The International Integrated Reporting Council rolled out its draft Integrated Reporting Framework last week and it’s already getting support. The Integrated Reporting System is designed to combine financial reporting with other aspects of a business including governance, sustainability, human capital and intellectual capital.
The American Institute of CPAs announced its support for the proposed framework. AICPA president and CEO Barry Melancon said, “The AICPA has long supported efforts to develop a voluntary global framework for business reporting to complement financial reporting. The release of the draft framework represents important progress toward this goal. We applaud the IIRC for fostering international collaboration and encouraging key stakeholders to contribute to the Framework, which we believe will facilitate meaningful adoption of.”
Integrated reporting intent is to link a company’s strategy, governance and financial performance with the context within which it operates. It’s designed to help businesses make more informed decisions and permit investors and stakeholders to have a better understanding of how a company is really performing.
The International Federation of Accountants was also pleased with the release of the proposed framework. The IFAC is a co-founder of the IIRC and has also been participating in the development of the framework. Integrated Reporting is believed to be the next step in the evolution of corporate reporting and communications by allowing organizations to demonstrate a clear and unbiased representation of their performance to investors.
IFAC president Warren Allen said, “The accountancy profession plays a vital facilitating role in bringing integrated reporting to more organizations, and the framework will help guide organizations and profession accountants in this process. Feedback from individual accountants and the profession on the proposed framework is critical.”
The International Integrated Reporting Framework is going through its public consultation period which ends July 15, 2013 and the IIRC is asking stakeholders to provide feedback on the framework. The frameworks current language is English. However, it will soon be released in additional languages, according to IFAC.
The World Business Council for Sustainable Development is also in support of the draft framework. Organizations and businesses around the world are being asked to participate in WBCSD workshops during the 90 day consultation period that’s open to both WBCSD members and non-members so they can give input on the consultation draft of the framework.
According to WBCSD president Peter Bakker feedback from businesses is essential to improving the consultation draft to make sure it’s fit a workable framework for business. He said, “This is the next step in the evolution of reporting financial and sustainability performance in an integrated and transparent way. We are passionate about as a means of changing the way investors value businesses and allocate financial capital. The WBCSD is fully committed to the development of the IIRC’s framework as we believe that what gets measured gets managed. Investors need to take a more holistic view of an organization not just the financials. This is the start of the journey to better corporate reporting.”
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