Integrated reporting and its benefits

RUNNING HEAD: CORPORATE ACCOUNTING
Integrated reporting and its benefits

Corporate accounting 2
Contents
Introduction.................................................................................................................................................3
Integrate Reporting – Concept.....................................................................................................................3
Benefits of IR..............................................................................................................................................4
Conclusion...................................................................................................................................................6
References...................................................................................................................................................7

Corporate accounting 3
Introduction
Integrated Reporting is a concept developed by International Integrated Reporting Council
(IIRC) in order to create value over the time. It deals with the integrated presentation of
company’s performance in both financial and non-financial terms. This report contains detail
information about integrated reporting and its benefits to the companies. It explains the concept
of IR and the advantages a company can have by applying this in their business.
Integrate Reporting – Concept
<IR> is basically a process founded on integrated thinking which led to the creation of periodic
integrated reports by the organization about creating value over the time. The thinking includes
active considerations of the relationship between the organizations’s operational and functional
departments along with the capital invested or affected (Ey.com. 2018). An Integrated report is a
concise communication of an entity’s strategy, performance, governance and prospects that will
lead to the value creation over short, medium and long term period. It provides greater insights
about the performance data and clarifies that how relevant information fits into the operations of
the business. IR also helps the company to enhance their decision making process and keep the
same in the long term (Cimaglobal.com. 2018).
The concept of IR was introduced to reduce the gap between the information reported by the
companies and the data an investor require for evaluating and assessing the business value and
prospects. As per the report published by KPMG, the companies operating and listed in South
Africa are required to adopt the Integrated Reporting framework on an ‘apply or explain’ basis.
Value creation is the backbone of IR and also directs the future of corporate reporting. The main