Brief Analysis About Integrated Reporting

Financial reports consist of a statement of financial position, statement of comprehensive income, statement of changes in equity, statement of cash flows, notes, directors' declaration, directors' report and the auditor's report. The financial statements need to be prepared in accordance with applicable accounting standards, making the necessary disclosures in order to be transparent and fully inform readers about the activities and financial situation of the entity.

IASB. 2010, "The Conceptual Framework for Financial Reporting" IFRS, pp. A21- A38, viewed 23 April 2014,

Financial statements of the company are significant for the investors who would like to venture into the business operation. It gives them the insight whether the business is making profits or it is doomed to fail;

States. Companies should report income, liability, equity, and assets. Many people (stockholders, investors, etc.) who have a stake in the company want to know this information before providing a service. In this paper, International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP) will be compared for

Historically ,it is seen that there are numerous number of disputes in the field of financial reporting among different professionals, regulators and theoretitions .most of these disputes are related to the valuation of financial reporting components.the current curve in the progress of valuation is the push for and against the fair value approach.the purpose of this research is to examine the arguments on the use of fair value accounting and to identify the issues related to implementation of fair value accounting standards. Further, the results of literature related to role of fair value accounting within financial crisis are also investigated.

Chapter 02 - Financial Reporting and Analysis Chapter 2 Financial Reporting and Analysis REVIEW Financial statements are the most visible products of a company‘s financial reporting process. The financial reporting process is governed by accounting rules and standards, managerial incentives, and enforcement and monitoring mechanisms. It is important for a user of financial information to understand the financial reporting environment along with the accounting information presented in financial statements. In this chapter, the concepts underlying financial reporting are discussed with special emphasis on accounting rules. Next the purpose of financial reporting is discussed – its objectives and how these objectives determine

The accounting world is shaped by stringent and clear rules, principles, standards and guidelines. These are all meant to define accounting operations and reporting discipline. With the emergence of International Accounting Standards (IAS), which was later replaced by International Financial Reporting Standards (IFRS), the accounting concepts, analysis, disclosures, reporting and presentation became easier and practical. Currently, accountants, managers and related parties find it concrete and consistent in protecting professional boundaries.

“Due to these and other complexities, surrounding the applicability of IAS 12, there is a need to examine in reality the requirements of the principle is hard to apply in financial accounting and reporting” (Gupta, 2005). First, there is a need to examine significant improvements that can be incorporated to allow flexibility in application due to incompatibility with the various jurisdictions. To understand issues surrounding IAS 12, there is a need to understand problems cited as a limitation to its application. It is important to note that users and preparers believe that the requirements in IAS12 are unsatisfactory in certain aspects. In addition, users of financial reports do not find information courtesy of IAS 12 useful. In fact, complexity of taxes within corporations makes it quite difficult to assess its impact and prescribes suitable management strategies. As a result, clear and transparent information that is not adequately provided by IAS 12 prepared financial statements. “The standard seems to concentrate on extensive

The company’s annual report is important because it gives the shareholders a clear picture and understanding about how the company is doing financially. The annual reports provide thorough information on very significant section of the accounts, such as the balance sheet, the income statement, and the cash flow statement. The information presented in the annual report would also be essential to potential investor, employee, and any other people that may have interest in financial aspect of the business.

Integrated reporting (IR) is a major development in a number of sustainability-related accounting initiatives. With IR the focus will be on strategic rather than operational or transactional. The purpose of this essay is to produce insights from the academic journal articles into the rapidly developing field of IR. The essay draws up what IR is and its key concepts and guiding principles. In addition it outlines the apparent opportunities / benefits and challenges / limitations of IR for reporting entities. The essay also outlines the implications it has to the society at large from the adoption of IR by reporting entities. The essay provides reporting organisations and other interested parties with insights into concerns and characteristics of IR.

It means the integrated representation of a company’s performance in terms of both financial and environmental information. Integrated Report provides great context for performance data, clarifies how value relevant information fits into operations or a business. While the communications that result from integrated reports will be benefit to a variety of stakeholders, their goal is to provide financial capital allocation decisions. Transnet SOC Ltd is a large rail, port and pipeline company in South African which was founded in 1990. The reason that I choose a company from South African is that South African organizations declared integrated reports have occupied nearly 18% of the total 756 reports during the three years.(GRI report) I t shows that the companies use integrated report in South African will be taken into consideration first. The firm’s stock is mainly owned by the department of public enterprises of the South African government. The business units of Transnet include four main industries: rail engineering, freight rail, port terminals, national ports authority and pipeline management. Transnet is a member of IIRC Pilot Program since 2012 and it is Transnet’s third year of integrated report. The company has participated in developing the IIRC Integrated Reporting Framework which was published

Integrated reporting seeks to provide insights about the relationship and resources used and affected by an organization. It’s a concise communication about organizations strategy, performance and governance in perspective of its external environment lead to the creation of value. Integrated reporting tends to promote a more cohesive and efficient approach to corporate reporting which aims to improve the quality of information available to providers of financial capital to allow a more efficient and productive allocation of capital.

In the 6th edition, the financial statement samples of well-known companies give accurate information as to how a balance sheet is written. Because the statements were produced by a legitimate accounting entities, I believe the source was very useful for students who had to apply their accounting skills and knowledge onto a test or when preparing real financial statements for firms. There were only a few Canadian companies that adopted the International Financial Reporting Standards (IFRS) from the previous version of the book. The sources used were international financial statements of non-Canadian companies, which could marginalize Canadian readers since it was difficult for them to relate accounting practices to the latest international accounting system. If we were to publish the new edition, I recommend we include financial statements of Canadian companies that follow the IFRS, so readers can view how these companies adopted the new standard. The opportunity of using legal samples encourages more universities and academic institutions to use this book because the financial statements will be up-to-date and verifiable. With this minor addition, the new textbook will be modernized and further

Financial Statements are used to record and provide information on the financial activities of a business, person or entity, this information is used by a wide range of entities in order to make economic decisions (Reference). These reports quantify the financial strength, performance and liquidity of a company and are intended to be understandable to audiences who have an adequate knowledge of economics and accounting. To acquire a better knowledge of financial statements it is important to understand why they are put together in the first place. From a company’s financial statement various information is provided in order to allow investors and creditors to evaluate a company’s financial performance, with different financial statement

It define the scope of judgment in planning financial statements by formulate the characteristic, activity and restrict of financial accounting and reporting. It also increases different of financial statements by reduce the number of other accounting methods. If standards were come from a reasonable style of concepts. Likewise, reporting requirement will be more constant and fair because they will record accounting base on former set of concepts. Moreover, the setting requirement will be more economical because problem should not be discuss from different position. In additional, it help to reduce accounting common error and political