. Integrated reporting makes sure that the business become able to offer that
exact inform nation and all the relevant knowledge about the business to its stakeholders.
currently, the investors have focused not only on the financial performance of the
company but also on the environmental and social impact of an organization is also asked
from them which helps them to evaluate the overall performance of the business and make
better decision about the position of the company. A research from Krzus, (2011) explains
that the current structure of corporate reporting is not enough in an organization to meet the
entire need and demand of the stakeholders and thus the integrated reporting structure must
be followed in the business.
In various countries and multinational corporations, companies are required to include
the significant non financial information in their corporate reporting. But the companies do
not provide this information with clear link and the relation with economical driver, social
and environmental impact. It has been investigated by Eccles and Krzus, (2014) that in near
future, the success of the company would be dependent more on the ability to create the value
without misuse the natural resources and with the better and transparent information about
their entire activities in their reporting. Meanwhile, the stakeholders of the business would
also look for the process and the strategies of the business to meet the financial and non
financial performance goals of the business.
Flower (2015) further explained into his study that companies which are engaged with
the integrated reporting process would have a greater access to transparency and better
information about the internal and external changes in the business. The Integrated reporting
structure makes it quite easy for the management of the business to prepare a better corporate
reporting structure and present it in front of the stakeholders of the business to assure them
about the position and the performance of the business.
Besides it, there are relevant and understandable information, present in the
business which is required to be known by the stakeholders to identify and evaluate the
overall performance of the business. But this information is not provided by the business in
current corporate reporting system. Thus it becomes important for the corporate to changes