Business model in management commentary and the links with management accounting

By | 2017-12-27T17:38:35+00:00 December 27th, 2017|

Cinquini Lino, Tenucci Andrea/ Financial ReportingRiviste / Fascicolo: 3-2011


Management commentary (MC) is a non mandatory narrative report that provides a context within which to interpret the financial position, financial performance and cash flows of an entity to associate to the financial statement. Within the framework of MC, the paper focuses on the role of the “business model” in supporting information required by MC section “nature of the business”. Furthermore the potential role of Management Accounting in providing the managerial financial and non financial information to improve the quality information on the “nature of the business” is explored.

Keywords: Business model, management accounting, management commentary


 

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Business Model Literature Overview

By | 2017-12-27T14:19:08+00:00 December 27th, 2017|

Novak Ales/ Financial ReportingRiviste / Fascicolo: 1-2014


The term “business model” has recently attracted increased attention in the context of financial reporting and was formally introduced into the IFRS literature when IFRS 9 Financial Instruments was published in November 2009. However, IFRS 9 did not fully define the term ‘business model’. Furthermore, the literature on business models is quite diverse. It has been conducted in largely isolated fashion; therefore, no generally accepted definition of ?business model’ has emerged. Therefore, a better understanding of the notion itself should be developed before further investigating its potential role within financial reporting. The aim of this paper is to highlight some of the perceived key themes and to identify other bases for grouping/organizing the literature based on business models. The contributions this paper makes to the literature are twofold: first, it complements previous review papers on business models; second, it contains a clear position on the distinction between the notions of the business model and strategy, which many authors identify as a key element in better explaining and communicating the notion of the business model. In this author’s opinion, the term ‘strategy’ is a dynamic and forward-looking notion, a sort of directional roadmap for future courses of action, whereas, ‘business model’ is a more static notion, reflecting the conceptualisation of the company’s underlying core business logic. The conclusion contains the author’s thoughts on the role of the business model in financial reporting.

Keywords: Business model, literature overview, meaning of the term, strategy


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Put Your Money where Your Mouth is: The Difference between Real Commitment to Sustainability and Mere Rhetoric

By | 2017-12-22T10:26:32+00:00 December 21st, 2017|

Bini Laura, Bellucci Marco, Giunta Francesco/ Financial ReportingRiviste / Fascicolo: 2-2016


Companies exhibit growing interest in sustainability rhetoric. Such an interest is alternatively justified by a company’s need to address legitimacy instances, rather than to satisfy stakeholders’ requests about its sustainability performance. Whatever the case, a main debated issue concerning sustainability rhetoric deals with the difficulties in understanding whether companies’ commitment towards sustainability is “real”, or it only consists of “empty words” that hide opportunistic strategies. Our paper contributes to this debate, proposing a methodological approach, which is based on a company’s business model (BM) representation. We argue that the inclusion of adequate sustainability information in a company’s BM representation can testify to a real company’s engagement, as it illustrates how sustainability affects its value creation process. Compared to extant methodological proposals, mainly based on linguistic analyses, our approach does not require specific competences to be applied. Moreover, it saves user’s time, as it allows the assessment of entire company’s sustainability rhetoric through the analysis of the information reported in its BM. Our approach is consistent with previous contributions that propose a company’s BM as a representation device able to illustrate strategic information that cannot be represented in the traditional corporate reporting. Our approach proposes a possible answer to address the challenges faced by regulators and standard setters involved in the regulation of sustainability disclosure. Such approach has found a first step of implementation in the UK, where since 2013, listed companies are requested to describe their BM in Strategic Reports.

Keywords: Sustainability rhetoric, business model, corporate social responsibility, non-financial disclosure, mining industry


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