Non-Financial Reporting

This chapter explores the scope and fundamental purpose of non-financial reporting, outlining its main formats and the evolution of disclosure practices, particularly regarding the business model. It also addresses several key questions: (1) Can non-financial reporting eventually replace or supplement financial reporting by addressing its limitations? (2) Does it meet stakeholders’ information needs? (3) Do financial markets respond to non-financial disclosures? (4) What distinguishes a high-quality non-financial report, and are there measurable indicators of such quality? (5) Is non-financial reporting considered in the assessment of financial condition? (6) How does it influence decisions in financial markets?