Облік і фінанси (Sep 2024)

Essence and Economic Content of Enterprises’ Integrated Reporting

  • Yuliia Baranova

DOI
https://doi.org/10.33146/2307-9878-2024-3(105)-5-11
Journal volume & issue
no. 3(105)
pp. 5 – 11

Abstract

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The growing gap between the information needs of stakeholders and the data contained in traditional financial reports led to the emergence of integrated reporting. Given the globalization of business and the increasing importance of non-financial indicators, such as environmental, social and management aspects, it has become evident that financial reporting cannot fully reflect all important aspects of enterprise value formation. This led to the need for a more comprehensive approach to reporting, which would provide a holistic picture of financial and non-financial indicators, reflecting the impact of the enterprise on various types of capital and their contribution to sustainable development. The article aims to reveal the essence of the integrated reporting, as well as structuring and summarizing existing approaches to its interpretation. The author used methods of analysis and synthesis, comparison, theoretical generalization, abstract logic, and monographic analysis to achieve the goal. Various approaches to disclosing the content of the integrated reporting, which are most common among domestic and foreign scientists, are systematized and summarized. The analysis of these approaches allows for a comprehensive understanding of integrated reporting, covering various aspects of its implementation and effectiveness, considering current trends. A comparative analysis of integrated and financial reporting proves that integrated reporting provides a more comprehensive and multifaceted view of the company's activities than traditional financial reporting. It reflects financial results and includes non-financial aspects such as environmental and social impacts, allowing stakeholders to gain a more complete picture of the company’s long-term sustainability, risks and opportunities. The author’s vision of the economic content of the integrated reporting presented in the article is based on understanding this category as a structured communication process that forms information about financial and non-financial indicators in a report format.

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