The global evolution of corporate reporting has taken another significant step forward with the recent release of the Consultation Draft of the International Integrated Reporting
The International Integrated Reporting Council (IIRC), which is launching the Framework, is issuing a worldwide invitation to stakeholders to respond to the consultation. The goals of Integrated Reporting are to:
- Achieve a more cohesive and efficient approach to reporting.
- Inform capital allocation decisions.
- Enhance accountability and stewardship.
- Support integrated thinking.
Important features of the Framework include:
- Fundamental concepts, such as the capitals, business model and value creation.
- Guiding principles, such as strategic focus and future orientation, connectivity and materiality.
- Content elements such as organizational overview, opportunities and risks, strategy, performance and future outlook.
The Framework has been developed in a transparent way, with input from businesses, investors, regulators, standard setters, accounting bodies and NGOs. It seeks to build on existing financial and non-financial reporting practices, and responds to two current trends:
- The need for business transparency and responsiveness to stakeholders;
- The need for material information that guides corporate strategy, risk management and resource allocation.
The Framework will now be the subject of extensive consultation until 15 July 2013.
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