engleski

Role of Regulatory Bodies in Creating Integrated Reorting System

Corporate reporting has been changing rapidly in the last decades. Requirements of regulatory bodies towards corporations are increasing, in terms of the number of information that needs to be disclosed to the interested public. A major challenge lately discussed at great length by professional organizations pertains, among other things, to particularly important non-financial information about human capital or, for example, environmental protection. Although these are difficult to measure or display through financial reports, it is indisputable that they have a significant impact on creating capital and on companies’ long-term success. These are topics directed towards ways of creating capital and actually show the interest in creating quality future for the generations to come. It is this fact which implies that the obligation of disclosing non-financial information needs to be legally regulated so that reporting is no longer optional but mandatory for all companies, and not only for the big ones. In that context, professional organizations play particularly significant role, and especially regulatory bodies that define the types of information and manner of their presentation to external users. The future of corporate reporting is related to integrated reporting. Hence, building a regulated system of integrated reporting that would include relevant financial and non- financial information should be an objective of all interested parties. The International Integrated Reporting Council, as well as other bodies, significantly contributes to the development of integrated reporting. This contribution reflects in providing solutions, but also in opening cutting-edge topics and issues related to implementation of efficient reporting system. The purpose of this paper is to point out the significance of regulatory bodies in creating efficient financial and non-financial integrated reporting system. The paper presents the most important international regulatory bodies and organizations which have a particularly significant impact on shaping a reporting system for external users, and especially an integrated reporting system, as well as the role and significance of national regulatory bodies which can contribute to efficient implementation of an integrated reporting system in the Republic of Croatia.

integrated reporting, non-financial reporting, council of integrated reporting, regulatory bodies, business decision making

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