Development toward integrated reporting, and its impact on corporate governance: a two-dimensional approach to accounting with reference to the German two-tier system

Inge Wulf (), Jens Niemöller () and Natalia Rentzsch ()

Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, 2014, vol. 25, issue 2, 135-164

Abstract: Recently, the International Integrated Reporting Council has published an integrated reporting framework stimulating major further development in corporate reporting. In combination with a commonly recognized high-level status quo in matters of management commentary, the German two-tier system appears to be an outstanding basis for coming to terms with the future developments brought about by integrated reporting, especially by strengthening the Continental European stakeholder approach to corporate governance. Studies have revealed the importance of financial reporting in reducing information asymmetry between managers and key stakeholders, thereby facilitating corporate governance. Against this backdrop, the objective of this paper is to evaluate the ability of an integrated report to improve corporate governance compared to the well-established German management commentary. This paper provides a descriptive analysis comparing features of the German management commentary and an integrated report with respect to corporate governance. Proper implementation of integrated reporting will affect several traditional structures and business processes. Management accounting as a meaningful business partner to help fulfill the requirements of corporate governance poses new challenges to addressing the key principles of integrated reporting, such as strategic focus, connectivity of information, and making transparent the complex outcomes on various capitals. Copyright Springer-Verlag Berlin Heidelberg 2014

Keywords: German Corporate Governance Code; Continental European stakeholder approach; Multi-column financial statements; Management commentary; Integrated reporting; Management accounting (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://hdl.handle.net/10.1007/s00187-014-0200-z (text/html)
Access to full text is restricted to subscribers.

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:spr:jmgtco:v:25:y:2014:i:2:p:135-164

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/187

DOI: 10.1007/s00187-014-0200-z

Access Statistics for this article

Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung is currently edited by Thomas Günther

More articles in Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().