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International Integrated Reporting Council (IIRC)

IIRC (International Integrated Reporting Committee)

Background

Formation

The International Integrated Reporting Council (IIRC) (previously the International Integrated Reporting Committee) was formed in August 2010 and aims to create a globally accepted framework for a process that results in communications by an organisation about value creation over time.

The IIRC brings together a cross section of representatives from corporate, investment, accounting, securities, regulatory, academic and standard-setting sectors as well as civil society. It comprises a Steering Committee, a Working Group and a three taskforces (dealing with content development, engagement and communications, and governance).

The IIRC is chaired by Professor Mervyn King, Chairman, King Committee on Corporate Governance and Former Chairman, Global Reporting Initiative. Membership includes Hans Hoogervorst (IASB Chairman), Leslie Seidman (FASB Chairperson), Maria Helena Santana, (Chairperson, IOSCO Executive Committee), Göran Tidström (IFAC President), Jim Quigley (former global Chief Executive Officer of Deloitte), and many others. Paul Druckman is Chief Executive Officer.

November 2011 restructure

In November 2011, the IIRC announced a number of changes to its organisational structure. Under the new arrangements, an initial transitional phase until the end of 2013 will see the IIRC supported by a strengthened secretariat operating through a not-for-profit company established for the purpose under the same name.

The company's board will comprise Mervyn King as Chairman, Leslie Ferrar (Treasurer, Household of the Prince of Wales and the Duchess of Cornwall) and Christy Wood (Chairman of the Board of Governors, International Corporate Governance Network) as Deputy Chairs, together with Ian Ball (Chief Executive, International Federation of Accountants), Ernst Ligteringen (Chief Executive, Global Reporting Initiative), Jessica Fries (Director, The Prince's Accounting for Sustainability Project) and the IIRC's Chief Executive, Paul Druckman.

A Governance Committee has also been established, with responsibilities relating to audit, nominations and executive remuneration for the company.

The IIRC's objective

Overview

The IIRC's stated objective is to develop an internationally accepted integrated reporting framework by 2014 to create the foundations for a new reporting model to enable organisations to provide concise communications of how they create value over time.  The IIRC refers to this process as Integrated Reporting, which it stylises as <IR>.

<IR> which is concise, clear, comprehensive and comparable, structured around the organisation's strategic objectives, its governance and business model and integrating both material financial and non-financial information.

The objectives for an integrated reporting framework are to:

  • support the information needs of long-term investors, by showing the broader and longer-term consequences of decision-making
  • reflect the interconnections between environmental, social, governance and financial factors in decisions that affect long-term performance and condition, making clear the link between sustainability and economic value
  • provide the necessary framework for environmental and social factors to be taken into account systematically in reporting and decision-making
  • rebalance performance metrics away from an undue emphasis on short term financial performance
  • bring reporting closer to the information used by management to run the business on a day-to-day basis.

Current status

The IIRC published its Consultation Draft of the International <IR> Framework on 16 April 2013.  The Consultation Draft is open for comment until 15 July 2013 and the IIRC expects to finalise the first version of its framework by the end of 2013.

A history of developments is summarised below:

 

DateDevelopmentComments
12 September 2011 Discussion Paper Towards Integrated Reporting – Communicating Value in the 21st Century published Comment deadline 14 December 2011
October 2011 Initial organisations participating in the IIRC Pilot Programme announced The Pilot Programme is a two-year programme for a group of companies who will work as a network of peer group organisations, exchanging knowledge and sharing experiences on integrated reporting.
July 2012 Draft Outline of the Integrated Reporting Framework Not part of the formal consultation process, but the IIRC welcomed feedback
November 2012 Prototype of the International Integrated Reporting () Framework Not part of the formal consultation process, but the IIRC welcomed feedback
16 April 2013 Consultation Draft of the International <IR> Framework published Comment deadline 15 July 2013

Website

The IIRC website can be accessed at www.theiirc.org.

Related news

  • GRI releases research reports

  • May 28, 2013

  • The Global Reporting Initiative (GRI) has release a number of research reports on sustainability and integrated reporting topics: sustainability topics for various sectors, the experience from early adopters of 'integrated reporting', and assurance on sustainability reports.

  • Webinar on the benefits and challenges of integrated reporting

  • May 13, 2013

  • In its series of webinars on a variety of topics provided free of charge for members and non-members, the Canadian Institute of Chartered Accountants (CICA) is offering a webinar on the International Integrated Reporting Council (IIRC)'s consultation draft of an International Integrated Reporting Framework.

  • IIRC publishes 'Consultation Draft' on integrated reporting

  • Apr 16, 2013

  • The International Integrated Reporting Council (IIRC) has released the Consultation Draft of its proposed International Integrated Reporting (<IR>) Framework. The draft Framework seeks to create the foundations for a new reporting model to enable organisations to provide concise communications of how they create value over time.

  • IIRC publishes further background paper on the business model

  • Mar 27, 2013

  • The International Integrated Reporting Council (IIRC) has published on its website a further 'background document' in the lead up to the expected issue of its consultation document on integrated reporting (stylised as <IR>) in mid-April. The latest background paper discusses the 'business model' concept, and follows earlier papers on the concepts of 'capitals' and 'materiality'.

  • FEE comments on the IIRC 'prototype' framework

  • Mar 15, 2013

  • The Federation of European Accountants (Fédération des Expert comptables Européens, FEE) has sent a letter to the International Integrated Reporting Council (IIRC) providing high level feedback on the finalised 'prototype' of the IIRC's integrated reporting framework. Among other points, FEE also comments on the question of assurance in connection with integrated reporting.

