Tel: +44 (0)20 7882 8570
Location: Mile End, Bancroft Building, Room 4.23
1st Supervisor: Professor Colin Haslam
2nd Supervisor: Dr Nick Tsitsianis
"Implications of business models for corporate reporting"
Corporate reporting was initially developed to provide information for prospective and existing shareholders with information about the performance and position of the company, principally through the financial statements.
Since the nineteenth century the business model of the firm has continued to evolve, but the reporting framework has failed to keep pace with those changes. Notions of "performance" and "position" are socially constructed and expectations have significantly changed whom corporate reporting is for and what it should be about.
This project traces the development of the “reporting entity” as a concept, based on various notions of the "firm" in the economics literature through to contemporary understandings in accounting and law. The role of the business model is considered in detail using empirical research on the inherent “business model” within the financial statements and broader understandings of the business model within the business.
The research considers the implications of business models for corporate reporting, including the conceptual framework for financial reporting and whether the concept is relevant for corporate reporting.
The policy relevance of this research is that investors and other stakeholders rely on corporate reporting as a principal source of information for making and evaluating resource allocation decisions. A better understanding of how that information can be better aligned to explain the value creating processes within a business is likely to support more informed and economically efficient decision-making and assist directors of a company in discharging their stewardship obligations.
Abela, M., Barker, R. Sommer, R. & Teixeira, A. (2014) Towards a New Conceptual Framework: Presentations at the Accounting in Europe and European Accounting Association Financial Reporting Standards Committee Symposium, Accounting in Europe Vol. 11, Iss. 2, 2014
Abela, M. & Mora, A. (2012) Understanding the Consequences of Accounting Standards in Europe: The Role of EFRAG, Accounting in Europe Vol. 9, Iss. 2, 2012