Business and investment leaders call for a new approach to corporate reporting in a landmark Discussion Paper, called Towards Integrated Reporting – Communicating Value in the 21st Century, published by the International Integrated Reporting Committee (IIRC).
Integrated Reporting will provide more comprehensive and meaningful information about all aspects of an organization’s performance and position, presented in a much clearer, more concise and more user friendly format. In particular it will demonstrate the links between an organization’s financial performance and the social, environmental and economic context within which it operates.
The development of Integrated Reporting is designed to enhance and consolidate existing reporting practices to move towards a reporting framework that provides the information needed to develop the global economic model to meet the challenges of the 21st century.
Integrated Reporting will be clear and comprehensible, providing a meaningful assessment of the long term viability of an organization, meeting the information needs of investors and other stakeholders and supporting the effective allocation of financial, manufactured, human, intellectual, natural and social capital.
"All matters which are important in assessing an organization’s performance and position, past and prospective, need to be reported but not by making annual reports ever longer and more complex – they are too long already," says Sir Michael Peat, Chairman of the IIRC.
"The information needs to be provided clearly and concisely with the connections between financial, environmental and social impacts demonstrated and the clutter removed. This is what Integrated Reporting seeks to achieve."
The discussion paper Towards Integrated Reporting – Communicating Value in the 21st Century presents the rationale for Integrated Reporting, offering initial proposals for the development of an International Integrated Reporting Framework and outlining the next steps towards its creation and adoption. Its purpose is to prompt input from all those with a stake in better reporting, including producers and users of reports.
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