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This article reviews the literature on the concept of integrated reporting which is the concept of firms’ performance reporting. This concept reflects the financial and nonfinancial performances that are vital to the business and its stakeholders; including investors, shareholders, creditors, employees and clients. Therefore, this paper is focused on the developing concepts and findings related to the integrated reporting
The integrated approach should be based on international reporting framework of the International Integrated Reporting Council. There are five factors that made the application effective. First, they engage directors and top management early in the process. Second, they use the process to interrogate the strategies. Third, they provide reporting teams with clear mandates and ensure integration between corporate functions. Fourth, they embed reporting within new and existing management systems. Fifth, they use the report to communicate the outcome of the process effectively.
The results found that integrated reporting reports corporate performance in a holistic way. They provide financial and non-financial performance which are important for the business to allocate resource within the organization and to create a good image and risk management about rules and regulations effectively. For the stakeholder’s perspective, integrated reporting is important to improve the stakeholder’s engagement and investor’s demand.