In the current ‘Knowledge Era’ financials do not tell the story behind value creation as they did in the ‘Industrial Era’. Value creation has become even more dependent on intangibles. Empirical research has shown 80% of the value of major enterprises is not on the balance sheet. Therefore, most annual reports do not reflect a ‘real enterprise value’.
Integrated reporting combines financial reporting with other types and channels of reporting that are relevant for closing the gap between real and perceived value of the enterprise to all major stakeholders. So how do you disclose the enterprise value?
Innovating your strategy and business model starts with a common understanding of your current situation. You need to know your starting point before you can move forward. Constantly understanding what is happening in the world around you and the ability of your organization to adjust to your context determines your success.
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