Companies urged to promote resource efficiency and value creation in Covid-19 pandemic
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Integrated reporting has been identified as a key method to help firms tackle future risks they face such as those posed by the Covid-19 pandemic.
The Association of Chartered Certified Accountants’ (ACCA) latest report Insights into Integrated Reporting 4.0, covers 48 companies – each are members of the International Integrated Reporting Council (IIRC) Business Network.
As economies and companies around the world prepare for imminent recession owing to the pandemic, the report recommends a focus on sustainability, resource efficiency and integrated thinking to help tackle risks companies face and improve the quality of their reporting.
Richard Martin, head of corporate reporting at ACCA, believes accountants can develop their skills in IR and integrated thinking to help companies clearly communicate responsible resource management and how they intend to generate value.
He said: ‘Resource management, both in times of crises such as these and relative calm, is essential. Companies should always be considering their use of employees, reflecting on whether they are continuing to grow and develop.
‘Insights into IR 4.0 comes out against a background of increased interest from authorities in improving corporate reporting outside of the financial statements. ACCA believes integrated reporting should be a key part of that, and not simply used as a marketing tool.’
The review is ACCA’s fourth annual report on integrated reporting, this year’s research shows steady improvements in some respects, including the recognition of integrated reporting and the IIRC’s Framework.
Mr Martin, the report’s author, added that there are still key areas for improvement when benchmarking against the three previous Insights into Integrated Reporting.
He said: ‘It is disappointing that the overall quality of the reporting based on the average score our reviewers awarded the reports has declined in the period.
‘This indicates that though companies’ stated following of the principles is increasing, the quality of that compliance is not. The descriptions around statements of responsibility for the reports could also be improved.’
For more information on integrated reporting, and the report, visit https://www.accaglobal.com/gb/
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About Insights into Integrated Reporting 4.0
This report summarises the findings from reviews of the reports of 48 members of the International Integrated Reporting Council (IIRC) Business Network carried out in 2019 by ACCA in collaboration with the IIRC.
It is intended to a provide a picture of the current state of integrated reporting <IR> and, by comparing that with similar reviews done in the period from 2016, give an idea of how this reporting has developed. In doing so, it hopes to assist in improving the quality of integrated reporting and help those companies that are starting to use the IIRC’s <IR> Framework.
ACCA is an IIRC Approved Training Partner and has developed an ACCA Integrated Reporting Programme in partnership with accountingcpd.
For more information on the <IR> programme, click here
About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants, offering business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
ACCA supports its 219,000 members and 527,000 students (including affiliates) in 179 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 110 offices and centres and 7,571 Approved Employers worldwide, and 328 approved learning providers who provide high standards of learning and development.
Through its public interest remit, ACCA promotes appropriate regulation of accounting and conducts relevant research to ensure accountancy continues to grow in reputation and influence.
ACCA has introduced major innovations to its flagship qualification to ensure its members and future members continue to be the most valued, up to date and sought-after accountancy professionals globally.
Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. More information is here: www.accaglobal.com