Integrated Reporting In Australia Assignment PDF

Integrated Reporting In Australia 1
INTEGRATED REPORTING IN AUSTRALIA
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Integrated Reporting In Australia 2
Integrated Reporting in Australia
Abstract
The report aims to present analysis of integrated reporting in Australia. IIRC is the global
alliance of different investors, customary setters, regulators, accounting profession,
companies and NGOs. It usually encompasses entities or parties drawn from the wider global
communities comprising of the business as well as the other reporting firms, policy makers,
exchanges and regulators, providers of the financial capital, standard setters, academia,
reporting framework developers, civil society as well as accounting profession. Besides, it
was found out that IRC play a crucial role in promoting communication regarding value
creation in evolution of the corporate reporting. It was also found out that IIRC play a crucial
role in providing some guidance in preparation of the integrated reports. It helps different
entities in enhancing their contribution to SDGs, whilst minimizing corporate risks and
increasing chances which could arise from the sustainable development issues. Furthermore,
IR delivers clarification to different financial providers regarding how an entity generates
value. In addition, it was found out that the CPA findings were in line with the IIRC findings
in terms of materiality, shareholders relationship, conciseness, consistency as well as
comparability.

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Introduction
IIRC is the global alliance of different investors, customary setters, regulators, accounting
profession, companies and NGOs. It encompasses entities or parties drawn from the wider
global communities comprising of the business as well as the other reporting firms, policy
makers, exchanges and regulators, providers of the financial capital, standard setters,
academia, reporting framework developers, civil society as well as accounting profession
(García-Sánchez, and Noguera-Gámez, 2017). It recognizes that a large number of the firms
assist in supporting the global adoption of the integrated reporting through advocacy, profile-
raising and endorsement in their networks (IIRC 2017). With these considerations, the paper
aims to present the chief role of IIRC, the existing and potential role of the IR, the
comparison of the CPA and IIRC regarding IR, differences and similarities of the GPFR and
IR. The paper is then wrapped with comparison of IR of four major companies.
1. Role of IIRC
This IIRC is relevant in promoting communication regarding value creation in evolution of
the corporate reporting (Brown and Dillard 2014). It also aims at aligning corporate
behaviour and capital allocation to the wider objective of financially sustainable development
and stability via cycle of integrated thinking and reporting (IIRC 2017). The IIRC play a
crucial role in providing some guidance in preparation of the integrated reports. Furthermore,
the IIRC helps different entities in enhancing their contribution to SDGs, whilst minimizing
corporate risks and increasing chances which could arise from the sustainable development
issues (de Villiers, Rinaldi and Unerman 2014). In addition, IIRC play a crucial role in
creation of international integrated reporting framework as well as market testing to early
adoption and development by the reporting organizations across the globe. This assists in

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accomplishment of an expressive move to the timely acceptance of the IR framework which
is crucial in establishing some guidelines to oversee integrated report’s content (Stubbs and
Higgins, 2014). Besides, IIRC enable effective decision-making at the board level and also
assist in improvement of information available to the potential investors. Furthermore, IIRC
encourages a more integrated business practices and thinking (IIRC 2017).
2. Existing and Potential Roles of Integrated Reporting
Integrated reporting is a significant process that entails not only quantification or
monetisation of value in an entity at one point at a time but the value it creates or the effects
or uses on capital. It is a process that is mainly founded on the integrated thinking which in
turn results in periodic integrated report by a specific firm regarding creation of value over
and communications on features of the value creation (CPA Australia 2017).
The main role of IR is usually to deliver clarification to different financial providers
regarding how an entity generates value (de Villiers, Rinaldi and Unerman 2014). With these
considerations, this section intends to present some of the key role of the integrated reporting
in regards to provision of information which is crucial to stakeholders, comparability of the
reporting, usefulness of reporting, stakeholder’s engagement, users of reporting as well as
quality of reporting.
a. Providing information that is relevant to stakeholders;
The information contained in integrated reporting is beneficial to shareholders who are
mainly interested in the entity’s capacity to create value (CPA Australia 2017). Besides,
integrated reporting provides very significant information to different stakeholders in regard
to how their organizations’ are performing (Brown and Dillard 2014). Besides, integrated

