Integrated Reporting in Australia Answer 2022

Running head: INTEGRATED REPORTING IN AUSTRALIA
Integrated Reporting in Australia
Name of the Student
Name of the University
Author’s Note

1INTEGRATED REPORTING IN AUSTRALIA
Table of Contents
Answer to Requirement 1...........................................................................................................2
Answer to Requirement 2...........................................................................................................3
Answer to Requirement 3...........................................................................................................4
Answer to Requirement 4...........................................................................................................5
Answer to (a)..........................................................................................................................5
Answer to (b)..........................................................................................................................6
Answer to (c)..........................................................................................................................6
Answer to (d)..........................................................................................................................6
Answer to Requirement 5...........................................................................................................7
Answer to Requirement 6...........................................................................................................8
References................................................................................................................................10

2INTEGRATED REPORTING IN AUSTRALIA
Answer to Requirement 1
The inception of the International Integrated Reporting Council (IIRC) could be seen
in August 2010 and the main aim of its development was to bring an internationally
acknowledged framework in picture with the intention to communicate information on the
value creation processes of the business (iasplus.com, 2020). The IIRC reconciles a cross
section of agents from different sector such as investment, corporate, securities, accounting,
standard-setting and academic; and all these led to the development of a Steering Committee,
a three taskforces and a Working Group responsible for dealing with different aspects such as
engagement and communication, development and governance. The long-term vision of IIRC
is the implantation of integrated thinking in the conventional commercial operations in both
the private and public sector; and Integrated Reporting <IR> facilitates this long-term aim of
IIRC through the standards of corporate reporting. It requires to be mentioned that there are
certain guiding principles that have been provided by IIRC with the aim to prepare the
integrated reports by ensuring the disclosure of all material aspects associated with the five
capitals necessary for organizational value creation (integratedreporting.org, 2020). There are
certain specific roles of IIRC and they are mentioned below:
o The role of IIRC is seen in enhancing the quality of information obtainable to the
financial capital providers with the aim to ensure allocating capital in a more effective
and dynamic manner.
o Another role of IIRC is the delivery of a more consistent as well as well-organized
method of corporate reporting through taking into consideration various reporting
factors having material influence on the capability of a company for the creation of
value (Stacchezzini, Melloni & Lai, 2016).
o IIRC aims at improving both stewardship and accountability for main five types of
capitals for promoting comprehension of their interdependencies. These capitals are
financial, manufactured, human, social and relationship, intellectual and natural.
o One crucial role of IIRC is observed in extending its backing towards integrated
thinking, decision-making and actions that are used by the organizations for the
creation of long-term, medium and short-term values.
o One key role of IIRC is to reach to an agreement among business organizations,
listing authorities, governments, investors and accounting bodies associated with the

3INTEGRATED REPORTING IN AUSTRALIA
development of the best solution for handling the challenges of Integrated Reporting
(Adams, 2015).
o IIRC has the major respobslity to recognize and comprehend the areas with priority
whereas there is a requirement for additional work so that a proper plan of
development can be developed and implemented.
o One major role of IIRC is the improvement of such framework for Integrated
Reporting that specifies the scope as well as major mechanisms associated with the
Integrated Reporting Frameworks.
o It is a primary of the committees in IIRC to take into consideration the areas where
there should be implementation of integrated reporting on voluntary basis.
o Lastly, IIRC has the responsibility of promoting the adoption of Integrated Reporting
by the required regulations as well as preparers of reports (Adams, 2015).
Answer to Requirement 2
a. Providing information that is relevant to stakeholders – Different stakeholders seek
information having relevance to the work they do; such as environmental stakeholders pursue
information that is associated with the environmental issues where financial stakeholders
seek information on various financial matters. Integrated reporting put all this information in
a single report that is useful for different types of stakeholders. However, integrated reports
cannot be viewed as the main source of information (cpaaustralia.com.au, 2020).
b. Stakeholder engagement – To the stakeholders, integrated reports are not regarded as the
primary report for engaging with the companies as direct engagement with the companies is
considered as the main information source. However, integrated reports are largely used by
most of the stakeholders for checking the background information of the company in order to
engage. Integrated reports works as verification tools to the companies to verify the
information (Frias‐Aceituno, Rodriguez‐Ariza & Garcia‐Sanchez, 2013).
c. Comparability of reporting – Integrated reports of different companies have different
structures as the companies prepare them in totally different ways. This contributes to the
lack of comparability of the information in the integrated reports. This lack of comparability
does not concern the environmental stakeholders, but the financial stakeholders are largely
affected with this lack of comparability of information (Mio, 2016).
d. Quality of Reporting – Issue have been raised that integrated reports fails to include the
right indicator as this focus in the headlines of the issues that require less information. In