NON-FINANCIAL REPORTING A STRATEGIC ELEMENT IN THE DEVELOPMENT OF ECONOMIC ENTITIES

Adriana Horaicu (), Ana-Maria Andrei (), Laura-Andreea IAMANDACHE (florea) () and Victor Munteanu ()
Additional contact information
Adriana Horaicu: Valahia University of Targoviste, Romania
Ana-Maria Andrei: Valahia University of Targoviste, Romania
Laura-Andreea IAMANDACHE (florea): Valahia University of Targoviste, Romania
Victor Munteanu: Valahia University of Targoviste, Romania

Contemporary Economy Journal, 2023, vol. 8, issue 2, 37-48

Abstract: Traditional financial reports, as transparency and communication tools of traditional accounting, do not meet the information needs of stakeholders, they only reflect social and environmental aspects to some extent. Shareholders and investors focus more on the long-term impact of the sustainable model. These models can be developed through reports that deal with environmental, social and corporate governance issues. If entities do not publish high-quality non-financial reports, they may soon face evaluation problems during evaluations, as well as problems accessing funding sources and communicating with investors and clients. Starting with the financial sector, capital markets to all economic entities, regardless of the activity sector, non-financial reporting must be subject to strictly defined rules and standards. Each entity must define and report on its strategy, key risks and progress against strategic performance indicators globally. In this context, each economic entity must establish a series of criteria for identifying and prioritizing the targeted gateways, in accordance with the business strategy and reporting method adopted. The main objective of this scientific approach is to analyze the evolution of the financial and non-financial reporting system in order to identify a reporting format, the type of data, information that meets the requirements, taking into account the specifics of the entity, the specifics of the sector in which activates, as well as the information needs of the interested parties. In the second objective, we aimed to achieve the establishment of the threshold of significance and the representation of the most important non-financial aspects by analyzing some well-established variables (the level of influence of the stakeholders regarding the non-financial aspects and the entity's impact on environment, society and economy from the perspective of each non-financial aspect).

Keywords: accounting; traditional financial reporting; non-financial reporting; strategic performance indicators; analysis (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.revec.ro/papers/230205.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:brc:brccej:v:8:y:2023:i:2:p:37-48

Access Statistics for this article

More articles in Contemporary Economy Journal from Constantin Brancoveanu University
Bibliographic data for series maintained by Cristina GANESCU ().