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reporting is said to enhance well-timed communication of the future and current-oriented info
for the stakeholder’s decision-making, connectivity of the information, improved presentation
enriched communication which convey several cues in increasing shareholders personalising
and understanding information in order to match stakeholder increasingly information needs.
Besides, integrated is said to enable organizations effectively communicate with numerous
stakeholders, provide them with some detailed supplementary information that is closely
unified with concise IR, respond and analyse to the stakeholder’s information needs and offer
stakeholders with a better access to the online data, analytical and search tools (Tweedie,
Nielsen and Martinov-Bennie, 2017).
b. Stakeholder engagement;
Integrated reporting plays a significant function in assisting organization’s stakeholders in
engaging with their organizations. This is due to its cyclical power which looks at central
relationship in between reporting and the cyclical power as well as the relationship with
different stakeholders (Tweedie, Nielsen and Martinov-Bennie, 2017). It views reporting as
two sides both crucial in enhancing connectivity between stakeholders and their firms and
enhanced communication of the value creation. Integrated reporting enhances increased
interaction between an entity and its stakeholders since quality of the relationship with the
stakeholders is usually demonstrated via organization’s decisions, performance and action
and the ongoing communication. In fact, integrated reporting enhances organization’s
willingness in engaging with their stakeholders since it provides some insights into how the
firm understands, responds to and take into consideration of stakeholders’ legitimate interest
and needs (CPA Australia 2017). Besides, integrated reporting plays a crucial role in
engaging the stakeholders as well as developing the stakeholders’ relationship with their
firms. It also facilitate the ongoing engagements with the potential investors which is said to

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develop a close relationship with stakeholders by arbitrating distribution of the information
and decreasing information unevenness within the marketplace (Brown and Dillard 2014).
c. Comparability of reporting;
Integrated reporting plays a significant role with regard to comparability, transparency and
accountability (CPA Australia 2017). This is due to the fact that integrated reporting entails a
concise communication process on how a specific firm’s governance, strategy as well as
performance in context of the external environment resulting in creation of the value both in
long-, medium and short-term (Brown and Dillard 2014).
d. Quality of reporting;
Integrated reporting plays a crucial role in terms of quality of reporting. This is evidenced by
how integrated reporting has enhanced transparency in presenting different financial
information. Furthermore, by allowing the continuing arrangement with the potential
investors as well as other providers of the capital, integrated reporting adds to some
materiality which is required (de Villiers, Rinaldi and Unerman 2014).
e. Usefulness of reporting;
Integrated reporting is also crucial when it comes to usefulness of reporting (CPA Australia
2017). This is based on the fact that integrated reporting enhances environmental, social
governance and sustainability issues. In other words, integrated reporting is usually a concise
communication process on how an entity’s governance, prospects, strategy and performance
of the external environment result in creation of value of long, short and medium-term
(Brown and Dillard 2014).

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f. Users of reporting
The main role of IR is usually to offer clarification to different providers of the financial
capital regarding how an entity creates value (CPA Australia 2017). Integrated reporting
plays a crucial role to investors on value creation since it highlights what international
integrated reporting framework intends to deliver to potential investors as well as how it
assists in meeting their demands (Owen, 2013).
3. Comparison CPA Findings with IR:
a. Stakeholder relationships;
According to CPA reporting, integrated reporting is said to enhance timely communication
of the future and current-oriented information for the stakeholder’s decision-making,
connectivity of the information, improved presentation enriched communication which
convey several cues in increasing shareholders personalising and understanding information
in order to match stakeholder increasingly information needs (CPA Australia 2017). Besides,
integrated is said to enable organizations effectively communicate with numerous
stakeholders, provide them with some detailed supplementary information that is closely
interconnected with IR, respond and analyse to the stakeholder’s information needs and offer
stakeholders with a better access to the online data, analytical and search tools. Such
coincides with IR framework recommendation that IR should offer insights to quality and
nature of organization’s relationship with stakeholders including to what extent and how it
undertakes and responds to its interests and needs (de Villiers, Rinaldi and Unerman 2014).
b. Materiality;

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As per the section 2c and 2d integrated reporting is said to play a crucial role in identifying
challenges and risks which accompany internet technologies function in facilitating external
communication aspects of the integrated reporting which is said to contribute to research base
(CPA Australia 2017). Basically, integrated reporting ought to disclose relevant information
regarding some matters which substantively affect an entity’s capacity in creative value over
long-, short or medium-term. This is in line with IR framework that recommends IR has to
disclose relevant information on matters which significantly affect the firm’s capacity in
creating value.
c. Conciseness;
According to section 2d above, integrated reporting should strive to ensure that the
information should be transparent (CPA Australia 2017). These findings are in line with IR
framework which prescribes that the information should be concise (Owen, 2013).
d. Reliability and completeness; and
As per the section 2d and 2e, integrated reporting should be possess the character of
materiality and should enhance enhances environmental, social governance and sustainability
issues (CPA Australia 2017). This is in line with the IR framework that indicates that
integrated report ought to include all the material matters both negative and positive in a
more balance manner and without any material error (Tweedie, Nielsen and Martinov-
Bennie, 2017).
e. Consistency and comparability

