scholarly journals IMPROVING THE EFFICIENCY OF BUSINESS MODEL OF AN ENTERPRISE THROUGH PREPARATION OF INTEGRATED REPORTING

2020 ◽  
pp. 169-177
Author(s):  
O. Pimenova O. ◽  
S. Pimenov
Keyword(s):  
Structural Analysis ◽  
Business Model ◽  
Financial Reporting ◽  
Value Creation ◽  
Synthesis Methods ◽  
Integrated Reporting ◽  
Management Indicators ◽  
Long Run ◽  
Strategic Assets ◽  
Analysis And Synthesis

The necessity of formation of integrated reporting by Ukrainian enterprises is investigated. The importance of business presentation of information on the company's value creation, its effectiveness, opportunities, risks it faces, and development prospects for investors and other stakeholders in the form of integrated reporting is determined. It is investigated that integrated reporting should provide stakeholders with information on the long-term development of the enterprise in contrast to financial reporting, which cannot provide such full information. That is the main purpose of integrated reporting is to explain to financial capital providers and other stakeholders how an enterprise creates and plans to create the value in the future over a long period of time. The purpose of the study is to substantiate the need of taking into account the needs of stakeholders in the work of enterprise and the disclosure of non-financial information in the form of integrated reporting, which will increase the efficiency of the business model. The methodological basis of the study is a set of general and special principles, provisions and methods of scientific research, the use of which is determined by the purpose and objectives, in particular, methods of generalization, comparison, analysis and synthesis, methods of system and structural analysis, diagnostic evaluation. In particular, in the process of research the methods of generalization, analysis and synthesis were used in defining the concept of integrated reporting and its individual elements; methods of system and structural analysis in the study of the basic principles of integrated reporting; method of comparison in the study of scientific approaches to the formation of integrated reporting. It is substantiated that by providing information on value creation, in particular on the company's competitive advantages, strategic assets, environmental, social and management indicators (ESG), the company will gain an advantage over competitors, effectively implementing its business model in the market and be able to achieve sustainable development in the long run.

scholarly journals Why “Less is More” in Non-Financial Reporting Initiatives: Concrete Steps Towards Supporting Sustainability

2020 ◽  
Vol 10 (2) ◽  
Author(s):  
Georgina Tsagas ◽  
Charlotte Villiers
Keyword(s):  
Financial Reporting ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Integrated Reporting ◽  
Less Is More ◽  
Csr Reporting ◽  
Corporate Reporting ◽  
Long Run ◽  
The Individual ◽  
Key Aspects

AbstractCalls are repeatedly made on corporations to respond to the challenges facing the planet from a sustainable development perspective and governments take solace in the idea that corporations' transparency on their corporate activity in relation to sustainability through voluntary reporting is adequately addressing the problem. In practice, however, reporting is failing to deliver truly sustainable results. The article considers the following questions: how does the varied reporting landscape in the field of non-financial reporting impede the objectives of fostering corporations' sustainable practices and which initiative, among the options available, may best meet the sustainability objectives after a decluttering of the landscape takes place?The article argues that the varied corporate reporting landscape constitutes a key obstacle to fostering sustainable corporate behaviour, insofar as the flexible and please all approach followed in the context of corporate sustainability reporting offers little to no real incentive to companies to behave more sustainably and ultimately pleases none in the long run. The case made is that “less is more” in non-financial reporting initiatives and hence the article calls for a revision of key aspects of the European Non-Financial Reporting Directive, which, as is argued, is more likely to achieve the furtherance of sustainable corporate behaviour. Although the different reporting requirements offer the benefits of focussing on different corporate goals and activities, targeting different audiences and allowing for a level of flexibility that respects the individual risks to sustainability associated with each industry, the end result is a landscape that lacks overall consistency and comparability of measurements and accountabilities, making accountability more, rather than less, difficult to achieve.The article acknowledges the existence of several variances relating to the notion of sustainability per se, which continues to remain a contested concept and variances between companies and industries in relation to how each is operating sustainably or unsustainably respectively. Such variances have so far inhibited the legislator from easily outlining through tailored legislation the individual risks to global sustainability in an all-encompassing manner. The end product is a chaotic system of financial reporting, CSR reporting, non-financial reporting and integrated reporting and little progress to increase comparability and credibility in order for companies to be held accountable and to behave in ways that do not harm the planet. A “clean up” of the varied initiatives in the terrain of non-financial reporting is recommended.

