The IRC Framework will ultimately be aligned with the IIRC Framework
We are pleased to provide you with the second edition of our audit committee insights, Clarity. In this issue we share with you some current research findings on key topics that are affecting the deliberations of audit committees in South Africa.Jeremy Grist
CC&SS Leader, South Africa
What has become accepted is that the process of issuing an integrated report is a journey, and one that will take a few years to perfect.
The King Report on Governance for South Africa 2009 recommends that the board should issue an integrated report on its economic, social and environmental performance annually as part of an integrated strategy.
The annual report as we know it will ultimately be replaced by an integrated report.
Companies will then need to determine how they will report on the detail of the information covered in their integrated reports depending on what is required by legislation and how the companies' stakeholders wish to access this information.
Since March 2010 is that most companies are slowly trying to realign their annual reports to an integrated report format.
Local Integrated Reporting Committee (IRC)
The local IRC was established in May 2010. The first output of the IRC was a Draft discussion paper was the Integrated Report (a framework for Integrated Reporting) in January 2011. The framework was open for public comment until 25 April 2011.
The IRC is currently considering all the comments received in order to finalise the framework.
International Integrated Reporting Committee (IIRC)
In August 2010 the IIRC was established in order to develop a globally accepted international framework for Integrated Reporting (IIRC Framework).
In May 2011 the core elements of the IIRC were agreed upon along with the approval of the IRC Pilot Programme to test the principles contained in the framework.
What has become accepted is that the process of issuing an integrated report is a journey, and one that will take a few years to perfect. This is partly as a result of a lack of guidance available to companies around integrated reporting and partly as a result of the need for a change in reporting.
This change would see companies publishing separate annual and sustainability reports from an integrated report that demonstrates the linkages between strategy, governance and financial performance and the social, environmental and economic context within which the company operates.
In this report we explore additional topics including: