Perspectives of Financial Reporters and Institutional Investors Regarding Non-Financial Reporting and Sustainability Frame-works (Case Study in Indonesia)
Dimaz Prayogi, Elvia Rosantina Shauki

Universitas Indonesia

Abstract

IFRS has announced the establishment of the International Sustainability Standards Board (ISSB), which will develop a comprehensive global basis of high-quality sustainability disclosure standards to meet the information needs of investors. A problem arises regarding how harmonization can be done if financial statement preparers and institutional investors have different perspectives on sustainability reporting. Regarding this issue, the researcher wants to explore the different perspectives of financial statement preparers and institutional investors on non-financial reporting and sustainability frameworks in Indonesia. Online surveys and online interviews have been distributed to assess why the perspectives of financial statement preparers and institutional investors differ. A total of 78 questionnaire respondents and 5 interview respondents became respondents in this study. The results found that the constraints faced by financial statement preparers were limited time, limited costs, and limited human resources in the preparation of non-financial reports. Institutional investors say that there are still many companies they fund that do not have good financial reports. The results also indicate that there is a decoupling practice.

Keywords: Harmonization, Environmental, Social and Governance Reporting (ESG Re-porting), Sustainability Reporting, Fragmented Non-Financial Reporting

Topic: Accounting