Evaluations on the Future of Corporate and Financial Reporting

Year 2021, Issue: 64, 39 - 58, 31.01.2021

Hakan Cavlak

Abstract

The most important tool that businesses use in communicating with their stakeholders is corporate reports. Also, corporate reports are the final output of the corporate reporting process. It includes the results of the past operating activities of the business and its predictions for the future. Among corporate reports, financial reports have the longest history and the most common use. Various changes in corporate and financial reporting as a result of changes in markets, operating structures, stakeholder demands, and technology are the subject of this study. The future of the corporate and financial reporting is another issue discussed in the study. Increased interest in non-financial information, the increasing importance of intangible assets, sustainability, and digitalization are the result of these changes. As a result of these, different types of corporate reports have emerged. Also, it had to show various changes in financial reports. Change and development regarding corporate and financial reporting will continue in various frameworks in the future. On the other hand, the Covid-19 pandemic, which creates great uncertainty and impact in every field, shows its effect on corporate and financial reports in the form of further disclosure. Also, due to the economic impact of the pandemic, it is observed that business stakeholders attach more importance to financial reports compared to other corporate reports in this period.

Keywords

Corporate Reporting, Financial Reporting, Corporate Report, Financial Report, Covid-19

Kurumsal ve Finansal Raporlamanın Geleceği Üzerine Değerlendirmeler

Abstract

İşletmelerin paydaşları ile iletişiminde kullandıkları en önemli araç kurumsal raporlardır. Kurumsal raporlar, kurumsal raporlama sürecinin bir nihai çıktısıdır ve işletmenin geçmiş faaliyetlerine ilişkin sonuçlar ile geleceğine yönelik öngörülerini içermektedir. Kurumsal raporlar içerisinde ise finansal raporlar, en uzun geçmişe ve en yaygın kullanıma sahip olan rapor türüdür. Bu çalışmada, zaman içinde piyasaların, işletme yapılarının, paydaş taleplerinin ve teknolojinin değişim göstermesi neticesinde kurumsal ve finansal raporlamada yaşanan ve gelecekte yaşanabilecek muhtelif değişiklikler incelenmektedir. Bu değişiklikler ağırlıklı olarak, finansal bilgi yanında finansal olmayan bilgiye ilişkin artan ilgi, maddi olmayan varlıkların önem kazanması, sürdürülebilirlik ve dijitalleşme olgusu ile birlikte kendini göstermiştir. Bunların bir neticesi olarak da farklı kurumsal rapor türleri ortaya çıkmış ve finansal raporlarda kendi içinde çeşitli değişimler göstermek zorunda kalmıştır. Gelecekte de kurumsal ve finansal raporlamaya ilişkin değişimin ve gelişimin muhtelif çerçevelerde devam edeceği öngörülmektedir. Diğer taraftan her alanda büyük bir belirsizlik ve etki oluşturan Covid-19 pandemisinin de kurumsal ve finansal raporlar üzerinde daha fazla açıklama şeklinde kendini gösterdiği göze çarpmaktadır. Ayrıca pandeminin ekonomik olarak oluşturduğu etkiden dolayı bu dönemde işletme paydaşlarının kurumsal raporlar içerisinde ağırlıklı olarak finansal raporlara daha fazla önem verdiği gözlemlenmektedir.

