Integrated Reporting: The Future of Corporate Reporting
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Added on 2021-06-17
Integrated Reporting: The Future of Corporate Reporting
Added on 2021-06-17
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RUNNING HEAD: CORPORATE ACCOUNTINGINTEGRATED REPORTING
Corporate accounting1Abstract This report reviews the benefits and limitations of integrated reports prepared by the organization. These reports covers both financial and non-financial aspects of an organization. In the first section of report, a brief introduction of IR is been given which describes the concept of integrated reporting. This section provides the information about the needs and objectives of IR in a nutshell. The second section deals with the benefits of IR to the companies. It is concerned with the several advantages available to the organization who has applied integrated reporting in their framework. Such as, IR provides greater insights to the management and make the thinking integrated. Employee engagement and stakeholder’s relation has also improved due to this. The third part of the report throw some lights on limitations of integrated reporting practices. It highlights some points such as difficulty in merging the annual reports, understanding the concept of IR, lack of clarity and complexity, issues related to dealing with high volume data and many more. All such limitations are explained in this section.The last part of the report includes a conclusion that contains the overall outcome of the report. It suggested that there are many benefits of IR as well as the same has some limitations also. In order to eliminate those drawbacks, proper steps should be taken by the organization so that the implementation of integrated reporting can become successful.
Corporate accounting2ContentsIntroduction...........................................................................................................................................3Benefits of integrated reporting.............................................................................................................3Limitations of Integrated Reporting.......................................................................................................6Conclusion.............................................................................................................................................9References...........................................................................................................................................10
Corporate accounting3Introduction In corporate terms, the process of representing company’s performance both in financial and other relevant factors is known as integrated reporting. An integrated report is a brief communication of company’s strategies, performances and governance employed or creating short, medium and long term values within the organization (Ey.com. 2018).The International Integrated Reporting Council (IIRC) is responsible for establishing this framework. The council aims at bringing integrity in financial reporting and promoting value creation in the enterprise. The need for IR arises when corporate reporting fails to reflects the financial stability and economic sustainability in one go. Therefore in order to clearly communicate the value, integrated reports are been prepared which clearly reflects the short and long term consequences of the decision making process of the organisation (Integratedreporting.org. 2018).However, just like every coin has two faces, preparation of integrated reports also has some benefits and limitations, which are been discussed below. Benefits of integrated reporting According to the report published by Association of Chartered Certified Accountants (ACCA), there are several benefits of IR which are been enjoyed by the individuals who haveexperienced and adopted IR within their organization. The findings of the report are based on the review of 41 corporate reports. The benefits include making the thinking and managementmore integrated, providing more clarity about the issues and performance of business, enhancing the relations with stakeholders and improves corporate reputation. Furthermore, the report stated that integrated reporting offer more insights to the management in assessing the factors that drives the business performance. IR is the most appropriate and efficient reporting method for both the users and prepares. It also promotes employee engagement.
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