Review article
NONFINANCIAL REPORTING: A NEW CHALLENGE FOR CORPORATE ACCOUNTING SYSTEMS
Dubravka Krivačić
orcid.org/0000-0002-2830-655X
; Veleučilište u Karlovcu, Karlovac, Hrvatska
Martina Antunović
Abstract
Nonfinancial reporting became the obligation of certain large companies and groups in the European Union by adopting the nonfinancial reporting Directive 2014/95/EU, which came into force in early 2017. Nonfinancial reporting, unlike financial, is not strictly regulated, but it is a recommendation to align it with selected international guidelines or standards. Nonfinancial reporting is the process of preparing and publishing nonfi nancial information on the company’s performance in the environmental and social responsibility moduls. Although it starts from measuring indicators of the company’s performance in these aspects in physical units, it also includes their fi nancial quantification through measuring, for example, environmental costs, investment in employees’ training and specialization programs, etc. Consequently, corporate accounting systems play an important role in the organising, functioning and improving of nonfi nancial reporting. For them nonfinancial reporting is a challenge, primarily because of differences in managerial attitudes about the usefulness of implementing such business practice. Therefore, this paper contributes to previous research by identifying managerial attitudes on the benefits of nonfinancial reporting practice.
Keywords
non-financial reporting; Directive 2014/95/EU; standards; benefits.
Hrčak ID:
216536
URI
Publication date:
31.12.2018.
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