As is technology, from data analytics to cybersecurity, transforming our business profession, integrated reporting will continue to have a tremendous impact.
What is integrated reporting?
“Integrated Reporting (IR) promotes a more cohesive and efficient approach to corporate reporting and aims to improve the quality of information available to providers of financial capital to enable a more efficient and productive allocation of capital.” Source: Integrated Reporting Executive Summary
Think big picture strategy, cross-functional, interdepartmental. This type of comprehensive reporting provides a unique vantage point and lens from an executive view. IR represents an evolution in corporate reporting, a competitive advantage.
The International Integrated Reporting Council (IIRC) defines Integrated Reporting (IR) as, “the language for sustainable business. It is the means by which companies communicate how value is created and will be preserved over the short-, medium- and long-term. This information is used principally by investors/stakeholders to support their capital allocation decisions. It involves a set of processes and activities, one result of which is a periodic ‘integrated report’ communication about the way in which an organization’s strategy, governance, performance and prospects lead to the creation and preservation of value.”
From a strategic point of view, this type of reporting adds tremendous value for businesses and its stakeholders. For several years, the Indiana CPA Society has prepared an integrated report. I strongly encourage you to consider adding this valuable and strategic lens to your annual reporting.
Integrated reporting is a process founded on integrated thinking that results in a periodic integrated report by an organization about value creation over time and related communications regarding aspects of value creation.
An integrated report is a concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value in the short, medium and long term. Source: Integrated Reporting