Value Creation Reporting: Answering the Question ‘Value to Whom’ according to the International Integrated Reporting Framework The principal function of integrated reporting is the reporting of value and this phenomenon seems the most philosophical part of the International <IR> Framework. This paper discusses what the value concept refers to in the Framework: Value to investors, value to society or value to present and future generations? In this sense, we try to answer this question by highlighting the dynamics of capital formations according to interrelations between capitals and demonstrating the value creation process in the short, medium, and longer term. We show that (1) „profit” is the result of short term value creation, which indicates the „value to value chain stakeholders”, (2) „expected fair value of equity” represents the „value to investors” and (3) „longer term value” represents the „value to society” according to the International <IR> Framework. Additionally, we touch on the inadequacies of the current Framework and suggest future research opportunities within the scope of value creation reporting. To our knowledge, this study is the first to provide a detailed framework on the dynamics of capitals usage and it attempts to show the intersection of accounting and finance in terms of value creation reporting.

Endüstri devrimleri maliyetin kapsamını etkileyerek farklı maliyetleme yaklaşımlarını ortaya çıkarmıştır. Endirekt giderlerin artması, geleneksel maliyetlemeden faaliyet tabanlı maliyetlemeye geçişi hızlandırmış ve günümüzde faaliyet odaklı maliyet kontörlü stratejik bir yönetim aracı haline dönüşmüştür. Yakın gelecekte, iş süreçlerinin siber fiziksel sistemler aracılığıyla yürütüleceği beklenmekte ve karanlık fabrikalar dijital olarak bütünleşmiş değer zinciri unsurlarının en önemli maddi varlıklarını oluşturacaktır. Bu çalışma teknolojik ilerlemelerin maliyet ve maliyet kontrolü üzerindeki olası etkilerini tartışmaktadır. Diğer bir deyişle, yakın gelecekte maliyet ve yönetim muhasebesi uygulamalarının hızla değişeceği iddiasını gerekçelendirmektedir.

History is the main backbone of understanding the reasons behind developments, and sustainability re-porting is one of the most important developments in accounting. In this sense, the purpose of this study is to provide a chronology of the historical development of sustainability reporting. The historical re-search method with a periodic approach was applied. This paper divides the development history of sustainability reporting into three main periods: the pre-standardization period, between 1962 and 1998, the standardization (institutionalization) period, between 1999 and 2016, and the post-standardization period, which started after 2016. In addition, based on events, three sub-periods are defined for the pre-standardization period. This paper is one of the rare studies in the literature that identifies the chronologi-cal process of sustainability reporting’s historical development.

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In this paper, we present the evolution of integrated reporting and organizations playing an active role in this process. As a result of the changes, corporate reports including only historical inancial information have become insuicient. It has started to be important for the irms to be sensitive towards environment, social capital and governance. For these reasons, authorities started to search for new reporting types. Their aim was to form a report giving detailed (prospective and retrospective) information about the total performance of the irm. Sustainability reports, the starting point of integrated reporting, were established and Global Reporting Initiative (GRI) standards were formed to increase the popularization. Integrated reports aim to supply full disclosure about the irms' strategies, goals and performances. They also respond to the demands and needs of key stakeholders. In order to actualize the inancial stability and sustainability, they are necessary. Integrated reports also put related groups into play. So, decision makers become a participant instead of watching the system from outside. In addition, integrated thinking philosophy provides systematic disclosure of value creation, namely how organizations made resource allocations in the past and how they will create value in the future according to their business models.