ACC303 Advance Management Accounting: Integrated Reporting Framework

This essay explores the relevance of the Integrated Reporting Framework in the contemporary corporate world, particularly in light of the initiative by the International Integrated Reporting Council (IIRC). It highlights the potential of the IR framework to provide credible short, mid, and long-term visions of an entity's impact on wealth trajectories. The essay also touches upon the significance of integrating strategic information related to financial, manufactured, intellectual, human, social and relationship, and natural capitals. The example of Wesfarmers Ltd, an Australian listed company, is used to illustrate the practical application of integrated reporting. The importance of sustainability goals, such as addressing poverty, gender equality, health, and climate change, is emphasized in the context of value creation and long-term business sustainability.

Advanced Management
Accounting

Introduction To Integrated
Reporting
• Integrated reporting framework was developed which ensured that
the reports which were prepared by the management of the company
had various aspects of sustainability and value creation covered in the
same (De Villiers, Rinaldi and Unerman 2014).
• The company which is selected for this purpose is Wesfarmers ltd
which is one of the listed companies which is in Australia.
• The major benefit of implementing integrated reporting framework is
that the same can assist in internal decision-making process and help
the business to maintain long term sustainability in the business.

Introduction To Integrated
Reporting (Continued)
• The company has adopted some of its own goals for the
purpose of meeting the sustainability requirements and
for the purpose of creating value for the organization.
Some of the major goals covers certain major issues such
poverty, gender equality, hunger issues, health and
hygiene and climate changes.

Six Capitals
• Financial Capital: The financial capital depicts the money or funds which
is used by businesses for meeting the obligations of the business on day to
day basis and also financing different activities of the business. The
financial capital is invested in a business so that the management can
generated revenues from the activities which are conducted by the business.
• Manufactured Capital: The manufactured capital represents the
purchased or manufactured products of the business.
• Intellectual Capital: These types of capital also forms an integral part of
the business and refers to the innovations and developments which are
brought about by the management of the company.

Six Capital Continued
• Human Capita: The employees and staff who are working the
organization forms part of human capital of the business. This type of
capital closely analyses relationship which is established between the
employees of the business and the management.
• Social and Relationship Capital: This capital expresses the
relationship which is established by the business with the external
stakeholders and community at large.
• Natural Capital: The nature capital comprises of natural resources
which is used by the management for the purpose of ensuring that the
management is able to maintain its operations.

Thanking You