IIRC and Integrated Reporting: Stakeholder Analysis in Australia

This report delves into integrated reporting, examining the role of the International Integrated Reporting Council (IIRC) and analyzing stakeholder information needs based on a CPA Australia report. It explores how integrated reporting addresses stakeholder engagement, financial reporting quality, and comparability. The analysis compares CPA report findings with integrated reporting principles, including stakeholder relationships, materiality, conciseness, reliability, completeness, consistency, and comparability. Furthermore, it contrasts the objectives of the International Framework with those of general-purpose financial reporting as defined by AASB and IASB. The report also compares the reporting frameworks of companies like MTN Group, HULAMIN LTD, DSM, and CEMEX to assess compliance with IR guiding principles, providing a comprehensive overview of integrated reporting's function and impact.

Running head: ADVANCED FINANCIAL ACCOUNTING
Advanced Financial Accounting
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
Introduction......................................................................................................................................4
Question 1........................................................................................................................................4
Question 2........................................................................................................................................5
Part A...........................................................................................................................................5
Providing information that is relevant to stakeholders................................................................5
Part B...........................................................................................................................................7
Stakeholder engagement..............................................................................................................7
Part C...........................................................................................................................................7
Comparability of reporting..........................................................................................................7
Part D...........................................................................................................................................7
Quality of reporting.....................................................................................................................7
Part E...........................................................................................................................................8
Usefulness of reporting................................................................................................................8
Part F............................................................................................................................................8
Users of reporting........................................................................................................................8
Question 3........................................................................................................................................9
Part A...........................................................................................................................................9
Stakeholder relationships.............................................................................................................9

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Part B...........................................................................................................................................9
Materiality....................................................................................................................................9
Part C.........................................................................................................................................10
Conciseness................................................................................................................................10
Part D.........................................................................................................................................11
Reliability and completeness.....................................................................................................11
Part E.........................................................................................................................................12
Consistency and comparability..................................................................................................12
Question 4......................................................................................................................................13
Identification and explaining the similarities and differences between:.......................................13
Part A.........................................................................................................................................13
The definition and objective of the International Framework with the definition and objective
of general purpose financial reporting as contained in the IASB or AASB conceptual
framework..................................................................................................................................13
Part B.........................................................................................................................................14
Part C.........................................................................................................................................14
Part D.........................................................................................................................................16
Question 5......................................................................................................................................17
Question 6......................................................................................................................................21
Conclusion.....................................................................................................................................21

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References and Bibliography:........................................................................................................23
Introduction
In this particular study, the functions of International Integrated Reporting Committee
are demonstrated by referring to the applicable accounting literature and IIRC websites. The next
section illustrates the roles of integrated reporting in relation to the engagement of stakeholder,
financial reporting quality, financing reporting comparability and by referring to the financial
reporting users. Results of CPA report have been compared in the current segment in association
with the guiding principles and such principles comprised of reliability and completeness,
relationship, comparability, consistency and conciseness. Later on, the comparison between the
objectives of general purpose financial reporting and international framework has been
demonstrated as mentioned in the conceptual framework of AASB and IASB (Cascino et al.
2017). Furthermore, comparison has been done between the reporting framework of two
companies that involves MTN Group, HULAMIN LTD, DSM and CEMEX. Such assessment helps in
valuating whether their reporting framework complies with the guiding principles of IR.
Question 1
The International Integrated Reporting Council was previously known as The
International Integrated Reporting Committee and was established in year 2010 with the
objective of creating a framework that is accepted at global level that has the consequence of

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creating communication that is with creating value for organizations. A cross section of
representatives from accounting, investment, corporate, civil society and standard setting sector
are brought together using the platform of IIRC. Such representatives comprises of a working
group, steering committee and a three task forces. IIRC is one of the coalition’s standard setters,
regulators and professions from accounting. The committee has the intention of bringing together
the development by way of conducting the internationally reported framework that is accepted
internationally (Randolph 2015). Creation of such framework will assist business in creating
concise communications of their information and thereby help in value creation and leading to
the corporate reporting evolution.
Question 2
Part A
Providing information that is relevant to stakeholders
The main interest of the stakeholders is having access of information that is relevant for
their investment decision making. For example, investors now a day are interested in gaining the
information relating to environmental issues and it is regarded significant in their investment
decision depicting the particular organization is socially responsible or not. Such stakeholders
have information requirement that are varied and extensive and it is not possible for a single
annual or strategic report to address such requirements. It has been ascertained by making
reference to CPA report and findings from literature review that for conducting research on any
particular organization, stakeholders derives background information by making reference to
such reports (Humphrey et al. 2017).

