The Role of Integrated Reporting-Free-Samples-Myassignmenthelp

Question: Briefly explain the role of Integrated reporting by Identifying the Problems associated with tradition Financial reporting. Answer: Introduction The integrated report refers to a brief correspondence that represents how organization system, governance, execution and prompt the creation of value over the short, medium and long term. Organizations are using the idea of incorporated reporting to show clear, brief, coordinated data that portrays how all the resources of the business are creating value. Integrated reporting enables the business to contemplate their systems and plans, settle on educated choices and oversee the key problems to construct financial professionals and investor certainty and enhance future performance. Integrated reporting is outlined by a various coalition including business pioneers and speculators to drive an overall advancement in corporate reporting. The first part of the report explains the role of integrated reporting by identifying the problems related to the traditional financial reporting. The second part describes the Woolworth Company which is listed on the ASX and determines the company is i ntegrated or non-integrated. Critically discussion of statement and role of integrated reporting According to Wild van Staden, (2013), a feedback of stand-alone reports related to social and environmental exercises is that they demonstrate non-monetary data which is non-incorporated and categorized. Thus, they are not fit for furnishing stakeholders that are imperative to successfully surveying business execution, technique and potential for future value creation. Integrating reporting is considered as a response to this feedback. The Integrated Reporting Council communicates that the standard concentration of incorporating announcing is to give performance, methodology and potential for future value creation. Integrated reporting is considered as an answer to this criticism. The Integrated Reporting Council expresses that the principle focus of integrating reporting is to give the data around an organization's system, plans, administration, performance, and prospects such that will mirror the business, social and ecological conditions inside which it works. Integrated reportin g additionally goes beyond environmental and sustainability reporting. The reason behind this is that integrated reporting is arranged at the future and hopes to get interconnections between the monetary and non-monetary related drivers of execution. Integrated reporting does not need aspiration. The Integrated Reporting Council has assembled a system of organization exploring different avenues regarding integrated reporting. For instance, these organizations are driving the path in adopting integrated reporting detailing with transformational impacts not in the simple way they report, however in transit they think and act (Crowther, 2016). Thus, the International Integrated Reporting Council advocates that coordinated revealing ought to wind up plainly the overall standard for corporate detailing to investors. According to Steyn (2014), integrated reporting helps in enhancing the transparency of the business organization in several ways such as: By involving the stakeholders in driving the corporate agenda in order to make the internal process better. By providing the information to the stakeholders about the strategic plans and demonstrating where management laid emphasis in determining and handling the challenges. By communication with the stakeholders that how management is appraised and helping them appreciate the performance (De Villiers et al., 2014). According to Bernardi (2015), the main problems which are associated with the traditional financial reporting are the avoidance or need of knowledge about the reporting and the problems which are connected with the sustainability performance to the needs of stakeholders and investors, the inside organizational structure are not aligned to the reporting requirements, there is no consistency in reporting for small medium enterprises constrained by resources, cost, time and technology. Integrated reporting indicates the organization's dedication with a specific end goal to set the goals and compliance with the overriding sector regulations and it demonstrates comprehension and thought of effects and dangers on outside environment. For this purpose, the integrated report gives an opportunity for management to recount a better story to its investors and other external parties who generally keep on relying basically on its money related performance together with the most extreme data they can pick up. Overall, integrated reporting address the significance of choosing the correct performance management procedures, data frameworks, reporting functions to ensure performance is conveyed at all levels and over the short term and long term. Woolworth Integrated reporting According to Healy Palepu (2012), Woolworths Supermarkets is supermarket chain owned by Woolworths Limited. Woolworths prepare the integrated with a specific end goal to set out the organizational methodology, administration, performance, and report in order to set out the organizational strategy, governance, performance and prospects which prompt the making of significant worth. Woolworths prepared the integrated report for the advantages of the considerable number of partners with a specific concentration on those stakeholders who give the organization access to assets of a financial nature. The integrated reporting of Woolworths Company shows the performance and the data information linked to the Company and its subsidiaries, associates, and operations of the Company. Woolworth's financial performance report is accounted for as equity accounted joint venture (Jensen Berg, 2012). As, generally private mark retail groups across food, clothing, and beauty, Company plan of actions depend on long-term provider and an obligation to affect change all through the inventory network. Woolworth manage the more broad business influences through social and environmental systems and practices where aspects of Company great business journey program are more totally developed, the risks and results of those partners influences are participated in both the integrated report and the great business journey report. In this way, the part that these partners play in the Companys value creation is featured in the integrated reporting. According to Tait Loosemore (2012), The IIRC Framework for Integrated Reporting has displayed the idea of announcing how a business makes an incentive by using the six capitals which are money related, budgetary, manufactures, intellectual, human, social and relationship and capital.Woolworth Company has chosen the integrated reporting which refer to the capital as resources and utilized by business as contributions to the plan of action. As a retail Group, Company refers to the names of the different resources in a more relevant way to interface in with the marketable strategy of activity. Resources may be in riches or compelled, however are by and large accessible to all organizations. Organizations assume that the exercises in the strategy for success of activity use them in such a way to deal with redesigning value creation. The organization also perceives the interdependencies between the assets and the way that there are tradeoff between the cost and preferences offered by the assets that we need to oversee capably. The organization likewise sees the interdependencies between the assets and the way that there are tradeoffs between the cost and preferences offered by the assets that we need to oversee capably. Thus, Woolworths prepared integrated reporting in making the transparency and creating a global regulated sustainability reporting system. Conclusion From the report, business organizations are utilizing coordinated answering to convey clear, brief, incorporated data with the goal that it portrays the organizations concerning how the greater part of the business resources are creating value. This report explains the role of integrated reporting by determining the problems connected with the traditional financial reporting by discussing the statements of stand-alone reports which are not capable to evaluate the business performance and strategy for value creation. The other part of the report discusses the Woolworths Company integrated reporting in making the transparency in the organization. References Bernardi, Cristiana. Stark, A.W., 2015. The transparency of environmental, social and governance disclosures, integrated reporting, and the accuracy of analyst forecasts.Roma Tre University and University of Manchester, unpublished working paper. Churet, C. Eccles, R.G., 2014. 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Organizational benefits and implementation challenges of mandatory integrated reporting: Perspectives of senior executives at South African listed companies.Sustainability Accounting, Management and Policy Journal,5(4), pp.476-503. Wild, S. van Staden, C., 2013. Integrated Reporting: initial analysis of early reporters An institutional theory approach, paper presented at the 7th Asia Pacific Interdisciplinary Research in Accounting Conference, pp. 26-28, Kobe.