Framework Development: Prototype of the International <IR> Framework
In November 2012 the IIRC released a Prototype of the International <IR> Framework. Below is the accompanying press release:
On 26 November 2012 the IIRC released a Prototype of the International <IR> Framework, a significant further step towards publication of version 1.0 of the Framework in 2013. Releasing the Prototype Framework is an interim step intended to demonstrate progress towards defining key concepts and principles that underpin <IR>, and support organizations’ ability to produce an integrated report.
The IIRC is also pleased to announce that it is on course to publish a formal Consultation Draft of the Framework in April 2013, to be followed by the final “version 1.0” in December 2013.
The momentum for <IR> has been growing. The Prototype should help businesses and others starting on their <IR> journey, by outlining the key considerations that are critical to <IR>.
While not part of the formal consultation process, the IIRC would welcome feedback from stakeholders on the content of the Prototype Framework.
< IR> is the language that enables businesses to tell a clear and concise story about how they create value over time, drawing on the core elements of value creation. Over 80 businesses and 25 investors from more than 20 countries are part of the IIRC’s Pilot Programme, an innovation hub that is testing the practical application of Integrated Reporting and contributing to the development of the Framework.
Commenting on the publication of the Prototype, IIRC Chief Executive Paul Druckman, said:
“By publishing the Prototype, we are encouraging businesses to start testing the principles of Integrated Reporting and evaluating their relevance and applicability.
We have found out the hard way in recent years that our capital markets, governance and reporting systems need to evolve to encourage financial stability and a greater long term focus. Integrated Reporting will be one of the tools that ensure we don’t slip back into ‘business as usual'”.
Subsidiary papers on a range of topics, including connectivity, the business model, the capitals, the concepts of value, and materiality are expected to be released during early 2013.