Abstract
The Integrated Reporting (IR) provides businesses with a reporting approach that is conducive to the understanding and articulating their business strategy. By doing so, businesses will be able to drive performance internally and attract financial capital for investment, as well as helping investors to understand how the strategy being pursued that creates value over time. Changing market trends due to technology advancement had jeopardized the traditional way of reporting performance. Small and medium-sized enterprises (SMEs) are typically vulnerable entities against such changes and therefore challenged to sustain their life spans. This paper offers an introduction of IR, as well as assessing IR usability and benefits for SMEs in Malaysia. Furthermore, the paper discusses relevant literature and opportunities available for SMEs regarding the applicability of such reporting philosophy. Applying the qualitative method, themes and key success factors were identified using NVivo application software. The annual reports of SME Corporation Malaysian from the year 2014 to 2016 were analysed showcase growing evidence of integrated communications to SMEs in the areas of access to markets, better business understanding and enhancing reputation. IR offers invaluable benefits to SMEs, shifting their focus from merely financial performance measures to a more holistic integrated approach to accountability, which emphasises on value creation.
Highlights
The International Integrated Reporting Council (IIRC) has developed an Integrated Reporting (IR) Framework for improving reporting and better integration of financial and non-financial information
Interviews conducted on the participants of the IIRC Pilot Program disclosed that 84% say that data quality has improved, 92% say IR has improved their understanding of value creation, and 78% see better collaborative thinking by the board about targets and goals (IIRC, 2014)
The first part of the data analysis is to analyse the frequency of words from the interviews conducted on Small and medium-sized enterprises (SMEs) which is shown in Table 2 below: Table 2
Summary
The International Integrated Reporting Council (IIRC) has developed an Integrated Reporting (IR) Framework for improving reporting and better integration of financial and non-financial information. IR has gained significant momentum since the establishment of the IR Framework This is evidenced by growing numbers of participants in the IIRC Pilot Programmes (Note 1) as well as consistent regulatory movements into this area around the world (Note 2). GRI forms a Group of Corporate Leadership in IR in 2015 to contribute to the development of IR. Leading businesses such as Coca-Cola, Nestle, Microsoft, Unilever, and Volvo have agreed to participate in this program. Interviews conducted on the participants of the IIRC Pilot Program disclosed that 84% say that data quality has improved, 92% say IR has improved their understanding of value creation, and 78% see better collaborative thinking by the board about targets and goals (IIRC, 2014).
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