Тhe concept of value creation in integrated reporting

Abstract

Globalization of economic relations has led to the emergence and active development of large transnational corporations, whose activities have a significant impact not only on the economy but also on social relations, the environment, and international politics. At the same time, there is a growing demand from society for the corporate responsibility of businesses. The concept of integrated reporting allows combining the traditional financial reporting of companies with a set of non-financial indicators. Its main purpose is not so much to duplicate the indicators of existing reporting forms in a single document as to reflect the impact of environmental and social measures on the success and efficiency of a company's activities. The main result that a company should demonstrate through integrated reporting is the way it creates value. Integrated reporting is defined in the article as a reflection of the way a company creates value and transforms capitals through a comprehensive presentation of corporate governance strategy, business model, communication with the external environment, in the context of adhering to the principles of sustainable development. Unresolved issues include the absence of appropriate accounting procedures for reflecting non-financial indicators of a company's activities. Only financial indicators enter the field of accounting. Qualitative changes (both negative and positive) in environmental, human, and social capital are not reflected in accounting records and financial statements. The modern paradigm of accounting science recognizes the important role of non-financial indicators in managing a company and presenting such results to stakeholders in reporting. The emergence of non-financial reports, as well as integrated reporting, which comprehensively reflects both the financial and non-financial aspects of a company's activities, is a consequence of global transformations in the accounting system.