Question

What are the difference betweet integrated reporting and balance scorecard?

Answer 1

Integrated reporting is a presentation of financial reports in a manner to explain the stakeholders as to how the company has created value for them over time. On the other hand balance scorecard approach uses the aspects of business, business processes, customers and learning and growth, the typical areas of a balance scorecard to provide management insights in to financial and non financial performance. The major goal of integrated reporting is to emphasize on value addition over time and provide a comprehensive view of the allocation of capital. On the other hand a balanced scorecard approach aims to present to the stakeholders the financial as well as non financial aspects of reporting and explain how various relationships are critical for the business to function.