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Date: 2024-07-24 Page is: DBtxt003.php txt00006024
THE ACCOUNTANCY ECOSYSTEM
The International Integrated Reporting Council (IIRC)

Some of the founding structure associated with the IIRC around 2011


Original article: http://www.iasplus.com/en/resources/sustainability/iirc
Peter Burgess COMMENTARY

Peter Burgess
Formation

The International Integrated Reporting Council (IIRC) (previously the International Integrated Reporting Committee) was formed in August 2010 and aims to create a globally accepted framework for a process that results in communications by an organisation about value creation over time.

The IIRC brings together a cross section of representatives from corporate, investment, accounting, securities, regulatory, academic and standard-setting sectors as well as civil society. It comprises a Steering Committee, a Working Group and a three taskforces (dealing with content development, engagement and communications, and governance).

The IIRC is chaired by Professor Mervyn King, Chairman, King Committee on Corporate Governance and Former Chairman, Global Reporting Initiative. Membership includes Hans Hoogervorst (IASB Chairman), Leslie Seidman (FASB Chairperson), Maria Helena Santana, (Chairperson, IOSCO Executive Committee), Göran Tidström (IFAC President), Jim Quigley (former global Chief Executive Officer of Deloitte), and many others. Paul Druckman is Chief Executive Officer.

November 2011 restructure

In November 2011, the IIRC announced a number of changes to its organisational structure. Under the new arrangements, an initial transitional phase until the end of 2013 will see the IIRC supported by a strengthened secretariat operating through a not-for-profit company established for the purpose under the same name.

The company's board will comprise Mervyn King as Chairman, Leslie Ferrar (Treasurer, Household of the Prince of Wales and the Duchess of Cornwall) and Christy Wood (Chairman of the Board of Governors, International Corporate Governance Network) as Deputy Chairs, together with Ian Ball (Chief Executive, International Federation of Accountants), Ernst Ligteringen (Chief Executive, Global Reporting Initiative), Jessica Fries (Director, The Prince's Accounting for Sustainability Project) and the IIRC's Chief Executive, Paul Druckman.

A Governance Committee has also been established, with responsibilities relating to audit, nominations and executive remuneration for the company.

The IIRC's objective

Overview

The IIRC's stated objective is to develop an internationally accepted integrated reporting framework by 2014 to create the foundations for a new reporting model to enable organisations to provide concise communications of how they create value over time. The IIRC refers to this process as Integrated Reporting, which it stylises as . which is concise, clear, comprehensive and comparable, structured around the organisation's strategic objectives, its governance and business model and integrating both material financial and non-financial information.

The objectives for an integrated reporting framework are to:
  • support the information needs of long-term investors, by showing the broader and longer-term consequences of decision-making
  • reflect the interconnections between environmental, social, governance and financial factors in decisions that affect long-term performance and condition, making clear the link between sustainability and economic value
  • provide the necessary framework for environmental and social factors to be taken into account systematically in reporting and decision-making
  • rebalance performance metrics away from an undue emphasis on short term financial performance
  • bring reporting closer to the information used by management to run the business on a day-to-day basis.

Current status

The IIRC published its Consultation Draft of the International Framework on 16 April 2013. The Consultation Draft is open for comment until 15 July 2013 and the IIRC expects to finalise the first version of its framework by the end of 2013.

A history of developments is summarised below:

Date Development Comments
  • 12 September 2011 Discussion Paper Towards Integrated Reporting – Communicating Value in the 21st Century published Comment deadline 14 December 2011
  • October 2011 Initial organisations participating in the IIRC Pilot Programme announced The Pilot Programme is a two-year programme for a group of companies who will work as a network of peer group organisations, exchanging knowledge and sharing experiences on integrated reporting.
  • July 2012 Draft Outline of the Integrated Reporting Framework Not part of the formal consultation process, but the IIRC welcomed feedback
  • November 2012 Prototype of the International Integrated Reporting () Framework Not part of the formal consultation process, but the IIRC welcomed feedback
  • 16 April 2013 Consultation Draft of the International Framework published Comment deadline 15 July 2013
Website

The IIRC website can be accessed at www.theiirc.org.

Related news

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  • Oct 13, 2013 The International Federation of Accountants (IFAC) issued Policy Position Paper 8, 'Enhancing Organizational Reporting', emphasizing the importance and usefulness of reporting broad-based information beyond that which is provided in traditional financial reporting. IFAC also calls for convergence in this context.
  • IIRC releases further background papers on 'connectivity' and 'value creation'
  • Aug 14, 2013 The International Integrated Reporting Council (IIRC) has released two more 'background papers', providing further information about key concepts in its proposed International Integrated Reporting Framework. The new papers cover the topics of 'connectivity' and 'value creation'.
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  • Jul 26, 2013 The XBRL International Best Practices Board (BPB) has submitted a letter on comment on the International Integrated Reporting Council (IIRC) Consultation Draft of its proposed 'International Integrated Reporting Framework' showing how XBRL can help make the multi-faceted information flow more accessible but also stressing that XBRL aspects should be considered early in the process to make full use of the available functionalities.
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  • Jul 19, 2013 We have published our comment letter on the International Integrated Reporting Council (IIRC) Consultation Draft of its proposed 'International Integrated Reporting Framework'. We support the IIRC in its efforts to develop the framework, seeing its development as timely as annual reports are getting longer and 'the story of an organisation’s value proposition can often be lost in all that information'.
CPA Canada raises concerns about IIRC's integrated reporting proposals
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  • May 28, 2013 The Global Reporting Initiative (GRI) has release a number of research reports on sustainability and integrated reporting topics: sustainability topics for various sectors, the experience from early adopters of 'integrated reporting', and assurance on sustainability reports.
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  • IIRC publishes 'Consultation Draft' on integrated reporting
  • Apr 16, 2013 The International Integrated Reporting Council (IIRC) has released the Consultation Draft of its proposed International Integrated Reporting () Framework. The draft Framework seeks to create the foundations for a new reporting model to enable organisations to provide concise communications of how they create value over time.
IIRC publishes further background paper on the business model
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FEE comments on the IIRC 'prototype' framework
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IIRC announces 'integrated reporting examples database'
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