IIRC releases outline of integrated reporting framework

AN INTERNATIONAL BODY of the largest organisations and firms in the world has released an integrated reporting framework.

The IIRC has released an outline and timeframe which moves financial reporting a step closer to integrating non-financial information, such as environmental and social economic costs, with financial statements.

An outline is released now with a framework due for release at the end of the year, and a draft framework for public consultation published in early 2013.

The International Integrated Reporting Council (IIRC) is a collection of representatives from the largest international companies, institutes and firms with former ICAEW president and ex-director of the Financial Reporting Council Paul Druckman as its CEO.

Druckman (pictured) said: "Integrated reporting is a market-led initiative, driven by business and investor needs to gain greater insights into how a company's strategy creates and preserves value over the short, medium and long term.

"The concept of ‘integration', embedding value-relevant financial and non-financial information into strategic decision-making and a company's reporting cycle, is gaining momentum as a vital step in the evolution of corporate reporting globally.

"We are committed to a transparent process as we develop the first draft of the Framework and we welcome stakeholder thoughts on the overall structure of the framework we set out in today's document."

The IIRC's mission is to create the globally accepted integrated reporting framework that elicits from organisations material information about their strategy, governance, performance and prospects in a clear, concise and comparable format.

Earlier this month responses to a discussion paper released by the IIRC – "Towards Integrated Reporting - Communicating Value in the 21st Century" – highlighted areas for improvement before an outline could be released.

These included clarifying the target audience for integrated reporting, the timing of the release of the framework and addressing the definition of integrated reporting.