Integrated reporting as a central element of a balanced scorecard for evaluating the effectiveness of an organization

Abstract

Relevance and goals. Existing approaches to assessing and analyzing the financial condition of an organization and determining the effectiveness of its functioning do not fully meet the needs of various user groups interacting with the entity. In most cases, reporting data is not enough to prepare a full-fledged analytical conclusion. Also, the traditional set of indicators generated on the basis of reporting allows one to give a limited description of the financial condition of the organization. All this complicates the process of making management decisions aimed at ensuring the stable development of an economic entity and the country’s economy as a whole. The article attempts to justify the need to change the reporting format for the purpose of creating a balanced scorecard covering all aspects of the organization's work. Materials and methods. During the research process, the authors used a systematic, integrated approach to studying the subject using methods: analysis, synthesis, comparison and generalization. Results and conclusions. The article discusses various approaches to positioning integrated reporting as a key source of data for developing a balanced scorecard for assessing the effectiveness of business development. Thus, it is integrated reporting that is the main information component of all business processes implemented in the activities of an economic entity. The process of generating such reporting requires significant labor, financial and time costs. Nevertheless, its presence gives the organization undeniable advantages in terms of its own development and mutually beneficial cooperation with all stakeholders.