ACC303 Advance Management Accounting Major Assignment Question

ACC303 Advance Management Accounting Major Assignment Question

ACC303 Advance Management Accounting Major Assignment Question

Question:

Write an essay on the relevance of Integrated Reporting Framework in the contemporary corporate world. In your demonstration you should highlight as to whether IR Framework is used by a wide range of private and public sector organisations in corporate reporting.

Explain whether integrated reporting has had any influence on strategy and control on organisations business model including value creation and strategic control. You also need to demonstrate as to how six capitals as has been mentioned in the above statement under Integrated Reporting Framework may impact the role of strategic management accounting.

You are required to down load the annual report of a company which is using integrated reporting. Then, address issues related to integrated reporting and strategic management aspects that are reported. You can attach the relevant section as appendices.

Integrated reporting and the performativity of intellectual capital.

A critical reflection on the future of intellectual capital: from reporting to disclosure.

Trends in integrated reporting: a state-owned company analysis.

Answer:

Introduction

Integrated Reporting (IR) is depicted as presenting corporate information based on entity’s performance, environmental, social and governance parameters. Primarily, organisations depict both financial and non-financial information with the use of integrated reporting. It is essential for the businesses to circulate such an information so that the stakeholders are able to know about sustainable initiatives. In the recent times, IR has undergone significant development in the annual report for ensuring improved brand value and customer loyalty (Macias & Farfan-Lievano, 2017).

Significance Of IR Framework In Contemporary Corporate

The application of IR framework in the contemporary corporate can be noted among the investors and stakeholders. However, the limitation of this framework is often criticised with its application only during short-term approach of reporting. The important initiative to implement IR can be defined with presenting a sustainable value for assisting stakeholder in both medium- and short-term business. In addition to this, corporate reporting will be able to acknowledge the developing economic reality which will be essential for organisational planning in the future. In most cases, the leading corporate entities rely on IR framework for ensuring clear and concise standard of reporting. This nature of reporting is often conducive for recognising the values and present the same towards stakeholder. The important information in the integrated reporting is able to guide the principle for multiple model IR approach. These models of IR have generally focused on the areas of both financial and non-financial reporting purposes. Additionally, the relevance of corporate reporting model is associated with appropriate reporting standards which is followed by the organisation within global reporting (Dumay, 2016).

Therefore, it is to be noted that IR significantly contributes towards comparison of financial reports with global standard of reporting. The various components of IR are established with organisations involved in positively contributing towards external environment. In addition to this, the initiatives such as disclosing governance factor can be directly evident with additional value creation. As per the resource and strategy allocation, the organisations will be able to concentrate on both short-term and long-term goals. The UN has also taken major initiative in using sustainability reporting for ensuring that the companies are able to implement IR. This type of initiative is often led by the negotiators by maintaining a “zero draft” policy. The zero draft policy initiative has led to the development in areas where there is lack of access to health and medical technologies. This is often related with addressing fair pricing and improvement in procurement strategies. The application of such a policy will be conducive for the organisations to ensure that companies are able to include sustainability factor in their financial reporting (Corbella et al., 2018).

Private And Public Entities Adopting IR Framework

The adaptation of such a framework among the private companies can be evident with Novo Nordisk, BASF, United Technologies Corporation (UTC), American Electric Power (AEP) and Phillips Electronics. The aforementioned companies have undertaken such a reporting to integrate various types of financial and sustainability information in their financial report. This has permitted the organisations for recognising different areas of non-financial perspective apart from mentioning the key performance based on financial perspective. However, more recently the publicly listed companies have taken the assistance from dedicated IR officers (IROs) who are responsible for monitoring different types of private meetings with shareholders and investors. These officers have also used themselves in providing the required assistance for conducting conferences. During the implementation of IR framework, it is obligated to understand the investor relations function by both private and public sector companies along with different types of upcoming challenges which they might be facing. The role of the organisations is also seen to consider the various opinion of the investors at the time of preparing research model, financial model and data analysis model (Bonsón & Bednárová, 2015).

In different types of other situations, corporate reporting is able to highlight important information related to the risks of the investor pertaining to climate change. This is particularly evident among companies based in USA which has taken considerable initiatives in disclosure of such information in its financial report. It is to be further identified that a handful number of companies in both private and public sectors have disclosed all the necessary information related to risks of the investor pertaining to climate change (Surty, Yasseen & Padia, 2018).

Impact Of IR Framework On Strategy And Control During Corporate Reporting

It needs to be noted that for any business publishing of strategy into business model has a significant impact on investor. The wide number of previous research studies have disclosed that various corporate entities implement IR framework to have a better control and strategy implementation. The nature of such evidence can be found among research conducted on South African companies. The different types of other findings of the research have stated about the insights on improvement led by incorporating IR into financial reporting. The main findings of such a study variable to consider several influences which were relevant with the requirement of integrated reporting (K?l?ç & Kuzey, 2018). Some of these findings from the previous studies has stated about pointing out important information with relevance to decision-making in investment.

ACC303 Advance Management Accounting Major Assignment Question