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Part B
Stakeholder engagement
Engaging directly with the companies or business is the primary source of stakeholders
for seeking relevant information. Engagement of stakeholders is considered as quite interesting
as they are able to gain information and are able to prioritize the information that they have
derived.
Part C
Comparability of reporting
The informational requirements of stakeholders such as environmental and civic
references cannot be met by the integrating reporting framework. At the same time, most of the
stakeholders have to face the issues relating to the matters such as timing issues, quality and
comparability at the same time (Scott 2015).
Part D
Quality of reporting
Integrated reporting quality is used as a platform for identifying some of the significant
variations as ascertained by the financial stakeholders. It is opined by some of these financial
stakeholders that there are loopholes in the integrated reporting framework as it does not account
for most of the case studies along with absence of narrations of the significance of issue and their
inability to set the target. In addition to this, it is also pointed out by the environmental

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stakeholders that the integrated reporting also lacks on providing information on matters such as
setting correct indicators in matters relating to environment such as providing headlines for some
environmental issues and information about making lending to the projects such as fossil fuels.
Part E
Usefulness of reporting
The decision making activities are conducted by stakeholders using the framework of
integrated reporting and in this regard, such report is considered as useful to investors. The
usefulness of integrated reporting comes with mixed views on part of stakeholders. The main
purpose of such integrated reporting framework is to highlight on the matters that are considered
relevant for the decision making purse by the stakeholders (Mayo 2017).
Part F
Users of reporting
The main users of integrated reporting are stakeholders and investors as such report make
a disclosure about the different views of the users and importance of the producers of report.

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Question 3
Part A
Stakeholder relationships
The information about the relationship of stakeholders with organization can be accessed
from the findings generated from CPA report. Such information’s are disclosed under the content
elements of performance that helps in explaining the relationship of stakeholders with that of
stake. In addition to this, integrated report also incorporates the relationship of stakeholders and
improved reputation of the corporate.
Guiding principles Integrated reporting Findings from CPA report
Relationships with the
stakeholders
Performance
Business
Stating stakeholder relationships
Part B
Materiality
It has been ascertained from the findings generated from CPA report that the business is
required to make disclosure of the information on matters relating to the environmental
performance, information on the change in climatic conditions and disclosure about carbon
emissions and the social impacts of their operations. Such information disclosure is regarded as

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relevant because of stakeholders found it important to get incorporated in their investment
decision making. Moreover, it is also sought by the stakeholders to make disclosure of the
information that have a material impact and disclosing the materiality concepts. There are many
organizations who provide stakeholders with the information about the operations if their
business activities (Iasplus.com 2018). Nevertheless, such information disclosure is not
considered as relevant unless the organization is a big user of energy or they are a power
generator.
The materiality concept is applicable and determined by organization from value creation
perspectives as evaluated from integrated reporting. Therefore, it can be inferred from the
analysis that the framework of integrated reporting should disclose the matters for which the
ability of business is impacted pre dominantly and intends to create value for long and short
term.
Part C
Conciseness
It has been evaluated from the findings of CPA report that the present information as
well as conciseness facts is praised by organizations largely. It was opined by one of the
reporters that potential information could not be accessed because of the level of detail presented
in the report (Richardson 2017). Moreover, the challenging task for reporters is to keep the report
in concise format that will help in treating complex business activities by gaining the access to
right business information.

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It has been found from the CPA report that the concise information’s could not be
rendered by most of the reporters. However, stakeholders are able to have an understanding the
process of value creation by providing sufficient context to readers along with the performance
of organization at different times.
Part D
Reliability and completeness
On finding the reports of CPA, we have noted that more than about 10 stakeholders have
interrogated about the how much the reports are reliable, whereas we can see that the integrated
reports also provides assurance and verification of the reports since it has been expected to
provide a helping hand in assuring some confidence to a few stakeholders as well. In case we
talk about the financial stakeholders, they are expected to find reliability in various forms as they
deal in developing a reliability score for feeding as the assessment begins to process. At the same
time we can note that other financial stakeholders expect the data which are provided should
even more reliable in nature, the information about the data should be complete which
consequently will result in distortion of the significant information.
In order to strike a balance in between the good and bad news together in case of
integrated reporting, there must be reliability and completeness, the principles of reliability and
completeness are found to be very motivating and encouraging as we can see that about 60
percent of the reports have used neutral factual language and also has managed to avoid depicted
as the managing and marketing tools. So as to bring improvement in conscience as well as the
reliability and completeness of the information it is significant to bring about the improved

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changes in the materiality determination processes, thereby enhancing the credibility of the
reports in the most proper way possible.
Part E
Consistency and comparability
Major arguments were raised by the stakeholders on issues related to the usefulness of the
integrated reports from the findings of the CPA reports which is found to be very helpful in
comparing the reports. On studying the integrated reports the consistency and comparability
means letting the comparisons to be made for a specified period of time with other business
enterprises.