Abstract
This chapter reviews the concept of corporate governance and situates integrated reporting (IR) as fallout of the realization that the narrow concept of shareholder wealth or value maximization must necessarily give way to a more encompassing stakeholder value orientation. The underlying theories of information disclosure are discussed as a prelude to the discourse on IR. The chapter explains integrated reporting as attempt to establish a link between social responsibility and accounting by incorporating social and environmental issues in the financial statements. It discusses the guiding principles of integrated reporting (IR) which include strategic focus and orientation, connectivity of informal stakeholder relationships, materiality, conciseness, reliability and completeness, consistency and comparability. The fundamental concepts of IR, including the concept of value creation are espoused while the content elements are also outlined. These include organizational overview, business model, risks and opportunities, strategy and resource allocation, governance, performance, outlook and basis of presentation. The chapter then introduces the concept of Triple Bottom line (TBL) as an attempt to capture the three major elements of economic, social and environmental effects of business activities into the mainstream of accounting to ensure sustainability. It surveys the present state of integrated reporting in Nigeria. The chapter discusses the regulatory, environmental and infrastructural challenges facing the new reporting framework in Nigeria. In particular, the voluntary nature of the reporting framework, the difficulties of measurement and the subjectivity it will bring to the assurance function were highlighted. The chapter concludes that in spite of the challenges facing integrated reporting in Nigeria, the future belongs to it because of the fresh outlook it brings to corporate accountability and governance and the sheer force of globalization that compels transparency and disclosure in reporting.
Keywords
- Corporate Social Responsibility
- Corporate Governance
- Stakeholder Theory
- International Financial Reporting Standard
- Sustainability Reporting
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Abd-Mutalib, H., Jamil, C. Z. M., & Wan-Hussin, W. N. (2014). The availability, extent and quality of sustainability reporting by Malaysian listed firms: Subsequent to mandatory disclosure. Asian Journal of Finance & Accounting, 6(2), 239–257. doi:10.5296/ajfa.v6i2.6108.
Aburaya, R. K. (2012). The relationship between corporate governance and environmental disclosure: UK evidence. Durham: Durham University.
ACCA. (2015). The integrated report framework. London.
Adekoya, A. A. (2011). Corporate governance seforms in Nigeria: Challenges and suggested solutions. Journal of Business Systems, Governance and Ethics, 6(1), 38–50.
Ademigbuji, A. (2014). Revealing all in sustainability reporting. Lagos: The Nation.
Asaolu, T. O., Agboola, A. A., Ayoola, T. J., & Salawu, M. K. (2011). Sustainability reporting in the Nigerian oil and gas sector. In Environmental Management (pp. 1–24). Abeokuta.
Babajide, O., Imoleayo, O., & Uwalomwa, U. (2015). Should integrated reporting be incorporated in the management accounting curriculum? International Journal of Education and Research, 3(1), 63–76.
CGMA. (2014). Integrated thinking: The next step in integrated reporting (pp. 1–12). London.
Damagum, Y. M., & Chima, E. I. (2013). The impact of corporate governance on voluntary information disclosures of quoted firms in Nigeria: An empirical analysis. Research Journal of Finance and Accounting, 4(13), 166–179.
Financial Reporting Council. (2015). Financial reporting council (FRC) of Nigeria exposure draft of national code of corporate governance 2015 (pp. 1–56). Abuja.
GRI. (2002). Sustainability reporting guidelines (pp. 1–104). Boston.
Haruna, P. E. (2012). Accounting for sustainability: The role of the accounting profession. The Nigerian Accountant, 45(1), 60–68.
IIRC. (2013). The International <IR> Framework (pp. 1–37).
KPMG. (2013). The KPMG survey of corporate responsibility reporting 2013 (pp. 1–82). Swizerland.
Lipunga, A. M. (2015). Integrated reporting in developing countries: Evidence from Malawi. Journal of Management Research, 7(3), 130–156. doi:10.5296/jmr.v7i3.7195.
Mangena, M., & Tauringana, V. (2007). Disclosure, corporate governance and foreign share ownership on the Zimbabwe stock exchange. Journal of International Financial Management and Accounting, 18(2), 1–33.
