Fostering Integrated Reporting in Indian Corporate Sector

Integrated Reporting “Provides a holistic method for explaining how the organization is doing, and how the management team thinks it will do in the future… It takes into account the connectivity and interdependencies between the range of factors that have a material effect on an organization’s ability to create value over time.” by Bob Laux, Senior Director of Financial Accounting and Reporting at Microsoft Corporation. In today’s globalized economy there has been an emergent concern of social, environmental and ethical reporting along with financial reporting. Integrated Reporting is a complete financial and non-financial information disclosure which is an essential for the effective operation of any corporate enterprise. The paper makes an attempt in understanding the rationale of integrated reporting along with the various benefits and need for fostering integrated reporting in Indian corporate sector. Businesses require an evolution in the system for reporting, facilitating and communicating mega-trends without the complexity and inadequacy of current reporting requirements. Currently, there are significant information gaps in reports, with the organizations such as the World Bank and IMF calling for a greater focus on aspects such as risk and future development. Fostering integrated reporting is the only answer for Indian Corporate sector.