BUACC3714: Corporate Reporting and Its Impact on Stakeholders, 2019

This report provides a comprehensive overview of corporate reporting, which is defined as financial communication between a business and third parties, including stakeholders, creditors, and government authorities. The report details the key components of corporate reporting, such as financial statements (balance sheet, profit and loss, cash flow), notes to the statements, and auditor/investor reports, highlighting their roles in resource development and financial decision-making. It emphasizes the importance of corporate reporting for raising capital, informing stakeholders, and aiding management in planning and analysis. The report also discusses the evolution of corporate reporting, including the impact of technology, integrated reporting, and the International Integrated Reporting Council's guidelines. It covers characteristics like relevance, reliability, and comparability, and touches on the role of auditors, the integration of financial and non-financial reporting, and the evolving focus on sustainability and holistic reporting, including the use of big data analytics. Finally, it addresses the challenges and opportunities for accountants in this changing landscape, including the need for a broader view of corporate reporting and the incorporation of sustainability, knowledge capital, and big data.

Running head : CORPORATE REPORTING
CORPORATE REPORTING
Name of the Student
Name of the University
Author Note

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Corporate Reporting
Corporate Reporting is termed as financial communication among business enterprise and
third parties regarding financial statements. Stakeholders, creditors, customers, government
authorities can be considered as third party. It refers to the capital market participants with
information for financial decision-making. The main components of corporate reporting are
as follows:
 In the financial statements, the balance sheet, statement of profit and loss and cash
flow statement are included and they are viable for the corporate reporting
 The notes to the financial statements in the form of income statement, cash flow
statement can be included within the corporate reporting
 The prospects of the company can be identified form the investments that are being
made
 Auditors report and investors report are basically helping the development of business
through resource distribution
Corporate reporting is one of the important aspects for company perspective as it determines
the resource development and resource channelization. On the other hand, through the
corporate reporting, the financial conditions of any organisation can be identified and through
the development of corporate reporting, the auditors can identify the resources available
within any organisation. Corporate accounting reporting helps the stakeholders in identifying
the future direction of the business. Corporate reporting aid the organisation for raising
capital both domestically and internationally. Corporate Reports are also required to be
furnished for the purpose of Bidding, labour contracts, Government supplies. Corporate
Reporting provides information to the management of an enterprise that can be used for the
purpose of planning, analysis benchmarking and making of decision. Through the corporate

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reporting the stakeholders and investors can identify the areas of any organisation in which
the investment can be made using the resources that are available within the organisation.
Corporate Reporting provides vital information to various stakeholders, on various aspects.
Corporate Reporting provides information as to how an organisation would procure and use
various resources. Corporate Reporting enhances social welfare just by giving a look at the
interest of the employees, trade unions and Government. Corporate Reporting helps the
public in the making of the analysis of the performance of the enterprise and the
management. Corporate Reporting is of utmost importance from the point of view of the
stakeholders. However, at times it becomes complex, but the benefits that can be derived
from it sum up to a large number when it is compared to the complexities. It consists of
information that is relevant as well as reliable to the multiple stakeholders for different
purposes. A Corporate Reporting that is sound and robust would always aims towards a
healthy competition and facilitate good inflow of capital. This aids towards the development
of the economy. The corporate reporting is closely linked up with integrated reporting and
financial reporting that actually enhance the business position of any organisation. Better
business position of any organisation helps corporate social responsibility for the company as
they can allocate their resources in an efficient manner. Corporate reporting mainly helps
financial analyst to identify those resources that can be used as benchmarking criteria for
future purpose. These criteria are very much helpful for the organisation to take any kind of
decision that are associated with the improvement of the business operation. The
International integrated reporting council actually sets up the guidelines and criteria for
corporate reporting by integrating financial and non-financial reporting. Through the
corporate reporting, the auditors can get a clear view regarding whether the company is
following business standards or not. Corporate reporting aid the organisation for raising
capital both domestically and internationally. Some of the important characteristics of

