Integrated Reporting and its Impact on South African Institutional Investment

Running head: ADVANCED MANAGEMENT ACCOUNTING
Advanced Management Accounting
Name of the Student
Name of the University
Author’s Note

1ADVANCED MANAGEMENT ACCOUNTING
Table of Contents
Introduction..........................................................................................................................2
Impact of Integrated reporting among organizations...........................................................3
Factors incorporating integrated reporting..........................................................................4
Shift in the attitude to the ESG among the investment companies......................................5
Reactions of the institutions investors for integrated reporting...........................................8
Perceived obstacles associated to the development of the IR..............................................8
Conclusion...........................................................................................................................9
References..........................................................................................................................11

2ADVANCED MANAGEMENT ACCOUNTING
Introduction
The concept of integrated reporting refers to the common interest of the global coalition
among the parties which are seen with improving the communication based on value creation
and evolution of corporate reporting. This is also based on listing of the contributions for the
sustainable development and financial stability. The main coalition comprises of the global
communities and entities along with the financial capital, policy makers, regulators and
exchanges. In addition to this, the main concerns considered under the IR framework is depicted
to be based on standard setters, civil society, and academia. The report aims to discover the
responses of the South African institutional investment in the community and identify the
position of the companies listed under Johannesburg Securities Exchange. The important
findings of the report have been related to the several aspects of Integrated reporting in South
Africa in 2012 as per viewpoints from South African investors (Flower 2015).
The analysis of the detailed interview process has been considered to find out the
important findings of the IR in South Africa. This report is further conducive in designing about
the respective theories which are associated to traditional and non-financial measures. The study
will also explore about the relevant concepts of IR and interpretive styles which are associated to
effective reporting standards. South Africa is considered as one of the first nations which was
known to introduce de facto on a mandatory basis. In addition to this, some of the different types
of the other mandates issued by the country relates to the economic and environmental
challenges. Moreover, both “Integrated Reporting Committee of South Africa (IRCSA)” (2011)
and “International Integrated Reporting Council (IIRC)” are seen to be acknowledging the
changes pertaining to the relevant culture of the country and reporting system (Thomson 2015).

3ADVANCED MANAGEMENT ACCOUNTING
Main components of Integrated reporting
The first components of IR in organizations is seen with examining the various perspectives
of the stakeholders and first set of IR. In this theory the country’s main formal investors have
responded to the IR project report and the way it needs to be dealt. The institutional investors in
general are considered as the primary users of such a report. The main aspect of the study will
examine the different form of the shifts in the attitudes of these investors based on the ESG,
which is prevalent in investment communities around the world. They are also considered as the
drivers of IR and the depictions are seen to be based their understanding of the obstacle to high
quality reporting (De Villiers, Rinaldi and Unerman 2014).
Secondly, the retention aspect of the study has been considered with the opinions of key
users for identification of the main points and its integration with the corporate governance
community. The important discourse of the study is also able to know about the various types of
the consideration which deals with the views of institutional investment community around the
world. In addition to this, the research has been able to provide an initial framework for
providing a detailed review of IR and publication of the frameworks issued by IIRC in 2013.
This has been further able to emphasize on the capital providers as per IR of the project. It needs
to be also seen that there is no effort made for the measuring up the quantum and quality of the
disclosures (Dumay et al. 2016).
Thirdly, the important areas of the report have also acknowledged the study which is
constrained to a single group of users. The perspectives of the report have been able to focus on
the comprehensive review pertaining to the development of the ESG and IR as per the analysis of
the results (Serafeim 2015).