ROLE OF INTEGRATED REPORTING IN DISCLOSURE OF BENEFITS FOR BUSINESS

Abstract

The article is devoted to the concept of «integrated reporting» disclosure, the study of its role in the socio-economic business development direction, the disclosure of prerequisites for the integrated reporting formation, and its stages too. Alternatives to the international practice implementation of integrated reporting are presented, advantages and disadvantages of the integrated reporting form are summarized. The expediency of publishing integrated reporting non-financial indicators by the enterprise to substantiate the economic activity attractiveness of the enterprise, its impact on socio-economic regional development, and business prospects are disclosed in general. Business advantages that adhere to both norms and rules of social responsibility have been identified, including facilitated access for the mechanism to new markets and additional investments attraction; favorable market growth for sales of goods or services; increase profits so on. It is confirmed that the most obvious integrated reporting advantages are the following: high level of trust in relations with stakeholders; improved risk management; target orientation of these reports for the investor needs; clearer company’s capabilities definition; maximizing competitive advantages; information support automation, which will allow learning about the company for a large number of potential investors. According to the study of Management Report indicators on the example of a private joint-stock company, non-financialindicators are generalized, which have the greatest impact on business performance both for the researched entity and for other domestic enterprises. It is proved: companies that are actively moving in consumer markets, adhere to consumer demand rules and regulations, focus on foreign investors are well aware importance and value of their positive reputation, which lies not only in business profitability (as evidenced byForm 2 «Financial Report results») but also in strategic development perspectives, the disclosure of which and qualitative assessment is possible on the basis of the non-financial indicators in integrated reporting. Nonfinancial indicators of integrated reporting will reveal the potential benefitsfor an enterprise, allow managers to respond in a timely manner to changesand identify deviations from the business development chosen path.