Adoption of integrated reporting in Sri Lanka: coverage and trend

Cooray, Thilini; Senaratne, Samanthi; Gunarathne, Nuwan; Herath, Roshan; Samudrage, Dileepa

doi:10.1108/jfra-04-2020-0116

Cited by 29 publications

(36 citation statements)

References 57 publications

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“…When we compare the results regarding disclosures by enterprises in the nonfinancial and financial sector (Table 2), we see a lower number of disclosures about the MB in enterprises representing the financial sector (banks). Our results are similar to those presented by Cooray et al [98], which show that there is an increase in disclosures and that the non-financial sector has better reporting performance then the financial sector. In their article, Cooray et al [99] also show that non-financial sector companies in Sri Lanka have a better quality of IR.…”

Section: Discussionsupporting

confidence: 92%

Business Model Disclosure in the Reporting of Public Companies—An Empirical Study

2021

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Traditional financial reporting primarily discloses information about assets, equity, liabilities and financial situation of an enterprise. Simultaneously, socio-economic changes are prompting enterprises to implement business reporting towards disclosing activities for sustainable development and information about the business model in non-financial reporting. Shaping of an enterprise’s business model is carried out in the spirit of sustainable development, which is beginning to dominate the strategies of many large enterprises. At the same time, the concept of the business model and its reporting have still not been characterized in detail or standardized, which limits transparency and the usefulness of information. These phenomena provided an incentive to undertake the research on the business model reporting. The overall goal of this study is to expand research on disclosures about the business model in the corporate reporting of Polish listed companies, as well as to indicate the degree and directions of development of this subject against the background of the accounting system. The study also addresses the epistemological goal by entering the discussion on reporting about the business model. The research uses the financial statement content analysis method and the statistical method (Spearman’s correlation). The scope of disclosures about the business model are examined in integrated reports, consolidated reports, management reports, non-financial data reports and CSR reports of Polish companies listed on the stock market. This information is examined according to its four main components: inputs, business activities, outputs and outcomes. The correlation between the number of audited disclosures and selected economic and similar parameters characterizing enterprises (total assets, performance, board, EBITda, equity and liabilities) is also studied. The research reveals that entities preparing an integrated report demonstrate a greater number of disclosures of business model components in selected economic categories than entities that do not prepare such a report. Thus, the companies preparing an integrated report follow the mainstream of stakeholder theory, opting for a more descriptive reporting approach, accessible to a wider group of users. Moreover, business model information is often reported in a highly random manner. Simultaneously, descriptive forms of business model disclosure prevail over numerical ones, although not to a large degree. The findings also confirm that there is a positive correlation between the detail of disclosures about the business model and selected economic parameters of an enterprise (the strongest with total assets, board and EBITda). Thus, it becomes possible to recognize that large enterprises with a strong and stable structure of assets follow specific, more detailed reporting patterns aimed at sustainable development of reporting. At the same time, they are more likely to expand the scope of disclosures compared to smaller enterprises. This investigation responds to the interest of enterprises and other stakeholders in the reporting spectrum by increasing market information efficiency and transparency. Findings can also be used by standards setters, while providing new rules and regulations.

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Section: Discussionsupporting

confidence: 92%

Business Model Disclosure in the Reporting of Public Companies—An Empirical Study

2021

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“…In Sri Lanka, initiatives by a progressive accounting profession and active propagation of voluntary disclosure practices that includes the business community, have referred explicitly to the IIRF (Cooray, et al , 2021) and have placed normative isomorphic pressures on IR preparers. There is a need for a higher degree of compliance and coverage of content elements.…”

Section: Findings and Discussionmentioning

confidence: 99%

Challenges of, and techniques for, materiality determination of non-financial information used by integrated report preparers

Lakshan

Low²,

Villiers

2021

MEDAR

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Purpose The international integrated reporting framework encourages organisations to disclose material information that affects their ability to create value. This paper aims to investigate the challenges and techniques preparers of integrated reports use to determine the materiality of non-financial information. Design/methodology/approach This paper uses an exploratory interpretive thematic analysis and an archival research approach. Qualitative semi-structured interviews were conducted with 55 integrated reporting (IR) preparers in 12 publicly listed companies, supported by the perusal of the companies’ integrated annual reports over a three-year period. Findings IR preparers find materiality determination for non-financial information challenging. This study found that preparers convert challenges into opportunities by using materiality disclosures as image-enhancing marketing tools, which causes concerns regarding weak accountability and a deviation from the International Integrated Reporting Council’s objective of improving information quality. This study found that IR preparers use various techniques in conjunction to determine materiality levels, as well as whether to disclose non-financial information in their integrated reports. The institutional isomorphism lens used in the study highlighted the issues IR preparers faced in their determined efforts of IR materiality levels under mimetic and normative isomorphism pressures. Research limitations/implications The challenges and techniques identified can contribute to the development of a framework for materiality level determination for non-financial information. Practical implications Regulators who are concerned with ensuring sufficient information to improve investor decision-making will be interested in the techniques IR preparers use to determine materiality levels for non-financial information, to improve their regulations and frameworks. Originality/value This study contributes to the literature regarding challenges with materiality level determination in integrated reports and techniques used by IR preparers. The application of an institutional isomorphism lens led to greater insight and understanding of IR preparers’ challenges and techniques in materiality determination. This paper makes a number of significant contributions to the IR literature. First, it identifies the usefulness of material information for decision-making and the influence stakeholders have on the materiality determination of non-financial information, which have not been mentioned in the prior literature. Second, the literature is silent on how organisations relate materiality to value creation for the purposes of determining the materiality content of an integrated report; this research provides empirical evidence of the use of value creation criteria in materiality determination. Third, the study highlights that materiality is a combination of efforts that involves everyone in an organisation. Further, the strategy should be linked to IR and preparers have indicated that integrated thinking is required for materiality determination.

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“…The IR variable is measured by how much conformity of information disclosure in the annual report with the IR Framework by IIRC (International Integrated Reporting Council). Content analysis was done using an IR checklist based on the 2013 IR framework as (Herath and Gunarathne, 2016), (Tesalonika, 2020), (Jayasiri, 2020) and (Cooray et al, 2021).…”

Section: ……………………………………………………… (1)mentioning

confidence: 99%

Tax Aggressiveness, Fair Value Accounting, Debt Maturity: Does Integrated Reporting Matter?

Pamungkas

2022

Jurnal Akuntansi

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This study investigates the association between tax aggressiveness, fair value accounting and debt maturity and whether Integrated Reporting (IR) moderates those relationships. This study's methodology is a quantitative approach with multiple linear regression models and panel data. The sample employed in this study is manufacturing companies listed on the Indonesia Stock Exchange (IDX). The type of data used is secondary data sourced from financial statements and annual reports from 2016 to 2020. The sample selection using a purposive sampling method with the number of samples amounted to 595 firm-year observations. This study suggests that tax aggressiveness and fair value accounting have an inverse association with debt maturity. However, IR failed to weaken the negative impact of extensive fair value accounting on debt maturity. The Financial Services Authority (OJK) can consider this study to improve supervision and regulation for better creditor protection through the company's optimal debt maturity policy.

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Adoption of integrated reporting in Sri Lanka: coverage and trend

Cited by 29 publications

References 57 publications

Business Model Disclosure in the Reporting of Public Companies—An Empirical Study

Business Model Disclosure in the Reporting of Public Companies—An Empirical Study

Challenges of, and techniques for, materiality determination of non-financial information used by integrated report preparers

Tax Aggressiveness, Fair Value Accounting, Debt Maturity: Does Integrated Reporting Matter?

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