The International Integrated Reporting Council (‘the IIRC’) released the International Integrated Reporting <IR> Framework (‘the <IR> Framework’) on 9 December 2013.

An integrated report is “a concise communication about how an organisation’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value over the short, medium and long term.” 

The primary purpose of an integrated report is to explain to providers of financial capital how an organisation creates value over time.

The <IR> Framework is a principles-based framework for the preparation of an integrated report. Part I provides guidance on how to use the <IR> Framework, which includes a definition of an integrated report, distinguishes reporting in accordance with the <IR> Framework from other forms of reporting and explains the fundamental concepts of Integrated Reporting.  Part II contains the seven Guiding Principles and eight Content Elements for the preparation and presentation of an integrated report.

The <IR> Framework is clearly structured and the potential sources of confusion highlighted by respondents to the April 2013 consultation draft appear to have been resolved.

There is currently no regulatory requirement for <IR> except in South Africa.  It is a market-led initiative that aims to encourage companies to communicate their value creation story, rather than create another compliance burden.

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