Date: 2024-10-23 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
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
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
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
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
The IIRC website can be accessed at www.theiirc.org.
Related news
New IFAC Policy Position Paper on enhancing organisational reporting
- 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'.
- XBRL International responds to the IIRC Consultation Draft on integrated reporting
- 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.
- Jul 19, 2013 The International Integrated Reporting Council (IIRC), CDP (previously the 'Carbon Disclosure Project') and the Climate Disclosure Standards Board (CDSB) have entered into a Memorandum of Understanding (MoU) to improve their collaboration and promote the global harmonisation and clarity of corporate reporting requirements around natural capital. This MoU follows an earlier MoU between the IIRC and the World Intellectual Capital Initiative (WICI) over intellectual capital.
- Deloitte view on the IIRC's integrated reporting proposals
- 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'.
- Jul 19, 2013 Chartered Professional Accountants of Canada (CPA Canada) has publicly released its comment letter on the International Integrated Reporting Council (IIRC) Consultation Draft of the International Integrated Reporting Framework. Whilst CPA Canada agrees with the concept of an integrated report, concerns are raised in the letter about various matters, including organisational preparedness to generate integrated reports, a perceived lack of demand for integrated reports by providers of financial capital, and the IIRC's proposed timing for finalisation of its proposals.
- 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.
- May 13, 2013 In its series of webinars on a variety of topics provided free of charge for members and non-members, the Canadian Institute of Chartered Accountants (CICA) is offering a webinar on the International Integrated Reporting Council (IIRC)'s consultation draft of an International Integrated Reporting Framework.
- 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.
- Mar 27, 2013 The International Integrated Reporting Council (IIRC) has published on its website a further 'background document' in the lead up to the expected issue of its consultation document on integrated reporting (stylised as
) in mid-April. The latest background paper discusses the 'business model' concept, and follows earlier papers on the concepts of 'capitals' and 'materiality'.
- Mar 18, 2013 The International Integrated Reporting Council (IIRC) has published on its website 'background papers' on two aspects of integrated reporting (stylised as '
'): the concepts of 'capitals' and 'materiality'. The papers are a precursor to the publication of a consultation draft of the IIRC's Integrated Reporting Framework, which is expected in mid-April 2013.
- Mar 15, 2013 The Federation of European Accountants (Fédération des Expert comptables Européens, FEE) has sent a letter to the International Integrated Reporting Council (IIRC) providing high level feedback on the finalised 'prototype' of the IIRC's integrated reporting framework. Among other points, FEE also comments on the question of assurance in connection with integrated reporting.
- The Bruce Column — Effective disclosure: More or less
- Mar 06, 2013 Everyone agrees that something should be done about the levels of disclosure in financial reporting. It is just, as our resident columnist Robert Bruce reports, that no one agrees on what that something might be.
- IIRC and GRI agree to cooperate
- Mar 04, 2013 The International Integrated Reporting Council (IIRC) and the Global Reporting Initiative (GRI) have announced that they have entered into a memorandum of understanding (MoU) which seeks to formalise the principles for ongoing cooperation, coordination and alignment between the two organisations.
- An Australian perspective on the distinction between financial and integrated reporting
- Mar 04, 2013 The Australian Financial Reporting Council (FRC) has released an updated paper exploring the interaction of financial reporting and integrated reporting. The paper concludes that in the FRC's view, integrated reporting is complimentary to, rather than a replacement for, financial reporting.
- Sustainability and integrated reporting update
- Feb 11, 2013 A summary of recent developments in sustainability and integrated reporting, including news, research reports and other topics.
- IASB and IIRC announce cooperative agreement
- Feb 07, 2013 The International Accounting Standards Board (IASB) and International Integrated Reporting Council (IIRC) have announced a Memorandum of Understanding (MoU), where both organisations will strengthen their cooperation on the development of the IIRC's integrated corporate reporting framework.
- Jan 18, 2013 The International Integrated Reporting Council (IIRC) has issued a newsletter with updates on progress on its integrated reporting initiative, including the timing of the issue of an exposure draft and background papers. The IIRC has also effectively confirmed that it and International Accounting Standards Board (IASB) are working together to create a Memorandum of Understanding between the two bodies.
- Nov 27, 2012 The International Integrated Reporting Council (IIRC) has released a finalised 'prototype' of its integrated reporting framework (stylised as '
') and reaffirmed the expected timing of the issue of a consultative document as it moves towards finalisation of the framework by the end of 2013.
- Oct 24, 2012 The International Integrated Reporting Council (IIRC) has launched an 'Integrated Reporting Emerging Practice Examples Database', which contains integrated reporting examples from businesses around the world.
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Oct 18, 2012 The International Federation of Accountants (IFAC) and the International Integrated Reporting Council (IIRC) have signed a Memorandum of Understanding (MoU) to promote cooperation, coordination, and alignment between the two bodies. The MoU seeks to take advantages of the 'inherent synergies' between the work of IFAC and the IIRC in supporting of an internationally accepted framework for integrated reporting.
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Oct 02, 2012 A year after launching its Integrated Reporting Pilot Programme, the International Integrated Reporting Council (IIRC) has held a conference and announced a 'Prototype Framework' for integrated reporting as it moves towards finalising the framework by December 2013.
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Sep 06, 2012 The journey towards an agreed framework for a system of integrated reporting around the world is gathering pace. Here Robert Bruce, our regular, resident columnist, interviews Paul Druckman, CEO of the International Integrated Reporting Council, (IIRC), about progress, the growing support of investors and analysts, the attitudes of stock exchanges around the world and what it means to provide ‘more than the financials’.
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Aug 08, 2012 A report from the Association of Chartered Certified Accountants (ACCA) provides insights into the impact of integrated reporting on companies' corporate reporting, based on an academic study of recent experience in South Africa. The ACCA report contains a number of specific recommendations that could be taken into account by those developing the international integrated reporting framework, under the auspices of the International Integrated Reporting Council (IIRC), or otherwise.
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Aug 06, 2012 A new research report has been issued exploring how investors and analysts source, use and are influenced by so-called 'extra-financial information', which includes Environmental, Social and Governance (ESG) information and other non-financial information. The report shows that for the majority of investors and analysts surveyed, extra-financial information is very relevant or relevant to investment decision‑making or analysis.