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In line with the findings in section 2c and 2 d IR entails a concise communication process on
how a specific firm’s governance, strategy and performance in context of the external
environment resulting in creation of value both in long-, medium and short-term. In addition,
integrated reporting enhances transparency in presenting different financial information in
regard to comparability and consistency (CPA Australia 2017). This is in consistent with IR
framework which state that information in the integrated report has to be presented based on
the notion that is it consistent as well as in a manner that enhances comparison with the other
firms to level it is material to entity’s capacity in creating value (Owen, 2013).
4. Similarities and Differences Between
a. International <IR> Framework Versus General Purpose Financial Reporting
International IR framework is that framework that communicate on how different firm’s
strategy, performance, prospects and governance in context of external environment resulting
in value creation (Owen, 2013). The International IR framework is said to be utilized in
accelerating adoption of the IR across the globe. Besides, international IR framework applies
concepts and principles which are mostly fixated on fetching higher efficacy and consistency
to reporting as well as embracing integrated thinking as the means of breaking internal silos
as well as decreasing duplication (Brown and Dillard 2014). In essence, main drive of the
International IR framework is usually to create some guidance and satisfied elements which
are said to govern overall contents of the integrated report and in explaining fundamental
concepts which underpin the contents. In other words, International IR framework purpose is
to advance excellence of the information readily available to financial providers in order to
enhance more productive and efficient allocation of the capital. The framework is also crucial

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in creation of value and capital which is utilized by organization in creating value, and
contributed to more financially stable economy.
On the other hand, GPFRs is considered as a reporting procedure that makes and establishes
explicit concepts which are applied in development of IPSAS as well as Recommended
Practice Guideline. In other words, GPFRs are central components in enhancing and
supporting transparent financial reporting by the government and other sectors. They are
reports intended to meet information requirement of financial users who are mostly unable of
requiring preparation of the financial reports that is tailored in meeting their particular
information needs. The main objective of the GPFR is usually to offer relevant financial
information regarding reporting firms which is crucial to potential and existing lenders,
investors as well as other creditors useful in decision-making regarding provision of different
resources to the firm. In other words, the GPFRs is more important in provision of relevant
information to different users for decision-making and accountability purposes. GPFRs
provide better presentation of the financial information and provide more organized
information to financial information users. This results in better quality of the financial
reporting as a result of development in financial statements. Basically, GPFRs offer relevant
information to financial users for assessment of whether a specific firm provided its services
and products to the constituents in an effective and efficient manner, assessment of resources
presently available for the future expenses and to what level there are conditions or
restrictions attached to the use. In addition, GPFRs is crucial since it offer information for
assessment of what extent burden on the future taxpayers for paying for the services has
changed as well as whether an organization’s capacity to offer services has deteriorated or
improved in comparison to previous period.
b. Users of the Integrated Report versus Users of GPFRs

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The main users of the integrated report include investors, suppliers, employees, business
partners and customers (Owen, 2013). Investors make use of the report in assessing the
financial performance of the organization which is crucial in decision-making as to whether
the firm would offer investment opportunity to the investor (Brown and Dillard 2014). On the
other hand, the main users of the GPFRs include the governments, taxpayers, lenders,
taxpayers as well as other financial providers useful in provision of the financial services to
the citizens and some other recipients. Such users are answerable for use and management of
the resources to individuals that provided the resources and to individuals that rely on them in
utilizing those resources to provide significant services. Besides, the public sectors entities
are also important users of the GPFRs where the report is developed in response to
information needs of the resource providers as well as service recipients who do not have
authority in requiring the public sector firms to disclose information they require for
decision-making as well as accountability purposes. Furthermore, members of the parliament
and legislature are also crucial users of the GPFRs who are said to make extensive as well as
ongoing utilization of the GPFRs while acting in their place as representative of interest of
the resource providers and service recipients. Hence, the main users of the GPFRs are
resource providers, service recipients and their representative.
c. Integrated report concept of materiality Versus IASB CF concept of materiality; and
According to IIRC, integrated report ought to disclose relevant information on matters which
are said to significantly or substantively affect entity’s capacity in creating value over long-,
short- or medium-term (Brown and Dillard 2014). On the other hand, IASB CF state that
relevant information is material in case the misstatement or omission could influence
discharge of the accountability by a specific company or decisions which the financial users
make based on organization’s GPFRs prepared for the specified financial reporting.

