Page 202 - Microsoft Word - 00 P1 IW Prelims.docx

Chapter 15

5.4 Integrated reporting (<IR>)

Integrated Reporting (<IR>) is seen by the International Integrated
Reporting Council (IIRC) as the basis for a fundamental change in the
way in which entity's are managed and report to stakeholders.

The <IR> Framework sets out the purpose of an integrated report as
follows:

 "The primary purpose of an integrated report is to explain to
providers of financial capital how an entity creates value over time.

 An integrated report benefits all stakeholders interested in an
entity’s ability to create value over time, including employees,
customers, suppliers, business partners, local communities,
legislators, regulators, and policymakers."

Objectives for integrated reporting:

 To improve the quality of information available to providers of
financial capital.

 To provide a more cohesive and efficient approach to corporate
reporting that draws on different reporting strands and
communicates the full range of

 To enhance accountability and stewardship for the broad base of
capitals (financial, manufactured, intellectual, human, social and
relationship, and natural

NB the categories of capital are not required to be adopted in preparing an entity’s
integrated report, and an integrated report may not cover all capitals – the focus is on
capitals that are relevant to the entity

 To support integrated thinking, decision making and actions that focus on the
creation of value over the short, medium and long term

196