Integrated Reporting (IR) stands for organizational reporting which is prepared
for public disclosure and includes both financial and important
non-financial information. Existing financial reporting standards are inadequate
to address issues like the importance of intangible assets, corporate impacts
on the environment, human health, societal conditions and corporate
influence on the political process. Thus, the concept of IR emerged to deal
with these issues that affect corporate success. The traditional reporting model
focuses on a relatively narrow account of historical financial performance of
the value-creation process. Keeping this in mind, the International Integrated
Reporting Council (IIRC) has developed an International Integrated Reporting
Framework, the core objective of which is to guide organizations in communicating
the broad set of information needed by investors and other
stakeholders to assess the organization’s long-term prospects in a clear, concise,
connected and comparable format. The IIRC shares the view that the
evolution of corporate reporting should be led by the communication of value
creation by the corporate entities. This paper focuses on the degree of disclosure
of Integrated Reporting requirements by the top eleven multinational
companies of Bangladesh as per market capitalization. Using annual report
content analysis, the findings show that the companies have lately started providing
non-financial information regarding environment, society and governance
along with financial figures. But it is prominent that they are still providing
these information in disconnected strands and as a part of Corporate
Governance or CSR disclosures instead of linking these to financial information
and providing it as an integrated report.
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