UK businesses take a step closer to integrated reporting as the IIRC welcomes revised guidance from the UK Financial Reporting Council

Posted
31 July, 2018

The International Integrated Reporting Council (IIRC) welcomes the updated guidance from the UK Financial Reporting Council on the strategic report, which promotes integration of information and clear, concise, value-based reporting.

The guidance states, “In developing the Guidance, the FRC was mindful of developments in integrated reporting.” Continuing, “The International Integrated Reporting Framework and the Guidance on the Strategic Report encourage similar qualitative characteristics and content.”

Commenting on the publication of the revised guidance, Jonathan Labrey, Chief Strategy Officer, International Integrated Reporting Council stated, “An increasing number of UK businesses are using the International <IR> Framework to help them think about and communicate the range of resources and relationships their organization draws on to create value over time.  A clear recognition of the consistencies between the strategic report and integrated reporting sets a coherent path for the future of UK corporate reporting.”

He continued, “We encourage businesses to use the concept of the capitals found in integrated reporting as they articulate their value creation story for the first time. Through the capitals – human, social and relationship, intellectual, natural, manufactured and financial – businesses are able to put into context the inputs, outputs and outcomes of their business model so they can concentrate on creating value into the future through sustainable development.”

Countries around the world are increasingly removing any barriers and encouraging adoption of integrated reporting. Through corporate governance codes, governmental reports and stock exchange recommendations integrated reporting is now actively promoted in 18 countries around the world, with businesses in over 65 countries now using the principles of the International <IR> Framework voluntarily.

As a recognized leader in corporate reporting, the IIRC congratulates the UK Financial Reporting Council for embracing the importance of discussing broader value creation drivers and focusing discussion with shareholders on the strategy for the long term.