Formation Stages of Integrated Reporting

Current trends in the global economy have contributed to the growth of information requests of key stakeholders, which led to the disclosure in the financial statements of both financial and non-financial information on various elements of the enterprise activities. As a result, a new type of reporting has emerged – integrated reporting. The purpose of the article is to reveal the genesis of the concept of integrated reporting in world practice, identifying key factors that contributed to the development of integrated reporting. The author on the basis of a systematic approach reveals the historical chronology of the formation of the concept of integrated reporting in world practice as a new reporting model. The main stages of the development of integrated reporting have been identified and justified: origin, formation, distribution, development. Significant support for integrated reporting in the world proves that a new type of reporting is able to effectively satisfy a wide range of information requests of stakeholders. A generalization of the trends in the development of integrated reporting made it possible to single out the factors that influenced the development of integrated reporting, among them: financial and economic, political, social, environmental, scientific and technical. It was proved that the practice of preparing integrated reporting is relevant for enterprises in Ukraine, and especially for agricultural enterprises, in connection with the exacerbation of the natural, environmental, demographic problems that society faces. Indeed, with the growth of socially responsible investment markets and the greater attention of investors and lenders to the wider impact of enterprises on the economy, the environment and society, the need for high-quality information about such impact is growing. Traditionally, the annual financial statements contain brief information on the environmental, social aspects of the activities and corporate governance of enterprises, in particular regarding significant risks in these areas. But the integrated reporting provides much more information about the impact of the enterprise on society, economy and environment, describing its activities in a specific social context, and also helps to increase the investment attractiveness of the business.