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).
- ends -
For more information, please contact:
Alana Sinnen, ACCA Newsroom
+ 44 (0) 207 059 5807
+44 (0) 7715 812120
Helen Thompson, ACCA Newsroom
+44 (0)20 7059 5759
+44 (0)7725 498654
Notes to Editors
- 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.
- The Consultation can be found here: http://www.theiirc.org/consultationdraft2013/
- ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
- We support our 154,000 members and 432,000 students in 170 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of over 80 offices and centres and more than 8,400 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.
- Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.