Business Model in Organizational Reporting

This chapter defines the business model and its core components, presenting arguments both for and against its incorporation into the accounting and reporting conceptual framework. The chapter highlights the importance of the business model as a disclosure item in non-financial reporting, providing insights into: (1) The organization&s;s business logic – how it creates value for customers, stakeholders, and capital providers. (2) The capital resources utilized in operations. (3) The impact of key external and internal factors on the organization. (4) Intended outcomes of organizational activities. (5) The value chain and the organization&s;s market position. (6) The chapter reviews applicable guidelines and regulations and discusses the integration of ESG considerations into business model disclosures.