Topic: Financial Accounting Theory (integrated reporting)
Order Description
Master by course work subject assignment,
in depth research needed from provided references.
4 pages information is attached all the requirement is included in this document
and the time limit won’t be extended
Assignment
Integrated reporting (
Required
1) Flower (2015) explains that the IIRC was initiated with the purpose of creating a globally accepted framework for accounting for sustainability (The Prince’s Accounting for Sustainability Project and Global Reporting Initiative, 2010) but what ultimately eventuated is a framework for communicating to providers of financial capital the “ability of an organization to create value over time” (IIRC, 2013a, p.8). It seems that IIRC abandoned the sustainability agenda along the way. How would you explain the IIRC’s change of focus in relation to integrated reporting? When constructing your answer use one or more theories to explain the reason(s) for IIRC’s change of focus. You should conduct your own desk research to obtain supporting evidence and facts to strengthen your arguments and justify the appropriateness of the selected theory/theories. (approx. 1250 words) (15 marks)
2) Tweedie and Martinov-Bennie (2015) argue that integrated reporting as conceptualised by the IIRC upholds the entitlements of providers of financial capital over other stakeholders and organisational sustainability over social sustainability.
a) Using an appropriate theory support the view that listed companies should focus on the information needs of financial capital providers over other stakeholders. You are required to draw on empirical research evidence to support your arguments. (approx. 500 words) (5 marks)
b) Assuming the focus of listed companies is financial capital providers, critically examine the extent to which sustainability considerations are important or not important for them. When constructing your answer distinguish between the concepts of organisational sustainability and social sustainability (also refer to Flower (2015) who uses a similar dichotomy labelled “value for society” versus “value for investors”). Your discussion should draw upon the research on information needs of providers of financial capital. (approx. 750 words) (10 marks)
This is a research assignment and as such your assignment should provide your personal view based on research evidence, theory and original thought.
In your assignment, you are expected to draw on:
¥ relevant accounting theories
¥ the International Integrated Reporting Framework issued by the IIRC (available at:
https://www.theiirc.org/wp-content/uploads/2013/12/13-12-08-THE-INTERNATIONAL-
IR-FRAMEWORK-2-1.pdf)
¥ scholarly articles from academic journals
¥ reports issued by professional accounting bodies, accounting firms (particularly, the Big
4), regulatory bodies, the IIRC and other organisations
¥ official websites of professional accounting bodies, accounting firms (particularly the Big
4), regulatory bodies, the IIRC and other organisation
¥ media reports on integrated reporting
Notes
Integrated reporting is covered in Chapter 9 (pp. 458-462) of your textbook. The theoretical knowledge necessary to successfully complete this research assignment is not confined to one or few topics but spread across many topics in this unit. Therefore, you may want to read ahead.
Some guidance on reading scholarly journal articles is provided on the Blackboard site of this unit. As a starting point, some key references are provided at the end of this document under “Other key references”.
Referencing
To avoid plagiarism, you are required to provide a reference whenever you include information from other sources in your work.Referencing convention required for this unit is the Swinburne Harvard System. Helpful information on referencing using the Swinburne Harvard System can be found at: https://www.swinburne.edu.au/lib/studyhelp/harvard_style.html
¥ Word count: The entire document should not exceed 2500 words (+/- 10 per cent) (excluding title page, table of content and reference list but including footnotes, endnotes and appendices). An executive summary is not required.
¥ Format: Page margins: Top – 2.54 cm; Bottom – 2.54 сm; Left – 3.2 сm; Right – 3.2 сm. Paper: Portrait, A4 size (8.27 inch x 11.69 inch)
Font size: 12 pt | Line spacing: 1.5 lines | Paragraph spacing: 6 pt | Alignment: Justified Insert page numbers at the bottom of the page
References
Flower, J. (2015). The International Integrated Reporting Council: A story of failure. Critical Perspectives on Accounting, 27(1), 1-17.
IIRC. (2013a), “Consultation Draft of the International
https://www.theiirc.org/wp-content/uploads/Consultation-Draft/Consultation-Draft-of- the-InternationalIRFramework.pdf accessed 17 April 2013.
IIRC. (2013b), “The IIRC”, available at: https://www.theiirc.org/the-iirc/ accessed 27 June 2013.
The Prince’s Accounting for Sustainability Project and Global Reporting Initiative. (2010), “Formation of the International Integrated Reporting Committee (IIRC)”, available at: https://www.theiirc.org/wp-content/uploads/2011/03/Press-Release1.pdf accessed 20 August 2014.
Tweedie, D., & Martinov-Bennie, N. (2015). Entitlements and Time: Integrated Reporting’s Double-edged Agenda. Social and Environmental Accountability Journal, 35(1), 49- 61.
Other Key References
Abhayawansa, S., & Guthrie, J. (2014). Importance of intellectual capital information: A study of Australian analyst reports. Australian Accounting Review, 24(1), 66-83.
Adams, C. A. (2014). The International Integrated Reporting Council: A call to action. Critical Perspectives on Accounting (Article in Press – available online). https://dx.doi.org/10.1016/j.cpa.2014.07.001
Cascino, S., Clatworthy, M., Osma, B. G., Gassen, J., Imam, S., & Jeanjean, T. (2013). The use of information by capital providers: The Institute of Chartered Accountants of Scotland (ICAS) and the European Financial Reporting Advisory Group (EFRAG).
Global Reporting Initiative. (2013). The sustainability content of integrated reports – a survey of pioneers. Amsterdam: Global Reporting Initiative.
Jill, A. and Warren, M. (2015), “Integrated reporting in South Africa in 2012: perspectives from South African institutional investors”, Meditari Accountancy Research.
Lawrence, A. (2013). Individual investors and financial disclosure. Journal of Accounting and Economics, 56(1), 130-147.
Melloni, G. (2015), “Intellectual capital disclosure in integrated reporting: an impression management analysis”, Journal of Intellectual Capital, Vol. 16 No. 3, pp. 661-680.
Reuter, M. and Messner, M. (2015), “Lobbying on the integrated reporting framework: an analysis of comment letters to the 2011 discussion paper of the IIRC”, Accounting, Auditing & Accountability Journal, Vol. 28 No. 3.
Sakakibara, S., Hansson, B., Yosano, T., & Kozumi, H. (2010). Analysts’ perceptions of intellectual capital information. Australian Accounting Review, 20(3), 274-285.
Soh, D. S., Leung, P. and Leong, S. (2015), “The Development of Integrated Reporting and the Role of the Accounting and Auditing Profession”, in Social Audit Regulation (Springer), pp. 33-57.
Stent, W. and Dowler, T. (2015), “Early assessments of the gap between integrated reporting and current corporate reporting”, Meditari Accountancy Research, Vol. 23 No. 1, pp. 92-117
Setia, N., Abhayawansa, S., Joshi, M. and Huynh, A. V. (2015), “Integrated reporting in South Africa: Initial evidence”, Sustainability Accounting, Management and Policy Journal, Vol. 6 No. 3, pp. 397-242.
Thomson, I. (2014). ‘But does sustainability need capitalism or an integrated report’ a commentary on ‘The International Integrated Reporting Council: A story of failure’ by Flower, J. Critical Perspectives on Accounting. (Article in Press – available online). https://dx.doi.org/10.1016/j.cpa.2014.07.003
