D17. Integrated reporting

Question 1

What are the limitations of financial reporting?

Answer 1

• Limited use for decision making as backward looking
• Lack of non-financial info
• Fails a lot of users

Question 2

What is integrated reporting?

Answer 2

Combination of financial, management and governance issues

Question 3

What info does the triple bottom line show?

Answer 3

• Financial
• Social
• Environmental

Question 4

What does integrated reporting emphasise?

Answer 4

Sustainability

Question 5

What is involved within sustainabiluty?

Answer 5

Value creation

Question 6

Who developed the international integrated reporting framework (IIRF)?

Answer 6

International integrated reporting council (IIRC)

Question 7

What do the IIRC do?

Answer 7

Recommend and champion integrated reporting

Question 8

Is integrated reporting mandatory?

Answer 8

No

Question 9

Is frequency of integrated reporting specified?

Answer 9

No

Question 10

Does integrated reporting have to be seperate?

Answer 10

No, can be stand alone or mixed

Question 11

What are the basic principles of the IIRC?

Answer 11

• Value creation
• Describe various capitals available
• Value creation process

Question 12

What are the 6 types of capital according to the IIRC?

Answer 12

• Natural
• Manufactured
• Human
• Financial
• Intellectual
• Social

Question 13

What are the recommended basic contents of a report according to the IIRC?

Answer 13

• Organisational overview
• Governance
• Business model
• Risk and opportunities
• Strategy
• Performance monitor
• Basis of prep

Question 14

What are the benefits of integrated reporting?

Answer 14

• Improved processes
• Better focus and awareness
• Improved communication
• Improved performance
• Consistency
• Principles bases approach
• Quality assurance
• Fulfills needs of user groups

Question 15

What are the limitations of integrated reporting?

Answer 15

• Optional guidance
• Guidance not specific to an organisation
• Time and cost
• Reluctance to disclose
• Difficult to measure non-financial capital

Question 16

Can an integrated report respond to existing compliance requirements?

Answer 16

Yes

Question 17

Which capital requires integrated thinking to be fully understood?

Answer 17

Human

Question 18

Which 3 capitals are included in a sustainability report?

Answer 18

• Natural
• Human
• Social

Question 19

Who is an integrated report intended for?

Answer 19

Providers of financial capital and others interested in the organization’s ability to create value

Question 20

What are 3 objectives of integrated reporting identified by IIRC?

Answer 20

• To improve the quality of information available to providers of financial capital
• To support integrated thinking and decision making
• To provide a more cohesive and efficient approach to corporate reporting

Question 21

What is management commentary?

Answer 21

Narrative report that provides a context within which to interpret the financial position, financial performance and cash flows of an entity.

Question 22

Under G4 guidelines, what category should a political donation come under?

Answer 22

Social - society

Question 23

Is integrated reporting mandatory?

Answer 23

It depends, in some countries it is

Question 24

Under G4 guidelines, what needs to be done if a company cannot make standard disclosures?

Answer 24

Must state what’s been omitted and why

Question 25

What is accounted for as part of a piecemeal acquisition?

Answer 25

- The amount of transactions - The amount of outstanding balances - The expenses recognised