International Integrated Reporting Framework: A Revolution in Reporting

The International Integrated Reporting Framework has revolutionized the process of integrated reporting. It aims to establish guiding principles and content elements for an integrated report. Integrated thinking is the central theme of integrated reporting, which helps organizations in maintaining a healthy bond between investors and stakeholders. The benefits of embracing the international integrated reporting framework are manifold, including better insights, clarity, and insight on business issues and performance.

[INTEGRATED REPORTING FRAMEWORK]
2018

Contents
Introduction.................................................................................................................................................3
Relevance of IR in the Contemporary Corporate World..............................................................................3
Conclusion...................................................................................................................................................6
Reference.....................................................................................................................................................7

Introduction
The international integrated reporting framework is a system aimed at taking the scientific and
crucial art of reporting to an all new level. The art of reporting was not standardised until the
advent of international integrated reporting framework. After the advent and implementation of
the same this extremely important and greatly applicable technique of reporting has begun to get
adopted all over the world at a much accelerated rate. At the very basic level, the integrated
reporting may be referred to as the tool focused on greater and much move valued virtues of not
only cohesiveness but also efficiency to the process of reporting which is already an extremely
important pillar on which the corporate world rest (Cheng, 2014).
Relevance of IR in the Contemporary Corporate World
The way the international integrated reporting framework aims at standardising the entire
approach of integrated reporting is simply by embedding a single but extremely efficient
methodology named integrated thinking which will act a means to cater all the necessary fuel
required to propel the engine driving the acceleration process of the integrated reporting. This
also helps in breaking down the internal miscommunications and silos and also helps in
rectifying the duplicity. The improvement in the quality of information received by the back end
(providers of the financial capitals and other clients of the organization using this framework of
integrated reporting) thus making available to them the facility of a more safe and distinctively
greater allocation of its financial capital so as to generate as much profit as can be.
Talking of allocation of capital and its being totally revolutionized by international integrated
reporting framework we must keep one fact at par which goes as follows, ‘ in order to develop a
financially stable world economy we must understand the role of international integrated
reporting framework in creating value and capitals used by the businesses revitalising the world

politics entirely’. The contemporary corporate world is the greatest and the very first beneficiary
of the international integrated reporting framework (De Villiers, 2014).
Talking about a very brief history of this framework, the international integrated reporting
framework was released after the extensive testing of the same. Adequate consultation and
feedbacks with real time feedback recording (along with a team monitoring the progress round
the clock) were some of the other steps taken into account while making the international
integrated reporting framework ready for the world. The businesses and organizations taken
under observation for the same were from all the regions of the world.
The vastness of the parent program referred to as the IIRC Pilot program can be estimated from
the very fact that the businesses from 26 countries had participated in the same. Again coming to
the basic need and vision of the international integrated reporting framework in today’s corporate
world, the very aim is quite basic and straight forward yet strong and inspiring intrigue. The
purpose of the international integrated reporting framework is to establish a set of guiding
principles along with the content elements which are the governors of the contents of an
integrated report on the whole. The task of explaining the fundamental concepts of the concepts
included in the contents of an integrated report (and also underlining the key points which are of
exceptional import) is also undertaken by the international integrated reporting framework only.
The integrating reporting simply enhances and betters the way organisations think, plan, design
their business model and in general, how organizations behave. The international integrated
reporting framework can be defined as a tool which enhances the way for integrated reporting
handles and operates through different organisations (Soyka, 2013).
The benefits of the international integrated reporting framework in the field of integrated
reporting and eventually its usefulness to the corporate world is simply far reaching. The process
of integrated reporting is used by some organizations as a means and also a medium of
communicating how exactly the creation of value done within a business firm. This is done by
clear; to the point a totally precise story depicting as to hoe the desired organizational goals of
value creation can be achieved. The process of integrated reporting also serves the corporate by
realistically transforming the entire thought process of the organizations. This is made possible
by educating the business firms about how to think holistically about their strategies and plans,
make the most key decisions in the most efficient way totally coordinating with the integrated

report of a particular business firm. With the same process the international integrated reporting
framework helps the organizations in maintaining a very healthy and strong bond between the
investor and the stakeholder and with the confidence of them by simply, realistically,
comprehensively and accurately managing the key opportunities and risks (Flower, 2015).
The most beneficial and practically useful feature of the international integrated reporting
framework is that it has transformed the process of integrated reporting to such an extent that no
matter the size of the business firm, no matter the vastness or the extensiveness of the
investment, this process can be used by all the different capitally sized organisations in building
trust in their religion. Be it any manager or owner of what so ever business firm or vast sized
organisations, securing the trust of the customers, suppliers, financial providers or any external
stakeholders is recognized by all of them, synchronously the task of utmost and paramount
importance. Using the process of integrated reporting as we know it today, which has been
transformed into its present shape by none other than the international integrated reporting
framework, the trust in business can be built by highlighting that what drives value in such a way
that it becomes totally comprehensible to the customers, stake holders, financial providers,
labour forces of any organizations (Eccles, 2011).
As aforementioned phenomenon of value creation states, understanding what value creation
actually means and what is needed to create value within any business is systematically
developed and taken care of by integrated thinking. Integrated thinking is the central theme of
integrated reporting as explained by the international integrated reporting framework. This aims
at and is solely based on breaking the internal silos and misunderstandings between the entire
internal structure of any organization or between the entire back ends of a business firm on the
whole. This is made possible by rectifying the data duplicity and making each and every internal
member of the organization acquaint by what makes it, what drives it and what are its
organizational or financial goals.
The better the understanding (of the internal members) of the key elements of the business, the
smoother runs the business. The understanding of risks and opportunities and that or governance,
strategies, business model in context of both the trends and the issues affecting the business is
included in the desired understanding (Stubbs, 2014). Integrated thinking also takes under itself
an organization which considers all the factors at once including the likes of resources

consumed, sort of relationship it relies upon in order to render itself in a comparatively easier
position to make decisions that will ensure the viability and resilience of that organizations to
adverse circumstances or difficult market conditions over time. The corporate world in its full
glory of running the integrated reporting can be totally framed of being blessed by the advent of
international integrated reporting framework. In a survey conducted between the corporations
which had already embraced the integrated reporting framework against those which didn’t, it
was found out that the organizations which did had a more well executed system and atmosphere
of integrated thinking and management (Committee of Sponsoring Organizations of the
Treadway Commission, 2013).
Also the clarity and insight on business issues and performance was far better and greater in the
case of the organizations which had embraced the international integrated reporting framework
versus those which did not. In the report it was clearly highlighted that the integrated reporting
provided greater insights and better and keener knowledge of the factors which drives the
business processes as per the findings of the management teams conducting the survey. The
benefits of embracing the path-breaking and revolutionary system known as the international
integrated reporting framework are not limited until here only. The management team
conducting the survey also found that the corporate reputation of the firms working on the basis
of the international integrated reporting framework also soared much higher than the latter
organizations. The system has also proved to be more beneficial for the users as well as the
preparers of reports by making the process of reporting more efficient and helpful for them.
Proper and apparent employ interaction was also evident in the former organizations (Adams,
2015).
The adoption of the international integrated reporting framework also leads to increase in
margins of an organization which is the most important and significant achievement of the
process however the report suggests that the margins’ increment takes time to show up.
Conclusion

Conclusively, it is evident from several reports, observations and experiences that the adoption
of the international integrated reporting framework is of utmost importance and manifold
benefits for the organizations adopting it. The previously existing process of integrated reporting
which was, in itself, of extreme benefits to the organisations has been enhanced to an
unbelievable limit by the international integrated reporting framework.
Reference
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