AN INTERNATIONAL BODY of the largest organisations and accounting firms in the world has released a prototype of an integrated reporting framework.
The International Integrated Reporting Council (IIRC) has released a prototype of a framework to allow financial report compilers to integrate non-financial information, such as environmental and social economic costs, into financial statements.
The prototype is the first of its kind and more than 80 businesses and 25 investors from more than 20 countries piloting the framework. Following the pilot the IIRC plans to release a formal consultation draft in April 2013 with the final version, 1.0, to be rolled out in December next year.
The IIRC is a collection of representatives from the largest international companies, institutes and firms with former ICAEW president and ex-director of the Financial Reporting Council Paul Druckman as its CEO.
Druckman (pictured) said: “By publishing the prototype, we are encouraging businesses to start testing the principles of integrated reporting and evaluating their relevance and applicability.
“We have found out the hard way in recent years that our capital markets, governance and reporting systems need to evolve to encourage financial stability and a greater long term focus. Integrated reporting will be one of the tools that ensure we don’t slip back into ‘business as usual'”.
Members of the IIRC include HSBC, the Big Four, Microsoft, ACCA, ICAEW, Deutsche Bank, Grant Thornton, Marks & Spencer, SAP, Tata Steel, and Unilever
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Businesses will have to think more strategically about where they can source those non-audit services in the future