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corporate reporting are relevance & materiality, completeness, reliability, comparability and
verifiability. Through relevance characteristics, corporate reporting helps the investors to
make a decision regarding investment and other relevant decisions. Reliability feature of
corporate reporting claims whether the report is being made unbiasedly or whether it is
following accounting standards and principles. Corporate Reporting provides information to
the management of an enterprise that can be used for the purpose of planning, analysis
benchmarking and making of decision. Corporate Reporting provides information to the
investors, promoters, debt provider and creditors that is used to enable them for the purpose
of making rational and prudent decisions with regards to the investments, credits and so on.
Corporate Reporting provides vital information to various stakeholders, on various aspects.
Corporate Reporting provides information as to how an organisation would procure and use
various resources.
Corporate Reporting consists of both financial and non-financial reporting. The existence of
financial reporting is confined to some time, which is subject to some standards and
regulations. Non Financial Reporting on the other hand, can be defined as anything other than
financial reporting. There are different stages of development at which the Financial and Non
Financial Reporting occur. The Integrated Reporting Framework was issued by the
International Integrated Reporting Framework in the year 2013. Various methods can be
implemented while making corporate reporting. Certain standards and principles are being
followed while making corporate reporting. They are issued including the Business Registers
Directives and the Transparent Directive that work on the creation of the Capital Markets
Union in Europe. The initiative on the policy of wide ranging could potentially influence the
Corporate Reporting. The first directive that aims towards the enhancement of the Corporate
Reporting is the Accounting Directive. The Accounting Directive is inclusive of a various
components, which are as follows:

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 Brief description on the business model undertaking that helps the accounting auditors
to identify the gaps that are being present within the organisation
 A description of the policy that the undertaking pursued relating to the operations that
includes the execution of due diligence procedures.
 The policy outcomes will help the auditors in identification of future consequences of
any policy that is going to affect the productivity of the organisation under concern in
the end.
 Some of the principle risks that are mainly associated with accounting and minimising
the risks will be main aim for the corporate accounting auditors
 The indicators of the non financial key performance that are relevant to the particular
business.
Technology has always been the key driver behind the evolution of the Corporate Reporting.
The drastic changes that took place in the field of technology with time will change the way
of the presentation of financial reporting. In a technology, developments always take place
that influence the availability and the presentation of the information. The introduction of the
new technology can always provide assistance in the gathering of the necessary information
and the presentation of which in a manner that would depict the relevance of such
information. The changes in the technology affects the delivery of the corporate reporting.
Printed reports and the financial statements that are delivered by the post are not considered
to be a viable option in the world of technology. With the increasing demand for technology
the rate at which information travels has become much faster. With the advent of the same
the demand of information on a timely basis has also increased. Corporate reporting is mainly
relying on the efficiency level of auditors for unbiased results. It is important for auditors to
identify short-run and long run policy formation. Nowadays, with the advent of concept like
virtual organisation, most companies are having soft assets in greater number compared to

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hard assets or physical assets. Using of software like Tally, ERP is helping in the increased
and efficient level of corporate accounting. . Corporate Reporting provides information as to
how an organisation would procure and use various resources. The future of corporate report
takes into consideration the way the information is presented in the financial statements, that
can display a more comprehensive approach in the financial performance. There are
arguments that exist about the vitality in the development in the Corporate Reporting that
enable relevant information to be published in the real time.
There is a new reporting model that could provide more timely information on the corp[orate
reporting to a wide range of the stakeholders who have a diverging in terest in the corporate
affairs. There is a CORE report that would provide an insight about the corporate affairs that
are assisted by the MORE reports that provide an insight of corporate affairs. At present, the
Corporate Reporting fails to address all the stakeholders that need to corporate way. There is
a series of the reports that are disconnected, where the needs of each party are tried to be
addressed. The accessibility of relevant information has been difficult for the stakeholders
and other users of the financial users, because of the interconnectedness and referencing of
those different corporate reports. Through the corporate reporting and accounting of the
corporate activities, relationships between stakeholder and policy makers can be identified
easily. Through this relationship, the corporate accounting. Inclusion of big data analytics
within corporate accounting can increase the overall efficiency of results as modern
technologies of data mining helps in the gather of knowledge that actually helps in the
development of policies based on realistic situation within business environment.
Now in order to identify hidden factors that are having within any accounting
principle big data is useful for the development of unbiased results. Corporate accounting or
corporate reporting principles are being implemented based on principles that benefits both
domestic and international companies. From the viewpoint of stakeholders, it is important for