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Materiality mostly relies on both amount and nature of item judged within specific situations
of every firm. The GPFRs might entail quantitative and qualitative information regarding
service delivery accomplishments within reporting period and projection regarding service
delivery as well as financial results within the future. Besides, according to IASB CF
organization preparing the GPFRs are said to consider materiality of application of specific
accounting policy as well as separate disclosure of specific items of the information.
d. Integrated report concepts of reliability, completeness, consistency and comparability
Versus IASB CF concepts of reliability, completeness, consistency and comparability
Integrated report represents evolution of the traditional reporting and is a communicative
document that should follow the following concepts in regard to reliability, completeness,
consistency and comparability (Owen, 2013). For instance, the IR framework recommends
that the report has to present information based on consistent over time and in a manner that
enhances comparability with the other firms to a level it is material to the firm capacity in
creating value (Lodhia and Stone 2017). It also recommends that the report should include all
the relevant material matters both negative and positive in a more balance manner and
without any material error which enhance completeness and reliability.
Contrary, the IASB CF concept attributes to making information useful to different users and
supporting accomplishment of objectives of the financial reporting. The IASB CF
recommends that the information contained in the GPFRs should possess characteristics of
relevance, understand ability, comparability, faithful representation, verifiability and
timeliness to enhance reliability, consistency, comparability and completeness of the
information presented therein. It recommends that information in the GPFRs should have
reliability feature in making the difference in accomplishment of the financial reporting. In

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addition, the information therein should have completeness feature and consistency which are
crucial features for future projection of the information in the report. Finally, the GPFRS
should have comparability feature which is crucial in depicting substance of underlying
transaction as well as other events. In fact, the GPFRs should possess quality information that
enables the financial users of the report in identifying similarities in as well as difference
between two phenomena.
5. Integrated Reports of Four Companies
Form IIRC (2018), it is evident that Banca Fideuram’s integrated report clearly identified its
stakeholders relationship with the firm. It identified its stakeholders as colleagues,
community shareholders, clients, suppliers and environment. In addition, the report outlines
some of the strategic finances of every stakeholders and figures mentioned for each
stakeholder.
On the other hand, DBS integrated report offers informative and accessible information
explaining how the firm creates value. Hence, with limited number of pages, integrated report
leave readers with some in-depth understanding of the DBS and clear sense on the manner in
which the firm create value. In addition, the report provides concise and reliable information
to investors and explains the company’s relationship with its stakeholders.
Vodacom integrated report on the other hand uses graphics in present the report; hence,
making it’s a concise report. In an open page, clear content is provided that is supplemented
with some site maps that clearly indicates where information could be found giving the
readers multi-channel for their report. There is also transparent discussion of the company on
assurance that acknowledges what the report how the report was received and how feedback
has been utilized.

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ESKOM integrated report on the other present brief description of a process for pointing out
material items in the report. The report also present bulleted summary of the resources that
are consulted during materiality determination processes. In addition, the report presents as
well as explains the company’ stakeholders’ materiality and relationship that maps the issued
based on their importance to the stakeholders and effect to the form. It also presents overview
of the company interaction with its stakeholders in strategic objectives and technique used in
interacting with the stakeholders.
6. Factors That Might Explain Similarities or Differences Identified in Analysis in
Question 5
Some of the aspects that could be used in explaining similarities and differences observed in
the question 5 above include differences in the company operations or activities over the
period. Another factor is the company’s overall profitability or performance of the specified
period of time. Additionally, the total amount of the resources or capital used by an
organization is another significant factor that could have attributed to the similarities and
differences observed in question 5.
Conclusion
To sum up, IIRC is the global alliance of different investors, customary setters, regulators,
accounting profession, companies and NGOs. It usually encompasses entities or parties
drawn from the wider global communities comprising of the business as well as the other
reporting firms, policy makers, exchanges and regulators, providers of the financial capital,
standard setters, academia, reporting framework developers, civil society as well as
accounting profession. Besides, it can be concluded that IRC play a crucial role in promoting
communication regarding value creation in evolution of the corporate reporting. The IIRC

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play a crucial role in providing some guidance in preparation of the integrated reports. It
helps different entities in enhancing their contribution to SDGs, whilst minimizing corporate
risks and increasing chances which could arise from the sustainable development issues.
Furthermore, it can be concluded that IR deliver clarification to different financial providers
regarding how an entity generates value.

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