Tag Archives: integrated reporting

Integrated Reporting and Implications for Accounting Curriculum in Nigeria (Published)

Integrated reporting (<IR>) has been promoted by influential international organisations as the communication vehicle that provides concise, future-oriented and strategically relevant information and integrates financial, social and environmental elements to providers of the capitals and other interested parties. Increasing adoption of <IR> globally envisages significant implications for accounting education and the accounting curriculum, for both professional and academic training necessary for the “new” corporate reporting protocol. This paper reviews integrated reporting literature to access the principles and frameworks and outputs articulated by these influential organisations. In view of the suggested reporting outcomes, fundamental guiding principles and the main components of an integrated report, it is envisaged that the “new” accounting curricula would focus more on the longer-term than the shorter-term, more on corporate strategic outlook than operational or transactional processes; more prospective rather than retrospective analysis and reporting on wider business performance metrics than on narrower external financial reporting data or audit compliance. While leading global professional accountancy bodies (e.g., ACCA & CIMA) have already fully incorporated integrated reporting principles within their curriculum at the professional level, only few universities outside Nigeria have incorporated integrated reporting principles or learning outcomes within their existing curriculum. The paper calls on Accounting Departments of universities to incorporate <IR> principles into their course offerings.

Keywords: Accounting Curriculum, Nigeria, Social Responsibility, Stakeholder Engagement, Sustainability, integrated reporting

Integrated Reporting: Advocacy for Nigerian Companies (Published)

In the 21st century, when integrated reporting is emerging as the new approach to corporate reporting, no Nigerian listed company is known to have prepared and published any variant of an integrated report. This is in sharp contrast to South Africa where integrated reporting is a mandated listing requirement. Perhaps Nigerian companies are insufficiently aware of the benefits of integrated reporting, hence the non-adoption of integrated reporting as the preferred corporate reporting model. In this paper, the concepts, scope and structure of integrated reports as well as benefits and scepticism of integrated reporting are accessed through a review of relevant literature. The paper recommends that the Financial Reporting Council of Nigeria (FRCN) “persuades” Nigeria listed companies to migrate to integrate reporting on a voluntary basis initially as soon as possible.

Keywords: corporate reporting model, financial and non-financial reporting Nigeria, integrated reporting

Evaluation of Integrated Reporting and the Value of Listed Manufacturing Firms in Nigeria (Published)

Integrated reporting is gaining attention of world-leading organizations and countries who are demonstrating global leadership in this emerging field of corporate reporting. However, the disclosure of non-financial information and its integration with financial information (integrated reports) and the benefits to the company and other stakeholders is not yet properly assessed in Nigeria. Prior studies in this area in different environments have produced mixed results and conclusions. This study examined the effect of integrated reporting on the value of listed manufacturing companies in Nigeria. The study adopted ex-post facto research design. The population of the study comprised 53 manufacturing companies quoted on the Nigerian Stock Exchange (NSE) as at 30th June 2017, from which 38 companies were purposively selected comprising companies from consumer goods and industrial goods during the study period (2012-2016). Data were sourced from the published audited financial statements validated by the external auditors’ report. Descriptive and inferential statistics using regression analyses were employed. The findings revealed that integrated reporting had significant effects on firm’s value measured by Tobin’s Q (TQ) (F(4, 131) = 22.75, Adj. R2 = .1470, p <0.05). Disclosure of Financial Capital (DFC) had a significant negative effect on TQ (β1 = -4.41; t(135)= -6.71, p <0.05); Disclosure of Manufactured Capital (DMC) had an insignificant positive effect on TQ (β2 = 0.051; t(135)= 0.14, p >0.05); Disclosure of Intellectual and Human Capital (DIHC) had an insignificant negative effect on TQ (β3 = -0.994; t(135)= -0.69, p >0.05); and Disclosure of Natural Capital (DNC) had an insignificant negative effect on TQ (β4 = -0.438; t(135)= -0.41, p >0.05). Firms’ size (SIZE) and leverage (FLEV) had significantly controlled the influence of integrated reporting on TQ (F(6,129) = 24.08, Adj. R2 = .1636, p <0.05). The study concluded that integrated reporting is still at its early stage of adoption in Nigeria and could be useful in determining the firm’s value of listed manufacturing companies in Nigeria. It was recommended that regulators should increase awareness, training and provide a framework for the mandatory adoption of integrated reporting in Nigeria.

 

Keywords: Disclosure, Leverage, Size, firm’s value, integrated reporting, integrated thinking, tobin’s q. transformation, value creation

Evaluation of Integrated Reporting and the Value of Listed Manufacturing Firms in Nigeria (Published)

Integrated reporting is gaining attention of world-leading organizations and countries who are demonstrating global leadership in this emerging field of corporate reporting. However, the disclosure of non-financial information and its integration with financial information (integrated reports) and the benefits to the company and other stakeholders is not yet properly assessed in Nigeria. Prior studies in this area in different environments have produced mixed results and conclusions. This study examined the effect of integrated reporting on the value of listed manufacturing companies in Nigeria. The study adopted ex-post facto research design. The population of the study comprised 53 manufacturing companies quoted on the Nigerian Stock Exchange (NSE) as at 30th June 2017, from which 38 companies were purposively selected comprising companies from consumer goods and industrial goods during the study period (2012-2016). Data were sourced from the published audited financial statements validated by the external auditors’ report. Descriptive and inferential statistics using regression analyses were employed. The findings revealed that integrated reporting had significant effects on firm’s value measured by Tobin’s Q (TQ) (F(4, 131) = 22.75, Adj. R2 = .1470, p <0.05). Disclosure of Financial Capital (DFC) had a significant negative effect on TQ (β1 = -4.41; t(135)= -6.71, p <0.05); Disclosure of Manufactured Capital (DMC) had an insignificant positive effect on TQ (β2 = 0.051; t(135)= 0.14, p >0.05); Disclosure of Intellectual and Human Capital (DIHC) had an insignificant negative effect on TQ (β3 = -0.994; t(135)= -0.69, p >0.05); and Disclosure of Natural Capital (DNC) had an insignificant negative effect on TQ (β4 = -0.438; t(135)= -0.41, p >0.05). Firms’ size (SIZE) and leverage (FLEV) had significantly controlled the influence of integrated reporting on TQ (F(6,129) = 24.08, Adj. R2 = .1636, p <0.05). The study concluded that integrated reporting is still at its early stage of adoption in Nigeria and could be useful in determining the firm’s value of listed manufacturing companies in Nigeria. It was recommended that regulators should increase awareness, training and provide a framework for the mandatory adoption of integrated reporting in Nigeria.

Keywords: Disclosure, Leverage, Size, firm’s value, integrated reporting, integrated thinking, tobin’s q. transformation, value creation