The IIRC’s publication of its Integrated Reporting Framework has won praise from the accounting world.
The framework does what it promises, bringing together all of a business’s material information into one, outlook-focused document, CFO World editor Michelle Perry says. She says the past few years – with sudden, catastrophic incidents such as BP’s 2010 Gulf of Mexico oil spill – show how “seemingly non-business related issues” can affect a company’s financials. Integrated reporting is therefore an idea whose time has come.
The American Institute of CPAs and Association of Chartered Certified Accountants said the framework will help companies to better explain how they create and sustain corporate value. ACCA chief executive Helen Brand said that ultimately, she hopes IR will restore trust in business.
KPMG agreed that the framework could help businesses shift their reporting focus from short-term financial performance to long-term value creation, Compliance Week reports. The audit and consulting firm expects the framework will prove most attractive as a way for companies to develop existing narrative reporting – rather than as an impetus to create an extra report.
Takeaway: Accounting leaders have praised the new Integrated Reporting Framework as a means to long-term value creation, and a way of fully capturing all material information relevant to the business.
Tamar Wilner is Senior Editor at Environmental Leader PRO.