Accountants are key to implementing Integrated Reporting, says new report from ACCA and IMA
Date
Sections
London, New York and Montvale, N.J., January 20, 2016 – As the call for Integrated Reporting (IR) in business grows, accountants will be instrumental in the development and implementation of the integrated reporting process, the latest joint report from ACCA (Association of Chartered Certified Accountants) and IMA® (Institute of Management Accountants) finds. The report, “From Share Value to Shared Value: Exploring the Role of Accountants in Developing Integrated Reporting in Practice,” can be viewed online: http://www.accaglobal.com/gb/en/technical-activities/technical-resources-search/2016/january/from-share-value-to-shared-value.html
The report examines the recent shift in focus from share value to the generation of “shared value,” as companies define success in terms of both internal financial returns and external social and economic results. Following this shift, there is a new trend of corporate reporting: the integration of financial and nonfinancial concerns into one accounting tool, IR. It is defined as a concise communication about how a company’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value over the short, medium and long term.
IR is essential in the modern business landscape as physical and financial assets no longer explain the full market value of a company—in 1975, they would explain 83 percent of a company’s value, but today they only explain 19 percent. Market valuations are now based on intangibles such as intellectual, social, and relationship and human capitals, and in this context, there is a crucial need for a broader information set.
As IR provides companies the opportunity to embrace long-term thinking, accountants are in a unique position to contribute to the identification of areas for improvement as well as the development of solutions. Implementing new accounting methodologies requires carefully designing guidelines and processes, and accountants can play a substantial role in the development of the integrated report.
“I believe the adoption of IR will not reach its full potential, including in the U.S., unless we, as an accounting community, take several actions to lay the groundwork for a transformation in external corporate reporting,” said Raef Lawson, Ph.D., CMA, CPA, IMA Vice President of Research and Policy.
“The roles of accountants in implementing IR are of utmost importance. CFOs can be leaders of the IR projects within their companies. Accountants, management accountants, and auditors have important roles to play in devising the right accounting for capitals, the right information systems, and the right assurance for the reported information,” said Faye Chua, Head of Business Insights from ACCA.
To this end, Chief Financial Officers can be leaders of the IR projects within their companies, while accountants, management accountants, and auditors have important roles to play in devising the right accounting for capitals, the right information systems, and the right assurance for the reported information.
ACCA and IMA share a strategic partnership, focusing on research studying the future of the global accounting profession. For more research and insights, visit The Future Today website at www.futuretoday.com.
- Ends –
CONTACT:
Anjelica Sena
Stern Strategy Group
(on behalf of IMA)
(908) 325-3873
asena@sternstrategy.com
Jeff Simmons
Anat Gerstein, Inc.(on behalf of ACCA)
(917) 673-0024
About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer 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. We support our 178,000 members and 455,000 students in 181 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of 92 offices and centres and more than 7,110 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.
About IMA® (Institute of Management Accountants)
IMA®, the association of accountants and professionals in business, is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA® (Certified Management Accountant) program, continuing education, networking and advocacy of the highest ethical business practices. IMA has a global network of more than 75,000 members in 140 countries and 300 professional and student chapters. Headquartered in Montvale, N.J., USA, IMA provides localized services through its four global regions: The Americas, Asia/Pacific, Europe, and Middle East/Africa. For more information about IMA, please visit www.imanet.org.
###