PART FOUR

Tracking Objects – A Paradigm Shift in Business Reporting

TIPS FOR READERS

Traditional forms of financial reporting are in the process of change in order to make the related business reporting more meaningful to an ever-increasing readership. For example, concerned stakeholders can include employees, the general public and interest-specific pressure groups. In recent times, expectation of corporate social responsibility has influenced the content of business reporting, whereby non-financial aspects are added to the usual financial components. Integrated reporting is the outcome.

Despite obvious improvements in the usefulness of business reporting, more thoughtful consideration must be given to particular issues that remain embedded in current report-drafting practices. It is for this reason that an objects-based approach is recommended, whereby items (such as assets) are tracked and valued appropriately. This is also to do with organising the information and making it comparable in relation to the supply chain and associated valuation processes.

This proposal also requires clarity as to the definition of objects and in relation to the boundaries of reporting entities that can lay claim to the ownership of objects.

Summary

The first section offers a number of topics for consideration in relation to the proposed need for better business reporting. These include changes in technology and in thinking about what is necessary for business reporting. Developments in new reporting models are discussed, along with asset recognition and derecognition, as well as the vagaries of financial measurement. A comprehensive business reporting model is proposed, together with a fresh perspective of future business reporting, whereby objects are considered as necessary elements, particularly when clearly defined, tracked and valued.

Target audience

The overall concept map shown in the introduction indicates the necessary breadth and depth of elements in this book, which play a fundamental part in supporting current and expected thoughts of a new reporting paradigm. Accordingly, we can see that the various sections of this book are likely to be of particular significance to some people more than to others.

Readers who are expected to have an affinity with, and interest in, Part IV of this book, include:

• accounting practitioners
• developers of business reporting
• deliverers of business reporting
• standard setters
• IT professionals
• auditors
• senior executives
• senior bureaucrats
• general public
• finance professionals
• academics
• students
• company directors
• government officers
• politicians
• government ministers
• CSR supporters.

Note: Here, CSR denotes corporate social reporting as well as corporate social responsibility.