INTEGRATED REPORTING U.S. COMMUNITY

IFAC continues to speak out on behalf of the global accounting profession on the topic of non-financial reporting, most recently in response to the European Commission’s review of the Non-Financial Reporting Directive (NFRD). This review marks another valuable step in the dialogue and evolution toward relevant, reliable, and comparable reporting of non-financial information. A summary of IFAC’s response is available on its website. IFAC 's response reiterated points it made in early June in its summary of its feedback on the World Economic Forum (WEF) consultation “Toward Common Metrics and Consistent Reporting of Sustainable Value Creation.”

Read EFAA position statement on Non-Financial Reporting by SMEs here and their response to the NFRD public consultation here. EFAA urges NFR by SMEs to remain voluntary and welcomes the development of a simplified standard for NFR by SMEs.

In this article Carol A Adams makes the following main points:

• A proliferation of bodies setting standards and frameworks has led to a proliferation of bodies claiming to ‘harmonise’ them.
• Five myths are prevailing to support claims to move the authority base for standards and reduce reporting requirements.
• Recommendations regarding the role of key players are proposed. 

ACCA has identified integrated reporting as a key method to help firms tackle future risks they face such as those posed by the Covid-19 pandemic in its latest report Insights into Integrated Reporting 4.0. The report covers 48 companies – each are members of the International Integrated Reporting Council (IIRC) Business Network. As economies and companies around the world prepare for imminent recession owing to the pandemic, the report recommends a focus on sustainability, resource efficiency and integrated thinking to help tackle risks companies face and improve the quality of their reporting. Richard Martin, the report’s author, added that there are still key areas for improvement when benchmarking against the three previous Insights into Integrated Reporting. ‘This indicates that though companies’ stated following of the principles is increasing, the quality of that compliance is not. The descriptions around statements of responsibility for the reports could also be improved.’For more information on integrated reporting, and the report, visit https://www.accaglobal.com/gb/en/professional-insights/global-profession/Integrated-reporting-4.html

This article by IFAC Board member Elbano de Nuccio is here: http://www.ifac.org/knowledge-gateway/preparing-future-ready-professionals/discussion/non-financial-disclosure-integrated-reporting

EFRAG publishes a literature review on intangibles as part of its research project on better information on intangibles. Read the complete news

IFAC hosts a collection of resources on its Global Knowledge Gateway here - https://www.ifac.org/knowledge-gateway/integrated-reporting-pao-network

WEF recently released this report outlining recommended metrics for a common  ESG reporting framework. https://www.weforum.org/whitepapers/toward-common-metrics-and-consistent-reporting-of-sustainable-value-creation

The slides and recording from the webinar 'SMEs and Integrated Reporting’ held on 17 September 2019 can be accessed here: https://register.gotowebinar.com/recording/5985903331413646086

IFAC welcomes sharing this recording with colleagues in your organization who may find it of interest. 

The webinar was focused on integrated reporting for small and medium sized entities (SMEs), exploring the benefits for SMEs, guidance on implementation, and case study examples, with excellent presentations from:

• Matteo Pozzoli, member of IFAC's Small and Medium Practices Committee, who shared IFAC's perspective on the benefits of integrated thinking and reporting for SMEs
• Prof. Stefano Zambon, Secretary General, OIBR and the University of Ferrara, who gave an overview of the work of the Italian Network for Business Reporting (NIBR), and the transformation of this network into the recently established Italian Foundation for Business Reporting (OIBR)
• Dr. Laura Girella, IIRC Technical and Research Manager, who provided an overview of implementation guidance from the NIBR/OIBR and the WICI Global Network.

The implementation guidance was illustrated by 2 case studies:

(1) Stafer presented by Andrea Ragazzini, Chief Value Officer

(2) Dellas presented by Marco Pasquotti, Group CFO, Dellas and Chairman, Italian CFOs Association (ANDAF) North-Eastern Section.

Useful links

• Integrated Reporting for SMEs: Implementation Guidance - Consistent with the International <IR> Framework, this guidance explains the principles of integrated reporting and thinking through the lenses of an SME, providing also a road-map to integrated reporting as well as suggested KPIs and KRIs that can be usefully adopted.
• Creating Value for SMEs through Integrated Thinking - This publication from IFAC and the International Integrated Reporting Council aims to help small- and medium-sized entities (SMEs), including non-profits, adopt integrated reporting and realize its benefits. It can also help users understand the benefits of using the International Integrated Reporting Framework, including the flexibility of its principles-based structure and approach.

https://www.journalofaccountancy.com/news/2019/sep/how-to-adopt-integrated-reporting-201921906.html