EY comments on the new corporate reporting model – ‘International Integrated Reporting Framework’
Dr Jeremy Osborn, Integrated Reporting Leader at EY, says:
“The significance of this new reporting framework could be radical, providing an opportunity for a company to demonstrate to its core stakeholders how it can create sustainable value in the short, medium and long term. Integrated Reporting broadens the perspective on value beyond that narrowly defined by the accountancy profession to take account of other sources of value which a company draws on and creates, such as intellectual, human or natural capital. This change in reporting encourages the communication of tangible connections between non-financial impacts and underlying commercial performance. It also allows a company systematically to adopt a long-term perspective and consider the inter-relationship between commercial performance and the environmental and social impacts from an investment decision.
“Integrated Reporting requires the support of both the CEO and CFO, as it will impact on the execution of a company’s strategy, organisational structure and decision-making processes, but it is nonetheless an achievable ambition. Early adopters will signal to the markets before their peer-group that their business model, strategy and performance measures are aligned with long-term value creation. This should create greater trust and generate deeper confidence amongst governments, shareholders and business executives as they make informed decisions about the organisation.”