IRC South Africa: Reporting on Outlook Information in the Integrated Report

The Integrated Reporting Committee of South Africa has released its technical Information Paper: Reporting on Outlook Information in the Integrated Report.

The Information Paper looks at the Outlook information required in terms of the International <IR> Framework, the role of the governing body, how the information differs to that of “earnings guidance”, and offers preparers key considerations for meaningful Outlook information in integrated reports. 

Key considerations for preparers noted in the report include:

  • Strategic objectives and strategy set out the organization’s path in the short, medium and long-term
  • The likely challenges and uncertainties in pursuing the strategic objectives and strategy, and the potential implications
  • Explanation of expected changes in the industry and external environment, and the potential implications
  • The expected opportunities, and the potential implications
  • Realistic expectations and assumptions grounded in sound analysis

Information on Outlook is essential when reporting to stakeholders as it completes the value creation story of the organization as told in its integrated report. Outlook information covers the organization’s strategic path ahead – and the leadership’s view of the material uncertainties and challenges that may affect the achievement of the strategic objectives and the potential implications for the organization. An integrated report that does not offer meaningful insight into the organization’s Outlook diminishes in credibility.