IIRC releases further background papers on 'connectivity' and 'value creation'

  • IIRC (International Integrated Reporting Committee) (green) Image

14 Aug 2013

The International Integrated Reporting Council (IIRC) has released two more 'background papers', providing further information about key concepts in its proposed International Integrated Reporting Framework. The new papers cover the topics of 'connectivity' and 'value creation'.

The paper on 'connectivity' notes themes such as the linkage between 'integrated thinking' and 'integrated reporting', the need to convey a holistic view of strategy, governance, performance and prospects, that connectivity does not mean 'monetisation', and that connectivity is "enhanced when the integrated report features a logical structure, linked sections, cross-referencing and navigation devices such as icons, color coding or other tools". It also notes that communications technology such as extensive business reporting language (XBRL) play a critical role in sharing and connecting information electronically.

The 'value creation' background paper relates the concept to the other fundamental integrated reporting concepts of the business model and capitals, noting that inputs of capital are transformed through the entity's business model to produce both positive and negative effects. It then goes on to conclude that an integrated report should allow for the assessment of whether an entity's business model affects the wider context that supports or threatens value creation in the short, medium and long term.

Click for access to the background papers (link to IIRC website).

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