IR - the nuts and bolts

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. The International Integrated Reporting Council (IIRC) has recently released a framework for integrated reporting. This follows a three-month global consultation and trials in 25 countries. What is the purpose of the integrated report?

  2. An integrated report benefits all stakeholders interested in a company`s ability to create value, including employees, customers, suppliers, business partners, local communities, legislators, regulators and policy-makers. For consistency it can be argued that there is a need for a check list approach to be adopted. What is the view of the IIRC as regards the benchmarking and checklist approach?

  3. Integrated reporting is built around the several key components. Which of the following components is not a specific element referred to in the integrated report?

  4. The vision is that preparers will pull together relevant information already produced to explain the key drivers of their business's value. Information will only be included in the report where it is material to the stakeholder`s assessment of the business. What were the concerns over the use of the word `material` in this context?

  5. The integrated report aims to provide an insight into the company`s resources and relationships which are known as the capitals and how the company interacts with the external environment and the capitals to create value. These capitals can be financial, manufactured, intellectual, human, social and relationship, and natural capital. What does the Framework recommend as regards the classifications of these capitals?

  6. There are certain countries who have been acknowledged as among the leaders in this area of corporate reporting with many listed companies and large state-owned companies having issued integrated reports. Which country/institution has led the way in integrated reporting?

  7. An integrated report may be prepared in response to existing compliance requirements. Which of the following is unlikely to be considered for use for integrated reporting?

  8. The IIRC considered the nature of value and value creation. These terms can include the total of all the capitals, the benefit captured by the company, the market value or cash flows of the organisation and the successful achievement of the company`s objectives. What is the conclusion reached by the Framework as regards the definition of value?

  9. Many respondents felt that there should be a requirement for a statement from those `charged with governance` acknowledging their responsibility for the integrated report in order to ensure the reliability and credibility of the integrated report. What was the IIRC`s view of this view?

  10. There were concerns over the ability to assess future disclosures, and recommendations were made that specific criteria should be used for measurement, the range of outcomes and the need for any confidence intervals be disclosed. What was the IIRC`s response to the above concerns?