It is not always bad news

2018 ◽  
Vol 31 (5) ◽  
pp. 1319-1348 ◽  
Author(s):  
Mary-Anne McNally ◽  
Warren Maroun
Keyword(s):  
Impression Management ◽  
Financial Reporting ◽  
Value Creation ◽  
Sustainability Reporting ◽  
Management Control ◽  
Financial Information ◽  
Accounting System ◽  
Integrated Reporting ◽  
Content Type ◽  
Corporate Reporting

Purpose The purpose of this paper is to challenge the notion that non-financial reporting is mainly about impression management or is only a superficial response to the hegemonic challenges posed by the sustainability movement. It focuses on the most recent development in sustainability reporting (integrated reporting) as an example of how accounting for financial and non-financial information has the potential to expand the scope of accounting systems, promote meaningful changes to reporting processes and provide a broader perspective on value creation. Design/methodology/approach The research focuses on an African eco-tourism company which has its head office in South Africa. A case study method is used to highlight differences in the presentation of an integrated business model according to the case entity’s integrated reports and how individual preparers interpret the requirement to prepare those reports. Data are collected using detailed interviews with all staff members involved in the preparation process. These are complemented by a review of the minutes of the company’s sustainability workshops and integrated reports. Findings A decision by the case organisation to prepare an integrated report gives rise to different forms of resistance which limits the change potential of the integrated reporting initiative. Resistance does not, however, preclude reform. Even when individual preparers are critical of the changes to the corporate reporting environment, accounting for financial and non-financial information expands the scope of the conventional accounting system which facilitates broader management control and promotes a more integrated conception of “value”. Research limitations/implications Integrated reporting should not be dismissed as only an exercise in corporate reporting and disclosure; it has a transformative potential which, given time, can enable new ways of managing business processes and articulating value creation. Originality/value This study answers the calls for primary evidence on how the requirement or recommendation to prepare an integrated report is being interpreted and applied by individual preparers. The findings add to the limited body of interpretive research on the change potential of new reporting frameworks. In doing so, the research provides theoretical support for developing arguments which challenge the conventional position that integrated reporting is little more than an exercise in impression management.

scholarly journals A balanced paradigm of higher education in the context of integrated reporting – academic teachers’ perspective

2019 ◽  
Vol 2019 (103 (159)) ◽  
pp. 23-38
Author(s):  
Katarzyna Chłapek ◽  
Sylwia Krajewska ◽  
Krzysztof Jonas
Keyword(s):  
Financial Reporting ◽  
Basic Research ◽  
Accounting Education ◽  
Synthesis Methods ◽  
Integrated Reporting ◽  
Reporting Requirements ◽  
Complex Process ◽  
Reporting Framework ◽  
Academic Teachers ◽  
Further Development

Integrated reporting is a complex process of creating and presenting information about an enterprise's activities that significantly exceeds the traditional financial reporting framework. Difficulties in the preparation of non-financial information and ensuring its high quality imply changes in the teaching model. The aim of this study is to examine the opinion of academic teachers on the content and teaching methods used in the context of their adaptation to integrated reporting requirements. According to the authors, only the combination of hard and soft skills in accounting teaching will allow further development of integrated reporting. The basic research methods used to verify this hypothesis are surveys and literature studies, as well as formulating conclusions on the basis of the deduction and synthesis methods. The conducted research indicates the need for modification of accounting education to adapt it to market requirements.

BUSINESS MODEL IN INTEGRATED REPORTING OF FOREIGN AND DOMESTIC ENTERPRISES

2017 ◽  
Author(s):  
Kostiantyn Bezverkhyi ◽  
Keyword(s):  
Business Model ◽  
Integrated Reporting ◽  
Foreign Companies ◽  
Commercial Activities ◽  
Analysis And Synthesis ◽  
Observation Selection ◽  
Value Creation Process ◽  
By Products ◽  
Selection Of

Introduction. The core of the organization is its business model, which is based on various capitals, understood as resources, and through its commercial activities turns them into products (goods, services, by-products and waste). The activities of the organization and its products lead to results in terms of impact on capital. The ability of a business model to adapt to change (for example, the availability, quality, and availability of resources) can affect the long- term viability of an organization. Misunderstanding of the content of the business model by practitioners leads to the fact that the reflection of the business model in the integrated reporting of both domestic and foreign companies is not uniform. The implementation of the above issue will provide an appropriate author's approach to the interpretation of the business model in integrated reporting, as well as a detailed analysis of its components. Therefore, the topical issue will be the reflection of the business model in the integrated reporting of foreign and domestic enterprises. Purpose. The purpose of the study is to determine the essence of the business model in integrated reporting, as well as analysis of its components, provided by foreign and domestic enterprises. Methods. The following methods were used during the study: analysis and synthesis (disclosure of the economic essence of the business model in integrated reporting); grouping (selection of approaches to the interpretation of the essence of the business model in the scientific works of researchers); observation (selection of foreign and domestic enterprises that reflect the business model in integrated reporting); logical generalization of results (formulation of conclusions). Results. In the course of the study, the author's approach to defining the essence of the business model in integrated reporting was formed, based on the grouping of approaches in the scientific works of foreign and domestic authors. A business model in integrated reporting is a description of an enterprise's activities, reveals its resources (capital) with the help of which value is created, and also the value of an enterprise is formed during its activities. Discussion. Further research is proposed to focus on the value creation process in integrated reporting. This will allow us to understand how the enterprise creates value for society as a whole, and for individual stakeholders.

