The Potential Impact of Integrated Reporting on American Corporations

Abstract

In accordance with SEC requirements, it is a responsibility of public companies to ensure that they are transparent with the public. This is done by issuing annual financial reports that allow investors and citizens to see just what goes on behind closed doors. These reports provide a window into the operations, debt, and plans a company has made for the future; these factors are easily monetized and have been used for decades. However, there is more to a company than simply the number of sales it makes and how many assets it owns. There are peripheral consequences for the activities that businesses participate in, and these consequences are becoming more and more important to the value of companies. Because of this, businesses across the world have been including these factors in their financial reports. This paper focuses on combatting the issues that arise when this consolidation of information is sought.