Integrated Reporting

Question 1

Definition

Answer 1

• A Concise Communication
• Of Entity’s strategy, governance and performance
• In the context of its external environment
• Canlead to creation of value in short, med + long run

Question 2

Integrated reporting is based on the belief that/(Criticisms of traditional reports) (4)

Answer 2

• Too much like a checklist
• Too much focus on historical results
• Financial performance does not necessarily mean long term success or sustainability
• Does not reflect all sources available e.g. staff

Question 3

Types of Capital (6)

Answer 3

• Human
• Social/Relationship
• Natural
• Intellectual
• Manufacturing
• Financial

Question 4

Content (7)

Answer 4

Only Good Organisations Share Blue Prints Forfuture

1) Organisational Overview - What do we do + how do we operate?
2) Governance-how does governance help with value creation
3) Oppurtunities and risks - how do they affect adding value and how are we dealing with them?
4) Strategies - where do we want to go and how do we get there.
5) Business model - what is it and how resilient is it?
6) Performance (KPIs) - how have we achieved our objectives and what are the outcomes and capital effects
7) Future outlook - Challenges and uncertainties and their implications.

Question 5

Other info and benefits (2)

Answer 5

• An IR outlines the impact that a business has on it’s full range of capitals through its business model.
• The key users of an IR are the providers of financial capital however it will also benefit employees, suppliers, customers, local communities and policy makers.