An Overview of Integrated Reporting

Year 2017, Volume: 2 Issue: 4, 69 - 80, 30.10.2017

Güneş Topçu

https://doi.org/10.31454/usb.381485

Abstract

With the changing business landscape, the need for non-financial information as well as financial information has increased. In order to evaluate a company thoroughly, investors begin to demand all relevant information. Besides, after the global financial crisis in 2009, people rely less on corporate information. Analyst presentations, online news and social media are found more reliable. To get rid of those concerns, companies tried to produce more reliable and complete information about themselves. One of the results of this concern is integrated reporting. Integrated reporting is seen as the future of corporate reporting since it includes both financial and non-financial information which reveal a company’s unique value generating power. The aim of this paper is to explain the needs for integrated reporting, its benefits and give information about the implementation of it both in developed and developing countries.

Keywords

Integrated reporting, integrated thinking, sustainability, stakeholders, value creation

Entegre Raporlamaya Genel Bir Bakış

Abstract

Değişen iş ortamıyla finansal bilgilerin yanı
sıra finansal olmayan bilgiye olan ihtiyaç artmıştır. Bir şirketi tam olarak
değerlendirmek için yatırımcılar şirketle ilgili tüm bilgileri talep ederler.
Ayrıca, 2009'daki küresel mali kriz sonrasında, şirketler kurumsal bilgilere
daha az güvenmeye başlamıştır. Onun yerine, analist sunumları, online haberler
ve sosyal medya daha güvenilir bulunmaya başlanmıştır. Bu endişelerden
kurtulmak için şirketler, kendileri hakkında daha güvenilir ve eksiksiz bilgi
üretmeye çalıştılar.  Bu endişenin
sonuçlarından biri de, entegre raporlamadır. Entegre raporlama, şirketin
benzersiz değer üretme gücünü ortaya koyan finansal ve finansal olmayan
bilgileri içerdiğinden kurumsal raporlamanın geleceği olarak görülmektedir. Bu
yazının amacı, entegre raporlamaya neden ihtiyaç duyulduğunu anlatmak, entegre
raporlamanın avantajları hakkında bilgi vermek ve entegre raporlamayı uygulayan
gelişmiş ve gelişmekte olan ülkelerden örnekler vermektir.

