IIRC Seeks Comments on Integrated Reporting

In March 2017, the IIRC issued, International <IR> Framework Implementation Feedback: Invitation to Comment (“ITC”).

The purpose of the ITC is to solicit feedback “from those involved with the preparation of integrated reports, providers of financial capital and other users of integrated reports.”

The feedback they seek relates to all matters related to the implementation of the IIRC Framework in preparing integrated reports.

The ITC starts with a basic overview of the nature and purpose of the Framework. Next the ITC explores the various issues of concern and, to frame respondent comments, provides some specific questions about which the IIRC seeks comments.

Following is a brief discussion of some of the more specific questions contained in the ITC.

  1. With respect to the IIRC Framework’s focus on the use of multiple capitals to create shareholder value, the ITC asks:
    • Q1a What is your experience with the multiple capitals approach in integrated reports?
    • Q1b What, if anything, should be done and by whom to improve this aspect of implementation?
  2. Regarding quality of reporting on the connectivity of integrated thinking into an organization’s functional activities particularly with respect to the use of the various capitals to create shareholder value, the ITC asks:
    • Q2a What is your experience with connectivity in integrated reports as an indication of integrated thinking and/or enabler of enhanced decisions?
    • Q2b What, if anything, should be done and by whom to improve this aspect of implementation?
  3. On the issue of integrated reports providing key stakeholders, mainly investors and potential investors, with the information necessary to understand the use of capital to create shareholder value, the ITC asks:
    • Q3a What is your experience with the identification, in integrated reports, of key stakeholders’ legitimate needs and interests and how those needs and interests are considered and addressed?
    • Q3b What, if anything, should be done and by whom to improve this aspect of implementation?
  4. On the issue of determining the information to include in an integrated report, the ITC asks:
    • Q4a What is your experience with the Framework’s definition of materiality: (a) Application of the value creation lens? (b) Use of different time periods to identify material matters?
    • Q4b What, if anything, should be done and by whom to improve this aspect of implementation?
  5. Regarding the length and breadth of integrated reporting, the ITC asks:
    • Q5a What is your experience with the conciseness of integrated reports?
    • Q5b What, if anything, should be done and by whom to improve this aspect of implementation?
  6. With respect to providing information about an entity’s business model, the ITC asks:
    • Q6a What is your experience with the reporting of business model information, particularly outputs and outcomes?
    • Q6b What, if anything, should be done and by whom to improve this aspect of implementation?
  7. On the involvement of the Board of Directors/those charged with governance of an organization, the ITC asks:
    • Q7a What is your experience with whether reports: (i) identify the involvement of those charged with governance, and (ii) indicate that they are presented in accordance with the Framework? What are the implications of excluding such information?
    • Q7b What, if anything, should be done and by whom to improve these aspects of implementation?

There are several additional questions.  They address broader reporting issues such as the quality of integrated reports on other guiding principles, remaining content elements, and incentives, enablers and barriers to implementation of the IIRC Framework.

The ITC can be downloaded from the IIRC website at: http://integratedreporting.org/invitation-to-comment/

Comments on the ITC are due no later than April 30, 2017.

Advertisements

About docjonz

I am an Associate Professor of accounting at Hofstra University in Hempstead, NY. Additionally, I have more than 30 years of professional accounting experience in various capacities including auditing, accounting standard setting and corporate accounting policy.
This entry was posted in Accountant, Corporate Governance, General Business, IIRC, Integrated Reporting, Sustainability and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s