Including both financial and non-financial information is known as "integrated reporting" by public companies
Brad Monterio has detailed what some of these additional responsibilities might include in a recent article on this topic: “Beyond the Balance Sheet – Non-Financial Reporting, Material Disclosures and the Quest for Sustainability” According to the Baker McKenzie article the European Union countries, China, India, France and South Africa have mandated sustainability reporting as part of public company disclosure
Why is the reporting of non-financial information and the management of non-financial risk becoming so important to investors?
Interesting article in the UK’s Financial Director about yearend non-financial reporting required by UK companies as part of the EU mandate for 6,000 + public company requirement to report non-financial information to the capital markets and important stakeholders such as investors. The UK most now adopt the European Union’s own rules around the reporting on long-term risks and strategies as part of the new EU Non-Financial Reporting Directive . The directive’s provisions, which aim to harmonize and improve non-financial reporting across the EU, must be transposes into law by 6 December 2016
Increasing Importance of Non-financial reporting -- including Sustainability and Human Capital Data in the Capital Markets Non-financial reporting is becoming increasing common in corporate disclosures included in the financial statement around the world
This additional non-financial disclosure will help to address material risks associated with these topics that are showing greater and greater interest from the investment/pension community through impact investing/responsible investing
Forbes: US public companies begin to turn to SASB for non-financial / sustainability reporting...In October 2014, the EU issued its directive on corporate disclosure of non-financial information by more than 6,000 larger companies based in Europe
1 Comment - One of the key developments is Jeff Thomson and the SASB agreeing to collaborate on standards for non-financial reporting. There is so much heat, but not often light in the climate change debate that we need some (sober-minded) accountants helping out to validate reporting even while scientists go back and forth on the causes and effects of changes in our climate
If public companies disclose additional non-financial information to investors -- management accountants ARE and WILL continue to play a major role if preparing, verifying and analyzing this information driving capital markets investment especially in the area of climate finance.
Non-financial reporting, such as sustainability and CSR/ESG reporting has expanded over the last twenty years
Some companies are combining financial reporting with non-financial reporting into ONE REPORT or "Integrated Reporting" to external stakeholders that also includes natural resources and human capital -- beyond just financial information
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