New IFAC Policy Position Paper on enhancing organisational reporting
13 Oct 2013
The International Federation of Accountants (IFAC) issued Policy Position Paper 8, 'Enhancing Organizational Reporting', emphasising the importance and usefulness of reporting broad-based information beyond that which is provided in traditional financial reporting. IFAC also calls for convergence in this context.
IFAC states that there is growing recognition that in addition to capturing the financial information organisations prepare and use in managing and directing their business, it is important to capture and report other, largely non-financial, information. Financial reporting cannot satisfy all information needs and stakeholders continue to seek more and different information that they find relevant to their decision making. This includes, but is not limited to, information pertaining to an organisation’s strategy, governance, risk management, human resources, and approach to broader sustainability issues, including environmental and social issues.
However, IFAC recognises that there are a range of different organisational reporting frameworks and regulations available and being developed (among them IIRC, GRI, UN Global Compact, CDSB, IPSASB, SASB, and OECD Guidelines for Multinational Enterprises), and considers it important to examine the relationship between these frameworks and promote global consistency and convergence:
IFAC considers it vital that regulators, standard setters, and others involved in the development of reporting frameworks recognize and promote not just the need for enhancing organizational reporting, but also the need for globally consistent and convergent practices and arrangements. The challenges associated with convergence of financial reporting arrangements in the last decade provides a sound reason for all parties to aim to agree on a consensus, or at least the identification of the relationships and consistency between the different frameworks, at the earliest possible time.
Please click for the following information on the IFAC website: