Understanding reporting boundaries in annual reports: a conceptual framework
Accounting, Auditing & Accountability Journal
ISSN: 0951-3574
Article publication date: 24 December 2021
Issue publication date: 30 May 2022
Abstract
Purpose
The purpose of this paper is to enhance conceptual understanding of reporting boundaries in corporate annual reports by developing a conceptual framework of the rules and principles, referred to here as dimensions, underlying boundaries. A total of nine contemporary regulations/guidelines are compared in terms of the boundary dimensions identified to illustrate similarities and differences in boundary concepts.
Design/methodology/approach
To develop a conceptual framework of reporting boundary dimensions, academic and industry literature were analysed to identify boundary dimensions. Thereafter, nine contemporary regulations/guidelines were compared in terms of these dimensions. A qualitative approach was taken including document analysis and content analysis.
Findings
A total of 10 key boundary dimensions were identified through analysis of academic and industry literature. Each dimension represents a continuum along which regulations/guidelines can position themselves. Taken together, the 10 dimensions provide a comprehensive description of the chosen boundary concept.
Originality/value
The paper contributes to accounting theory by providing a holistic conceptual framework of dimensions relating to reporting boundaries, thus answering calls for more conceptual development of the boundary construct. The conceptual framework and comparison of contemporary regulations/guidelines adds to scarce literature considering financial and non-financial boundaries simultaneously, which is relevant for annual reports. From a practical perspective, the paper brings renewed visibility to boundaries with implications for preparers, users, standard setters and auditors of annual reports.
Keywords
Acknowledgements
The authors would like to thank the two anonymous reviewers who offered in-depth and insightful comments that were valuable to the development of the paper.
Citation
Bayne, L. (2022), "Understanding reporting boundaries in annual reports: a conceptual framework", Accounting, Auditing & Accountability Journal, Vol. 35 No. 5, pp. 1316-1348. https://doi.org/10.1108/AAAJ-01-2020-4387
Publisher
:Emerald Publishing Limited
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