Revisiting the International integrated reporting framework: What's new in the version (January 2021)?

2021 ◽  
Vol 22 (7) ◽  
pp. 728-739
Author(s):  
Natal'ya V. MALINOVSKAYA
Keyword(s):  
Corporate Governance ◽  
Business Model ◽  
Corporate Disclosure ◽  
Integrated Reporting ◽  
Reporting Practices ◽  
Reporting Framework ◽  
Different Types ◽  
Analysis And Synthesis ◽  
The Impact

Subject. This article discusses the innovations of the revised International Integrated Reporting Framework. Objectives. The article aims to highlight the major changes made to the International Integrated Reporting Framework in relation to their revision and assess their impact on integrated reporting practices. Methods. The study relies upon analysis and synthesis, comparison, generalization, and abstraction. Results. The article gives the reasons for the need to revise the International Integrated Reporting Framework and explains the essence of the major changes. Conclusions. The major changes relate to the responsibility for the integrated reporting of corporate governance, the explanation of the term Outcomes when describing the business model, and approaches to disclosure in an integrated report of results information in terms of the impact (positive and negative) on different types of capital. The revised International Integrated Reporting Framework (January 2021) does not contain fundamental changes, while at the same time addressing the urgent terminology and practical problems identified in their application. Their application can improve corporate disclosure practices.

scholarly journals Value Conceptsand Value Creation Model in Integrated Reporting

2018 ◽  
Vol 6 (2) ◽  
pp. 30-43
Author(s):  
E. Sheveleva
Keyword(s):  
Financial Reporting ◽  
Value Creation ◽  
Financial Information ◽  
Financial Capital ◽  
International Level ◽  
Integrated Reporting ◽  
Reporting Practice ◽  
High Level

This paper is devoted to the analysis of value concepts and theories that provided the basis for the integrated reporting development, their implementation, and disclosure in integrated reporting practice. It is widely accepted that traditional financial reporting no longer meets the needs of its users - the analysis of historical financial information is backwards-looking, the emphasis on financial capital is not any more relevant for every company due to the involvement of other capitals that more significantly contribute to the company’s success. Integrated reporting is meant to bridge this reporting gap. The paper also provides a high-level overview of current progress in integrated reporting adoption on the international level.

scholarly journals MODEL BISNIS, PENCIPTAAN NILAI DAN PENGUNGKAPAN MODAL INTELEKTUAL

2019 ◽  
Vol 14 (2) ◽  
pp. 240-249
Author(s):  
Totok Dewayanto
Keyword(s):  
Business Model ◽  
Intellectual Capital ◽  
Value Creation ◽  
Intangible Assets ◽  
Business Enterprise ◽  
Integrated Reporting ◽  
Business Reporting

Whenever a business enterprise is established, it employs a particular business model that describes the design or architecture of the value creation, delivery, and capture mechanisms it employs. The essence of a business model is in defining the manner by which the enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit. It thus reflects management’s hypothesis about what customers want, how they want it, and how the enterprise can organize to best meet those needs, get paid for doing so, and make a profit. There is currently significant debate worldwide regarding business reporting. The concept of the ‘business model’ has entered into the discourse, as has the concept of ‘integrated reporting’, adding to the established debate regarding accounting for intangible assets and, more generally, intellectual capital (IC). The purpose of this article is to understand the influence of business model on intellectual capital disclosure.

scholarly journals THE CONTRIBUTION OF INTEGRATED REPORTING IN DETERMINING THE PERFORMANCE AND VALUE OF A SUSTAINABLE ORGANIZATION

2021 ◽  
Vol IV(1) ◽  
Author(s):  
Camelia Mihalciuc ◽  
Keyword(s):  
Business Model ◽  
Financial Reporting ◽  
Information Needs ◽  
Business Environment ◽  
Essential Elements ◽  
Integrated Reporting ◽  
Nonfinancial Information ◽  
Real Performance ◽  
International Integrated Reporting Council