Keywords

Entegre raporlama, entegre düşünce, sürdürülebilirlik, paydaşlar, değer yaratma

References

• ACCA, (2013), What do investors expect from non-financial reporting?, retrieved from http://www.accaglobal.com/content/dam/acca/global/PDF-technical/sustainabilityreporting/tech-tp-wdir.pdf on March, 2016. Aras, G. and Gaye Uğur Sarıoğlu, (2015), Kurumsal Raporlamada Yeni Dönem: Entegre Raporlama, TUSİAD Yayınları. Beneish, M. D., (1997), Detecting GAAP Violation: Implications for Assessing Earnings Management Among Firms with Extreme Financial Performance, Journal of Accounting and Public Policy, 16 (3), 271-309. British Nuclear Fuels Plc (BNFL), Corporate Social Responsibility Report 2003, (2003), retrieved from http://www.ourfutureplanet.org/newsletters/resources/BNFL%20%20Corporate%20Social%20Responsibility%20Report%202003.pdf on March 2016. Busco, C., Frigo, M.,L., Quattrone, P and A. Riccaboni, (2 0 1 4), Leading Practices in Integrated Reporting, Strategic Finance, 23-32. Cheng, B., Eccles, R. G. and Saltzman, D., (2010), The Landscape of Integrated Reporting Reflections and Next Steps, retrieved from http://www.people.hbs.edu/reccles/The%20Landscape%20of%20Integrated%20Reporting.pdf on August, 2017. Churet, C., Sam, R. and R., G. Eccles, (2014), Integrated Reporting, Quality of Management and Financial Performance, Journal of Applied Corporate Finance, 1 (26), 8-16. Cooper, S. M. and D. L., Owen, (2007), Corporate Social Reporting and Stakeholder Accountability: the Missing Link. Accounting, Organizations and Society, 32 (7-8), 649-667. Corporate Governance Association of Turkey, (2014), Entegre Raporlama İstanbul Paneli, retrieved from http://www.tkyd.org/tr/faaliyetler-gundem-entegre-raporlama-istanbul-paneli-2-aralik-2014.html on March, 2016. Çimsa Press Room, (2017), Çimsa, Türkiye’de ilk kez Entegre faaliyet Raporu Yayınlayan Reel Sektör Şirketi Oldu, retrieved from https://www.cimsa.com.tr/tr/i-666 on July, 2017. Çimsa’s Integrated Report, (2017), retrieved from https://www.cimsa.com.tr/ebook/cimsa2016efr2/files/assets/basic-html/page-1.html on July, 2017. Ernst & Young, (2013), Value Creation Background Paper, retrieved from http://integratedreporting.org/wp-content/uploads/2013/08/Background-Paper-Value-Creation.pdf on July, 2017. FASB, (2008), Statement of Financial Accounting Concepts No. 2 – Qualitative Characteristics of Accounting Information, retrieved from http://www.fasb.org/cs/BlobServer?blobcol=urldata&blobtable=MungoBlobs&blobkey=id&blobwhere=1175820900526&blobheader=application%2Fpdf on May, 2016. Hoque, M., E., (2017), Why Company Should Adopt Integrated Reporting?, International Journal of Economics and Financial Issues, 7(1), 241-248. IFRS, n.d., Mission Statement, retrieved from http://www.ifrs.org/ on July, 2017. IIRC, (2013a), IIRC Pilot Programme Yearbook 2013: Business and Investors Explore the Sustainability Perspective of Integrated Reporting, retrieved from http://www.theiirc.org/wp- content/uploads/2013/12/IIRC-PP-Yearbook-2013_PDF4_PAGES.pdf on March, 2016 IIRC, (2013b), The International IR Framework, retrieved from https://integratedreporting.org/wp-content/uploads/2013/12/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf on July, 2017. IIRC, (2011), Towards Integrated Reporting: Communicating Value in the 21st Century, Discussion Paper. IIRC, (2014), Realizing the Benefits: The Impact of Integrated Reporting, retrieved from http://integratedreporting.org/wp-content/uploads/2014/09/IIRC.Black_.Sun_.Research.IR_.Impact.Single.pages.18.9.14.pdf on July, 2017. IIRC Blog, (2015), Will Integrated Reporting Improve Sustainability?, retrieved from http://integratedreporting.org/news/will-integrated-reporting-improve-sustainability/ on July, 2017. IIRC Blog, (n.d.), Why is South Africa Leading the Integrated Reporting Debate?, retrieved from http://publisher.enablon.com/blog/why-is-south-africa-leading-the-integrated-reporting-debate/ on March, 2016. Kaya, C., T. and N. Türegün, (2014), Integrated Reporting for Turkish Small and Medium-Sized Enterprises, International Journal of Academic Research in Accounting, Finance and Management Sciences 1(4), 358-364. Kirkos, E., Spathis, C. and Manolopoulos, Y., (2007), Data Mining Techniques for the Detection of Fraudulent Financial Statements, Expert Systems with Applications, 32, 995-1003. KPMG, (2017), Gerçek Performansa Entegre Raporlama ile Bakılıyor, retrieved from https://home.kpmg.com/tr/tr/home/insights/2017/07/gercek-performansa-entegre-raporlama-ile-bakiliyor.html on July, 2017. Lee, K-W and Heng Yeo, H – H, G., (2016), The Association Between Integrated Reporting and Firm Valuation, Review of Quantitative Finance and Accounting, 47(4), 1221-1250. Mehta, S. and Srivastavaare, R., (2009), Reasons for Corporate Governance Failures, retrieved from http://www.indianmba.com/Faculty_Column/FC974/fc974.html on July, 2017. Mustafa, R.V., Matiş, D. and Bonacı, C.G., (2012), Integrated Financial Reporting: From International Experiences to Perspectives at National Level, Review of Business Research, 12 (2), 145-150. Ocean Tomo, (2011), LLC, Ocean Tomo’s Annual Study of Intangible Asset Market Value 2010, retrieved from http://www.oceantomo.com/2011/04/04/intangible_asset_market_value-2010/ on March, 2011. Persons, O., (1995), Using Financial Statement Data to Identify Factors Associated with Fraudulent Financial Reporting, Journal of Applied Business Research, 11(3), 38–46. PWC, (2012), Integrated Reporting – The Future of Corporate Reporting, retrieved from https://www.pwc.de/de/rechnungslegung/assets/integrated_reporting.pdf on April 2016. PWC, (2013), The Value Creating Journey: A Survey of JSE Top-40 Companies’ Integrated Reports, retrieved from http://www.pwc.co.za/en/assets/pdf/integrated-reporting-august-2013.pdf on March, 2016. Royal Bafokent Platinum’s Integrated Report, (2014), retrieved from http://www.bafokengplatinum.co.za/pdf/annual-reports/ar-2014-new.pdf on April, 2016. SAICA, (2015), Integrated Thinking – An Exploratory Survey, retrieved from https://www.saica.co.za/portals/0/technical/sustainability/saicaintegratedthinkinglandscape.pdf on July, 2017. Singh, J., Wei, S., S. and K. Kaur, (2012), Integrated Reporting – A Comparison Between Developed and Developing Countries, South East Asian Journal of Contemporary Business, Economics and Law, 1, 81-84. Stice, J., Albrecht, S. and Brown, L., (1991), Lessons to be learned BEST Regina and Lincoln savings, The CPA Journal, 52–53. TSKB, (2017), Türk Finans Sektörünün İlk Entegre Raporu TSKB’den, retrieved from http://www.tskb.com.tr/web/101-3097-1-1/tskb-site-tr/tr-hakkimizda/tskbden-haberler/turk-finans-sektorunun-ilk-entegre-raporu-tskbden on July, 2017. Turner, L., Weickgenannt, A. and Copeland, M., K., (2017), Accounting Information Systems, Controls and Processes, Third Edition, Wiley. Tweedie, D. and Martinov-Bennie, N., (2015), Entitlements and Time: Integrated Reporting’s Double-edged Agenda, Social and Environmental Accountability Journal, 35 (1), 49-61. UN, (1987), Report of the World Commission on Environment and Development: Our Common Future, retrieved from http://www.un-documents.net/our-common-future.pdf on March, 2016. Unerman, J., O’Dwyer, B. and Humphrey, C., (2014), The Rise of Integrated Reporting: Understanding Attempts to Institutionalize a New Reporting Framework, Seminar Paper at University of Bergamo. Zhou, S., Simnett, R and Green, W., (2017), Does Integrated Reporting Matter to the Capital Market?, ABACUS A Journal of Accounting, Finance and Business Studies, 53(1), 94-132.