Compliance of Integrated Reporting Disclosures with the International Framework of Integrated Reporting – Analysis of Quoted Public Banking Companies in Sri Lanka

Abstract

The concept of "Integrated Reporting” is become newly discuss notion in the field of corporate disclosures and it used to improve the organization's communication with their stakeholders. After introduction of integrated reporting to Sri Lankan companies in 2011, they tend to apply it to their corporate reporting disclosures. However, there is a question on how far those disclosures are compliance with the international integrated reporting framework. To attempt this research question three objectives are formulated as: to compare current year (2014) integrated reporting disclosures with base year (2012), to identify the level of compliance of integrated reporting disclosures with the international integrated reporting framework and to identify the improvement areas of integrated reporting. In order to achieve these objectives study uses content analysis and under that, the study analyze annual reports of 13 quoted public banks in 2012 and 2014 and content elements are used to identify the level of compliance.

Disclosures on organizations context and external environment, Governance and Risks and opportunities are more compliance with the international integrated reporting framework and business model, strategy & resource allocation, performance, outlook and basis of preparation are showed the greatest room for improvement.

In 2014 the integrated reporting disclosures are increased compared to 2012. However, it is true that most of the companies are already took the first step to present the integrated reporting disclosures in their annual reports. However, they do not adequately compliance with the content element of international integrated reporting disclosures.