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Using Integrated Reporting to tell the story of long term value creation to stakeholders

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The International Integrated Reporting Council (IIRC) published a Consultation Draft of the Integrated Reporting Framework (Framework) for public comment on 16 April 2013. This Framework was developed based on the comments received by the IIRC on the 2011 Discussion Paper “Towards Integrated Reporting – Communicating Value in the 21st Century” and constitutes the next step in the process to issue the International Integrated Reporting Framework later in 2013.

For a more detailed discussion on Integrated Reporting and how Deloitte can assist your organisation in the creation of the Integrated Report, feel free to contact Nina le Riche at nleriche@deloitte.co.za or Dr Johan Erasmus at jerasmus@deloitte.co.za

The Framework is to be welcomed as it presents a much clearer picture of the required approach, considerations, inputs and disclosures to generate an effective and meaningful Integrated Report. Although the Framework is based on the Discussion Paper, it encompasses both a refinement and elaboration of the applicable concepts and principles which inform and underlie Integrated Reporting (IR) and the Integrated Report, as well as the various content elements which should be addressed in the Integrated Report.

The Framework makes it clear that a principle based approach should be followed in the preparation of the Integrated Report. Rather than to provide a list of detailed disclosures, the Framework sets the scene and provides the underlying principles and considerations that should guide the approach to IR and the publication of the Integrated Report.

In essence, the Framework proposes that the company should explain to its stakeholders how it creates and sustains value in the short, medium and long term. The explanation should adhere to the fundamental concepts and guiding principles in describing the business model used to create value. In doing so, the company should discuss and link all content elements. This should all be underpinned by the strategic objectives of the business.

Download the full article . . . .  Telling the story of long term value creation

For a more detailed discussion on Integrated Reporting and how Deloitte can assist your organisation in the creation of the Integrated Report, feel free to contact Nina le Riche at nleriche@deloitte.co.za or Dr Johan Erasmus at jerasmus@deloitte.co.za

 

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David Graham

1 Comment

  • My comment on Sustainability of SMEs is good in theory. certain elements can be reported on ie Business risk, IT. However these are small guys with little or no backup from financial or Government interventions. (capital and training of finance literacy by the DTI).They do not have the knowledge or capital to do proper reporting (do proper audits, hire consultants or pay extra for board members) to comply with corporate governance. these owners do everything from opening until marketing etc. to hire consultants will sunk the business. The accountants signing the finance report is governed by the Act not to comprise their independence. How can we ensure SMEs comply and not avoid registering or tax avoidance. Although the economy is driven by SMEs no incentives is available to them except extra work and more money

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