Draft guide to effective business reporting processes published by IFAC
May 24, 2012
The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has published an exposure draft 'International Good Practice Guidance (IGPG) — Eleven Principles for Effective Business Reporting Processes', providing a broad range of recommendations in best practice business reporting.
The stated aim of the draft IGPG is to establish a benchmark for good practice in implementing effective reporting processes in organisations, and, in particular, to help professional accountants in business and their organisations create a cycle of continuous improvement for their reporting processes in order to assist internal and external stakeholders in making informed decisions about these organisation by providing high-quality financial and non-financial information.
The exposure draft outlines the following principles:
- Committing to effective reporting processes
- Determining roles and responsibilities
- Planning and controlling the reporting processes
- Engaging stakeholders
- Defining the reporting content
- Selecting frameworks and standards
- Determining reporting processes
- Using reporting technology
- Analysing and interpreting reported information
- Obtaining assurance and providing for accountability and transparency
- Evaluating and improving reporting processes
In relation to the objective of selecting frameworks and standards, the exposure draft notes the following:
The organization should use reporting frameworks, standards, and guidelines to help develop effective reporting processes and to ensure that all relevant information is disclosed. Professional accountants may need to turn to sources beyond current financial reporting standards and regulations to make the best choices on reporting strategy so that reporting format, timing, content, and approach demonstrate transparency, credibility, relevance, and usefulness to the various stakeholders. Professional accountants will need to be familiar with the appropriate reporting frameworks, such as the International Accounting Standards Board (IASB)’s Practice Statement on Management Commentary, and the Integrated Reporting Framework, which is being developed by the International Integrated Reporting Coucil (see Appendix B for an overview of various frameworks).
The exposure draft is open for comment until 23 August 2012. Click for more information (link to IFAC website).