In the current business environment, financial reporting has become insufficient in terms of information, which is caused by the increasing information needs of stakeholders. In this context, an integrated reporting modality has emerged thanks to the International Integrated Reporting Council (IIRC), where the information presented is both financial and nonfinancial information, such reporting being called “Integrated Reporting”. Thus, starting from this consideration, the main objective of the paper aims at the main aspects that lead to the presentation of the benefits of implementing integrated reporting in organizations, through the ability to understand, in a more complete way, the "real" performance of a sustainable organization. The essential elements contained in an integrated reporting concern the capital, the business model and the process of creating and maintaining value, this reporting must be integrated in the strategy and vision of the organization, allowing through the transparency of these integrated reports the observation of all aspects led to the results obtained by the organization, as well as providing information on the role of the organization in society and the context in which it operates, the image of the organization being complete. The purpose of this paper is to highlight the importance and role assigned to integrated reporting in measuring the performance of a sustainable organization, by making it easier to understand the cause and effect of the link between financial performance and sustainability by stakeholders.

scholarly journals Integrated Reporting and Sustainable Corporate Governance from European Perspective

2020 ◽  
Vol 10 (2) ◽  
Author(s):  
Jukka Mähönen
Keyword(s):  
Corporate Governance ◽  
Business Model ◽  
Value Creation ◽  
Sustainability Reporting ◽  
Environmental Accounting ◽  
Financial Capital ◽  
Integrated Reporting ◽  
Bottom Line ◽  
Corporate Governance Codes ◽  
The Impact

AbstractAccording to the Cadbury Committee (1992) classical definition, corporate governance is ‘the system by which companies are directed and controlled.’ In the Cadbury Report and in other mainstream corporate governance codes, ‘system’ refers only to the ‘financial aspects of corporate governance’, that is, shareholder value and emphasis on the board’s and the management’s accountability to providers of financial capital only. During the last few years however, sustainability has been included through ‘integrated reporting’ in corporate governance codes especially in Africa (South Africa) and Asia (Malaysia, Philippines). For example, the South African King reports on corporate governance connect the use of integrated reporting to report on an organisation’s corporate governance practices and economic-social-environmental triple-bottom-line performance.The leading normative framework for integrated reporting, the International Integrated Reporting Council’s International <IR> Framework, is based on an idea of ‘shared value creation’ by providers of the ‘six capitals’ (financial, manufactured, intellectual, human, societal and environmental capitals). As such integrated reporting represents a stakeholder management model already integrated – at least on the text level – in many corporate governance codes, just enlarging the concept of capital providers from shareholders only to other internal stakeholders, and the goal of capital efficiency and profit maximisation from financial capital only to other five forms of internal capital provisions. It is also a new step in the development of social and environmental accounting and reporting, rooting from the 1970s and sustainability reporting from the 1990s.The concept of a ‘business model’ represents the way how an organisation creates value, comprising all its activities, its relationships with stakeholders and its tangible and intangible assets and liabilities, and finally the boards responsibilities, as for the board, ‘corporate governance’ and sustaining and developing the company’s business model are essentially the same thing. In the end of the day, it is a question what kind of ‘business model’ integrated reporting based corporate governance really reflects, and how it possible varies from shareholder-centred business model.The purpose of this paper is to test (1) what kind of stakeholder model, if any, integrated reporting and especially International <IR> Framework represents, (2) what is the impact, if any, of integrated reporting to material corporate governance in the codes it is included in, and (3) if yes, does an integrated view and especially the ‘integrated thinking’ behind International <IR> Framework represent a genuine sustainable value creation driven business model based on the boundaries of the planet and social foundation for the humanity, or is it only a view to encourage organisations to take care of the profits of the specific capital providers.

scholarly journals Integrated Reporting: It‟s Impact on Value Creation

2020 ◽  
Vol 9 (2) ◽  
pp. 225-229
Keyword(s):  
Financial Reporting ◽  
Value Creation ◽  
Natural Capital ◽  
Research Progress ◽  
Integrated Reporting ◽  
Financial Report ◽  
Corporate Reporting ◽  
Comprehensive Picture ◽  
Relationship Capital ◽  
Sustainability Report

Corporate reporting provides the comprehensive picture of an organisation’s performance and position to the stakeholders. In the recent years, corporate reporting has seen a major changes and it has evolved from the financial reporting to the integrated reporting (IR). IR is a corporate reporting reform practised recently by many big companies all over the world. In a precise way, IR has combined the financial report and sustainability report, thus making it more integrated and transparent. Integrated report focuses on the six capitals in a broad way and their value creation for the company over the years. This article has examined many recent research articles to find out the research progress in the area of IR. Analysis of data of 12 companies in six sectors has been made to analyse the value creation of these companies in six capitals. It is observed that the score of reporting for human capital, social and relationship capital, and financial capital was better as compared to intellectual capital, manufacturing capital and natural capital.

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