The International Integrated Reporting Council (IIRC) and the International Accounting Standards Board (IASB) have signed an agreement to deepen their cooperation on the IIRC’s development of an integrated corporate reporting framework.
The Memorandum of Understanding (MoU), which The Accountant confirmed was going to happen last month, confirms both organisations work towards improving the quality and consistency of global corporate reporting to deliver value to investors and the wider economy.
IASB chairman Hans Hoogervorst said the standard setter supports "the IIRC’s vision of the evolution of corporate reporting, and through this agreement we will cooperate on important areas of mutual interest".
Hoogervorst added that the agreement formalises the strong relationship that exists at multiple levels between the two organisations.
"In ten weeks, the IIRC will publish the draft International Integrated Reporting Framework for consultation. An important part of our work is about creating the conditions for adoption of integrated reporting as a better language for businesses to communicate with their investors, in order to deliver more sustainable value creation and more efficient capital markets," IIRC chief executive Paul Druckman said.
"The IASB has done so much to improve the quality and consistency of financial reporting across the world. Creating a new corporate reporting language that better serves business and investors, and contributes to a more sustainable global economy will be the ultimate prize."
The IIRC draft Framework will be issued on 16 April with the final Framework being published in December this year.