New Regulation of Non-financial Disclosure in Business Reporting

• Autorzy: Justyna Fijałkowska
• Języki publikacji: EN

Abstrakty

EN

Improvements to the credibility and transparency of the information disclosed by companies is a challenge for practitioners and legislators. In this paper we focus on the latest EU Directive provisions coming into life in 2016 on the disclosure of non-financial information in business reporting. The aim of this article is to analyze this novel legislation of the European Parliament bringing changes to the business reporting on non-financial information and its expected implications. In this article theoretical and legal research method has been applied, as well as the study on the legal status and application conditions of the new international law concerning non-financial operation disclosure that is to be applied also in Poland. The thesis of this work is that the new EU directive is an answer to the long debate on the non-financial information disclosure aimed at improvement of the transparency and credibility of business communication with the stakeholders and theoretically is expected to contribute to a more sustainable economy. An attempt of the critical evaluation of the new law application conditions and effects concludes this work. (original abstract)

Słowa kluczowe

EN

Information disclosure; Reporting; Financial management

PL

Jawność informacji; Sprawozdawczość; Zarządzanie finansami

• Czasopismo: Przedsiębiorczość i Zarządzanie
• Rocznik: 2016
• Numer: t. 17, z. 1, cz. 1 Practical and Theoretical Issues in Contemporary Financial Management
• Strony: 27--39

