Do Croatian Companies Recognize Benefits of Integrated Reporting?

Open access

Abstract

Timely access to information and business transparency make the foundation for business success. Companies present their financial position and financial performance through the financial statements. As a financial information is not the only relevant factor of business value creation, presentation of non-financial information brings added value to different stakeholders. For the purpose of more transparent business operations and international comparability of the presented data, it is especially important that reports are compiled according to internationally accepted rules. The paper has sought to investigate whether Croatian companies recognize benefits of integrated reporting. The aim of the paper was to identify whether and to what extent largest companies in Croatia present the information regarding their intellectual capital, principle customers, business partners, environmental considerations, future plans, investments, market conditions, and further expectations of business development. Based on the research results, suggestions for improvement of the non-financial reporting in Croatia have been given.

Association of International Certified Professional Accountants, International Integrated Reporting Council & Black Sun. (2018). Purpose Beyond Profit: The Value of Value – Board-level Insights. Retrieved March 1, 2018, from http://integratedreporting.org/wp-content/uploads/2018/02/Profit_Purpose.pdf

Attolini, G., Pozzoli, M. (2014, December). Is Integrated Reporting Suitable for SMEs. Retrieved March 1, 2018, from https://www.ifac.org/global-knowledge-gateway/business-reporting/discussion/integrated-reporting-suitable-smes

Black Sun & International Integrated Reporting Council. (2014). Realizing the benefits: The impact of Integrated Reporting. Retrieved March 1, from http://integratedreporting.org/wp-content/uploads/2014/09/IIRC.Black_.Sun_.Research.IR_.Impact.Single.pages.18.9.14.pdf

Dečman, N. (2016). The use of non-accounting information in the management of a company - Croatian experiences. In 8th International Conference - “An enterprise Odyssey: Saving the Sinking Ship Through Human Capital”, 8-11 June 2016 (pp. 533-540). Zagreb, Croatia: Faculty of Economics & Business.

European Commission. (2017). Communication from the Commission - Guidelines on non-financial reporting (2017/C 215/01). Retrieved March 1, 2018, from http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52017XC0705(01)&from=EN

European Parliament & Council. (2014). Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups. Official Journal of the European Union. Retrieved March 1, 2018, from http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014L0095&from=EN

Galant, A. & Černe, K. (2017). Non-Financial Reporting in Croatia: Current Trends Analysis and Future Perspectives. Management. 12(1), 41-58. DOI: 10.26493/1854-4231.12.41-58

Global Reporting Initiative. Retrieved March 1, 2018, from https://www.globalreporting.org/information/about-gri/Pages/default.aspx

Global Sustainability Standards Board. (2016). GRI 101 – Foundation. Amsterdam. Retrieved March 1, 2018, from https://www.globalreporting.org/standards/gri-standards-download-center/?g=dff3b3e2-ed2a-4b14-b8e2-a32247f35a68

Institute for Corporate Social Responsibility. Retrieved March 1, 2018, from http://www.idop.hr/hr/izvjestavanje/izvjestavanje/integrirano-izvjestavanje/prednosti-integriranog-izvjestavanja/

International Integrated Reporting Council (IIRC). Retrieved March 1, 2018, from https://integrate-dreporting.org/the-iirc-2/

International Integrated Reporting Council. (2013). The International Integrated Reporting Framework. Retrieved March 1, 2018, from http://integratedreporting.org/wp-content/uploads/2013/12/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf

James, M. L. (2015). Accounting majors’ perceptions of the advantages and disadvantages of sustainability and integrated reporting. Journal of Legal, Ethical and Regulatory Issues. 18(2), 107-123.

James, M. L. (2012). Sustainability and integrated reporting – opportunities for small and midsize entities. Proceedings of the Academy of Entrepreneurship. 18(2), 15-19.

Kassai J.R. & Carvalho N. (2016). Integrated Reporting: When, Why and How Did It Happen?. In: Mio C. (Eds), Integrated Reporting - a new accounting disclosure. London: Palgrave Macmillan.

KPMG. (2017). The road ahead - The KPMG Survey of Corporate Responsibility Reporting 2017. Retrieved March 1, 2018, from https://assets.kpmg.com/content/dam/kpmg/be/pdf/2017/kpmg-survey-of-corporate-responsibility-reporting-2017.pdf

PwC. (2015). Implementing Integrated Reporting – PwC’s pracitical Guide for a new business language. Retrieved March 1, 2018, from https://www.pwc.com/gx/en/audit-services/publications/assets/pwc-ir-practical-guide.pdf

Vitezić, N. & Petrlić, A. (2018). Integrated Reporting – Concept and Impact on performance of Croatian Companies. Journal of Accounting and Management. 8(1), 71-82.

Journal Information

Metrics

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 40 40 15
PDF Downloads 33 33 8