IIRC publishes feedback summary, commits to integrated reporting framework by end of 2013
Jun 15, 2012
The International Integrated Reporting Council (IIRC) has released a summary of feedback received on its 2011 Discussion Paper 'Towards Integrated Reporting—Communicating Value in the 21st Century' and committed to publishing its 'Integrated Reporting Framework' by the end of 2013.
The IIRC received 214 responses to its Discussion Paper from organisations and individuals from over 30 countries. Reporters, accounting bodies and standard setters represented well over a third of all responses, but responses were also received from a broad spectrum of other organisations and individuals.
The responses received revealed strong stakeholder support for the IIRC to begin the next phase of its framework development. This will include specific work streams on several topics including materiality, the concept of value and business models. The IIRC has stated its intention to conduct this phase in close dialogue with a full range of stakeholders to ensure the process is transparent and informed by market participants.
The IIRC’s analysis identifies four significant areas that need to be explored further to develop the framework:
- Basic concepts underlying Integrated Reporting — including the definition of Integrated Reporting, what Integrated Reporting is (or is intended to become) and how Integrated Reporting should relate to existing reporting strands (e.g. financial, management commentary, governance and remuneration, and sustainability reporting)
- Target audience for Integrated Reporting — While the primary audience of an Integrated Report is investors, the IIRC believes it clear that investors are not the only audience
- From whose perspective “value” should be considered — value to the organisation, to investors, to other stakeholders, or to society at large?
- Timing of the release of the framework — inter-relationship with the IIRC's pilot programme, the need for more conceptual work, and that time should be taken to ensure a high-quality product.
Partly in response to the points above, the IIRC has announced the deferral of its original plans to finalise an integrated reporting framework in 2012, and instead is now targeting completion of the framework by the end of 2013.
Click for more information (link to IIRC website).