Іntegrated reporting, its accounting and information support
DOI:
https://doi.org/10.35774/visnyk2023.04.067Keywords:
capital, enterprise value, accounting, integrated reporting, non-financial information, users, investorsAbstract
Introduction. In Ukraine and around the world, the practice of integrated reporting has become widespread. Such reporting, in addition to financial information, is intended to disclose non-financial information related to environmental, social, innovative, strategic, and other aspects of the activities of enterprises and corporations. In economic literature, there has been an ongoing debate for some time about the form and content of such reporting, the audience for which the information in integrated reporting should be directed, and which indicators should be disclosed in it.
The purpose is to investigate the queries of key users of financial and non-financial information, on which the focus should be directed for integrated reporting, and the incorporation of necessary data into the accounting system to generate indicators for such reporting.
Methods. To achieve the research goal, a systematic and innovative approach was employed to synthesize information, using methods of bibliographic, conceptual, and functional analysis.
Results. The structure and challenges of compiling integrated reporting are disclosed. The analysis examines the user base of such reporting and their informational needs. It is noted that the primary users targeted by integrated reporting are owners, current and potential investors. The new concept of this reporting should be aimed at creating enterprise value, particularly at the company level, to assess relationships with business partners and at the societal level overall.
The indicators of integrated reporting should be aligned with the enterprise’s accounting system. The main features of such integrated accounting are systematized, and characteristics are provided. It is determined that expanding information provision through integrated reporting, supplementing it with data regarding the formation of capital value for enterprises, will improve the investment attractiveness of economic entities and the investment climate in the country. This will enable attracting additional investments for entrepreneurship development from both domestic and external sources.
Prospects. Further scientific research in this direction is advisable to conduct with the aim of expanding the information scope of integrated reporting, introducing indicators of such reporting into the financial and managerial accounting system.
References
Connected Reporting Framewor. Retrived from: http://www. accountingforsustainability. org/wpcontent/uploads/2011/2012/Connected- Reporting-A-practical-guide-with-worked-examples. [in English].
Holov, S. F., Kostiuchenko, V. M., Kuzina, R. V. (2018). Intehrovane zvituvannia: kontseptsiia, metodolohiia ta orhanizatsiia [Integrated reporting: concept, methodology and organization]: monohr. Kherson: Vydavnychyi dim «Helvetyka». 252 p. [in Ukrainian].
Potter B., Singh P. J., York J. (2013). Corporate Social Investments through Integrated Reporting: Critical Issues. Seventh Asia Pacific Interdisciplinary Research in Accounting Conference. Kobe 26-28 July, 2013. 23 p. [in English].
Eccles, R. G., Saltzman, D. (2011). Achieving Sustainability Through Integrated Reporting. Stanford Social Innovation Review. Summer. P. 56-61. [in English].
Atamas, P. Y. (2015). Intehrovana korporatyvna zvitnist: problemy vprovadzhennia [Integrated corporate reporting: problems of implementation]. Ekonomika pidpryiemstva, 1, 78-85. [in Ukrainian].
Kostyrko, R. O., Lisnycha T. V. (2012). Intehrovana zvitnist – instrument zabezpechennia staloho rozvytku suspilstva [Integrated reporting is a tool for ensuring the sustainable development of society]. Ekonomika. Menedzhment. Pidpryiemnytstvo, 24 (1), 189-195. [in Ukrainian].
Kutsyk, P. O. (2017). Kontseptsiia unifikovanoi systemy obliku i zvitnosti v korporatyvnomu upravlinni [The concept of a unified system of accounting and reporting in corporate management]: monohr. Lviv: Vydavnytstvo Lvivskoho torhovelno-ekonomichnoho universytetu. 408 p. [in Ukrainian].
Lokhanova, N. O. (2012). Intehratsiini protsesy v obliku v umovakh instytutsionalnykh peretvoren [Integration processes in accounting in conditions of institutional transformations]: monohr. Kherson: Hrin D. S. 400 p. [in Ukrainian].
Koriahin, M. V., Kutsyk P. O. (2016). Problemy ta perspektyvy rozvytku bukhhalterskoi zvitnosti [Problems and prospects for the development of accounting reporting]: monohr. K.: Interservis. 276 p. [in Ukrainian].
«Pro bukhhalterskyi oblik ta finansovu zvitnist v Ukraini» (z nastupnymy zminamy i dopovn.): Zakon Ukrainy vid 16 lypnia 1999 r. № 996-XIV [“On accounting and financial reporting in Ukraine” (with subsequent changes and additions): Law of Ukraine dated July 16, 1999 No. 996-XIV]. Retrived from: http://zakon.rada. gov.ua/ cgi-bin/laws/main.cgi?nreg=996-14. [in Ukrainian].
Proekt mizhnarodnoho formatu intehrovanoi zvitnosti [Project of the international format of integrated reporting]. Retrived from: http://bdo.com.ua/intehrirovannaja_ otchetnost. [in Ukrainian].
Deloitte survey: Write from the Start: Surveying Narrative Reporting in Annual Reports [Deloitte Survey: Written from the Start: Surveying Narrative Reporting in Annual Reports]. URL: http://www.iasplus.com/en/binary/uk/0910atellingperformance.
Sadovska, I. B. Intehrovana systema obliku [Integrated accounting system]. Retrived from: https://ukrtextbook. com/buxgalterskij-oblik-sadovska-i-b/buxgalterskij-oblik- sadovska-i-b-inte. [in Ukrainian].
Shevchenko, L. Ya. (2016). Sutnist intehrovanoho obliku ta yoho skladovi [The essence of integrated accounting and its components]. Naukovyi visnyk Uzhhorodskoho natsionalnoho universytetu - Scientific Bulletin of the Uzhhorod National University. Vol. 6, part. 3. P. 134-137. [in Ukrainian].
Koriahin, M. V. (2012). Bukhhalterskyi oblik u systemi upravlinnia vartistiu pidpryiemstva: teoretyko-metodolohichni kontseptsii [Accounting in the enterprise cost management system: theoretical and methodological concepts]: monohr. Lviv: LKA, 2012. 389 p. [in Ukrainian].
Iaremko, I. Y. (2002). Ekonomichni katehorii v metodolohii obliku [Economic categories in accounting methodology]: monohr. Lviv: Kameniar. 192 p. [in Ukrainian].
