The International Integrated
Reporting Committee (IIRC) has launched its first consultation on
integrated reporting.
Towards Integrated
Reporting – Communicating Value in the 21st Century considers
the grounds for integrated reporting, offering initial proposals
for the development of an international integrated reporting
framework (IIRF) and outlining the next steps towards its creation
and adoption.
An IIRF exposure draft will
be developed on the back of responses and issued in 2012.
The IIRC will also begin a
pilot programme of pre-picked companies in October to road test
integrated reporting. The aim is to encourage companies to
experiment and be innovative in their use of integrated
reporting.
IIRC working group
co-chairman Paul Druckman told The Accountant there has
been tremendous support for integrated reporting from the main
investor groups including ICGN and the Corporate Governance
Network, who represent most of the investors around the world.
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By GlobalData“The discussion paper is
focused around the interest of the investor community,” Druckman
said.
“The key thing is we want
responses from the paper but the pilot programme, which launches in
October with 50 iconic companies around the world, will also help
us along with an investor group to develop the framework.”
IIRC deputy chairman Mervyn
King said the IIRC’s approach will present a globally coordinated
solution to reporting, avoiding the current problems with reporting
requirements in different jurisdictions developing in different
directions and at different speeds.
“Integrated reporting
reduces the compliance burden and enables more effective decision
making for investors,” King said.
Druckman said the future
challenges for the integrated reporting lie in the audit and
insurance professions.
“The current route of
auditing of mainstream accounting is going to be very difficult to
move into integrated reporting; it needs innovation and a different
thought process. It’s interesting talking to the top of profession
as they understand it and they tend to be very understanding of
looking into that,” he explained.
The deadline for comment on
the discussion paper is 14 December.
