The ICAI has announced to introduce a new category ‘Integrated Reporting’ in the ‘ICAI Awards for Excellence in Financial Reporting’, to celebrate the best emerging corporate/ business reporting practice, which has been encouraged by SEBI also. Inclusion of this new category by ICAI in the list of various categories of ICAI Awards for Excellence in Financial Reporting will definitely contribute to boost awareness of integrated reporting and will work as an incentive for companies who adopt it fast.
The Institute of Chartered Accountants of India (ICAI) will be introducing India’s first award to celebrate the new business practice of integrated reporting, internationally acknowledged as the emerging best practice in corporate reporting and encouraged by the Securities and Exchange Board of India (SEBI). This new category, endorsed by ICAI’s Council, is part of the ICAI Awards for Excellence in Financial Reporting and is intended to boost awareness of integrated reporting as well as incentivize companies to adopt it.
An integrated report presents relevant financial and non-financial information in a holistic manner that aids providers of financial capital in making sound decisions, engagement and voting practices. It enables companies to take an interconnected approach towards reporting across multiple capitals, governance, management commentary, strategy, risks and sustainability aspects.
There is a growing understanding worldwide that by encouraging businesses to consider and report on how different forms of capital collectively contribute to their ability to create value over time, integrated reporting may have the potential to promote new ways for businesses and investors to assess the value for the benefit of the long term sustainability of the economy and the society at large. It will be of immense benefit to all stakeholders including employees, customers, suppliers, business partners, local communities, legislators, regulators and policy makers. Research published by some of the world’s leading academic institutions, such as Harvard Business School, Stanford University and the National University of Singapore shows that integrated reporting leads to higher share price performance, a lower cost of capital and a more dedicated, long-term investor base.
“The introduction of Integrated Reporting Category in ICAI Awards will create awareness and encourage Corporate in India to adopt Integrated thinking and Integrated Reporting” said CA. Naveen N D Gupta, President ICAI and first member on IIRC Council from ICAI. “Chartered Accountants need to broaden their grasp of the content knowledge to include non-financial information, so that they can help the organizations they work for to implement integrated reporting both internally and externally. The role of Chartered Accountant as internal as well as external auditor will correspondingly expand including assurance on integrated reporting” he added.
The ICAI has been organizing ICAI Awards for Excellence in Financial Reporting since 1958 in various categories with a view to encourage better financial reporting and to recognize merit in the preparation and presentation of financial statements. “This Award is one of the most renowned Award amongst Corporates in India and the winners of ICAI Awards for Excellence in Financial Reporting will be eligible for participation in SAFA Best Presented Annual Reports Awards Competition” said CA. Sanjay Kumar Agarwal, Chairman, Research Committee of ICAI.
Richard Howitt, CEO of the International Integrated Reporting Council said “The introduction of an integrated reporting category in ICAI’s prestigious Excellence in Financial Reporting Awards is a significant milestone on India’s journey towards accepting integrated reporting as the norm. Tata Steel, Yes Bank, Wipro, Reliance Industries and Mahindra are among the many companies already using the International Integrated Reporting Framework to prepare their reports for investors and other stakeholders. The evidence shows that integrated reporting delivers clear and tangible benefits for the business and I am delighted that ICAI, as a member of the global IIRC Council, is helping to accelerate India’s adoption of integrated reporting in this powerful way”.