Free Site Registration


More Debits & Credits Posts

PwC Finds Client Demand for Integrated Reporting

Print
Email
Reprints
By Michael Cohn
August 27, 2013

PricewaterhouseCoopers is seeing more companies expressing an interest in looking beyond their basic financial results so they can develop new frameworks to provide a more informative view of their business.

PwC’s new report, “Integrated Reporting: Going beyond the financial results,” describes how some companies are examining different approaches to reporting non-financial key performance indicators, such as strategy, governance, performance, sustainability and prospects, and how to create more value from them. The report finds that companies can benefit from thinking about their internal and external reporting in an integrated way by taking into account such factors. Companies that use integrated reporting concepts may also produce more transparent reporting and thereby improve their access to capital.

The International Integrated Reporting Council released a draft version in April of its integrated reporting framework and a number of companies have been pilot testing it (see Integrated Reporting Pilot Testers Compare Progress). Meanwhile, groups such as the Sustainability Accounting Standards Board have been focusing on areas of integrated reporting such as environmental sustainability (see SASB Releases Sustainability Accounting Standards for Health Care Sector).

Kathy Nieland

In PwC’s view, integrated reporting should build on the existing financial reporting model to present additional information about a company’s strategy, governance and performance.

Integrated reporting provides a more complete picture of a company, including how it demonstrates stewardship and creates and sustains value. Integrated reporting is achieved when it shows how governance connects with remuneration and risk, when strategy is designed to exploit a changing market environment, and when strategic priorities align with key resources, relationships and key performance indicators.

PwC’s report notes that while SASB standards are currently provisional, stakeholders are increasingly asking companies to provide clear information about external drivers affecting their businesses, their approach to governance and managing risk, and how their business models work. Investors are taking note, recognizing the relationship between sustainability and financial performance and are increasingly considering non-financial factors such as resource scarcity when assessing companies’ long-term prospects. Companies can use integrated reporting concepts to drive the need for transparency, while also focusing on integrated thinking and strategic decision-making.

“We’re working with leading companies to look beyond their core financial results and develop a new framework that aims to give a more informative view of their businesses,” said PwC US Sustainable Business Solutions practice leader Kathy Nieland in a statement. “Companies that are engaged in integrated reporting have been able to successfully think about their businesses in new and innovative ways. Increasingly, companies are beginning to take on integration, incorporating sustainability and other non-financial information in their reports, and those that haven’t done so should take the time to look inward in order to prepare and gain valuable insights into their business.”

1 Comments

Maybe I'm a little overzealous when it comes to believing that the accounting profession could have recognized the economic trauma which was coming, or that they could have prepared their business clients for it. But I don't believe I'm very far off the mark in believing that not nearly enough "analysis" occurs in the typical public accounting engagement, and even when it does... is the suggested path the right one? I would submit that BI is new enough to so many people that it may not be. Learning what the numbers are telling you is one thing... staving off disaster is quite another.

http://coopermann.com/2013/08/22/predicting-outcomes-and-providing-guidance-being-nostradamus-proformative-com/

Posted by: joaniecmann | August 28, 2013 3:52 PM

Report this Comment

Add Your Comments...

Already Registered?

If you have already registered to Debits & Credits, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.


Follow Accounting Today
Advertisement


Advertisement

Trends in the Accounting Profession

April 18, 2014

Jim Metzler, former AICPA vice president of small firm interests, and founder of Metzler Advisory Group, talks about how the CPA profession is changing.

Lessons in M&A: Client and Staff Retention

April 14, 2014

Transition Advisors president Joel Sinkin talks about what firms should do after a merger to retain their clients and staff members.

Are You Missing These Growth Opportunities?

April 2, 2014

Gale Crosley of Crosley + Company discusses the practice areas and international opportunities that firms often overlook in trying to grow.

Advertisement

SLIDE SHOW

Dumbest Employee Excuses for Being Late

March 31, 2014

Running a little late could have big repercussions, especially at a firm in the midst of busy season. From escaped zebras to must-see TV, employers told CareerBuilder some of the most memorable excuses they've heard from tardy employees.

Common Taxpayer Misconceptions

March 19, 2014

The NAEA’s collection of ridiculous things tax clients believe.

The 10 Fastest-Growing Firms in the U.S.

March 10, 2014

The firms with the highest 2013 revenue growth in our Top 100 Firms/Regional Leaders list.

Top 10 Tech Trends for 2014

March 3, 2014

As companies gain more affordable access to new technology and platforms, they also seek to make smarter investments.

Strangest Tax Deductions

January 31, 2014

The Minnesota Society of CPAs recently conducted its annual survey about the most strange and unusual tax deductions proposed by clients.

Advertisement
Advertisement
Advertisement