Potryvaieva N., Doctor of Economics, Professor, Professor of the Department Accounting and Taxation, Mykolayiv National Agrarian University, Mykolayiv, Ukraine

ORCID ID: 0000-0002-9781-6529
e-mail: potrivaeva@mnau.edu.ua

Luhova O., PhD (Economics), Senior lecturer of the Department Accounting and Taxation, Mykolayiv National Agrarian University, Mykolayiv, Ukraine

ORCID ID: 0000-0003-4432-0295
e-mail: lugova@mnau.edu.ua

Volhonska A., applicant for higher education of Accounting and Finance Faculty, Mykolayiv National Agrarian University, Mykolayiv, Ukraine

e-mail: anastasiavolhonskaya1@gmail.com

Kyrylenko A., applicant for higher education of Accounting and Finance Faculty, Mykolayiv National Agrarian University, Mykolayiv, Ukraine

e-mail: annakirilenko9633@ukr.net

Integrated Reporting: Essence, Background and Trends

Abstract. Introduction. In view of the threats posed by globalization, the concept of sustainable development has evolved in the world. This concept implies a balanced development of three subsystem components: economic, social and environmental. The concept of sustainable economic development was formed for 100 years and was recognized as the dominant ideology of human civilization development in the 21st century. The formation of new stakeholder information requests, the emergence of fundamentally new accounting objects and the methods of their assessment have changed the emphasis from the controlling function of accounting to communication and, accordingly, required the transformation of accounting reporting. That is why the vector of financial reporting development has shifted in favor of other types of reporting.

Purpose. The purpose of the study is to identify the prerequisites and systematize the stages of the genesis of integrated reporting with determining its place and role in the information support system of economic entities.

Results. The global financial and economic crisis of 2008-2009 has been the driving force behind the transformation of approaches to corporate reporting. Dissatisfaction with the financial statements is related, first of all, to the lack of information in it, which would allow to evaluate the prospects of development of the company, the effectiveness of its chosen methods of competition and doing business, the environment in which the company operates, the existing and potential opportunities and risks, quality of management, etc. In our view, with the changing nature of stakeholder relationships, integrated reporting meets the requirements of the current 21st-century economic model, as the goals of today’s corporation are not limited to generating profit for shareholders and concern for the well-being of more individuals. The objective of integrated reporting is to consolidate and standardize the various forms of non-financial reporting, to integrate financial and non-financial performance of companies. System-chronological analysis of the genesis of integrated reporting, analysis of the development strategy of the International Integrated Reporting Council for the medium and long term, allowed us to distinguish the stages of development of integrated reporting. The main elements of the content of integrated reporting, its purpose, fundamental concepts and guiding principles are detailed in the International Integrated Reporting Framework, which was published in 2013. Deloitte, based on its research, concludes that companies are increasingly generating non-financial information in an integrated manner, improving their understanding of the core principles and elements of International IR Framework content, and their compliance with corporate reporting. Integrated reporting is becoming an indispensable mechanism for achieving corporate transparency, providing users with complete and accessible information. Therefore, every year more and more attention is being drawn to integrated reporting as a new reporting format, more comprehensive and sophisticated. .

Conclusions. At its core, integrated reporting is a management tool that allows to collect, monitor and provide stakeholders with information about effectivness of the company, including its social, economic and environmental aspects. Estimation of these parameters gives a general idea of the entityʼs activity. International experience in the formation and development of integrated reporting is important for Ukraine, so it is advisable to study it to further determine the directions of accounting and reporting development in our country.

Keywords: integrated reporting; management; strategy; International Integrated Reporting Council; business.

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