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June 7, 2012

IIRC to issue Integrated Reporting framework in 2013

The International Integrated Reporting Council (IIRC) has confirmed it plans to publish the first ever International Integrated Reporting Framework (IIRF) by the end of 2013.

The IIRC is currently running a pilot programme with more than 70 organisations and 20 investors from around the world who are testing the principles, content and practical application of integrated reporting to help in IIRF’s development.

The aim of the IIRF is to help ensure consistent reporting by organisations and provide broad parameters for policymakers, regulators organisations, their investors, and other stakeholders. As well as to ensure information is provided in a clear and concise manner helping them to make better short-and long-term decisions.

IIRC has also issued a summary of the responses it received to its discussion paper launched in September 2011 to gather feedback on this new approach to reporting.  The consultation considered the rationale behind the move towards integrated reporting, offered initial proposals for the development of an IIRF and outlined possible next steps towards its creation and adoption.

Its purpose was to prompt input from all those with a stake in improved reporting including producers and users of reports.

Benefits of integrated reporting

The IIRC said responses clearly showed stakeholder support in developing the next step of the IIRC framework, including topics such as materiality, the concept of value and the business model.

Despite the high level of support for the benefits of integrated reporting among the 214 respondents from across 30 countries, many highlighted the concern that an idealistic or overly ambitious view of the benefits of integrated reporting had been presented in the consultation.

The main concerns were related to regulatory challenges, developing suitable assurance techniques, building capacity within the entire reporting system, and addressing director liability issues.

IIRC chief executive Paul Druckman admitted that understanding how companies create sustainable value from their published reports can still be difficult. 

“What the Integrated Reporting Framework will do for the corporate reporting process is to enable investors and other stakeholders to better understand the ways in which companies create sustainable value,” Druckman said.

 

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