ABSTRACT
This chapter illustrates how companies effectively identify and define reporting boundaries. Traditionally, the external auditors' statutory role has been to report on the financial statements. Following the prescriptions proposed by the standards, frameworks and guidelines for the setting of reporting boundaries in financial and non-financial reporting, the chapter highlights the main approaches adopted by companies in their organisational practice. It presents five case studies which can be seen as exemplary, but not necessarily exhaustive, of the main trends that characterise practice evidence. The analysis is based on company documents mainly annual, sustainability and integrated reports, as well as interviews with representatives from the companies responsible for the reporting process. The chapter examines two themes that are particularly sensitive for professionals in their assessment of reporting boundaries the 'reporting entity' and 'materiality'. 'Materiality', according to the International Accounting Standards Board, is an entity-specific aspect of the qualitative characteristic of 'relevance'.
