ACCA believes the <IR> Framework will be a significant step forward in corporate reporting. At the heart of <IR> is a focus on communicating how an organisation creates value for the long term, which is especially relevant to today’s global economy. This will mean organisations report more widely on how they employ a full range of capitals, including financial, human, natural and societal capital. This is especially essential to explain how 21st century organisations can be run as sustainable businesses.
Investors should also note the emphasis in the framework on communicating information on the factors which might affect future performance, as well as on materiality assessments. These have the potential to increase the credibility of company reporting, by ensuring that the issues addressed in reports are those which are most material to a full understanding of the organisation’s performance and prospects.
ACCA Chief Executive Helen Brand OBE, who is a member of the IIRC Council, said: 'ACCA welcomes this important consultation, which enables stakeholders to play a significant role in developing a new corporate reporting model for the future. Having already produced our own annual report last year using the <IR> principles, we have seen the value this can bring to us as an organisation and to those who rely on our reporting.
'We believe <IR> provides an opportunity for leadership and innovation in the accountancy profession. But it is equally important that reporting organisations and the investor community play a significant role in the consultation since they can ensure their views are heard and that key issues which they might identify can be addressed at an early stage.'
Helen Brand concluded: 'This consultation presents an excellent chance for all those with a stake in corporate reporting to shape its future, and we urge them to take it.'
The IIRC has issued the Consultation Draft of the International Integrated Reporting Framework and is inviting organisations to respond by 15 July 2013 to ensure that its work and the reporting framework it will subsequently produce continue to reflect the needs of the increasingly complex and demanding global market.
<IR> is designed to bring together all the material information about an organisation’s strategy, governance, performance and prospects so that it reflects the commercial, environmental and social contexts in which the business works. It is also hoped that <IR> will bring about a more integrated approach to performance at the board level, to drive consistency between internal decision making and external reporting.
ACCA will be responding to the consultation in full, and will produce its 2012/13 annual report as an integrated report. ACCA will also be participating in a range of events to support the consultation process including co-hosting a non-financial reporting conference with Deloitte and Lodestar in the UK, and participating in roundtables organised by the UK’s Consultative Committee of Accountancy Bodies (CCAB).
- To see details about the non-financial reporting conference hosted by ACCA with Deloitte and Lodestar, see the 'Related Links' section, left of this article.