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Purpose of Integrated Reporting in Business

   

Added on  2021-06-17

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Integrated Reporting 1ASSIGNMENT 2: INTEGRATED REPORTINGby (Name)The Name of the Class (Course)Professor (Tutor)The Name of the School (University)The City and State where it is locatedThe Date

Integrated Reporting 2Assignment 2: Integrated ReportingExecutive Summary Integrated reporting has become a fundamental concept in the preparation of reports in businesstoday. Integrated reporting pertains to the incorporation of the financial and non-financial. Thus,this report provides an assessment and evaluation of the main purpose of integrated reporting inbusiness. It also evaluates the main benefits associated with preparing an integrated report by abusiness. Furthermore, it attempts to explain two main Guiding Principles from the InternationalIR Framework such as conciseness and strategic focus and future orientation. Lastly, the paperevaluates the implementation and incorporation of these guiding principles in the 2017 annualreport by the Newcrest Company.

Integrated Reporting 31.0 Introduction Integrated reporting has become an important aspect in organization’s reporting. Primarily, it isthe process that results in communicating the value creation within a business over time. Overthe past few years, the market value of firms has moved from a price based mainly on tangibleassets to greater emphasis on the intangible assets (Krzus, 2011). As such, the definition of valueof an organization has deeply changed. Thus, the main purpose of an integrated report is toprovide a single report that fully integrates both the non-financial and financial information.Primarily, the non-financial information may include the social, governance, environmental,among other intangibles. It is noteworthy that this form of reporting has numerous benefits fornot only the firm but also its key stakeholders. One of the key benefits of using IR to incorporatethe financial and non-financial information of a firm is that it creates greater trust and credibilitywith the firm’s stakeholders, suppliers and customers. 2.0 Purpose of Integrated Reporting The main purpose of preparing an integrated report is to provide one report that fullyincorporates an organization’s financial and non-financial information to enable the reader of theinformation to better understand the cause and effect relationship that exists between the variousaspects of the company. Additionally, the report acts as a platform for a firm to furnish moredetailed data than what is available in other reports (Krzus, 2011). In addition, this form ofreporting aims at enhancing the quality and value of the data available to lenders of capital aboutthe business position. Furthermore, it aims at promoting cohesion and provides an efficientapproach to corporate reporting (The International IR Framework, 2013)2.1 Benefits of Integrated Reporting

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