Introduction to Integrated Reporting •Essentialinpresentationofbothfinancialandnon-financial information •Identifies companies performance on ESG parameters •Enhances customer loyalty and brand value •Contributes to overall sustainability reporting among corporates
Significance of IR framework in contemporary corporate •Creating a sustainable value forinvestors and stakeholders in both medium- and short-term •Essential for organisational planning in the future •Relevance in terms ofcomparing financial statements with the global reporting standards •The zero draft policy initiative has led to the development in areas where there is lack of access to health and medical technologies
Private and public entities adopting IR framework •Evident among private companies such asNovo Nordisk, BASF, United TechnologiesCorporation(UTC),AmericanElectricPower(AEP)and Phillips Electronics •Integration of financial and sustainability information in their financial report by private entities •Publicly listed companies have taken the assistance from dedicated IR officers (IROs) •IROs are responsible for monitoringIR approaches used by the company andcommunicatethesamebyconductingprivatemeetingswith shareholders
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Impact of IR framework on strategy and control during corporate reporting •Various corporate entities implement IR framework to have a better control and strategy implementation •Identification of important information with relevance to decision-making •More efficient operation of the business by identifying the risks and at the same time mitigating such threats •The implementation of mitigation strategies through IR can be notably discerned amongprivatecompanieslikeNovoNordisk,BASF,UnitedTechnologies Corporation (UTC), American Electric Power (AEP) and Phillips Electronics
Identification of six capitals having an impact on strategic management accounting •The adaptation of natural capital acts as a guiding principle for other capitals •Human capital is able to discern the changes which often involve identifying the remuneration of employees, internal events and external events •Intellectual capital is based on recognising the changes in intellectual property rights •Relationship capital is helpful in identifying and evaluating different aspects of requirement of capital needs which are interrelated •Social capital is designed with the factors which includes the effectiveness on how the social group are able to function in an industry with shared identity, norms, effectiveness, trust, cooperation, understanding and reciprocity •Financial capital is able to understand the significant scope of changes essential in disclosing any important information on financial parameters such as equity, liability recognition and sales revenue