The Indiana CPA Society has released a white paper on the topic of integrated reporting.
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A board-level task force at the society produced the white paper, which defines integrated reporting, addresses and answers several key questions pertaining to the concept, and provides recommendations in the categories of monitoring, educating and advocating it as an emerging trend.
The paper defines integrated reporting as bringing together “the material information about an organization’s strategy, governance, performance and prospects in a way that reflects the commercial, social and environmental context within which it operates. It provides a clear and concise representation of how an organization demonstrates stewardship and how it creates value, now and in the future."
"Integrated reporting combines the most material elements of information currently reported in separate reporting strands (financial, management commentary, governance and remuneration, and sustainability) in a coherent whole, and importantly: shows the connectivity between them; and explains how they affect the ability of an organization to create and sustain value in the short, medium and long term,” the study noted.
The International Accounting Standards Board recently signed a memorandum of understanding with the International Integrated Reporting Council to develop a corporate integrated reporting framework (see IASB and IIRC Sign Agreement to Develop Integrated Reporting Framework).
“Integrated reporting is a topic that is affecting the profession all over the world,” said task force chair Matt Pletcher, CPA, a vice chair on the society’s board. “The public and readers of financial statements are demanding more accountability to things that matter socially and environmentally. The society is instrumental in providing information about future trends which affect the profession and public. INCPAS is engaged in preparing CPAs to take a leadership role in addressing those trends.”
The white paper aims to benefit not only Indiana CPAs, but anyone with an interest in the CPA profession and integrated reporting. Two other INCPAS board task forces have studied related CPA profession topics during the same time period—the future of competency and hyperspecialization—and prepared white papers as well. Those white papers also will be released in the coming weeks.