The International Integrated Reporting Council (IIRC) welcomes a further move towards better quality corporate reporting in the UK, with the publication today of the Guidance on the Strategic Report by the Financial Reporting Council (FRC).
Melanie McLaren, Executive Director Codes & Standards, FRC said, “In developing the Guidance we have also kept an eye on developments related to the EU Directive on Non-Financial Reporting and the work of the International Integrated Reporting Council. Reports that follow the Guidance on the Strategic Report should result in reporting that is consistent with the International <IR> Framework.”
The Guidance formally recognises the increased focus on articulating strategic factors that contribute to performance in a concise and understandable way. It enables companies to think innovatively about communication and improving accessibility of information, and encourages a focus on the application of materiality to disclosures as a key step towards concise reporting.
Paul Druckman, CEO, IIRC said, “We share the FRC’s vision to improve the quality of corporate reporting, and welcome the greater alignment between the Strategic Report and <IR>. Our goal is a corporate reporting landscape that allows businesses to communicate concise, relevant and focused information about their strategy, governance, performance and prospects to support decision-making.
“<IR> creates a reporting environment for businesses that is not only conducive to understanding and articulating their strategy, but which also helps to drive performance internally and attract financial capital for investment. The Strategic Report, together with the FRC’s Guidance, is consistent with <IR> and is one of the leading initiatives across the world. As an integrated regulator, the FRC is taking a front seat in encouraging innovation and experimentation in reporting.
“We are already seeing some of our Pilot Programme businesses using the Strategic Report to accelerate their adoption of Integrated Reporting, and I believe it will help to move mind-sets away from rigid compliance, and towards better communication about value creation.”
Note to editors
The International Integrated Reporting Council (IIRC) is a global coalition of regulators, investors, companies, standard setters, the accounting profession and NGOs. Together, this coalition shares the view that communication about businesses’ value creation should be the next step in the evolution of corporate reporting.
The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. The FRC sets the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. It represents UK interests in international standard-setting. It also monitors and takes action to promote the quality of corporate reporting and auditing. It operates independent disciplinary arrangements for accountants and actuaries; and oversees the regulatory activities of the accountancy and actuarial professional bodies.
The Guidance for the Strategic Report can be found here.
Pippa Whittaker, IIRC, firstname.lastname@example.org, +44 207 504 2570