The paper "Accounting Standards" is an outstanding example of a finance and accounting assignment. The integrated report has incorporated new features in the way corporations prepare a report of its status to its shareholders and other stakeholders in comparison to the current framework of the reporting. The integrated report intends to enhance communication between the capital markets and companies compared to the traditional. There are areas in which the integrated reporting adds value to the old reporting ways while in other areas we find completely new additions. The integrated report will concentrate on the connectivity of information, strategic focus, the future orientation of the past information, and check on the Conciseness, reliability, and materiality of the information reported (International Integrated Reporting Committee, 2013).
Additionally, the information should attract responses from stakeholders and include a sustainability report. On one hand, Integrated reports promote integrated reasoning because conventional reporting is done in compartments; it motivates reasoning in a compartmentalized manner. However, on the other hand, Integrated Reporting shows and facilitates integrated considerations – tracking, handling, and communicating the complete complexness of the value development procedure (Eccles and Saltzman, 2011).
We find that integrated Reporting shows the level to which integrated reasoning is occurring within the company. Additionally, an integrated report seeks to show a company's stewardship with considerations of financial capital as included in the traditional reporting while also including the other “ capitals” (manufactured, human resource, social, natural, and intellectual), as well as their inter-reliance and how they promote achievements. This wider viewpoint needs consideration on risk and resource management. Concerning that financial reporting, the traditional reporting has mostly considered the past financials while the integrated reporting targets to focus on the past and future financial performance of the company while integrating the company strategies.
Currently, yearly reports mostly concentrate on past economic performance and economic risks. Other reports, as well as communication, may cover other resources and company financial relationships, but they are scarcely provided them in a linked way or attributed to the organization’ s ideal goals and its capability to create and maintain value in the future. Concerning the period being reported, media attention, as well as the regulatory focus, has been concentrated on the short-term financial outcomes especially after the global financial crisis (Eccles et al. , 2010).
Despite the fact that short-term financial analysis is crucial, it is equally important to analyze the short-term financial from a long-term perspective. To this end integrated reporting factors in the short terms medium and long-term financial outcomes. Financial reporting concentrates on a shallow series of required financial disclosure. Despite the fact that a growing variety of companies are increasingly working on transparency reporting evident through the preparation of sustainability reports voluntarily, the number of companies implementing this is not high.
By emphasizing transparency, in ways such as covering a broader variety of problems and exposing the pros and cons of the company performance, the integrated report allows the development of trust. Reporting in the current times is evaluated to be too conformity-focused, lowering the opportunity for organizations to exercise reasoning appropriately. Although a particular level of compliance alignment is essential to make sure reliability and allow evaluation, Integrated Reporting considers a principles-based strategy that inspires higher concentration on aspects that are relevant to particular areas and companies.
It allows a company to reveal its situation in obvious and easy to understand language. Lengthy and complicated reports are often impassable for many audiences. A key purpose for Integrated Reporting is to laminate the clustering in the main report so that it includes, brief and the most vital information (Eccles et al. , 2010). While the internet is presenting aspects of technology advancement, many business reports are still provided as if they were completely document-based. However integrated reporting uses new and growing technological innovations to link the information found in the main report and to enable access to further details online, which is evaluated to be appropriate.
Eccles, R.G., Cheng, B. and Saltzman, D., 2010. The landscape of integrated reporting. Reflections and next steps, Cambridge (Mass.), Harvard Business School.
Eccles, R.G. and Saltzman, D., 2011. Achieving sustainability through integrated reporting. Stanf Soc Innov Rev Summer, pp.56-61.
Jensen, J.C. and Berg, N., 2012. Determinants of traditional sustainability reporting versus integrated reporting. An institutionalist approach. Business Strategy and the Environment, 21(5), pp.299-316.
White, A., 2010. The five capitals of integrated reporting: Toward a holistic architecture for corporate disclosure. The Landscape of Integrated Reporting, Cambridge: Harvard Business School.
International Integrated Reporting Committee, 2013. Consultation draft of the International< IR> framework. Author, London.