ABSTRACT
This chapter revises the most important literature on non-financial reporting. The scarce capability of financial information to report intangibles, which are considered the most important source of value for a business in modern economies, has led investors to demand for non-financial information. The need to be accountable towards different stakeholder categories and to show how value is created for stakeholders has drawn companies’ attention to sustainability information. Academic scholars have investigated the level of non-financial disclosure, its determinants, and its consequences, emphasising opportunities and challenges related to an enhanced communication model. Regulators have shown interest in this topic as well, as demonstrated by the most recent non-financial regulations. However, a potential limitation of non-financial disclosure is related to its capability to inform users about the role that different intangible items play in value creation. In this context, the concept of business model has gained popularity in the corporate reporting field as a concept that is able to offer a platform to depict the value creation process of a business.
