ACCA calls for new ‘future looking’ integrated reporting culture as joint reports launched with IIRC and IAAER
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Two new research reports, jointly commissioned by the IIRC, the IAAER and ACCA, shed light on the progress made since the publication of the International IR Framework, and discuss the challenges that lie ahead as IR aims to become the reporting norm.
Speaking at the launch of the reports in London, Yen-Pei Chen, ACCA’s corporate reporting manager said;
‘For <IR> to become widespread practice there needs to be a critically large supply of organisations preparing integrated reports, balanced with a significant demand for integrated reports from investors.
‘As integrated reporting filters through the corporate reporting system, there is a clear need to educate both preparers and users in the principles of <IR>. A vital part of this is helping both groups to understand and appreciate the relevance of capitals other than financial capital. This cultural change needs to be driven hand-in-hand by professional bodies, regulators, accountants and investors.’
According to Yen-Pei, ACCA will continue to work over the coming months to get businesses across the world ‘thinking ahead’ when it comes to <IR>.
‘ACCA is committed to using our influence to give impetus to more connected and forward-thinking business decision-making, reporting and investment. For us, it has been very important that we lead by example through adopting integrated reporting to explain our own strategy and performance. As the first international professional body to report according to <IR> back in 2011, we’ve found it a fantastically useful framework for showing how we create value for society and account to our stakeholders transparently and consistently year-on-year.
‘We are also working on several projects in collaboration with the IIRC, including reviewing the latest corporate reports produced by <IR> Business Network participants to provide practical recommendations to report preparers about how integrated reporting can be improved.’
Donna Street, IAAER director of research and educational activities added:
‘The two research studies are reflective of IAAER’s on-going efforts in the development and maintenance of high quality, globally recognised standards of accounting practice. Both studies suggest several fruitful areas for future academic research including how the content and disclosures of <IR> companies evolve with the passage of time, the usefulness of disclosures from the perspective of different users, the development of measurement systems for non-financial information, and the audit and assurance of the information contained in integrated reports.’
Neil Stevenson, director of global implementation at IIRC said:
‘Over 2,000 organisations are now adopting the International <IR> Framework globally. These organisations are forward thinking, having recognised the benefits of evolving their reporting practices. To continue this momentum, we will need to continue to energise the 'pull factor' from investors and other providers of financial capital, capture the benefits of innovations in reporting, and demonstrate examples of leading practice. Reports such as these, released today by ACCA, are so important to the Integrated Reporting movement. They play an important role in raising awareness of <IR>, why changes are needed to current corporate reporting practices, and the need for greater connectivity of strategy, risks and value creation.
‘We also welcome these reports as offering empirical evidence from academic studies, which provide rigour of analysis and insight to support leading practice. This will be invaluable to market participants and support organisations in their progress through reporting.’
The reports are available online:
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Notes to Editors
About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. It offers 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 188,000 members and 480,000 students in 178 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 100 offices and centres and more than 7,110 Approved Employers worldwide, who provide high standards of employee 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.
Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. It believes that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. ACCA’s core values are aligned to the needs of employers in all sectors and it ensures that through its range of qualifications, it prepares accountants for business. ACCA seeks to open up the profession to people of all backgrounds and remove artificial barriers, innovating its qualifications and delivery to meet the diverse needs of trainee professionals and their employers.