A Study on The Impact Of Integrated Reporting on Corporate Reporting Practices A Case of Two Sri Lankan Companies
Ms. Tharani Sooriyaarachchi ,Lecturer ,Department of Accounting and Finance ,Faculty of Business
Ms. Daupadee Gamage ,Lecturer ,Department of Accounting and Finance ,Faculty of Business
The study unfolds the impacts of the adaptation of Integrated Reporting on corporate reporting practices. The analysis is specifically carried out emphasizing on the guiding principles and the content elements of the IR Framework. The research was carried out on two public limited companies, one being a diversified holding company and the other operates in the field of Insurance. Thematic case study approach was used, as this study warrants in-depth analysis. The findings were analyzed based on IR Framework and the model drawn from Laughlin (1998) which was built by Hinings and Greenwood (1988) guided by the work of Miller and Friesen (1984). The research findings unveil that, one company has adopted integrated thinking, prior to the official adoption of IR. Thus, there has not been a considerable change in the value creation processes and decision making processes of the organization. Since the company has always incorporated IR thinking there has not been a drastic change in the reporting process. However, the adoption has improved the connectivity of non- financial information, the formats and structures used for reporting. On the contrary there is no sufficient evidence to suggest that the other company in the insurance sector has practiced integrated thinking prior to the official adoption of IR. Therefore, the adoption of IR has created a significant impact on their reporting processes. This research fills the existing gap of literature with regard to implications of IR practices in developing countries and also analyses the level of adherence of guiding principles and the content elements of IR Framework by the practitioners.
Keywords— Content Elements, Guiding Principles, Integrated Reporting, Organizational Reporting Practices