Theoretical Foundations of the Relations between Controlling and Reporting according to IFRS
Theoretical Foundations of the Relations between Controlling and Reporting according to IFRS

Summary/Abstract: In this paper, the unilateral and reciprocal impact of transfer relations between controlling and reporting according to IFRS is analysed, using the example of internal and external segment reporting. In contrast to the pragmatic treatment of this problem by the International Accounting Standards Board (IASB), the transfer relations are examined in this paper on a theoretically substantiated basis. For this purpose, transfer hypotheses are formulated as general statements on the determinants and effects of reporting. They form the elements of a reporting theory. The analysis focuses on the full management approach, which has a number of effects for the transfer relation between internal and external segment reporting. In detail, on the basis of transfer hypotheses, the effects for controlling, for the structure of segment reporting, and for the auditing of segment reporting are presented and analysed. As the IFRS do not constitute a settled system of rules, open questions as to such a body of rules are also discussed. In doing so – also on the basis of transfer hypotheses – alternatives of the improvement of segment reporting are analysed. This is done with the aid of reliability hypotheses, valuation hypotheses, simplification hypotheses, steering hypotheses and addressees hypotheses. In this way, the theoretical substantiation of the transfer relations between controlling and reporting according to IFRS is scientifically established, both for the present structure of accounting and for future design alternatives.

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