Social and Environmental Determinants of Risk and Uncertainties Reporting

Abstract

Recently, risk reporting has gained interest in financial reporting practice, regulation, and internationalresearch. Social and environmental reporting is seen to benefit shareholders more byreducing risk than by increasing return. The researchers showed that the annual report is themost favoured channel of disclosure, along with presentation to investors. The general messageis that, as far as annual reports go, quantified, verifiable disclosures have the most credibilityand relevance. Our paper is meant to develop an analysis of specific requirements regardingrisks and uncertainties reported into the financial statements according to different standards(US-GAAP, IFRS, and European Directives) and their connection to social and environmentalinformation that an entity should disclose. We focus on fundamental research that is related toinductive accounting theory and uses scientific methods for identification of corporate reportingtheoretical and practical difficulties in European and international economic entities. Copyright © www.iiste.org