3. PRACTICE NOTES, PUBLICATIONS
International Integrated Reporting <IR> Framework
This Consultation Draft has been developed by the International Integrated Reporting Council (IIRC) and was issued for comment in April 2013, with comment period ending on July 15, 2013.
The IIRC is a global coalition of regulators, investors, companies, standard setters, the accounting profession and non-government organizations. Together, this coalition shares the view that corporate reporting needs to evolve to provide a concise communication about how an organization’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. The International Integrated Reporting Framework is being developed to meet this need and provide a foundation for the future.
The fundamental concepts centre on:
- The various capitals (financial, manufactured, intellectual, human, social and relationship, and natural) that an organization uses and affects
- The organization’s business model
- The creation of value over time.
<IR> is a process that results in communication by an organization, most visibly a periodic integrated report, about value creation over time.
An integrated report is a concise communication about how an organization’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.
The purpose of the Framework is to assist organizations with the process of <IR>. In particular, the Framework establishes Guiding Principles and Content Elements that govern the overall content of an integrated report, helping organizations determine how best to express their unique value creation story in a meaningful and transparent way. The Framework does not, however, set benchmarks for such things as the quality of an organization’s strategy or the level of its performance. Assessing these things is the role of the intended report users based on the information in an organization’s integrated report.
The Framework is intended primarily for application by private sector, for-profit companies of any size but it can also be applied, adapted as necessary, by public sector and not-for-profit organizations.
To access the Consultation Draft, refer to: http://www.theiirc.org/wp-content/uploads/Consultation-Draft/Consultation-Draft-of-the-InternationalIRFramework.pdf
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Collins Barrow publications can be found on: http://www.collinsbarrow.com/en/cbn/publications/
CPA Canada Update
Refer to http://cpacanada.ca/ for the latest national and provincial developments.
Acronyms Used
- AASB – Auditing and Assurance Standards Board
- AcSB – Accounting Standards Board
- GAAP – Generally Accepted Accounting Standards
- IAASB – International Auditing and Assurance Standards Board
- IASB – International Accounting Standards Board
- IFRIC – International Financial Reporting Interpretations Committee
- CICA – Canadian Institute of Chartered Accountants
- CMA – Certified Management Accountants
- CPA – Chartered Professional Accountants
- CPAB – Canadian Public Accountability Board
- CSA – Canadian Securities Administrators
- PSAB – Public Sector Accounting Board