Integrated reporting is widely seen as the biggest change in corporate reporting in decades. Many in the accounting and business world hear the term and perhaps wonder what it means.
What is Integrated Reporting <IR>?
Integrated Reporting is intended to improve communication between companies and capital markets. It widens the scope of corporate reporting to provide a wider range of information.
An Integrated Report provides financial and non-financial information of a company’s strategy, performance and governance in its business and social context, in a way that highlights the interdependencies of the information.
The Integrated Report enables an organization to explain their business model and how they intend to create value over the short, medium and long term.
The release of the International Integrated Reporting Framework in December 2013 marked an important step in the development of <IR>. The Framework will be used to accelerate the adoption of <IR>. IR is currently being trialed in over 25 countries, 16 of which are members of the G20.
The role of The International Integrated Reporting Council (IIRC)
The International Integrated Reporting Council (IIRC) is the global authority on integrated reporting <IR>.
The IIRC comprises a global coalition of regulators, investors, companies, standard setters, the accounting profession and non-governmental organisations. It is chaired by Professor Mervyn King and Paul Druckman is Chief Executive Officer.
The IIRC mission is to: enable integrated reporting to be embedded into mainstream business practice in the public and private sectors.