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the companies to deal with ethics and compliances that actually determines the reliability of
accounting reporting. Through the corporate reporting both vertical and horizontal integration
can be maximised and they will be beneficial for the companies in long run. Corporate
Reporting provides vital information to various stakeholders, on various aspects. Corporate
Reporting provides information as to how an organisation would procure and use various
resources (Eccles, R.G. and Serafeim, G., 2017).
The present focus of on the providers of capital and the other creditors as the key
stakeholders is not sustainable. Hence, the companies need to reconsider the focus of their
reporting. acknowledgement of a wider group of stakeholder also means that a company
should be able to identify and define the various needs of different groups. For instance, the
employees that are remunerated partly, and provided with stock options on a partly basis, are
just not the employees of the company, rather they are also the shareholders as well as the
citizens of the society. Their concerns are also to be taken into consideration. Their interest
might not be confined to the corporate reporting, but they might also be concerned about
other aspects of the company, like the environmental status of the company, the corporate
social responsibility that is being fulfilled by the company is in their interest as well. Such
multifaceted concerns in the business form a challenge of the Corporate Reporting. Corporate
Reporting in today’s annual and interim reports is referred as the General Purpose Financial
Accounting. Despite the fact that the accounting frameworks often refer to the primary users.
Reporting is considered as one size fits all phenomenon. This approach has resulted in reports
of large volume. Some of such reports are hardly accessible or understandable and which are
a hybrid of regulatory compliance and actual communication. Corporate Reporting forms the
backbone of the financial planning, analysis, benchmarking and the decision-making. They
are used by the stakeholders for the same. Corporate reporting aid the organisation for raising
capital both domestically and internationally. Corporate Reports are also required to be

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furnished for the purpose of Bidding, labour contracts, Government supplies. Corporate
Reporting provides information to the management of an enterprise that can be used for the
purpose of planning, analysis benchmarking and making of decision. Corporate Reporting
provides information to the investors, promoters, debt provider and creditors that is used to
enable them for the purpose of making rational and prudent decisions with regards to the
investments, credits and so on. Corporate Reporting provides vital information to various
stakeholders, on various aspects. The major benefits of reporting sustainable performances
are that it helps to identify the environmental and social changes that take place in the market.
They aid towards the development of a strategy for management of risk and the opportunities,
they create innovative new products, engage in the actions in order to grow their market share
and many more. Corporate Reporting provides information as to how an organisation would
procure and use various resources. The classification of Corporate Reporting into various
reports means that no dingle report is complete in itself. It is inclusive of all the information
that lets the company know about its story. Hence, it is never possible for the user to get a
comprehensive view of the entity’s affairs without spending much time in the analysis of the
of all the reports. There are a number of initiatives both regulatory and non-regulatory on a
domestic as well as an international level. The International Integrated Reporting Council
plays an important role in the corporate reporting and the integration of the financial and the
non-financial institution. Introduction of various concepts for Integrated Reporting brings
together the allocation of capital and International Integrated Reporting Council does follow
corporate behaviour for a financial stability. It is known that International Integrated
Reporting Council is a voluntary framework at its former stages. It strives towards the
provision of the inspiration to the companies on how they can improve their reporting. There
are already considerable amounts of integrated reports from different industries and locations
that are available, are taken from the pilot project of the International Integrated Reporting

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Council. The International Integrated Reporting Council plays the most important role in the
corporate reporting and the integration of the financial and non financial information.
Corporate Reporting forms the backbone of the financial planning, analysis, benchmarking
and the decision-making. They are used by the stakeholders for the same. Corporate reporting
aid the organisation for raising capital both domestically and internationally. Corporate
Reports are also required to be furnished for the purpose of Bidding, labour contracts,
Government supplies. Corporate Reporting provides information to the management of an
enterprise that can be used for the purpose of planning, analysis benchmarking and making of
decision. Corporate Reporting provides information to the investors, promoters, debt provider
and creditors that is used to enable them for the purpose of making rational and prudent
decisions with regards to the investments, credits and so on. Corporate Reporting provides
vital information to various stakeholders, on various aspects. Corporate Reporting provides
information as to how an organisation would procure and use various resources. The
International Reporting Framework (IIRF) broadly focuses on the sustainability reports. Their
main objective is to explain how an organisation can create value over the period of time. It
further helps in the creation of integrated reports that consist of six types of capital, that is the
financial, manufactured, intellectual, Social and Relationship, Natural. The International
Integrated Reporting Council plays the most important role in the corporate reporting and the
integration of the financial and non-financial information. Corporate Reporting forms the
backbone of the financial planning, analysis, benchmarking and the decision-making. They
are used by the stakeholders for the same. Corporate reporting aid the organisation for raising
capital both domestically and internationally. Corporate Reports are also required to be
furnished for the purpose of Bidding, labour contracts, Government supplies. Corporate
Reporting provides information to the management of an enterprise that can be used for the
purpose of planning, analysis benchmarking and making of decision.

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There has been a new approach for the corporate reporting that would foster the rate of
innovation and address the needs and demands of the stakeholders by way of delivering
complete, relevant and timely communication. The new approach aims towards providing a
corporate story and will be inclusive of the information of interest to a wide and general
media in a language aimed at non specialists.
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