The Benefits Of Integrated Reporting Essay - 2092 Words

The benefits of integrated reporting According to researchers, even though integrated reporting is a developing practice, it is associated with numerous benefits to organizations, stakeholders, investors and even regulators. These benefits include; 1. Better understanding of value creation Integrated reporting enables organization to use new information to measure performance in all sectors and this enhances understanding on how value is created. Since communicating value creation is one of the key aspects of integrated reporting, organization can now understand how they create or destroy value. According to IIRC (2014), up to 92 per cent of businesses in the pilot project reported better understanding of value creation. Companies that use integrated reported can now understand how non-financial aspects affect financial performance and vice versa. For instance, organizations can now understand how business models, strategies and resource allocation affect financial, human, intellectual, manufacturing and social capital. In a certain engineering company in South Africa, the use of integrated reporting helped in understanding how customer loyalty transforms finances in the long term (IIRC, 2013). The increased understanding on how organizations create or destroy value has enabled many organizations to change their business management model in order to create maximum value (Eccles Krzus, 2010). 2. Improving on what is measured Most organizations participating in theShow MoreRelatedIntegrated Reporting And Its Impact On The Business World1407 Words   |  6 PagesIntroduction and Background In the past, there had been heaps of reporting sometimes audits and cash-related reports, then their was integrated reporting that emerged and nowadays lots of organizations are looking towards integrated reporting. 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