Keywords

Kurumsal Raporlama, Finansal Raporlama, Kurumsal Rapor, Finansal Rapor, Covid-19

References

• Aerts, W., & Walton, P. (2013). Global Financial Accounting and Reporting: Principles and Analysis. Hampshire: Cengage Learning.
• Alexander, D., Britton, A., Jorissen, A., Hoogendoorn, M., & Mourik, C. van. (2014). International Financial Reporting and Analysis. Hampshire: Cengage Learning.
• Aras, G. (2018). Kurumsal raporlamada gelecek: Entegre raporlama. Dünya Gazetesi.
• Aras, G., & Sarıoğlu, G. U. (2015). Kurumsal Raporlamada Yeni Dönem: Entegre Raporlama. İstanbul: TÜSİAD Yayınları.
• ASIC. (2020, Ağustos 15). COVID-19 implications for financial reporting and audit: Frequently asked questions (FAQs). Erişim adresi: https://asic.gov.au/regulatory-resources/financial-reporting-and-audit/covid-19-implications-for-financial-reporting-and-audit-frequently-asked-questions-faqs
• Axson, D. A. J. (2010). Best Practices in Planning and Performance Management. New Jersey: John Wiley & Sons Inc.
• Baker, C. R., & Wallage, P. (2000). The Future of Financial Reporting in Europe: Its Role in Corporate Governance. The International Journal of Accounting, 35(2), 173–187.
• Barth, M. E. (2018). The Future of Financial Reporting: Insights from Research. Abacus, 54(1), 66–78. https://doi.org/10.1111/abac.12124
• BDO. (2020). Potential Effects of the Coronavirus Outbreak on 31 December 2019 Year End Financial Reporting. International Financial Reporting Bulletin.
• Beattie, V. (2000). The Future of Corporate Reporting: A Review Article. Irish Accounting Review, 7(1), 1–36.
• Brockett, A., & Rezaee, Z. (2012). Corporate Sustainability: Integrating Performance and Reporting. New Jersey: John Wiley & Sons Inc.
• CIMA Global. (2009). Corporate Reporting (Technical Matters).
• DeLoach, J. (2020). How Is COVID-19 Affecting Your Financial Statements? Editor’s Pich (Forbes).
• Deloitte. (2016). Thinking Allowed - The future of corporate reporting.
• Deloitte. (2018, Ağustos 16). Blockchain and Financial Reporting - Impact of Blockchain in the Audit Function. Erişim adresi: https://www2.deloitte.com/us/en/pages/audit/articles/blockchain-financial-reporting.html
• Deloitte. (2019a). IFRS in Your Pocket. London: Deloitte Touche Tohmatsu Limited.
• Deloitte. (2019b). Rising to the challenge - Adapting to the future of financial foresight.
• Deloitte. (2020). Financial Reporting Considerations Related to COVID-19 and an Economic Downturn. Financial Reporting Alert 20-2.
• Demir, V. (2020). Şirketlerimiz Risklerini Nasıl Yönetebilir? Kobi Girişim.
• Ditlevsen, M. G., Nielsen, A. E., & Thomsen, C. (2013). Corporate Reporting: An Integrated Approach to Legitimacy. Journal of Modern Accounting and Auditing, 9(12), 1637–1643.
• Duman, A. (2020). COVID-19 Zamanlarında Dünyada Kurumsal Yönetim. TKYD Makale.
• Dyckman, T. R., & Zeff, S. A. (2000). The Future of Financial Reporting: Removing It from the Shadows. Pacific Accounting Review, 11(2), 89–96.
• Elliott, B., & Elliott, J. (2017). Financial Accounting and Reporting. Harlow: Pearson Education Ltd.
• Erasmus Research Institute of Management (ERIM). (2020, Ağustos 20). Shaping the future of financial reporting. Erişim adresi: www.erim.eur.nl/research/research-impact/erim-impact-narratives/finance-accounting-fa/shaping-the-future-of-financial-reporting
• ESMA. (2020). ESMA Issues New Q&A on Alternative Performance Measures in the Context of COVID-19. Corporate Disclosure.
• European Commission. (2018, Ağustos 12). High-level Conference on the Future of Corporate Reporting in a Digital & Sustainable Economy. Erişim adresi: https://ec.europa.eu/info/events/finance-181130-companies-public-reporting_en
• EY. (2014). Integrated reporting - Elevating value.
• EY. (2019). Does corporate reporting need a culture shock? - Meeting the transparency expectations of investors and other stakeholders.
• EY - Financial Accounting Advisory Services. (2015). Are You Prepared for Corporate Reporting’s Perfect Storm? London.
