The International Integrated Reporting Framework was released Monday, following a three-month global consultation led by the International Integrated Reporting Council and with more than 350 responses from around the world largely expressing support for the new corporate reporting model.
With the goal of using “integrated thinking” to bring greater cohesion and efficiency to the reporting process, according to the IIRC, International Integrated Reporting focuses on value creation and the “capitals” used by the business to create value over time, contributing to a more financially stable global economy and becoming a force for sustainability.
Currently under trial in 25 countries, 16 of which are members of the global economic collaborative G20, the Framework will be used to accelerate the adoption of IIR.
“We have been taken aback by the degree to which mainstream businesses and investors have been willing to participate in creating this Framework and embarking on their own [IIR] journey,” stated IIRC chairman professor Mervyn King SC. “Last month PepsiCo became the latest global company to sign up to the IIRC’s 100-plus strong business network, which includes HSBC, Unilever, Deutsche Bank, China Light & Power, Hyundai Engineering and Construction, National Australia Bank and Tata Steel. I am delighted that the day has come when businesses worldwide can use the Framework as a tool for the better articulation of their strategy, and to engage investors on a more long-term journey to attract investment that will be crucial to achieving sustained, and sustainable, prosperity.”
The American Institute of CPAs commended the IIRC for releasing the Framework, which they said will create a foundation for enhanced corporate reporting, help businesses make more informed decisions as they are exposed to all potential sources of value, and allow investors and stakeholders to more deeply understand the value of an organization over time.
“The AICPA commends the IIRC for developing an integrated reporting framework through extensive international collaboration and the participation of key stakeholders, who approach the issue with different perspectives,” stated Barry Melancon, AICPA president, chief executive officer and representative on the IIRC Council. “The [IIR] Framework will provide companies the foundation for enhanced business reporting and benefit investors by serving as a complement to financial reporting.”
“The Framework brings technical rigor and cohesion to a process that has grown organically and through market pressure over the last three years,” stated IIRC chief executive officer Paul Druckman. “Today we have fired the starting gun on a period of global adoption that will begin in early 2014 by showcasing practical examples of reporting innovation, including how businesses are demonstrating value creation using the capitals’ model and principles such as the connectivity of information.”
The Framework PDF is available here.