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The purpose of the finance function
Integrated reporting
The demands placed on the finance function have grown in recognition of
significant sustainability challenges.
Many organisations now monitor not only their financial performance but also
their environmental and social performance.
Some companies issue a separate sustainability report in addition to their
annual financial report. However, this can be very selective in only
communicating the good news and obscuring the bad. To tackle this problem, a
new approach called integrated reporting is being recommended.
With integrated reporting, instead of having environmental and social
issues reported in a separate section of the annual report or in a
standalone sustainability report, the idea is that one report should
capture the strategic and operational actions of management in the
integration of financial wellbeing with community and stakeholder
wellbeing.
The International Integrated Reporting Council (IIRC) seeks to secure the
adoption of integrated reporting by report preparers and sets out a framework of
guiding principles and content elements.
Illustrations and further practice
Read illustrations 2 and 3 from Chapter 4.
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