Environmental Issues in Reporting of Public Interest Entities

Non-Financial Statement As A Reporting Requirement For Public Interest Entities

Nowadays, the financial reporting is evolving in two directions. Micro and small entities can choose simplified forms of financial reporting. Large and important from the social and economic perspective entities extends the scope of disclosed data in financial statement (non-financial statement). According to Prof. A. Kamela-Sowińska, accounting as a system of financial records and reporting may be replaced with the so-called tailor-made accounting during the next 50 years or so. (Kamela-Sowińska, 2016, p. 309 et seq; Kamela-Sowińska, 2014, p. 108-109). The traditional accounting, emphasizing identification, valuation and reporting of information of exclusively financial character, is disappearing. The usefulness of classical financial statements is decreasing (Fijałkowska 2016, p. 30).

Figure 1.

Directions of the evolution of financial reporting of enterprises

Source: Compiled by the author

On the other hand, the role and value of additional information is growing (Krasadomska J., 2010, s. 46). Perception of an enterprise, its role, credibility and transparency by the broadly understood environment becomes increasingly important. The contemporary users of financial statements expect that the solutions introduced (new reporting models) will enable a more complete description of the enterprise’s operations and value. E. Walińska rightly notes that non-financial reporting was developed throughout the years by means of systematic and consistent extension of financial statements with non-financial information. Additional information became included in statements. Management’s comments, statements on non-financial information and other reports were introduced (Walińska, 2015, pp. 153-154). Thus, the previous scope of reported data is supplemented with non-financial information.