Integrated Corporate Reporting Gains Wider Acceptance
(3BL Media/Justmeans) – With a growing global focus on corporate sustainability, integrated reporting has emerged as a powerful tool to enhance corporate accountability, stewardship and trust. Integrated reporting provides investors with the information they need to make more effective capital allocation decisions and facilitate better long-term investment returns.
Integrated reporting has now received a significant endorsement from the International Federation of Accountants (IFAC), which says that an integrated report can be used as an ‘umbrella’ report for an organization’s broad suit of reports and communications, enabling greater interconnectedness between different reports.
The IFAC has released a paper that says that integrated reporting is the way to achieve a more coherent corporate reporting system. Commenting on this announcement, Richard Howitt, CEO of the International Integrated Reporting Council (IIRC), said that IFAC has both adopted this new position and recognized the leadership role professional accountants can play in advancing it. The IIRC wants to continue to work closely with IFAC and theaccountancy profession worldwide to ensure integrated reporting becomes the global norm for business.
In another recent development, the Securities and Exchange Board of India (SEBI) has asked the top 500 Indian companies to adopt integrated reporting. The IIRC has welcomed this announcement by saying that this action by SEBI puts corporate reporting at the center of the current story of innovation and reform in the Indian economy.
The IIRC is working closely with the Confederation of Indian Industry to provide guidance and support to companies on the road to integrated reporting, as they embed long-term thinking and a broader view of value creation. Leading companies adopting integrated reporting include Tata Power, ITC and Yes Bank.
In China, a number of companies have started using the integrated reporting framework. CGN Power, the largest nuclear power company in mainland China, adopted integrated reporting to coincide with its listing in Hong Kong in November 2014.The Ministry of Finance, China, has recently announced a commitment to deeply participate in the work of the IIRC, increase China's influence on formation of rules International Integrated Reporting Framework,and continue to research the applicability and viability of integrated reporting in China.
Source and Image: IR