Contemporary Practices of Non-Financial Reporting: The Role of International Standards and Organisations
DOI:
https://doi.org/10.58423/2786-6742/2025-9-257-268Keywords:
ESG, non-financial reporting, information quality, corporate social responsibility, international organizationsAbstract
The article examines the evolution of non-financial reporting practices, with a particular focus on sustainable development reporting (SDR) and integrated reporting (IR). Over the last decade, the field of non-financial reporting has expanded significantly, intersecting with business ethics, financial accounting, and strategic management. The article describes the development and significance of sustainability reports and integrated reporting, emphasizing their role in increasing corporate transparency and accountability. Sustainability reporting involves disclosing a company's environmental, social, and governance (ESG) policies, impacts, and performance. It aims to provide stakeholders with transparent and reliable information about the initiatives and results of the company's activities regarding sustainable development. Integrated reporting goes beyond traditional financial and non-financial reporting by combining them into a unified format to present a holistic view of a company's strategy, management, performance, and prospects. The study identifies the lack of standardized non-financial reporting as a critical issue, leading to inconsistencies in reporting practices around the world. The article examines the role of regulatory oversight in ensuring the reliability, comparability, and credibility of SDR and IR. Overcoming this problem is possible through the development and adoption of standardized systems of non-financial reporting to address modern challenges and meet the needs of interested parties. Such systems, guidelines, or standards will strengthen corporate accountability, support the disclosure of information on sustainable development, and contribute to a more transparent and responsible business environment. Future research should focus on creating and implementing these standardized rules to further improve non-financial reporting practices. The increasing importance of non-financial information in decision-making processes highlights the need for consistent and reliable reporting frameworks. Enhancing these frameworks will not only benefit corporations but also support broader societal goals of sustainability and ethical business practices.
References
Iefymenko T. I. (2014), “Zaprovadzhennia intehrovanoi zvitnosti ta reformuvannia bukhhalterskoho obliku v umo-vakh yevrointehratsii“. Finansy Ukrainy. № 10. S. 8–11. available at: https://finukr.org.ua/?page_id=723&aid=414611.
Zhyhlei, I. V. (2014), “Sustainability reporting and its assessment”. Bukhhalterskyi oblik, kontrol i analiz u suchasnii ekonomichnii nautsi ta praktytsi: zb. materialiv III Mizhnar. nauk.-prakt. konf., 3-4 kvitnia 2014 r.: prysviach. 70-richchiu kaf. obliku pidpryiemnytskoi diialnosti, DVNZ Kyivskyi natsionalnyi ekonomichnyi universytet imeni Vadyma Hetmana, pp. 55-57.
Zadorozhnyi, Z.-M., Liuba, O., Ometsinska, I. and Shesterniak M. (2023), “Integrated reporting in the management of foreign economic activities of enterprises”. Financial and Credit Activity Problems of Theory and Practice, vol. 4(51). С. 91–102. https://doi.org/10.55643/fcaptp.4.51.2023.4095.
Korytnyk L. P., Kucheriava M. V. (2021), “Nefinansova zvitnist yak instrument zaluchennia dodatkovykh koshtiv zakladiv vyshchoi osvity “. Naukovi pratsi NDFI. № 4 (97). 2021. S. 65–81, available at: https://doi.org/10.33763/npndfi2021.04.06512.
Prokhorova L. I., Shcherbak Yu. M. (2018), “Intehrovana zvitnist yak instrument modernizatsii bukhhalterskoho obliku v derzhavnomu sektori Ukrainy “. Suchasni problemy bukhhalterskoho obliku ta finansiv : materialy Vseukr. nauk. konf., 21–22 lystopada 2018 r. Kyiv : NUKhT, 2018. S. 54–55. available at: https://dspace.nuft.edu.ua/server/api/core/bitstreams/f643e89b-0231-4210-9986-254a09d48ef3/content#page=53
Iablonko O. O., Sushko N. I. (2017), “Intehrovana zvitnist u diialnosti biudzhetnykh ustanov“. Oblik, analiz, audyt i opodatkuvannia v umovakh hlobalizatsii ekonomiky: materialy I Mizhnar. nauk.-prakt. internet-konf. S. 328–331, available at: https://dspace.uzhnu.edu.ua/jspui/bitstream/lib/13262/1/%D0%AF%D0%B1%D0%BB%D0%BE%D0%BD%D1%81%D1%8C%D0%BA%D0%B0%20%D0%9E.%D0%9E..PDF
Corporate sustainability reporting. (2023), “What the EU is doing and why”, available at: https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en (Accessed 10 June 2024).
Farooq, M.B. and De Villiers, C., (2017). “The market for sustainability assurance services: A comprehensiveliterature review and future avenues for research”. Pacific Accounting Review, vol. 29 (1), pp. 79-106.
Frías-Aceituno, J.V., Rodríguez-Ariza, L. and García-Sánchez, I.M. (2013), “Is integrated reporting determined by a country’s legal system? An exploratory study”. J. Clean. Prod., vol. 44, pp. 45–55.
Gerwanski, J. (2020), “Does it pay off? Integrated reporting and cost of debt: European evidence”. Corp. Soc. Responsib. Environ. Management, vol. 27, pp. 2299–2319.
GRI Standards (2024), “The global standards for sustainability impacts”, available at: https://www.globalreporting.org/standards/ (Accessed 2 June 2024).
IFRS (2024), “Value Reporting Foundation”, available at: https://www.ifrs.org/sustainability/value-reporting-foundation/ (Accessed 15 May 2024).
Lee, K.W., Yeo, G.H.H. (2016), “The association between integrated reporting and firm valuation”. Rev. Quant. Financ. Account., vol. 47, pp. 1221–1250.
Pistoni, A., Songini, L., Bavagnoli, F. (2018), “Integrated reporting quality: An empirical analysis”. Corp. Soc. Responsib. Environ. Management, vol. 24, pp. 489–507.
SASB Standards (2023). available at: https://sasb.ifrs.org/standards/download/.
Stent, W., Dowler, T. (2015), “Early assessments of the gap between integrated reporting and current corporate reporting”. Meditari Account. Res, vol. 23, pp. 92–117.
TCFD Recommendation (2024), “Task Force on Climate-Related Financial Disclosures”, available at: https://www.fsb-tcfd.org/recommendations/ (Accessed 4 May 2024).
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Ihor Orlov
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons CC BY-NC License.
