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Integrated Accounting Reporting

The International Integrated Reporting Council (IIRC) calls integrated reporting, “a process that results in communication by an organization, most visibly a periodic integrated report, about how an organization’s strategy, governance, performance, and prospects lead to the creation of value over the short, medium and long-term”.

That’s a mouthful! Think of integrated reporting as an enhancement which presents additional information. 

Areas where additional information is covered:

Company strategy

  • Governance
  • Performance
  • Stewardship
  • Value Creation

Ideally, integrated reporting builds upon an existing financial reporting model.

One of the goals of integrated reporting is to meet the informational needs of stakeholders who are asking companies to provide clear information on drivers that affect business performance.

Some of the areas of additional informational needs may be:

  • Political
  • Regulatory
  • Social
  • Environmental
  • Risk
  • Changing business models

In response to these stakeholder demands the IIRC is developing an integrated reporting template.

PWC reports that companies embarking on the integrated reporting journey view it as a change process enabling them to think differently about their businesses. Among the benefits they’ve realized:

  • Strengthened financial reporting across business activities
  • Enhanced internal collaboration
  • Increased internal and external communications.

Look for more discussion and adoption of integrated reporting in the coming months.