• Federation of European Accountants (FEE). (2015). The Future of Corporate Reporting – Creating the Dynamics for Change. Brüksel.
• Financial Executives Research Foundation (FERF). (2017). Blockchain and the Future of Financial Reporting.
• Financial Executives Research Foundation (FERF). (2018). Blockchain for Financial Leaders: Opportunity vs. Reality. New Jersey.
• Financial Reporting Council (FRC). (2020). Company Guidance Update March 2020 (COVID-19). COVID-19 Issues.
• FRC. (2018a, Ağustos 13). FRC Announces Future of Corporate Reporting Advisory Group. Erişim adresi: https://www.frc.org.uk/news/december-2018-(1)/frc-announces-future-of-corporate-reporting-adviso
• FRC. (2018b, Ağustos 13). FRC to Examine the Future of Corporate Reporting, Calls for Participation. Erişim adresi: https://www.frc.org.uk/news/october-2018/frc-to-examine-the-future-of-corporate-reporting
• Frerejacque, P. (2020). Advocating for Transparency in Corporate Financial Reporting Responses to Coronavirus. World Bank Blogs (Governance for Development).
• FSN, & Workday. (2017). The Future of Financial Reporting.
• Gökten, P. O., & Marşap, B. (2017). Paradigm Shift in Corporate Reporting. In S. Gokten (Ed.), Accounting and Corporate Reporting - Today and Tomorrow (ss. 1–14). https://doi.org/10.5772/intechopen.68832
• Grant Thornton. (2018). IFRS News - A revised ‘Conceptual Framework for Financial Reporting’.
• Grant Thornton. (2020, April 2). Reporting the Impact of COVID-19 on Your Business. Insights. Hubble, B., & Harris, M. (2019, Ağustos 15). The Future Regulation of Financial Reporting. Erişim adresi: http://www.mondaq.com/uk/x/776422/Audit/Kingman+Review+The+Future+Regulation+of+Financial+Reporting
• ICAEW Financial Reporting Faculty. (2018). What’s Next for Corporate Reporting: Time to Decide? London.
• ICAN. (2020). Key Accounting, Tax and Auditing Considerations. COVID-19 Practice Alert.
• ICJCE. (2020). Possible Impact of the COVID-19 Outbreak over the 2019 Financial Statements and Other Considerations Related to the Auditors’ Tork. COVID-19 Adjuntos.
• Kaye, T. (2018, Ağustos 17). Is Financial Reporting Still Relevant? Erişim adresi: https://www.intheblack.com/articles/2018/10/18/is-financial-reporting-still-relevant
• Kendall, G. (2018). Making Extra-Financial Reporting - Fit for the Future. The Reporting Times.
• KGK. (2020). Finansal Raporlamaya İlişkin Kavramsal Çerçeve (2018 Sürümü). Ankara.
• Köylüoğlu, B. (2020). Pandemi Sonrası Dönemde Kurumsal Değişim. Stratejivefinans.Com.
• KPMG. (2013). The future of corporate reporting: towards a common vision.
• KPMG. (2020a). Covid-19 Finansal Raporlama Üzerindeki Potansiyel Etkileri. KPMG Görüşler.
• KPMG. (2020b). Tackling Fraud Opportunities Arising from Working Remotely. Forensic Services.
• Krstić, J., & Đorđević, M. (2010). Financial reporting on intangible assets: Scope and limitations. Facta Universitatis, Series: Economics and Organization, 7(3), 335–348.
• Leutenegger, A. (2018). Transparency and Trust are Crucial. The Reporting Times.
• Lev, B., & Gu, F. (2016). The End of Accounting and the Path Forward for Investors and Managers. New Jersey: John Wiley & Sons Inc.
• Mähönen, J. (2020). Comprehensive Approach to Relevant and Reliable Reporting in Europe: A Dream Impossible? Sustainability, 12(13), 5277. https://doi.org/10.3390/su12135277
• Mitchell, D. (2020). COVID-19: The Perfect Fraud and Corruption Storm. KPMG Assurance & Risk.
• Naranjo, P., Saavedra, D., & Verdi, R. S. (2014). Financial Reporting Regulation and Financing Decisions. Massachusetts Institute of Technology (Unpublished Working Paper), 1–55.
• Nielsen, C., & Roslender, R. (2015). Enhancing financial reporting: The contribution of business models. The British Accounting Review, 47(3), 262–274. https://doi.org/10.1016/j.bar.2015.04.003
• OECD. (2012). Corporate Reporting of Intangible Assets: A Progress Report. Paris.
• Ozili, P. K. (2020). Accounting and Financial Reporting during a Pandemic. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3613459
