Integrated Reporting It‟s Impact on Value Creation

Abstract

Corporate reporting provides the comprehensive picture of an organisation’s performance and position to the stakeholders. In the recent years, corporate reporting has seen a major changes and it has evolved from the financial reporting to the integrated reporting (IR). IR is a corporate reporting reform practised recently by many big companies all over the world. In a precise way, IR has combined the financial report and sustainability report, thus making it more integrated and transparent. Integrated report focuses on the six capitals in a broad way and their value creation for the company over the years. This article has examined many recent research articles to find out the research progress in the area of IR. Analysis of data of 12 companies in six sectors has been made to analyse the value creation of these companies in six capitals. It is observed that the score of reporting for human capital, social and relationship capital, and financial capital was better as compared to intellectual capital, manufacturing capital and natural capital.