Advanced Financial Accounting: Roles of Integrated Reporting and International Framework

Running head: ADVANCED FINANCIAL ACCOUNTING
Advanced Financial Accounting
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2ADVANCED FINANCIAL ACCOUNTING
Table of Contents
Introduction......................................................................................................................................5
Question 1........................................................................................................................................5
With reference to the IIRC website and relevant accounting literature, explain the role of the
International Integrated Reporting Committee (IIRC)....................................................................5
Question 2........................................................................................................................................6
With reference to the research findings of the CPA report and the relevant accounting literature,
explain the existing and potential roles of integrated reporting with regards to:............................6
Part A...........................................................................................................................................6
Providing information that is relevant to stakeholders................................................................6
Part B...........................................................................................................................................7
Stakeholder engagement..............................................................................................................7
Part C...........................................................................................................................................7
Comparability of reporting..........................................................................................................7
Part D...........................................................................................................................................7
Quality of reporting.....................................................................................................................7
Part E...........................................................................................................................................8
Usefulness of reporting................................................................................................................8
Part F............................................................................................................................................8
Users of reporting........................................................................................................................8

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Question 3........................................................................................................................................9
Comparing and contrasting the findings of the CPA report with the following guiding principles
that underpin integrated reporting:..................................................................................................9
Part A...........................................................................................................................................9
Stakeholder relationships.............................................................................................................9
Part B...........................................................................................................................................9
Materiality....................................................................................................................................9
Part C.........................................................................................................................................10
Conciseness................................................................................................................................10
Part D.........................................................................................................................................11
Reliability and completeness.....................................................................................................11
Part E.........................................................................................................................................12
Consistency and comparability..................................................................................................12
Question 4......................................................................................................................................13
Identification and explaining the similarities and differences between:.......................................13
Part A.........................................................................................................................................13
The definition and objective of the International Framework with the definition and objective
of general purpose financial reporting as contained in the IASB or AASB conceptual
framework..................................................................................................................................13
Part B.........................................................................................................................................14

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Identification of the users of an integrated report and identification of the users of general
purpose financial reporting........................................................................................................14
Part C.........................................................................................................................................14
Integrated report concept of materiality and the IASB conceptual framework concept of
materiality..................................................................................................................................14
Part D.........................................................................................................................................16
Integrated report concepts of reliability, completeness, consistency and comparability and the
IASB conceptual framework concepts of reliability, completeness, consistency and
comparability.............................................................................................................................16
Question 5......................................................................................................................................17
Comparing and contrasting the integrated reports of four companies that appears in the examples
database of the integrated reporting website with respect to any four of the IR Guiding Principles
.......................................................................................................................................................17
Question 6......................................................................................................................................22
Discussing the factors that may explain the similarities of differences that is identified in the last
question..........................................................................................................................................22
Conclusion.....................................................................................................................................23
References and Bibliography.........................................................................................................24

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Introduction
This study deals with understanding the role of International Integrated Reporting
Committee by referring to the IIRC websites as well as relevant accounting literature. In the next
segment, explanation had been done to understand the potential roles of integrated reporting with
regard to stakeholder engagement, comparability of reporting, quality of reporting, usefulness of
reporting and users of reporting. The current segment compares the findings of the CPA report
with the following guiding principles and these are stakeholder relationships, materiality,
conciseness, reliability and completeness, consistency and comparability. In the next segment,
comparison had been done between the objectives of International Framework and general
purpose financial reporting as mentioned in the IASB or AASB conceptual framework. In the
last segment, comparison had been done between four companies (HULAMIN LTD, CEMEX,
MTN Group and DSM) and aligned with the IR guiding principles (stakeholder relationships,
materiality reliability and completeness, consistency and comparability).
Question 1
With reference to the IIRC website and relevant accounting literature, explain the role of
the International Integrated Reporting Committee (IIRC)
The International Integrated Reporting Council is one of the global coalitions of
regulators, standard setters as well as regulators and accounting profession
(Integratedreporting.org. 2018). The role of the International Integrated Reporting Committee is
to create a globally accepted framework to deal with a process that lead to enhance the level of
communications by any business on matters relating to value creation for specified time frame.

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This Committee together decides to bring development by conducting internationally accepted
integrated reporting framework. By creating this framework, it will help business organization to
get access to concise communications on how they can create value for given period of time.
IIRC are responsible in promoting communication on matters relating to value creation as the
next step is the evolution of corporate reporting.
Question 2
With reference to the research findings of the CPA report and the relevant accounting
literature, explain the existing and potential roles of integrated reporting with regards to:
Part A
Providing information that is relevant to stakeholders
Stakeholders are interested to get information relevant to their work. For instance,
environmental stakeholders show interest in getting information about environmental issues of
significance. These stakeholders have extensive but varied information needs that are
predominantly cannot be addressed by any single or static or annual integrated report. By
referring to the research findings of the CPA report and relevant accounting literature, it is found
that most of the stakeholders use reports as background information for conducting research for a
given company.