Integrated reporting as a key value creation tool

Abstract

The main goal of the article is to determine the advantages of various value creation tools that can be used to explain the value that the company creates through integrated reporting. The list of elements of the International Integrated Reporting Framework (IIRF) was developed to analyze how the characteristics of various tools are used to explain value creation. This study includes the following structural elements: analysis of the development of reporting paradigms, the study of the essence and methods of creating enterprise value. Analysis of the genesis of financial statements showed a paradigm shift or transition from traditional types of reporting in integrated reporting and the gradual process of its finalization and the formation of transparent accounting according to the requirements of stakeholders. The concept of creating enterprise value originates from the 80s and continues its path of improvement in the face of improved integrated reporting. It is established that the main sources of value creation are the six fixed assets of the enterprise. In addition, their proper management and interpretation to provide full information to all stakeholders is the basis for the formation of the value (added value) of the enterprise. At the same time, the International Integrated Reporting System (IIRF) becomes the best way. However, none of the tools reviewed is fully compliant with IIRF, and this study is only the first part of an attempt to explain how outdated management tools can contribute to the development and understanding of managerial innovation, such as integrated reporting.