• Palea, V. (2013). Financial Reporting under IAS/IFRS. Bern: Peter Lang.
• Parker, D. (2020, Ağustos 10). Budget Forecasting in the COVID-19 Era. INTHEBLACK.
• Pekdemir, R. (2005). Finansal Raporlamada Terminoloji Birliği. Mali Çözüm Dergisi, (72), 21–29.
• Pounder, B. (2009). Convergence Guidebook for Corporate Financial Reporting. New Jersey: John Wiley & Sons Inc.
• PwC. (2007). Corporate reporting – a time for reflection: Corporate reporting – a time for reflection.
• Radigan, J. (2020, Ağustos 17). How the Coronavirus may Affect Financial Reporting and Auditing. Journal of Accountancy.
• Renier, B., & Blomme, H. (2018). Smarter Corporate Reporting with Core & More. The Reporting Times.
• Revsine, L., Collins, D. W., Johnson, W. B., Mittelstaedt, H. F., & Soffer, L. C. (2015). Financial Reporting & Analysis. New York: McGraw-Hill Education.
• Sakız, B., Dursun, G. D., & Sakız, S. (2019). Muhasebe ve Finans Alanında Önemli Dönüşümlerin Habercisi: Blok Zinciri Teknolojisi. In XX. Türkiye Muhasebe Kongresi Cilt 1: Dijitalleşme Sürecinde Değişen İş Hayatı ve Muhasebe Mesleğinin Yeniden Yapılanması - “Yerel/Küresel Meseleler, Küresel/Yerel Çözümler” (ss. 686–705). İstanbul: TÜRMOB Yayınları.
• Schmidt, M. (2018, Ağustos 10). The Future of Corporate Reporting. Erişim adresi: http://integratedreporting.org/news/the-future-of-corporate-reporting
• Sipahi, B., & Arsoy, A. P. (2010). Finansal Raporlamada Yeni Yaklaşımlar. Öneri Dergisi, 9(33), 51–57.
• Skroupa, C. P. (2018, Ağustos 8). Improving the Future of Corporate Reporting. Erişim adresi: https://www.forbes.com/sites/christopherskroupa/2018/08/30/improving-the-future-of-corporate-reporting
• Stolowy, H., Lebas, M. J., & Ding, Y. (2013). Financial Accounting and Reporting: A Global Perspective. Hampshire: Cengage Learning.
• The Association of Chartered Certifed Accountants (ACCA). (2012). The future of fnancial reporting 2011: global crisis and accounting at a crossroads.
• The Association of Chartered Certifed Accountants (ACCA). (2016). Meeting Users’ Information Needs: The Use and Usefulness of Integrated Reporting. London.
• The Association of Chartered Certifed Accountants (ACCA). (2018a, Ağustos 11). Back to Basics: What Good Corporate Reporting Looks Like. Erişim adresi: https://www.accaglobal.com/gb/en/member/discover/cpd-articles/corporate-reporting/b2b-crcpd.html
• The Association of Chartered Certifed Accountants (ACCA). (2018b). Tenets of Good Corporate Reporting. London.
• Toomse-Smith, T. (2018). Is the Future of Corporate Reporting Block-shaped? The Reporting Times.
• Uyar, A. (2015). Kurumsal Raporlamanın Gelişimi ve Güncel Yaklaşımlar. Ankara: Gazi Kitabevi.
• Uzma, S. H. (2011). Challenges of Reporting Intangible Assets in Financial Statements. IUP Journal of Accounting Research & Audit Practices, 10(4), 28–38.
• Wahlen, J. M., Baginski, S. P., & Bradshaw, M. T. (2015). Financial Reporting, Financial Statement Analysis and Valuation: A Strategic Perspective. Boston: Cengage Learning.
• Warren, M. (2020). The Impact of Coronavirus will Spread to Financial Reporting. HLB Mann Judd Article.
• Wells, P., & Chartered Accountants Australia and New Zealand. (2020). The Future of Financial Reporting - What size do you want?
• White, G. I., Sondhi, A. C., & Fried, D. (2003). The Analysis and Use of Financial Statements. Danvers: John Wiley & Sons Inc.
• Wilcox, J., & Sodali, M. (2019, Ağustos 11). Corporate Reporting. Harvard Law School Forum. Erişim adresi: https://corpgov.law.harvard.edu/2019/05/12/corporate-reporting
• Willis, M., Tesnière, B., & Jones, A. (2002). Corporate Communications for the 21st Century.
• Workiva. (2018). 2018 Financial Reporting Survey: Challenges and Trends.
• Yayla, Ü. (2020). COVID-19 Halka Açık Şirketlerin Bildirim Yükümlülüklerine Etkileri. TKYD Makale.
• Young, S. D., Cohen, J., & Bens, D. A. (2019). Corporate Financial Reporting and Analysis. New Jersey: John Wiley & Sons Inc.