Integrated Reporting – The End or a New Begining for Financial Reporting?
Author:
Associate Prof. Daniel BOTEZ, Ph. D.
JEL:
M10, M40, O16, F20, F60, G30
DOI:
Keywords:
integrated reporting, sustainability, corporate reporting
Abstract:
Globalization and corporations` development have attracted concerns to establish an extended corporate reporting form, addressed to long term investors and, at the same time, to a group of people (stakeholders) interested in how the organization serves the public interest and affect the environment in which they live.\r\nIn the year 2009 was founded the International Integrated Reporting Committee, which become in 2011 the Council, having as objective the establishment of a Conceptual framework of Integrated Reporting globally accepted.\r\nIntegrated reporting is a set of processes and activities that result in visible and concise periodic reporting on how the strategy, management, performance and organization forecasts allow create and maintain long-term value. \r\nFundamental components of integrated reporting are capital, business model and the process of creating and maintaining value. From this point of view the entity uses six type of capital: financial, productive, human, intellectual, natural and social. The business model is a system of inputs, activities and outputs creating added value, which aim to create and maintain value in the short, medium and long term. The process of creating and maintaining value concerns, first and foremost, the investors, particularly long-term investors.\r\nThe process of reporting is based on six guiding principles and results in a report that contains six essential elements. Preparation and presentation of the report are other items brought into question in the conceptual framework.\r\nIn terms of professional accountants, particularly the financial auditors, at least one question arises: how involved will they be in the process of integrated reporting? We have reasons to believe that their role is essential.\r\n\r\n