IIRC Announces Plans for Extending IR Programme
The IIRC will be publishing an essential statement that will request regulators and governments to approve plans pertaining to all new reporting structure since more than eighty MNC’s have fully completed the first year of the IR programme. Paul Druckman, International Integrated Reporting Council’s CEO stated at the annual conference held in Amsterdam that the IIRC’s statement will highlight the advantages of their market-oriented approach as well as request regulators, standard setting authorities and governments to take note of IIRC’s movement. Druckman also clarified that the IIRC needs to encourage everyone to think regarding the movement and prepare well for integrated reporting ahead of the IR structure being released towards the end of 2013.
The International Integrated Reporting Council also clarified it plans of extending the 1 year integrated reporting pilot programe for 2 more reporting periods, in view of the existing implementation issues. Discussing few of the implementation related issues that were highlighted by the users, Druckman stated that the IIRC is concerned about the issues that have been raised by the users. Most of these issues are related to technical aspects as well as the Integrated Reporting concepts. He also mentioned that by the end of 2012 and at the beginning of 2013, IIRC would be issuing a number of technical related papers that will help in understanding these difficult concepts and definitions. Druckman also pointed out that the structure will be very valuable for economy, society and business and that the IIRC will be primarily focusing on the institutional investors.
He also clarified that investors are always looking for information which is relevant as well as specific to their industry, and indicates appropriately whether the business is moving in the right direction or not and not merely that the business has performed aptly earlier.
Integrated Reporting is a new way of corporate reporting, which demonstrates the link between an entity’s financial performance, governance as well as the environmental, economic and social context within which an organization operates. By strengthening these links, Integrated Reporting can assist business in making decisions that are far more sustainable and help stakeholders and investors in understanding how an entity is actually performing.