Please enter verification code
The Paradigm Shift from Financial Reporting to Integrated Reporting
Journal of Human Resource Management
Volume 6, Issue 3, September 2018, Pages: 85-94
Received: Sep. 12, 2018; Accepted: Oct. 12, 2018; Published: Nov. 1, 2018
Views 1187      Downloads 287
Kazunori Ito, Department of Accounting, Faculty of Commerce, Senshu University, Kawasaki, Japan
Masaki Iijima, Department of Management, Faculty of Management, Aichi Gakuin University, Nagoya, Japan
Article Tools
Follow on us
In Japan, many companies are preparing integrated reports. Under such circumstances, some companies prepare annual reports as an integrated report. Nevertheless, the views on the essence of the integrated report are not always agreed upon. Some companies are preparing annual reports or sustainability reports as integrated reports. Thus, some researchers insist on the integrated report as being useful for investors. On the other hand, some researchers proposed that the integrated report is useful for stakeholders. This paper discusses the essence of integrated reports and who they might be useful for. The aim of this paper is to propose our opinion about the essence of integrated reports. This paper clarifies some views on the integrated reports and used a literature review methodology to propose our view. As a result of the literature research, it was found that the essence of the integrated report is to disclose not only financial information but also non-financial information. This point is a significant difference from the annual report. In addition, the integrated report is not disclosed only to investors, but was found to be strongly influenced by the idea of the sustainability report in terms of stakeholder engagement. In short, what this paper wanted to point out is that integrated reporting can be used not only as information disclosure to stakeholders but also as information usage for strategy formulation and business management through stakeholder engagement.
Paradigm Shift, Integrated Reports, Financial Reports, Sustainability Reports, Inside-Out Approach
To cite this article
Kazunori Ito, Masaki Iijima, The Paradigm Shift from Financial Reporting to Integrated Reporting, Journal of Human Resource Management. Vol. 6, No. 3, 2018, pp. 85-94. doi: 10.11648/j.jhrm.20180603.11
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
ASSC (1975) The Corporate Report, Accounting Standard Steering Committee.
Adams, S. and Simnett, R. (2011) Integrated Reporting: An Opportunity for Australia’s Not-For-Profit Sector, Australian Accounting Review, Vol. 21 No. 3, pp. 292-301.
Barker, R. and T. Kasim (2016) Integrated Reporting: Precursor of a Paradigm Shift in Corporate Reporting? in Mio, C. (2016) “Integrated Reporting: A New Accounting Disclosure”, Palagrave Macmillan.
Brown, J. and J. Dillard (2014) Integrated Reporting: On the Need for Broadening Out and Opening Up, Accounting, Auditing & Accountancy Journal, Vo..27 NO. 7, pp. 1120-1156.
Burritt, R. L. & S. Schaltegger (2010), Sustainability Accounting and Reporting: Fad or Trend? Accounting, Auditing & Accountability Journal, Vol.23, No.7, pp.829-846.
Cheng, M., Green, W., Conradie, P., Konishi, N. and Romi, A. (2014) The International Integrated Reporting Framework: Key Issues and Future Research Opportunities, Journal of International Financial Management & Accounting, Vol. 25 No. 1, pp. 90-119.
Cox, C. C. (2007) Speech by SEC Chairman: Closing Remarks to the Second Annual Corporate Governance Summit, (2017/4/1).
Dill, W. R. 1975. Public Participation in Corporate Planning: Strategic Management in a Kibitzer’s World. Long Range Planning 8(1), pp. 57-63.
Fasan, M. (2013) Annual Reports, Sustainability Reports and Integrated Reports: Trends in Corporate Disclosure, in Ratti, S. (2013) Integrated Reporting: Concepts and Cases that Redefine Corporate Accountability, Splrnger International.
Frías-Aceituno, J. V., Rodríguez-Aríza, L. and García-Sánchez, I. M. (2014) Explanatory Factors of Integrated Sustainability and Financial Reporting, Business Strategy and the Environment, Vol. 23 No. 1, pp. 56-72.
Hampton, R. (2012) Brace Yourself: More Regulatory Changes, Accountancy SA, May, pp. 22-23.
Haller, A. (2016) Value Creation: A Core Concept of Integrated Reporting, in Mio, C. (2016) Integrated Reporting: A New Accounting Disclosure, Palagrave Macmillan.
IIRC(2013) The International Framework, International Integrated Reporting Council.
Kraten, M. (2017) Transforming Integrate Reporting into Integrated Information Management Accountants, The CPA Journal, Vol. 87, Issue 7, pp. 6-9.
Koga, C. (2015) The Judgment about Issues and Methods of Integrated Reporting Research and Research Agenda in the Future (in Japanese), Accounting, Vol.188, No.5, pp. 1-15.
Mark W. M. and M. P. Thomas (2015) The MultiCapital Scorecard, Sustainability Accounting, Management and Policy Journal, Vol.6 Issue: 3, pp. 425-438.
Roberts, R. W. (1992) Determinants of Corporate Social Responsibility Disclosure, Accounting, Organizations and Society, Vol. 17 No. 6, pp. 595-612.
Owen, G. (2013) Integrated Reporting: A Review of Developments and their Implications for Accounting Curriculum, Accounting Education, Vol.22, No.4, pp. 340-356.
Schaltegger, S. (2012) Sustainability Reporting in the Light of Business Environments: Linking Business Environment, Strategy, Communication and Accounting, Discussion Paper.
Stubbs, W. and C. Higgins (2014) Integrated Reporting and Internal Mechanisms of Change, Accounting, Auditing & Accountability Journal, Vol. 27, No. 7, pp. 1068-1089.
Watson, A. (2011) Financial Information in an Integrated Report: A Forward Looking Approach, Accountancy SA, December, pp. 14-17.
Ito, K. (2016) From Interest Adjustment for Interested Parties to Engagement with Stakeholders (in Japanese), Disclosure News, Vol. 32, pp. 123-128.
Ito, K. and Nishihara, T. (2016) Disclosure and Usability of Information on Integrated Report of Eizai, (in Japanese), Kaikeigaku Kenkyu, No. 43, pp.1-26.
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
Tel: (001)347-983-5186