The International Federation of Accountants (IFAC)’s January policy paper effectively reconfirms the global accountancy profession’s support for integrated reporting.
Given that the IFAC was one of the organisations that established the International Integrated Reporting Council (IIRC) this should not be a surprise. However, it is an important endorsement that effectively puts the weight of national accountancy bodies like the US’ AICPA and the UK’s ICAEW and ICAS behind integrated reporting.
The paper describes integrated reporting as the way (significantly not ‘a way’) to achieve more coherent corporate reporting. The paper sets out that:
- IFAC supports the IIRC and its six capitals
- The integrated report can be used as an umbrella report for an organisation’s entire suite of reporting
- The IIRC’s integrated reporting framework could be the single globally accepted reporting framework.
- Integrated reporting produces auditable information
- The accountancy profession has a significant role to play in promoting integrated reporting and providing assurance.
The paper concludes by encouraging the national accountancy bodies to support integrated reporting. We will watch with interest to see how vociferously the major players do so. You can read IFAC’s short paper here.
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