Accounting Assignment: Integrated Reporting within 1300 Smiles Limited

Question

Task

This accounting assignment covers contemporary theoretical concepts with practical accounting task application. This assignment requires preparing an in-depth analysis of Integrated Reporting in accounting.

Answer

Executive summary
Integrated reporting provide in this accounting assignment in terms of accounting is a system with the help of which the management of an organisation effectively undertakes various policies and procedures in order to generate value for their internal as well as external stakeholders over a specific period of time. With the help of undertaking integrated reporting the management of the organisation ensure appropriate communication of information to the external stakeholders along with effectively in handling the overall credibility of the information is communicated. Within this assignment a detailed evaluation in respect to concept of integrated reporting in accounting primarily in respect to 1300 Smiles Limited is provided. The assignment will also provide an in-depth analysis in respect to the system of integrated reporting in accounting within 1300 Smiles Limited along with an appropriate recommendation in respect to the benefits added by the same towards the overall profitability, productivity and efficiency of the organisation.

Introduction
1300 Smiles Limited is an organisation which was founded and listed in the year 2005 by the Founder Dr Daryl Holmes. The primary business operations of the organisation include providing Dental Care facilities to a major population with in Australia and generating sufficient revenue in order to ensure that the overall objectives of the organisation are effectively met through efficient and economic business operations. The major area of business operations of 1300 Smiles Limited is Sydney, Queensland and Adelaide. The primary objective of the organisation is to provide appropriate Dental Care facilities to a major group of the customer market with the help of maintaining high quality standard at lowest possible cost. The evaluation into the operating structure of the organisation also provides that there is significant requirement for the implementation of integrated reporting in respect to accounting of the organisation as the relevant internal and external stakeholders demand for more clarity within the information system for developing long term trust within the organisational operations. Therefore, under this assignment retail evaluation with respect to integrated reporting in terms of accounting of 1300 Smiles Limited is provided along with appropriate evaluation of the various concepts and theories of integrated reporting.

Concepts of integrated reporting
The evaluation in to the concept of integrated reporting effectively provides that the overall objective of the Framework is to ensure appropriate integration with in various reports prepared by the organisation during a specific financial year (Almagtome et al., 2020). With the help of integrated reporting the management of the organisation can also ensure a positive relationship between various accounting statements along with ensuring the communication of authentic and appropriate information for the decision making process of the external and internal stakeholders. The fundamental concept of integrated reporting Framework are effectively listed below:

• Creation of value within the organisation with the help of communicating actual material information that support decision making.
• It is the primary process with which the organisation can create value through appropriate maintenance and Communication of valuable organisational information.
• With the help of integrated reporting the management can effectively identify various factors of capital which include finance, manufacture, human resource, natural capital, society and relationship, and intellectual.

Application of integrated reporting in accounting
The detailed evaluation and analysis into the annual report of 1300 Smiles Limited effectively provide that the management of the organisation has effectively applied the principles and concepts of integrated reporting in terms of preparation of accounting statements. In a Broadview the concept of integrated reporting in accounting provides that all the statements and information’s prepared within the organisation are effectively integrated under one specific report in order to develop positive relationship between statements and communicate valuable results to the users of the information (Obeng et al., 2020). This is evident from the annual report of the organisation that the management has included a wide variety of statements within its annual report that not only leads to development of a specific relationship but also enhances the overall quality of the information is communicated. Therefore, with the help of integrated reporting in accounting and management of 1300 Smiles Limited ensures enhancement in the quality of information communication along with providing a justified basis of decision-making to the external stakeholders (Editorial, 2021).

Integrated reporting of 1300 Smiles Limited
The primary objective of undertaking integrated reporting is to ensure appropriate communication material internal information of the organisation to the relevant internal and external stakeholders so that it facilitates their decision making. As a part of integrated reporting in accounting, the organisation has recently prepared the annual reports will effective integration of the relevant statements prepared by the organisation. The management of the organisation believes that through the integration of all the statements prepared there will be a positive relationship between a wide variety of data and information’s and it also enhances the overall quality of reporting With the help of making available material internal information to the external stakeholders the management of the organisation can ensure highest level of transparency and credibility on the financial statements of the organisation enhancing the borrowing capacity and the Goodwill of the organisation within the industry (Vitollaet al., 2020). In respect to smiles Limited new organisation has undertaken integrated reporting in terms of the accounting system of the organisation in order to ensurehighest possible transparency to the internal and external stakeholders so that it facilitates in undertaking informed and aware decisions for long-term collaboration and economic growth.

The evaluation in to the financial statement of 1300 Smiles Limited effectively provide start the management has appropriate he communicated relevant information such as revenue from the ordinary and primary business activity of the organisation and the profit and loss for the same during the specific period of time (Pärl et al., 2020). The organisation has effectively communicated that during the previous financial year it has generated approximately $ 39800000 from ordinary organisation activities. Along with reporting the revenue generated from operating activities in order to facilitate integrated reporting the management of the organisation has also communicated the percentage change in revenue in comparison to the previous year of operation.

