Reporting. Integrated!
28
Best practice: corporate reporting Kate Jefferies and Michael Nugent 2 July 2013
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What is Integrated Reporting and how does it enable a business to tell its value creation story? Understand key concepts in the Consultation Draft of the International Framework and how this market-led initiative is getting global traction. Hear how it fits with existing reporting practice and the wider reporting landscape, here in the UK and internationally. Michael will present about the Framework from a technical perspective and Kate will explain how the IIRC engages with business, investors and other stakeholders, they will also put in the wider reporting landscape.
Transcript of Reporting. Integrated!
Best practice: corporate reportingKate Jefferies and Michael Nugent
2 July 2013
Who is the IIRC?
What is <IR>?
The Consultation Draft
How you can participate
Outline
NGOs
Regulators
Companies
Accounting
Standardsetters
Investors
Chair: Prof Mervyn KingCEO: Paul Druckman
Who is the IIRC?
… globally accepted framework
… strategy, governance, performance and prospects
… clear, concise and comparable
… evolution of corporate reporting
… financial, governance, management commentary and sustainability reporting
… adoption by report preparers
… recognition of standard setters and investors.
Mission
… corporate reporting norm
… organizations, their investors and other stakeholders
… informed decision-making
… efficient capital allocation
… creation and preservation of value
… more sustainable global economy.
Vision
IIRC
PILOT PROGRAMME
BUSINESS NETWORK
INVESTOR NETWORK
Who is the IIRC?
What is <IR>?
The Consultation Draft
How you can participate
Outline
• communication
• value creation over time
• a periodic integrated report
<IR> is a process
• strategy, governance, performance and prospects
• external environment
• creation of value over the short, medium and long term
An integrated report is a
concise communication
• in accordance with the Framework
• primarily for providers of financial capital
• of benefit to all stakeholders
It is prepared
What is <IR>?
strategy, governance,
performance,
prospects
Financialreporting
Otherreporting
concise communication about value
A new focus
Catalyse corporate reporting
Enhance account-
ability
Inform allocation financial capital
Support integrated thinking
Objectives
The essence of <IR>
Who is the IIRC?
What is <IR>?
The Consultation Draft
How you can participate
Outline
The Consultation Draft
Consultation Draft of the International <IR> Framework
• The IIRC and the process
• Request for comment
• Consultation questions
• Draft Framework
www.theiirc.org/consultationdraft/2013
FUNDAMENTAL CONCEPTS
GUIDING PRINCIPLES CONTENT ELEMENTS
Core features
FUNDAMENTAL CONCEPTS
GUIDING PRINCIPLES CONTENT ELEMENTS
• INTRODUCTION
• THE CAPITALS
• THE BUSINESS MODEL
• VALUE CREATION
Core features
Natural capital
Social and relationship
capital
Humancapital
Intellectual capital
Financial capital
Manufactured capital
Financial capital
Manufactured capital
The capitals
Business model
<IR> explains how an organization creates value over time.
• Serving the interests of, and working with, all key stakeholders
• Financial returns plus effects on other capitals and other stakeholders
• Increase, decrease or transformation of the capitals
• A wide range of interactions, activities, relationships, and causes and effects
• Provide information, not measure value
Creating value
FUNDAMENTAL CONCEPTS
GUIDING PRINCIPLES CONTENT ELEMENTS
• INTRODUCTION
• THE CAPITALS
• THE BUSINESS MODEL
• VALUE CREATION
Core features
FUNDAMENTAL CONCEPTS
GUIDING PRINCIPLES CONTENT ELEMENTS
• STRATEGIC FOCUS AND FUTURE ORIENTATION
• CONNECTIVITY OF INFORMATION
• STAKEHOLDER RESPONSIVENESS
• MATERIALITY AND CONCISENESS
• RELIABILITY AND COMPLETENESS
• CONSISTENCY AND COMPARABILITY
• INTRODUCTION
• THE CAPITALS
• THE BUSINESS MODEL
• VALUE CREATION
Core features
FUNDAMENTAL CONCEPTS
GUIDING PRINCIPLES CONTENT ELEMENTS
• STRATEGIC FOCUS AND FUTURE ORIENTATION
• CONNECTIVITY OF INFORMATION
• STAKEHOLDER RESPONSIVENESS
• MATERIALITY AND CONCISENESS
• RELIABILITY AND COMPLETENESS
• CONSISTENCY AND COMPARABILITY
• ORGANIZATIONAL OVERVIEW AND EXTERNAL ENVIRONMENT
• GOVERNANCE
• OPPORTUNITIES AND RISKS
• STRATEGY AND RESOURCE ALLOCATION
• BUSINESS MODEL
• PERFORMANCE
• FUTURE OUTLOOK
• INTRODUCTION
• THE CAPITALS
• THE BUSINESS MODEL
• VALUE CREATION
Core features
• Global context and South Africa
• European Commission issued a proposal to amend two European Council Directives
• BIS: ‘The Future of Narrative Reporting: a new structure for narrative reporting’
<IR> and the reporting landscape
Who is the IIRC?
What is <IR>?
The Consultation Draft
How you can participate
Outline
READ IT – CRITIQUE IT – FEEDBACK TO US
APRIL
16
JULY
15
Consultation period
IIRC Pilot
Programme
Yearbook
Emerging
<IR>
Database
Background
Papers
Building the
Business
Case
CURRENT IIRC RESOURCES
www.theiirc.org/consultationdraft2013
• Download form
• Consultation questions
• Comments on all aspects of the Framework are welcome
• Any or all
• Please respond whether in agreement or not
Responses
YOUR INVITATION
TO SHAPE THE FUTURE OF CORPORATE REPORTING
www.theiirc.org/consultationdraft/2013