  • The Bruce Column — Effective Disclosure: More or Less

  • Mar 06, 2013

  • Everyone agrees that something should be done about the levels of disclosure in financial reporting. It is just, as our resident columnist Robert Bruce reports, that no one agrees on what that something might be.

  • IIRC and GRI agree to cooperate

  • Mar 04, 2013

  • The International Integrated Reporting Council (IIRC) and the Global Reporting Initiative (GRI) have announced that they have entered into a memorandum of understanding (MoU) which seeks to formalise the principles for ongoing cooperation, coordination and alignment between the two organisations.

  • IASB and IIRC announce cooperative agreement

  • Feb 07, 2013

  • The International Accounting Standards Board (IASB) and International Integrated Reporting Council (IIRC) have announced a Memorandum of Understanding (MoU), where both organisations will strengthen their cooperation on the development of the IIRC's integrated corporate reporting framework.

  • Integrated reporting update

  • Jan 18, 2013

  • The International Integrated Reporting Council (IIRC) has issued a newsletter with updates on progress on its integrated reporting initiative, including the timing of the issue of an exposure draft and background papers. The IIRC has also effectively confirmed that it and International Accounting Standards Board (IASB) are working together to create a Memorandum of Understanding between the two bodies.

  • IIRC publishes 'prototype' framework, reaffirms timeline for finalisation

  • Nov 27, 2012

  • The International Integrated Reporting Council (IIRC) has released a finalised 'prototype' of its integrated reporting framework (stylised as '<IR>') and reaffirmed the expected timing of the issue of a consultative document as it moves towards finalisation of the framework by the end of 2013.

  • IIRC announces 'integrated reporting examples database'

  • Oct 24, 2012

  • The International Integrated Reporting Council (IIRC) has launched an 'Integrated Reporting Emerging Practice Examples Database', which contains integrated reporting examples from businesses around the world.

  • IFAC and IIRC agree to co-operate

  • Oct 18, 2012

  • The International Federation of Accountants (IFAC) and the International Integrated Reporting Council (IIRC) have signed a Memorandum of Understanding (MoU) to promote cooperation, coordination, and alignment between the two bodies. The MoU seeks to take advantages of the 'inherent synergies' between the work of IFAC and the IIRC in supporting of an internationally accepted framework for integrated reporting.

  • Integrated reporting update

  • Oct 02, 2012

  • A year after launching its Integrated Reporting Pilot Programme, the International Integrated Reporting Council (IIRC) has held a conference and announced a 'Prototype Framework' for integrated reporting as it moves towards finalising the framework by December 2013.

  • The Bruce Column — Agreeing the framework: Paul Druckman

  • Sep 06, 2012

  • The journey towards an agreed framework for a system of integrated reporting around the world is gathering pace. Here Robert Bruce, our regular, resident columnist, interviews Paul Druckman, CEO of the International Integrated Reporting Council, (IIRC), about progress, the growing support of investors and analysts, the attitudes of stock exchanges around the world and what it means to provide ‘more than the financials’.

  • ACCA research report discusses effects of integrated reporting

  • Aug 08, 2012

  • A report from the Association of Chartered Certified Accountants (ACCA) provides insights into the impact of integrated reporting on companies' corporate reporting, based on an academic study of recent experience in South Africa. The ACCA report contains a number of specific recommendations that could be taken into account by those developing the international integrated reporting framework, under the auspices of the International Integrated Reporting Council (IIRC), or otherwise.

  • New research on the value of 'extra-financial' disclosure to investors and analysts

  • Aug 06, 2012

  • A new research report has been issued exploring how investors and analysts source, use and are influenced by so-called 'extra-financial information', which includes Environmental, Social and Governance (ESG) information and other non-financial information. The report shows that for the majority of investors and analysts surveyed, extra-financial information is very relevant or relevant to investment decision‑making or analysis.

  • New report calls for integrated reporting in light of global financial crisis

  • Jul 24, 2012

  • A joint report by the United Nations Environment Programme Finance Initiative (UNEP-FI), the International Institute for Sustainable Development (IISD), and the Blended Capital Group explores lessons learned from the global financial crises, and outlines a number of recommendations, including a global integrated reporting standard.

  • IIRC releases draft framework outline

  • Jul 13, 2012

  • The International Integrated Reporting Council (IIRC) has released a draft outline of its forthcoming Integrated Reporting Framework. The outline establishes for the first time the basic structure of the Framework and is intended to keep stakeholders informed as the Framework is developed.

  • Rio+20 'encourages' sustainability reporting

  • Jun 24, 2012

  • The outcome document from the United Nations Conference on Sustainable Development (Rio+20) held on 20-22 June 2012 has acknowledged the importance of sustainability reporting. Paragraph 47 of the document 'encourages' companies to integrate sustainability information into their reporting cycle. The development has been championed by the governments of Brazil, Denmark, France and South Africa, which are forming a group of ‘friends of paragraph 47’ to advance corporate sustainability reporting.

  • IFAC calls for G20 to adopt global standards and support integrated reporting

  • Jun 14, 2012

  • The International Federation of Accountants (IFAC) has written to the G20 outlining its recommendations for consideration at the G-20 Leaders’ Summit on June 18-19, 2012 in Los Cabos, Mexico. The recommendations include global adoption of International Financial Reporting Standards (IFRSs) and International Standards on Auditing (ISAs), increased resources for regulators and standard setters, and support for the International Integrated Reporting Council's proposed integrated reporting framework.

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