Kuala Lumpur – ACCA (the Association of Chartered Certified Accountants) and the Securities Commission Malaysia (SC) organised a forum on integrated reporting (IR) in partnership with the Malaysian Institute of Accountants (MIA) and International Integrated Reporting Council (IIRC).
The forum was organised to create greater awareness on this subject amongst public listed companies to encourage company representatives to adopt this new way of reporting. Integrated reporting aims to provide stakeholders with greater visibility and understanding of the business to make well-informed decisions, which may increase the companies’ ability to attract capital.
Over 80 representatives from top listed companies attended the half-day event which featured notable speakers such as Paul Druckman, Chief Executive Officer of the IIRC; Mikkel Larsen, Managing Director & Head of Tax and Accounting Policy, DBS Bank Ltd; Chiew Chun Wee, ACCA Head of Policy – Asia Pacific; and Nik Mohd Hasyudeen Yusoff, Executive Chairman, Audit Oversight Board.
Themed “Revolutionising the way we communicate value in Malaysia”, the forum further explained the concept of Integrated Reporting and discussed topical issues around its implementation.
In his keynote address, Paul Druckman said: “Integrated Reporting aims to enable others to understand an organisation’s ability to create value in the short, medium and long-term. The agenda of IR is not the report, but driving changes in thinking.”
The message that resonated at the forum is that IR is not a new invention but an evolution and innovation in corporate reporting which better reflects the realities of today’s economy.
Integrated reporting involves a disclosure of the company’s commitment to the environmental, social and governance agenda. Such commitment by companies is becoming an increasingly important consideration, given the rising trend of socially responsible investing. This is a new form of reporting which will provide a comprehensive picture of the organisation, thus helping management, investors and other stakeholders make better-informed decisions.
Goh Ching Yin, Executive Director of Securities Commission Malaysia, said: “The SC has laid out a roadmap where IR will eventually be integrated into the Malaysian corporate reporting landscape. IR will be market-driven and not mandatory. We see good coming out of IR. We are here to create momentum and to get people and organisations to embrace the concept.”
The framework on Integrated Reporting was launched by the IIRC in December 2013 and with greater appreciation of its benefits, it is hoped that Malaysian PLCs would prepare themselves to move towards the adoption of this form of corporate reporting in the future.