Michael, O. B., & Oluseye, B. S. (2014). Sustainable development reporting practices by Nigerian banks. Mediterranean Journal of Social Sciences, 5(23), 2535–2544. doi:10.5901/mjss.2014.v5n23p2535.
Neiland, K. (2013). point-of-view-integrated-reporting. Price Water House.
Nkundabanyanga, S. K., Ahiauzu, A., Kisakye, S., & Ntayi, J. M. (2013). A model for effective board governance in Ugandas service sector firms. Journal of Accounting in Emerging Economies, 3(2), 125–144.
Nzewi, U., Nzewi, H., & Okereoti, C. (2013). An appraisal of corporate social responsibility accounting practice of non-bank companies in Nigeria. The Nigerian Accountant, 46(4), 30–68.
Oba, V. C., & Ibikunle, J. (2013). Issues in sustainabiliy accounting: A global reporting initiative perspective. SSRN.
Odia, J. O., & Imagbe, V. U. (2015). Corporate social and environmental disclosures, corporate and environmental performance and corporate financial performance in Nigeria: A simultaneous equation approach. International Journal of Management Sciences, 5(9), 615–627.
Ogbodo, C. O. (2015). A stakeholder approach to triple bottom line accounting: Nigerian experience. International Journal of Academic Research in Business and Social Sciences, 5(6), 1–19. doi:10.6007/IJARBSS/v5-i6/1663.
Okwuosa, I. (2015). Integrated reporting information and its decision usefulness: UK evidence. The Nigerian Accountant, 48(2), 13.
Onyali, C. I. (2014). Triple bottom line accounting and sustainable corporate performance. Research Journal of Finance and Accounting, 5(8), 195–210.
Onyema, U. (2015). Integrating sustainability: The NSE perspective. Regulators Awarwness (pp. 1–16). Lagos.
Otudeko, O. (2011). Leadership, values and strategies for sustainable corporate governance and society. The Nigerian Accountant, 44(4), 14–48.
Oyejide, T. A., & Soyibo, A. (2001). Corporate governance in Nigeria. Conference on corporate governance (pp. 1–36). Accta: Development Policy Centre.
Qian, W., Burrit, R., & Monroe, G. (2011). Environmental management accounting in local government: A case of waste management. Accounting, Auditing and Accountability Journal, 24(1), 93–128. doi:10.1108/09513571111098072.
Society for corporate Governance. (2012). Corporate governance in annual report by public quoted companies in Nigeria (pp. 1–14). Lagos.
Tauringana, V., & Chong, G. (2004). Neutrality of narrative discussion in annual reports of UK listed companies. Journal of Applied Accounting Research, 7(1), 1–35.
Tijani, O. M., & Ogundeji, M. G. (2014). Critical factors for integrated reporting in Nigeria. Trends in Economics (TE), 1(1), 16–23.
Tijani, O. M., Gboyega, O. M., & Kayode, M. A. (2013). Integrated reporting: Another crisis of external dependence or a model for sustainable capital allocation? European Journal of Globalisation and Development, 8(1), 492–506.
Umoren, A. O., Udo, E. J., & George, B. S. (2015). Environmental, social and governance disclosures: A call for integrated reporting in Nigeria. Journal of Finance and Accounting, 3(6), 227–233. doi:10.11648/j.jfa.20150306.19.
Yahaya, M. B. (2013a). Perspectives on board structure, composition, diversity and corporate performance. The Nigerian Accountant 46(1).
Yahaya, M. B. (2013b). Composition, diversity and corporate performance. The Nigerian Accountant, 46(1), 29–32.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer International Publishing AG
About this chapter
Cite this chapter
Okaro, S.C., Okafor, G.O. (2017). Integrated Reporting in Nigeria: The Present and Future. In: Aluchna, M., Idowu, S. (eds) Responsible Corporate Governance. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-55206-4_13
Download citation
DOI: https://doi.org/10.1007/978-3-319-55206-4_13
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-55205-7
Online ISBN: 978-3-319-55206-4
eBook Packages: Business and ManagementBusiness and Management (R0)