Value Creation, Distribution, and Integrated Financial Reporting

Indian Accounting Review, Vol. 21, No. 1, June 2017

18 Pages Posted: 10 May 2017 Last revised: 16 Jun 2017

See all articles by Shyam Sunder

Shyam Sunder

Yale University - School of Management; Yale University - Cowles Foundation

Date Written: June 2017


This paper presents a theoretical rationale and framework for expanding or supplementing the current versions of financial reporting in various economies under the label of Integrated Financial Reporting (IFR) for business and non-business organizations. IFR, modeled on the lines of national income accounts (NIA), is distinguished from financial reporting in two key respects: (1) expanding its focus to include resource flows to and from shareholders as well as other participants, and (2) shifting the focus from gross resource flows to net (economic) surplus accruing to each participant or class of participants. The value of the firm to each participant would be the capitalized value of the net resource flows to each participant, and the value of the firm as a whole will be the sum of its value of all participants. Such an integrated system of reporting will furnish better data for corporate, governance, regulatory, and macro-economic decision making.

Keywords: factor income distribution, extensive value, surplus

JEL Classification: D33, L21, M21, M41

Suggested Citation

Sunder, Shyam, Value Creation, Distribution, and Integrated Financial Reporting (June 2017). Indian Accounting Review, Vol. 21, No. 1, June 2017. Available at SSRN: or

Shyam Sunder (Contact Author)

Yale University - School of Management ( email )

165 Whitney Avenue
P.O. Box 208200
New Haven, CT 06520-8200
United States
203-432-6160 (Phone)


Yale University - Cowles Foundation

Box 208281
New Haven, CT 06520-8281
United States

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