The paper 'Appropriate and Acceptable Integrated Reporting Framework' is a perfect example of a financial and accounting case study. This is a process based on incorporated thinking resulting in cyclic integrated information by a firm concerning the value creation over a specific time and relevant communications as regards value creation aspects. It is a brief communication regarding the way a firm’ s governance strategy, and prospects in relation to the external environment enhances value creation in the short, medium, and long term timeframes (International Integrated Reporting Council, 2013). AimsAccording to Weybrecht (2014), the first aim of the IR is to enhance the quality of information that is accessible to the financial capital providers so as to facilitate a more productive and efficient capital allocation.
Secondly, IR is aimed at enhancing the stewardship and accountability of the wide capitals base (such as human, intellectual, manufactured, financial, natural, social, and association) and advances their understanding of their interrelationships. Thirdly, IR intends to aid the integrated thinking, actions, and decision-making on the value creation over the short, medium, and long term (International Integrated Reporting Council, 2013). The main functions of the IRF entail doing oversight as regards the auditing and accounting standards, setting procedures for private and public sectors, offering strategic advice regarding the quality of audits conducted by auditors, advising relevant authorities on relevant issues so that they affect the financial reporting of a given country (Tapscott, Eccles & Krzus, 2013). Every company aspiring to be successful in the future must adopt an integrated strategy in order to attain financial results as well as create long-term value for the business, society, and stakeholders.
This value cannot be sustainability and isolated financial reports.
Successful production of the IR framework is possible through the help of the GRI sustainability reporting framework in three ways (Deloitte, 2011). First, the framework helps companies to identify material topics; that is topics that communicate the main connection between sustainability effects and business goals. Secondly, it helps in engaging stakeholders through dialogue in order to determine material effects, as well as manage opportunities and risks. Thirdly, the framework also helps in creating performance indicators that are essential in managing, measuring, and reporting material concerns through a globally accepted framework (Deloitte, 2011). IRRC guiding principlesAccording to the IRRC, the following guiding principles are essential in the preparation of an accepted IR.
The first principle concern strategic focus, as IR offers insight into the firm’ s strategic objectives, and how the objectives link to its capability to prepare and sustain value with time and the relationships and resources on which the company relies (Tapscott, Eccles & Krzus, 2013). Another guiding principle entails information connectivity. IR indicates the relationship between various components of the firm’ s business model, external factors affecting the firm, as well as different relationships and resources on which the firm and its achievement rely.
Further, consideration of future orientation also plays a vital role in IR preparation. IR comprises of the expectations of the management as regards to the future and the other information that is helpful to the report users in understanding and assessing the firm’ s prospects and risks (Loska, 2013).
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