Advanced Management Accounting | IIRC
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Added on 2022-08-21
Advanced Management Accounting | IIRC
Added on 2022-08-21
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Running head: ADVANCED MANAGEMENT ACCOUNTING
Advanced management accounting
Name of the student
Name of the university
Student ID
Author note
Advanced management accounting
Name of the student
Name of the university
Student ID
Author note
ADVANCED MANAGEMENT ACCOUNTING1
Introduction
IIRC (international integrated reporting council) issued the framework for the purpose of
integrated reporting. It is followed by 3 moths of global consultation as well as trials in 25
nations. IR framework determines the principles as well as concepts through which the overall
content of the integrated report (IR) is governed. The IR sets out the manner in which the
strategy, prospects, governance and performance of the organization leads towards value
creation. No benchmarking is there for these matters and IR is primarily aimed for the private
sectors however the same can be adopted by the not-for-profit firms as well as public sectors
(Integratedreporting.org 2020).
Discussion
More than 70% of the largest and listed entities under ASX and large number of non-
registered entities are focussing the reporting in context of long term value through adopting the
principles of IR. Major purpose of IR is explaining the financial capital providers the manner in
which the organisation generates value over the time period. Further it benefits all the
stakeholders including customers, employees, business partners, local communities, regulators,
legislators and policymakers those are interested in the ability of the entity in creating value
(Integratedreporting.org 2020). Integrated reporting framework encourages preparation of the
report that states the performance as compared to strategies and explains different capitals
utilised as well as impacted and provides long term view for organisation. IR creates next
generation for the annual report as it allows the stakeholders for making more informed analysis
in context of the organisation as well as prospects. IIRC set out the principle-based framework
instead of specifying detailed disclosures as well as measurement standards (De Villiers, Venter
Introduction
IIRC (international integrated reporting council) issued the framework for the purpose of
integrated reporting. It is followed by 3 moths of global consultation as well as trials in 25
nations. IR framework determines the principles as well as concepts through which the overall
content of the integrated report (IR) is governed. The IR sets out the manner in which the
strategy, prospects, governance and performance of the organization leads towards value
creation. No benchmarking is there for these matters and IR is primarily aimed for the private
sectors however the same can be adopted by the not-for-profit firms as well as public sectors
(Integratedreporting.org 2020).
Discussion
More than 70% of the largest and listed entities under ASX and large number of non-
registered entities are focussing the reporting in context of long term value through adopting the
principles of IR. Major purpose of IR is explaining the financial capital providers the manner in
which the organisation generates value over the time period. Further it benefits all the
stakeholders including customers, employees, business partners, local communities, regulators,
legislators and policymakers those are interested in the ability of the entity in creating value
(Integratedreporting.org 2020). Integrated reporting framework encourages preparation of the
report that states the performance as compared to strategies and explains different capitals
utilised as well as impacted and provides long term view for organisation. IR creates next
generation for the annual report as it allows the stakeholders for making more informed analysis
in context of the organisation as well as prospects. IIRC set out the principle-based framework
instead of specifying detailed disclosures as well as measurement standards (De Villiers, Venter
ADVANCED MANAGEMENT ACCOUNTING2
and Hsiao 2017). It allows each of the entities in setting out the own report instead of adopting
the checklist approach. Changes in the culture shall allow the entities in communicating the
value creation in better manner as compared to disclosures made in accordance with IFRS.
However, IR will not replace the various other forms for reporting however the form is that
where the preparers pull together the information those are relevant and produced for explaining
key drivers for business value. Information is included under report where the same is material
for the assessment of the stakeholders in context of the business. Various concerns were there
that the concept of materiality had specific legal connotation with the outcome that some of the
organisation are in the view that they shall incorporate the regulatory information under IR.
However, it has been concluded by IIRC that usage of materiality term shall be continued in the
same context (Lodh 2016).
Major components on which the IR is built are – (i) structure of the governance and the
manner in which the same supports the ability for creating value (ii) overview of the organisation
as well as the external environment where it operates (iii) model of the business (iv)
opportunities as well as risks and the manner in which they dealing with the same and the
manner in which the same have its impact on the ability of the entity in creating value (v)
strategies as well as allocation of resources (vi) achievements and performance of the strategic
objectives for he concerned period and its outcomes (vii) challenges and outlook those the entity
is facing and the implications for same (viii) presentation basis shall be determined along with
the matters those are required to be included in IR and the manner in which the elements are
evaluated or quantified (Integratedreporting.org 2020).
Value creation
and Hsiao 2017). It allows each of the entities in setting out the own report instead of adopting
the checklist approach. Changes in the culture shall allow the entities in communicating the
value creation in better manner as compared to disclosures made in accordance with IFRS.
However, IR will not replace the various other forms for reporting however the form is that
where the preparers pull together the information those are relevant and produced for explaining
key drivers for business value. Information is included under report where the same is material
for the assessment of the stakeholders in context of the business. Various concerns were there
that the concept of materiality had specific legal connotation with the outcome that some of the
organisation are in the view that they shall incorporate the regulatory information under IR.
However, it has been concluded by IIRC that usage of materiality term shall be continued in the
same context (Lodh 2016).
Major components on which the IR is built are – (i) structure of the governance and the
manner in which the same supports the ability for creating value (ii) overview of the organisation
as well as the external environment where it operates (iii) model of the business (iv)
opportunities as well as risks and the manner in which they dealing with the same and the
manner in which the same have its impact on the ability of the entity in creating value (v)
strategies as well as allocation of resources (vi) achievements and performance of the strategic
objectives for he concerned period and its outcomes (vii) challenges and outlook those the entity
is facing and the implications for same (viii) presentation basis shall be determined along with
the matters those are required to be included in IR and the manner in which the elements are
evaluated or quantified (Integratedreporting.org 2020).
Value creation
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