Secondly the accounting statement of Smiles Limited also provide appropriate information in relation to the final and indirect dividend paid by the organisation in accordance with the concept and principle of integrated reporting. As the contract of integrated reporting effectively provides at the management of the organisation must effectively disclose all material organisation activities, the management of 1300 Smiles limited has also provided information’s in relation to the franked amount per share of the organisation which stands at 100% (Caglio et al., 2020). Appropriate disclosure of final and interim dividend and record date of the payment of dividend helps in effectively determining the eligibility and entitlement of the dividend ensuring transparent reporting.

With the help of appropriate and effective application of integrated reporting for accounting within the operating structure of 1300 Smiles Limited in the organisation also provides a declaration in respect to the overall financial results for the specific financial year (La Torre et al., 2020). With the help of integrated reporting of accounting statements, the management and the external stakeholders of the organisation can ensure appropriate adherence to the accounting standard and other provisions which is helpful in terms of providing appropriate information for decision-making to the external stakeholders along with the identification of weaknesses to the internal management team.

With the help of integrated reporting of accounting statements within 1300 Smiles Limited the organisation is able to effectively prepare a consolidated financial statement which provides comprehensive information’s in respect to the overall business operations of the organisation (Cerbone and Maroun, 2020). Integrated reporting also helps the management of the organisation to sum up all the different type of organisation activities and provide a comprehensive information to the users for information to the users which is capable of providing appropriate knowledge and understanding.

Lastly help of the system of integrated reporting the management of the organisation is able to communicate a wide variety of information to both the external and internal users within a specific document without preparing specific documentations for specific organisation operations. For example, with the help of integrated reporting the management of 1300 Smiles Limited is able to effectively prepare the annual report of the organisation which provides statements including consolidated balance sheet, Council statement of income, statement of changes in equity, treatment for cash flow and many more (Manes-Rossi et al., 2020). Therefore, as the name suggests integrated reporting employees bringing together a wide variety of organisation and formations within one specific documentation and establishing relationship between the same in order to make them useful for the use of external organisational stakeholders.

Conclusion and recommendation
The overall evaluation into the topic of the assignment effectively provide that it is very important for modern business organisations to effectively implement the process of integrated reporting within the accounting system in order to ensure appropriate communication of valuable organisational information to internal and external stakeholders. It is also identified from the analysis that the organisation 1300 Smiles Limited is a well-established organisation within the dental service industry of Australia and therefore the management of the organisation effectively ideas to the procedure of integrated reporting in order to ensure that all valuable information’s are reported and communicated on timely basis for providing appropriate knowledge and understanding to interested parties and users. Therefore the in-depth analysis into the concept of integrated reporting effectively provide that it is very important for business organisations to apply the same as it provides various benefits including appropriate reporting and communication off positive and authentic information’s in relation to the overall operations and performance of the organisation. Therefore, it is highly recommended for the management of the organisation to effectively adhere to the new policies and structure of integrated reporting. The management of the organisation must also provide appropriate training and development to its existing staff and employees to effectively adhere to the changes incorporated and prepare statements of integrated reporting accordingly.

References
Almagtome, A.H., Al-Yasiri, A.J., Ali, R.S., Kadhim, H.L. and Bekheet, H.N., 2020. Circular Economy Initiatives through Energy Accounting and Sustainable Energy Performance under Integrated Reporting Framework. International Journal of Mathematical, Engineering and Management Sciences, 5(6), pp.1032-1045.

Caglio, A., Melloni, G. and Perego, P., 2020. Informational content and assurance of textual disclosures: Evidence on integrated reporting. European Accounting Review, 29(1), pp.55-83.

Cerbone, D. and Maroun, W., 2020. Materiality in an integrated reporting setting: Insights using an institutional logics framework. The British Accounting Review, 52(3), p.100876.

La Torre, M., Dumay, J., Rea, M.A. and Abhayawansa, S., 2020. A journey towards a safe harbour: The rhetorical process of the International Integrated Reporting Council. The British Accounting Review, 52(2), p.100836.

Manes-Rossi, F., Nicolò, G., Tudor, A.T. and Zanellato, G., 2020. Drivers of integrated reporting by state-owned enterprises in Europe: a longitudinal analysis. Accounting assignment Meditari Accountancy Research.

Obeng, V.A., Ahmed, K. and Miglani, S., 2020. Integrated reporting and earnings quality: The moderating effect of agency costs. Pacific-Basin Finance Journal, 60, p.101285.

Pärl, Ü., Paemurru, E., Paemurru, K. and Kivisoo, H., 2020. Dialogical turn of accounting and accountability integrated reporting in non-profit and public-sector organisations. Journal of Public Budgeting, Accounting & Financial Management.

Vitolla, F., Raimo, N., Rubino, M. and Garzoni, A., 2020. The determinants of integrated reporting quality in financial institutions. Corporate Governance: The International Journal of Business in Society.

Editorial, A. 2021. Benefits of an Integrated Accounting System - Analytix Accounting. Retrieved 14 August 2021, from https://www.analytixaccounting.com/benefits-of-an-integrated-accounting-system/#:~:text=An%20integrated%20accounting%20system%20is,that%20track%20time%20management
%2C%20etc.