Twórcy

autor

Justyna Fijałkowska

• Społeczna Akademia Nauk

Bibliografia

• American Institute of Certified Public Accountants (AICPA) (1994), Accounting Standards Executive Committee. Disclosure of Certain Significant Risks and Uncertainties, Statement of Position No. 94-6. NY: AICPA, New York.
• Amir E., Lev B. (1996), Value-relevance of non-financial information: The wireless communication industry, "Journal of Accounting and Economics", Vol. 22 No. 1/3.
• Aras G., Crowther D. (2010), A Handbook of Governance and Social Responsibility, Gower Publishing, UK.
• Bouwman M. L., Frishkoff P. A., Frishkoff P. (1987), How do financial analysts make decisions? A process model of the investment screening division, "Accounting, Organizations and Society", Vol. 12, No 1.
• Breton G., Taffler. R. J. (2001), Accounting information and analyst stock recommendation decisions: A content analysis approach, "Accounting and Business Research", Vol. 31, No. 2.
• Brown T. J., Dacin P.A. (1997), The Company and the Product: Corporate Associations and Consumer Product Responses, "Journal of Marketing", Vol. 61, No. 1.
• Cauvin E., Neumann B.R., Roberts M. (2013), Management Control Systems and CSR: Information Overload Constraints, "Cost Management", September/October.
• Cho C., Michelon G., Patten D., Roberts R. (2015), CSR disclosure: the more things change...? , "Accounting, Auditing & Accountability Journal", Vol. 28 No. 1, 2015.
• Coombs W. T., Holladay S.J. (1996), Communication and Attributions in a Crisis: An Experimental Study of Crisis Communication, "Journal of Public Relations Research" Vol. 8, No. 2.
• Dempsey S. J., Gatti J. F. Grinell D. J., Cats-Baril W. L. (1997), The use of strategic performance variables as leading indicators in financial analysts' forecasts, "The Journal of Financial Statement Analysis", Vol. 2, No. 4.
• Dawar N., Pillutla M.M. (2000), Impact of Product- Harm Crises on Brand Equity: The Moderating Role of Consumer Expectations, "Journal of Marketing Research", Vol. 37, No. 2.
• Dean D. H. (2004), Consumer Reaction to Negative Publicity: Effects of Corporate Reputation, Response, and Responsibility for a Crisis Event, "Journal of Business Communication" 41(2).
• Deloitte (2014), Deloitte regulatory news alert, Disclosure of non-financial and diversity information - get ready, available at: http://www2.deloitte.com/content/dam/Deloitte/lu/Documents/strategy/lu_regulatory-newsalert-disclosure-non-financialdiversity-information_24112014.pdf [10.12.2015].
• Dhaliwal D., Li A. Tsang, Yang Y. (2010), Voluntary Non-financial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting. Working paper, The University of Arizona. Available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id.1687155.
• Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups, Official Journal of the European Union L330/1, [15.11.2014].
• Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, "Official Journal of the European Union" L182/19, 29.6.2013.
• Eccles R. R., Mavrinac S. (1995), Improving the Corporate Disclosure Process, "MIT Sloan Management Review", Vol. 36 (4), 1995.
• Eccles R., Herz R., Keegan E., Phillips D. (2001), The Value Reporting Revolution, NY: John Wiley and Sons, New York.
• Enhanced Business Reporting Consortium (EBRC) (2005), The Enhanced Business Reporting Framework, Available at: http://www.aicpa.org.
• Epstein M. J., Palepu K. J. (1999), What financial analysts want, "Strategic Finance", Vol. 80, No. 10.
• Ernst & Young LLP (1997), Measures That Matter, New York, NY: E&Y LLP.
• Ghosh D., Wu A. (2012), The Effect of Positive and Negative Financial and Nonfinancial Performance Measures on Analysts' Recommendations, "Behavioral Research in Accounting", Vol. 24, No. 2.
• Ittner C. D., Larcker D. F. (2001), Assessing empirical research in managerial accounting: A value based management perspective, "Journal of Accounting and Economics", Vol. 32.
• Klein J.G., Dawar N. (2004), Corporate Social Responsibility and Consumers' Attributions and Brand Evalutions In a Product-Harm Crisis, "International Journal of Research in Marketing", No. 21.
• Lev B. (2001), Intangibles: Management, Measurement, and Reporting, Washington, D.C.: Brookings Institute Press.
• Lev B., Zarowin P. (1999), The boundaries of financial reporting and how to extend them, "Journal of Accounting Research", Vol. 37.
• Low J., Siesfield T. (1998), Measures that matter, "Strategy and Leadership", March/April.
• Maines L., Bartov E., FairfieldP. M., Hirst E. (2002), Recommendations on disclosure of nonfinancial performance measures, "Accounting Horizons", December.
• Mouritsen J., Bukh P.N., Marr B. (2005), A Reporting Perspective on Intellectual Capital, [in:] "Perspectives on Intellectual Capital", Eds. Marr, B., Elsever, Oxford.
• Mullernt R. (2009), International Corporate Social Responsibility, Kluwer Law International, Netherlands.
• Orens R., Lybaert N. (2007), Does the financial analysts' usage of nonfinancial information influence the analysts' forecast accuracy? Some evidence from the Belgian sell-side financial analysts, "International Journal of Accounting", Vol. 42, No. 3.
• Payne J., Bettman J., Johnson E. (1988), Adaptive Strategy Selection in Decision Making, "Journal of Experimental Psychology: Learning, Memory and Cognition", Vol. 14, No. 4.
• Porter M.E., Kramer M.R. (2007), The Competitive Advantage of Corporate Philanthropy, HBR on Corporate Responsibility, [in:] Redefining Corporate Social Responsibility, "Harvard Business Review Press", Boston.
• Previts G. J., Bricker R. J. Robinson T. R., Young S. J. (1994), The content analysis of sell-side financial analyst company reports, "Accounting Horizons", Vol. 8, No. 2.
• Rajgopal S., Shevlin T., Venkatachalam M. (2003), Does the stock market fully appreciate the implications of leading indicators for future earnings? Evidence from order backlog, "Review of Accounting Studies", Vol. 8, No. 4.
• Roslender R. (1997), Accounting for the Worth of Employees: Is the Discipline Finally Ready to Respond to the Challenge?, "Journal of Human Resource Costing and Accounting", Vol. 2, No.1.
• Standford D. (2011), Why sustainability is winning over CEOs, "BusinessWeek", March 31.
• Tollington T. (1994), The Steamy Heap, "Management Accounting".
• Upton, W. S. Jr. (2001), Special Report: Business and Financial Reporting, Challenges From the New Economy, CT: FASB, Norwalk.
• Vanhamme J., Grobben B. (2008), Too Good to be True. The Effectiveness of CSR History in Countering Negative Publicity, "Journal of Business Ethics", Vol. 85.
• Vanstraelen A., ZarzeskiM., Robb S. (2003), Corporate nonfinancial disclosure practices and financial analyst behavior across three European countries, "Journal of International Financial Management and Accounting", Vol. 14, No. 3.