INTEGRATED REPORTING AS A NEW APPROACH TO THE SYSTEM CHARACTERISTICS OF THE BUSINESS SUBJECT
In the existing geopolitical and economic realities, business structures need to disclose the essential features of functioning related to the social policy of companies and the personnel safety system, the corporate environmental safety program and the order of application of energy-saving and resource-saving technologies, the current system of key risks of the economic entity and other strategically important aspects of activity in the report. In today`s economic realities, it is necessary to develop an integrated reporting methodology, which involves structuring and improving approaches to collecting, accumulating, systematizing non-financial information and disclosing it, as well as a possible revision of financial and non-financial indicators to best reflect the current and future state of the business subject. The purpose of this study is to critically analyze the current practice of Russian companies in the preparation of non-financial reports to identify factors that can contribute to the development of the integrated reporting methodology. Using general scientific methods of cognition (system approach, logical generalization, analysis, synthesis and hypothesis), problems of forming a non-financial (integrated) reporting system are identified, in particular, associated with high costs of collecting, interpreting and presenting large amounts of reporting information, with predictive difficulties of calculation budget indicators for a long-term perspective, with the existing imbalance of information needs of various stakeholders. Based on the disclosure of non-financial information of the largest Russian corporations in the corporate reporting, the structure of reporting companies was identified, taking into account the scale of the business and industry. It was concluded that the general state of non-financial reporting of the largest Russian business structures indicates the need for the development of the institute of verifiability of non-financial reports. The authors proposed an approach aimed at improving the reliability of integrated reporting, which includes the formation of a unified information base of companies` development ratings in the form of the Internet portal, where stakeholders can quickly search and compare information based on integrated reporting of business structures. Based on the analysis of structural reporting elements of the largest Russian corporations surveyed, a recommended structure for the presentation of non-financial information in reports has been developed, the use of which will increase its transparency and improve the investment attractiveness of the company. It was proved that, within the framework of the Concept for the Development of Public Non-Financial Reporting in Russia, it is necessary to develop a national standard to approve a clear structure of integrated reporting with the inclusion of sections containing general information, development strategy, environmental and social responsibility of the corporation, review of its performance and future prospects.
Keywords: integrated reporting, non-financial reporting, financial reporting, strategic reporting, stakeholders, transparency, quality of reporting.
Highlights:
based on a review of various approaches to the conceptual presentation of integrated information, a number of serious problems are identified that impede the dissemination and interpretation of non-financial reporting: high costs for its collection, the need to present large amounts of reporting information, predictive difficulties of calculating targets for a long prospective period, imbalances in information interests of various stakeholders;
in the course of analyzing the practice of forming integrated reporting in Russia, the structure of reporting business structures is identified, taking into account their scale of business and industry;
the authors analyze the degree of transparency of non-financial reporting of the largest Russian corporations, the general condition of which indicates the need for the development of the institute of verifiability of non-financial reports;
to improve the reliability of integrated reporting, the authors propose measures to form a unified information base of company`s development ratings in the form of the Internet portal where stakeholders can quickly search and compare integrated information about business structures;
a recommended structure for presenting non-financial information in reporting is developed, the use of which will increase the transparency and improve the investment attractiveness of Russian organizations.
Tatyana A. Korneeva, Doctor of Economics, Professor; Olga N. Potasheva, Candidate of Economics, Associate Professor of the Department of Accounting, Analysis and Audit; Tatyana Eu. Tatarovskaya, Candidate of Economics, Associate Professor of the Department of Accounting, Analysis and Audit; Galina A. Shatunova, Candidate of Economics, Professor - Samara State University of Economics.